What is a blanket loan?

[Account Closed]

Hello BP, my father owns a few houses and is looking to purchase another. Recently, I was listening to BP podcast and one of the guest mentioned a blanket loan. Is this a tool that we may be able to use to be able to finance the next purchase?

[Matt Devincenzo]

Basically it is a single loan that is secured against multiple properties. So instead of having 5 homes with 5 separate loans you instead have 5 homes all on one loan. Generally you would have each property tied to an associated release amount so that if you chose to sell an individual property you could do so.Whether or not this would be something you would want to use for your next acquisition, will depend on what terms you'd be looking at and what your goal with getting the blanket would be.