Need help!! Blanket loan on 10 properties.

Riverside, California
Mortgage Brokers & Lenders
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Need help!! Blanket loan on 10 properties.

Carlos Handler
Member since 2022 · 19 posts · 17 votes

Hi everyone! I need some help. I have a few options. I’m thinking about selling 10 properties in Southern California. Im not sure if they would even sell. 

Option 2 would be to get a blanket loan on all the properties and take out the equity on them. Has anyone done this before? Does anyone know any lender that does this? 

I would like to take my funds and invest out of state. Missouri, Arkansas 


thank you in advance! -Carlos 

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Wyatt WolffPro Member
Lender · Charlotte, NC · Member since 2019 · 467 posts · 279 votes
2y

You'd probably be talking about a portfolio loan. Plenty of lenders do them, no problem. What dollar amount are you looking at? 10*40k properties @400k total is a lot different than 10*400k @4MM value 

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  • Wyatt WolffPro Member
    Lender · Charlotte, NC · Member since 2019 · 467 posts · 279 votes
    2y

    You'd probably be talking about a portfolio loan. Plenty of lenders do them, no problem. What dollar amount are you looking at? 10*40k properties @400k total is a lot different than 10*400k @4MM value 

    [email protected]
    2Reply
  • Dustin Lauer
    Lender · Orlando, FL · Member since 2016 · 340 posts · 115 votes
    2y

    Carlos you could do a blanket loan or single asset loans / combination of both and/or sell some them.  Plenty of options available.  Investing in MO and AK has worked out well for a lot of folks over the last few years.  Best of luck to you! 

    0Reply
  • Carlos Handler
    OP
    Member since 2022 · 19 posts · 17 votes
    2y

    Hi Dustin,


    I have never heard of an asset loan? Just looked it up. Do you do these? Let’s connect.

    0Reply
  • Carlos Handler
    OP
    Member since 2022 · 19 posts · 17 votes
    2y

    Maybe what I need is to connect with an investor in the Missouri/ Arkansas area. I have a great broker in California who does hard money and regular loans and DSCR. I need to connect with some like that. I think sooner is better. I have put my homes up for sale.

    0Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    2y
    Quote from @Carlos Handler:

    Hi everyone! I need some help. I have a few options. I’m thinking about selling 10 properties in Southern California. Im not sure if they would even sell. 

    Option 2 would be to get a blanket loan on all the properties and take out the equity on them. Has anyone done this before? Does anyone know any lender that does this? 

    I would like to take my funds and invest out of state. Missouri, Arkansas 


    thank you in advance! -Carlos 

    One thing to know, when you do a portfolio loan (cross collateralization), if you run into a financial downturn in the future and can't make a couple of payments, sometimes the lender can force the entire portfolio into foreclosure. Since the loan is based on the entire portfolio, they can prevent you from selling a property to satisfy the default. And, you're stuck. You may be better off having two or three loans against two or three properties each.



    0Reply
  • Alex Hunt
    Lender · Member since 2022 · 441 posts · 134 votes
    2y

    Hi Carlos, 

    Have you considered doing separate loans for each property instead of a blanket. This would help you avoid any fees in you want to break the portfolio. Either way feel free to send me a DM and I can help take a look at some options for you.

    0Reply
  • Logan Singleton
    Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
    2y

    Beware, some blanket loans, despite having a partial release clause, will still mandate you pay 120% of the original individual loan amount back to the blanket upon sale. They tend to have higher DSCR ratio requirements than individualizing the properties.

    0Reply
  • Ryan Blackstone
    Real Estate Broker · Fayetteville, AR · Member since 2017 · 375 posts · 240 votes
    2y

    @Carlos Handler I would back up and ask, what is your goal? For example, one of our clients wanted out of the west coast and sold all of her property and bought here in Northwest Arkansas. She did this because she didn't want the headaches that come from the tenant friendly laws. In that case, I would sell and buy here. 

    Another investor of ours wanted to grow their portfolio and their goal was to diversify out of the west cost. On one of their apartment buildings that they owned in cash, they pulled a loan out on a cash-out refinance and bought property here in cash. 

