
When I’m reviewing a pre-existing structure for clients who I’m providing advice to for the first time, I commonly uncover that their lending is cross-collateralised. (A practice where all lending is secured by all properties). Its rare I would provide advice for this type of structure as generally it takes flexibility away from a client. For example; *** You have property A worth $1M with an $800K mortgage. Then you have property B also worth $1M and also with an $800K mortgage, all loans are at 80% of property values….