(if this is what you meant, how did you qualify for this amount with no collateral)did I read in to the phrase and it was neither, just a loan on the property?

Thank you Houston, Texas (suburb, Alief, TX) for my 1st real estate transaction.The Houston economy was so bad, I talked a local bank (who was a client of mine) into making me this very small loan and I would put up the condo as collateral.

I will be asking the banker this but want to survey before I do.Has anyone used their equity as collateral in an acquisition, but not via a HELOC?

The rents and leases are already pledged as collateral to the first position mortgage holder.

My credit is horrible so I don't know if I can even use it as collateral to secure a private loan for the earnest money deposit.

As of today, he still owes the loan on the condo he collateralized.

C-B class area.Purchased: $785.00rehab est: $55k (including Murphy's law)ARV: $95k-$110k (based on 6 comps)Timeline est: 4-6 mo.i'm just asking if anyone has an idea i could implement or a lender or interest in funding this project to help me get my business moving during this stall. and before the wolves come out of the woodwork suggesting repetitive things lets cover some of my stats.credit: 550 and scarred = normal lending out of question.Friends and family: already tied up in projects or strapped financially.Partners: Have their money tied up for 2-3 yrsCash on hand: $1500 (and dwindling)Assets: $370k in collateral real estate.Flip exp.  6 flips with partners and family managing contractors and deadlines -   0 solo Wholesaling: would turn to small of a profit and it would be better letting it go back to the county.so as we can see my odds are not good but i am pushing and fighting tooth and nail to do this because i know i can complete the project and turn a profit i just need the gas to make this thing go. 

How do you get private funding for these type projects with the projects collateral standing for themselves.

I would if I solely think like a hard money lender and focus on the upcoming project as collateral and see the potential with that one.

think of it in terms if who has the “mortgage” on the property. if you buy a house cash, there is no mortgage. if you then want to pull that cash out, you do so against the value of the home. that cash isn’t free. a bank or lender will give you that money using the house as collateral. you then begin making mortgage payments. second scenario,lets say you buy a 100k house and put down 20%. abc bank gives you the other 80k to buy the house. your mortgage is 80k. you then have mortgage payments from the time of purchase. assuming all is well, time passes, the house appreciates to 200k, and you qualify as a borrower. you then think to yourself okay, i want refinance and pull cash out of the house. most banks and lenders will give you 75% of the value, or in the case off 200k, you can access 150k of that value. but the doesnt mean you get 150k, because you still have the original mortgage to pay off. at closing, they will pay off the original 80k mortgage, and you will keep the difference in cash. for simplicity’s sake, the above would net 70k in “cash out”. you now have a mortgage on the property that is 150k, and the original mortgage of 80k will be considered “paid in full”