Part 1: Don’t be easily Swayed by your Bank.
A COMMON piece of advice given by mortgage brokers to Commercial property investors — at least, by astute brokers — is to keep securities for each loan separate. In other words, any form of Cross Collaterization (as it’s known) is to be avoided at all costs.
So, just what is Cross Collaterization; and why is it so bad?
Put simply, it is the combining of one mortgage registered against two or more properties (or sometimes even your business) as security. [Read more…]