All Topics / General Property / Downside of Cross Collateralised Loan

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  • Profile photo of TongTong
    Member
    @tong
    Join Date: 2010
    Post Count: 14
    November 4, 2010 - 3:50 pm

    Hello Everyone,

    As I am starting to look for my first investment property, I realize how little I really know and how much there is to learn out there.

    I want to start this topic to discuss the potential downsides of cross collateralising when it comes to obtaining bank loans. I think one of the difficulties is the additional costs to valuate all the properties that are a part of the one loan.

    I am hoping to shed some light on why one should not structure a loan with the properties cross collateralize.

    Thank you,
    Tong

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 5, 2010 - 6:25 am

    Hi Tong

    Drop me an email and I will email you a list of the reasons why you would C/c.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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