Answer:
1. Collateral
2. Tax
Explanation:
In the eyes of a lender, when financing a residence, the advantages that an investor have over owner-occupied borrowers include the following:
1. Collateral: The investor can use the property he is financing to erve as a collateral for the loan he is taking out, but in owner-occupied properties, the collateral for the loan is not solely on the value of the property.
2. Tax: The interest on the loan taken by the investor is seen as a business expense and is treated as tax-deductible just like all corporate loan interests but the owner-occupied loan interests are not tax-deductible.
