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The risk is always with the borrower. Very few investors buy an IP with a significant pos cashflow from day one; certainly not enough to support them if they lose their job for some reason. Unless the borrower is buying in a boom (and even then there is no guarantee), there is more risk...

I'm one of the proponents of avoiding it as much as you can. There is nothing actually wrong with doing it; it will allow many to accelerate their acquisitions. But to me; if the Bank won't lend you the money unless someone else gives them insurance for their risk, then what does this tell...