Look Who it Was Random video

Pros and cons of Cross-collateralisation

3,913 views · Published 29 May 2014 · 5:47 · Indexed 3 October 2026

Channel: B.Invested · 2014 · Education

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Hey guys and girls it’s Nathan Birch from Binvested.com.au and I am here to talk to you about cross collateralization, it’s a bit of time twister and it can get you into trouble, so make sure you understand what that word is and make sure you understand the pros and cons of being able to do it. I have seen people get talked into it, I think you should avoid it as much as possible, sometimes it can be okay, if it gets you out trouble. But it’s not a good thing and it’s something that once again if you been watching negotiation videos, you probably seen negotiation between yourself and the back to be able to build your portfolio.

From our side of things, things that I have seen really bad is when you cross collateralized a property what you find is that, for instance you got two properties, they both worth $300000 today one probably goes up by $50000 one probably goes down by $50000 the bank can order you to do valuation for both of them, you can sell of one some of them and have some money in the air. The fact is re-evaluating the other they tie together and they cross together you got some make.  In the position to share my information today to help you from getting stocked, these are sort of things that I have learn, when I first start investing I went to a bank I am not mentioning the name but could not understand the product they sell. They put me in this single portfolio home, because it was fantastic, it just had one bank statement, one repayment coming and all this stuff.

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