Mixed use.... Thoughts on a blanket loan?

2 Replies

Hello!

Sorry for reposting in 2 forums but I wasn't sure where to post about mixed use.. This is my first post so my apologies in advance if I break forum protocol. So here goes:

We are in talks to purchase 2 mixed use properties.

#1) Cash flows well and has a LTV of about 1.42

Commercial unit has long term lease in place

(8) 1 br apartments rented about 10% below market.

#2) Doesn't cash flow with a LTV of about 1.18

3 commercial units with lease terms of 3 yrs, 1 yr and Month to Month, respectively

(2) 3 br units, one of which will be delivered vacant and one which is 50% below market

The market is very hot in this area (Hudson County, NJ) and vacancy stands at 2-3%.

Would a blanket loan be ideal in order to minimize the amount of down payment? I'm trying to do both properties separately but the bank is asking 37% down for the second property (probably not helped because of the short term commercial leases).

Forgot to add that the 2 properties are literally 1 block apart, if that makes any difference... 

I'm not sure what you're asking. is this a single loan to a single borrower for two properties? They both have their strengths and weaknesses. I would make sure that combining loans builds a diverse hedged position, being 1 block apart probably doesn't hedge your risk.

Yes single borrower for 2 properties. I just wanted to know how to get both properties financed with as little cash down as possible.would it be easier to finance both with one loan since the 2nd property's financials aren't so great?

I appreciate your quick response, Ronald!

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