Similar in many ways to residential loans, commercial mortgages require far more paperwork. Both types of loan require that properties being purchased undergo a thorough appraisal. Both require collateral to secure loan and protect lender against default.

Like residential mortgages, commercial mortgages can be refinanced to take advantage of more favorable terms, or they can be re-mortgaged to establish a line of credit to use for running business. And like residential mortgages, lender will hold deed to property until such time that loan is repaid in full.

During that time, lender makes money off interest on loan. If borrower fails to make payments on commercial loan, lender has right to initiate foreclosure proceedings and take property. Remember, property likely is what will be used as collateral. The interest paid on commercial mortgage usually is tax deductible; just be sure to consult with a professional first.

When you apply for a commercial mortgage, you will typically be offered two different types of loans: fixed rate loans and variable rate loans. These work same as they do for residential mortgages.

When you invest, you are paying in a certain amount of money that you expect to grow with time. Most investments are considered long term investments meaning you will not get your money back right away but if you leave your money in, it can multiply dramatically over time. Types of Investing: Real Estate Investing, Bonds, Stock Investing, Mutual Funds, 401K. With stock investing, many of younger investors see market as a way to get rich quick. They are quick to sell off stock that they have when it goes up or if they see it go down a little, they get nervous and sell it off. If they hold investment and ride it out, they are much more likely to see it grow.

If you are going to be investing, key to success is asset allocation. You need to vary your assets by investing in more than one type. So just how do you do this exactly? Well, you need to know what 4 major types are first.