Types of collateral
- Investment property – This is real estate you’ve purchased to earn a return on the investment, either through rent, the future resale of the property, or both. An investment property can be a long-term endeavor, such as an apartment building, or a short-term investment where you buy and remodel the property and sell it for a profit.
- Income property – This is real estate you’ve developed or improved to produce income through renting, leasing or price appreciation. It can be residential (or "non-owner occupied") or commercial.