    So, I guess what is your goal?

    1Reply
  • Nathan Frost
    Rental Property Investor · Wichita Falls, TX · Member since 2018 · 353 posts · 80 votes
    2y
    Quote from @Account Closed:
    Quote from @Carlos Handler:

    Hi everyone! I need some help. I have a few options. I’m thinking about selling 10 properties in Southern California. Im not sure if they would even sell. 

    Option 2 would be to get a blanket loan on all the properties and take out the equity on them. Has anyone done this before? Does anyone know any lender that does this? 

    I would like to take my funds and invest out of state. Missouri, Arkansas 


    thank you in advance! -Carlos 

    One thing to know, when you do a portfolio loan (cross collateralization), if you run into a financial downturn in the future and can't make a couple of payments, sometimes the lender can force the entire portfolio into foreclosure. Since the loan is based on the entire portfolio, they can prevent you from selling a property to satisfy the default. And, you're stuck. You may be better off having two or three loans against two or three properties each.




     I am currently in this situation what is the best solution?

    0Reply
  • Nathan Frost
    Rental Property Investor · Wichita Falls, TX · Member since 2018 · 353 posts · 80 votes
    2y
    Quote from @Logan Singleton:

    Beware, some blanket loans, despite having a partial release clause, will still mandate you pay 120% of the original individual loan amount back to the blanket upon sale. They tend to have higher DSCR ratio requirements than individualizing the properties.


     Currently in this situation.  I have 8 properties under one blanket loan.  How can I get out?  Cash flow is very tight.

    0Reply
  • Logan Singleton
    Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
    2y

    Hi @Nathan Frost, 

    You could refinance all ten properties into a new blanket or single-asset loan since all the loans would close on the same day. You would need to pay back the lienholder the outstanding principal balance of your loan plus any associated fees (Prepayment, discharge, etc.)

    0Reply
  • Nathan Frost
    Rental Property Investor · Wichita Falls, TX · Member since 2018 · 353 posts · 80 votes
    2y
    Quote from @Logan Singleton:

    Hi @Nathan Frost, 

    You could refinance all ten properties into a new blanket or single-asset loan since all the loans would close on the same day. You would need to pay back the lienholder the outstanding principal balance of your loan plus any associated fees (Prepayment, discharge, etc.)


     Can I send you my portfolio?  I really would prefer to do single loans and not one big blanket loan.  The 120% is killing me.  I really want to sell them or be done with them.  Any advice?

    0Reply
  • Logan Singleton
    Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
    2y
    Quote from @Nathan Frost:
    Quote from @Logan Singleton:

    Hi @Nathan Frost, 

    You could refinance all ten properties into a new blanket or single-asset loan since all the loans would close on the same day. You would need to pay back the lienholder the outstanding principal balance of your loan plus any associated fees (Prepayment, discharge, etc.)


     Can I send you my portfolio?  I really would prefer to do single loans and not one big blanket loan.  The 120% is killing me.  I really want to sell them or be done with them.  Any advice?

    Hello yes please forward me the portfolio information and I will see what we can do in terms of funding. 
    0Reply
  • Nathan Frost
    Rental Property Investor · Wichita Falls, TX · Member since 2018 · 353 posts · 80 votes
    2y
    Quote from @Logan Singleton:
    Quote from @Nathan Frost:
    Quote from @Logan Singleton:

    Hi @Nathan Frost, 

    You could refinance all ten properties into a new blanket or single-asset loan since all the loans would close on the same day. You would need to pay back the lienholder the outstanding principal balance of your loan plus any associated fees (Prepayment, discharge, etc.)


     Can I send you my portfolio?  I really would prefer to do single loans and not one big blanket loan.  The 120% is killing me.  I really want to sell them or be done with them.  Any advice?

    Hello yes please forward me the portfolio information and I will see what we can do in terms of funding. 

     Sent email but says out of office.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2d

    Hey Carlos,

    There are many lenders that may be able to help with this,

    Happy to connect!

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
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