personal guarantee

Performance Property Real Estate Question

3 Kinds Of Real Estate Collateral

Q: I’m trying to pull some money out of one of the properties I own. Do I have to provide collateral to get the money? Sam, Kenilworth, NJ A: Let’s start by defining what collateral is. Collateral is something of value used as a pledge by a borrower as a guarantee to repay a loan. 3 Types of Collateral: Mortgage note Assignment of Rent Personal guarantees Mortgage Notes: In the event of a default, the property the mortgage note is associated with can be liquidated to offset the lender’s loss. Assignment of Rents: Assignment of rents is an arrangement that guarantees a lender or investor the rights to income generated through the lease or rental of the associated property if […]

continue reading