Blanket loan or LOC Needed on Portfolio of Duplexes for LLC

Rental Property Investor · Vancouver, WA · Member since 2017 · 25 posts · 3 votes

I have a LLC in Washington state that owns a 24 unit portfolio in Kansas. I currently have a commercial loan on these and would like to take a loan out against the value of the properties but not sure the best approach/structure. Any advice and or recommendations would be appreciated.

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Zach Edelman

Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes

Should be able to do these as a DSCR refinance and depending on property values can refinance all 24 into a long-term 30 year loan.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
3y
Find an investor-friendly local bank that does portfolio loans. It is best to reach out to local contacts to find a good one. Just be sure that if you want to sell one asset out of the portfolio, they can isolate that one and you can sell that one like it had its own mortgage.
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Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
We just closed two loans on similar situations earlier this week...one was a blanket and one we did each property individually. The biggest concern for each was partial releases. The one that closed yesterday was the blanket. It has partial releases at 120% of the amount allocated to each property. Let's say a loan is 4 pretty equal properties of $1M. Let's say they allocate each property an amount of $250K. If they want to sell and release one, then you would need to give them notice about the release and pay 1.2 times the allocated amount, or $300K. A blanket is a lot easier and less expensive to close, but its harder to do releases. To me, that's the big difference.
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3y
Quote from @Douglas Underwood:

I have a LLC in Washington state that owns a 24 unit portfolio in Kansas. I currently have a commercial loan on these and would like to take a loan out against the value of the properties but not sure the best approach/structure. Any advice and or recommendations would be appreciated.

I agree with first checking local CU's and Commercial banks that offer portfolio loans with an "OK on partial releases". I have seen several investors looking to refinance an individual property on a blanket loan and they won't be able to because of the partial release requirement.
Or just refinance them individually.
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Darnell Lockett
Real Estate Consultant · Miami · Member since 2023 · 165 posts · 62 votes
3y
Hi @Douglas Underwood. Have you thought about doing a cashout refi DSCR loan? It could be an option. We do them for investing clients often. I even do them my for my own portfolio of properties.
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Tanner Lewis
Lender · Austin, TX · Member since 2021 · 448 posts · 441 votes
3y
Hi Douglas, I am currently closing a deal on a portfolio in Topeka, Kansas. With this deal, we are wrapping all the properties into a portfolio and underwriting them with one loan for a cash-out refi. It is a simple process and not too different from lending on an individual property.
If you are interested in connecting, feel free to DM me and I'd love to help you with securing financing!
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Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y
Should be able to do these as a DSCR refinance and depending on property values can refinance all 24 into a long-term 30 year loan.
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Douglas UnderwoodPro Member
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Rental Property Investor · Vancouver, WA · Member since 2017 · 25 posts · 3 votes
3y
@Greg Scott Thank you!
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Douglas UnderwoodPro Member
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Rental Property Investor · Vancouver, WA · Member since 2017 · 25 posts · 3 votes
3y
@Doug Smith Excellent explanation! Thanks Doug!
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Douglas UnderwoodPro Member
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Rental Property Investor · Vancouver, WA · Member since 2017 · 25 posts · 3 votes
3y
@Zach Edelman Thanks Zach!
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Douglas UnderwoodPro Member
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Rental Property Investor · Vancouver, WA · Member since 2017 · 25 posts · 3 votes
3y
@Tanner Lewis Thanks Tanner!
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Douglas UnderwoodPro Member
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Rental Property Investor · Vancouver, WA · Member since 2017 · 25 posts · 3 votes
3y
@Erik Estrada Thanks Erik! I’ll look out for that.
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