From: John P
Hi guys, I am looking for another IP but now that I feel I have a bit more experience, i am making the extra effort to ensure that my finances are structured in such a way that my money is working as hard as it can.
Here are my 2 options as I see them:
Option 1
Put previous P's down as security in order to have cashless deposit is no problem - I've got plenty of equity. What I don't like about this option however is that it will be encumbered. I don't like this idea because obviously, in the worst case scenario (Which is highly unlikely) bank could foreclose on one or more IP's. The advantage is that it means I don't have to dip into my line of credit.
Option 2: Access my LOC for deposit and legals and therefore avoiding having to use previous IP's as security. My reasoning here is that if, again, the worst case scenario comes along, the bank cannot touch the previous IP's. Now, to a chuck a spanner in the works, a lender from a well known institution told me that :"even if you do this the banks can still get you"!!!
So my question is, in the 2nd scenario, how much harder would it be for the banks to "get you"???
Looking forward to your responses
John_P
Hi guys, I am looking for another IP but now that I feel I have a bit more experience, i am making the extra effort to ensure that my finances are structured in such a way that my money is working as hard as it can.
Here are my 2 options as I see them:
Option 1
Put previous P's down as security in order to have cashless deposit is no problem - I've got plenty of equity. What I don't like about this option however is that it will be encumbered. I don't like this idea because obviously, in the worst case scenario (Which is highly unlikely) bank could foreclose on one or more IP's. The advantage is that it means I don't have to dip into my line of credit.
Option 2: Access my LOC for deposit and legals and therefore avoiding having to use previous IP's as security. My reasoning here is that if, again, the worst case scenario comes along, the bank cannot touch the previous IP's. Now, to a chuck a spanner in the works, a lender from a well known institution told me that :"even if you do this the banks can still get you"!!!
So my question is, in the 2nd scenario, how much harder would it be for the banks to "get you"???
Looking forward to your responses
John_P
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