When you have multiple mortgages on multiple properties, is it best to use
one lender or to spread them out. What are the pros and cons?
Well, if you are putting them in LLC, which could trigger due on sale, then I would spread them out. However, I have all my mortgages between two banks, and my residence on another one, it does make it easy sorting the mail since all the rentals are paid out of one account, and my house out of another.
Depending on how it would fit your strategy you could always put some or all of your properties under one loan, particularly if you want to hold them in LLC, since multiple properties might make it easier to qualify for commercial lending which is generally done to LLC. This is a point where a trip to a few local banks & credit unions might really pay off.
I don't think it matters all that much in this day and age. From a convenience standpoint it would kind of be nice I suppose. One ph#, one website. However, from a risk management standpoint, one lender knows all your business and one lender could face challenges. If your one lender bets wrong on the direction of rates or underwrites a large non-performing portfolio they could get a hair and start doing weird things. Personally I spread my borrowing and insuring out a little bit where I can. Good question @Raylor G. !
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