Even the guys that do collateral lending get spooked by foreclosures, especially funding a redemption period retake knowing they could be next if you dont pay them...get the numbers attractive enough you might find some private lenders to pull the trigger, but I'd even cringe at that one and I'm a risk taker. 

Ask the flipper/investor to put up collateral. 

He said your credit score needs to be at least 730+ and even if you just recently set up your LLC, you can borrow up to 50K and no collateral is required.

I'm sure some really smart guys will jump in and answer this, but my understanding is that Dodd-Frank is concerned with lending to people using the property you lend on as collateral.  

I would go for paying the property off if you can, then if needed use it for collateral for buying the next house. 

You don't need large cash reserves if you are willing to use the house for collateral.

You would be better served with a line of credit for the purpose of real estate investing with your rental as collateral.

@Joe DaigleSeeing a lot of overpriced assets with a lot of collateral issues.

Having an attorney in that state is also good in case you have questions about a specific note/collateral.2) When you have to foreclose, which happens a lot with NPNs, then you'll very often end up with the house if no one bids on it at foreclosure auction.

The seller wants to move forward, and I talked to a local banker about a collateral-based loan as Plan B, just in case the note is called.