Thank you for visiting us.
This is conspi public relations.

This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.Episode 43: Boost your quality of life with real estate management!I would like to send you the contents.

Today's topic is"Joint Security"is about.

What is joint collateral?

When purchasing income-generating real estate using a loan, the financial institution will require "joint collateral" as a condition.
It is called "kyotan" for short.
Some of you may have already given gifts, while others may not have been asked to provide any specific conditions.

The general definition is that it refers to establishing a security interest in real estate other than the purchased property as collateral for a single debt.

What is a joint lien in investment real estate?

This topic comes up in investment real estate lending when the collateral value of the property being loaned to is not enough to cover the desired loan amount, and the addition of a co-guarantor can increase the loan amount.

There may be a gap between the loan amount and the desired amount, and it may be necessary to cover the gap entirely with your own funds, or it may be necessary to cover it with a co-insurance provider in order to reduce the contribution of your own funds.

To put it very simply, if the property you are trying to purchase does not have enough collateral, the role of a co-guarantor is to increase the loan amount or make it easier to obtain a loan by supplementing it with other real estate you own.

Conditions for using joint collateral

However, this does not mean that all of the properties you own can be used as joint mortgages.

For example, it is often the case that the company is not even deemed to have sufficient collateral capacity in the first place.
There is still a large remaining debt and another financial institution has a first mortgage on the loan.

From experience, if you own a condominium unit with an outstanding loan balance, it is most likely that you will not be considered a joint owner.

Also, depending on the financial institution to which you are applying for a loan, the area in which the property is located may also be a factor, so even if you have an unsecured property for which you have paid off the loan, if it is outside the applicable area, it may not be counted as co-guarantor.

Is it better to provide a joint guarantee?

Now, when reading columns and articles on the internet about co-teacher relationships, you will find both opinions that say "it's better to have co-teacher relationships" and "it's better to avoid them."

So which one of these is correct?

Some of the articles were clear position statements, while others expressed opinions that seemed highly objective.

Honestly, all I can say is that this is a matter of individual judgment.

For example, the yield is extremely good and the hardware is in good condition.
Let's say you come across information about a property that has the potential to be a good investment overall.

If they didn't put their hand up quickly, someone else would definitely raise their hand, so the loan conditions were made such that they would have to be a co-insurer.

The disadvantages of joint liability include the fact that once it is made a joint liability, it can be difficult to remove it later, or it can be difficult to sell the property separately.

Even after objectively considering these disadvantages, if it is still felt that the property should be purchased even if it requires the use of a co-insurance provider, then a co-insurance provider would be appropriate.

Summary of joint security

It may be difficult to measure everything quantitatively, but if you compare the loss that would be incurred by putting an unsecured property, which there is no reason to rush to sell, as a joint mortgage with the profit that can be made from the property you are purchasing, and you can determine that the latter is greater, then there is probably no reason to completely reject joint mortgages.

Not just shared responsibility, but any system or mechanism is not 100% "good"; they have both positive and negative aspects.

In fact, the simplest and most important thing is to understand all of this and then be able to make a calm judgment.

Learn about real estate management

If you likeConspirit official channelPlease also take a look.
Please subscribe to the channel and give us a high rating!
Well then, it was Conspi PR!