C - Collateral: how good is the collateral or the property?

The deals, on any deal is generally financed with assets other property used as collateral asset.

Basically, the collateral they have is that they have first access to all money to satisfy your debt after your seller's closing.  

If you only have a portion of $X and you wish to use the property as collateral for the portion needed, that is a purchase money mortgage.  

Are there any usury laws that are applicable, some states have usury laws on residential properties regardless of it being owner occupied or not.They also have collateral issues with "junk houses" frankly, banks can take a bath from foreclosures on some 20K house, who would buy it?

If the lender/servicer forecloses on the note, then there is no more note (because they now have the collateral that was securing the note).

I'm sure collateral helps too.

But, if Ky walks up to me on a property I own and wants me to finance 50% and get a loan for the balance, Ky is going to need some strong financials, possibly other collateral, a track record of management as well as a good credit history and cash flow shown off the deal.

If you don't have collateral, then there's nothing to loan against or to mitigate the risk of the lender.Do you have an income stream?

I usually use lenders/investors who use the property even if seller carry/owner financing as collateral or down payment but the lenders I have don't lend in TN.