Portfolio lenders or blanket loans

15 Replies

I am just starting out in real estate investing. I have purchased 4 properties this year. I am having trouble buying any more because the banks don't want to lend to someone who has 4 outstanding loans. I paid cash for one place but they are also counting my home mortgage. I would like to find someplace that would do a blanket loan on the places I have so far so I can continue on my way to financial freedom. Does anyone know if this is possible or do I need to slow down and pay off what loans I have accumulated? Thanks in advance for your help.

Jermaine here you are talking to the wrong banks, we go to the small/community banks, banks that keep there own paper, I think you will have better luck there.

Local small community banks will do the deal... You must bring in a nice business plan of what you are looking to do and how you plan on paying off loan portfolio.. It is almost like an interview for a job when go meet with them!!

Good Luck!!

there are local banks that will loan on more and some big banks will loan on 5-10 as well with stricter guidelines. Then there are the B2Rs that will loan on 5 or more properties, minimum of 500k.

I'm in the same boat, 5 properties, 4 mortgages. i just found out my credit union will do a purchase or refi business loan at terms that are hard to come by for investment properties. I'm completing the paperwork now, and crossing my fingers that this opens the door to more purchases for me.

Good luck to you, let us know what you find.

Most investors utilize the Blanket Loan because the investor is capped by the conventional Fannie Mae guidelines. Fannie Mae has a limit of 10 properties and in many cases the lender will limit the number of investment properties to 4. Investors typically will put a minimum of 5+ properties into a blanket loan which allows the investor to go back out and purchase a new property with a Fannie Mae loan. When a Fannie Mae lender is looking at your credit, all they see is one investment loan that is not Fannie Mae.

@Karen Schimpf this is incorrect. FNMA counts the number of properties you own that are encumbered, not how many loans you have.

Scott you are stuck in the conventional lending investment property rut. Even though FNMA changed their guidelines for investment properties to 5 to 10 properties to help stimulate the real estate market recovery, most lenders are still adhering to the old 4 property limit.

Your options are:

1. Find one of the conventional lenders out there who don't limit you to 4 properties. This may be your local community bank or a portfolio lender who lends using their own money.

2. Go the unconventional lending route which includes private money lenders and hard money lenders although this options is more expensive than conventional financing usually they don't have property limit restrictions.

3. Do a blanket loan to consolidate your existing properties should be 5+ or conversely buy in bulk.

Depending on your investment strategy if you are looking to build a large portfolio of rental properties then eventually you will want to go option two or three. I wish you the best of luck.

I have few loan on combine mortgage of me and my wife , is there option to take out one name from mortgage without refinancing?

@Shital Thakkar

Are they conventional 1-4 unit (fannie/freddie) loans? If they are then you would need to refinance to get either you or your wife off the loan.

You can find lenders (local or otherwise) that keep their loans in house, and will commonly lend up to 10. Keep calling banks, and keep searching online. Good luck

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Hi @David Hills ,

I'm an investor in McKinney, I see you're based in Arlington. I'd appreciate the chance to network with someone locally and get more info on blanket loan lenders. Invite & PM forthcoming.

Thank you,

Originally posted by @David Hills :

I have lenders that can do blanket loans...

 Could you please provide me information for the lender. Can they fund in Cleveland Ohio 


You need to approach Private Lenders. There are few brokers out there that are connected to wholesale mortgage that gives you the money and sell your loan to investors, that will make you pay few points above average depending on your credit from 6.5 to 9% but you get the loan to acquire then after few years you can convert to a conventional loan at lower rate. It's not hard money lender, private lenders that will give you 30 year AMT with a rate as I stated. Hard money is 9-18 month loans those are not the ones.

You can talk to Readycap I did couple of buildings with them. Those guys are private money, they have like 300 mil to lend and when they reach a 50 mil portfolio they sell it to another bank to free up the money, then they take the same 50 mill and lend it again.

Good luck.

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