I am looking to refinance 7 properties and also purchase a package deal of 5 all SFR. Anyone know of a lender that will do a blanket for all 12 with terms of 75-80% LTV/LTC with 30 year amortization?
Hello! I am looking for the same thing, but my 9 properties have no mortgages. I would be happy to get 50/60% LTV / LTC blanket mortgage for 30 years. I have an opportunity to buy 5 properties from one lady at below market values & another 3 properties from another gentlemen in the same complex. Great risk vs. reward for the 8 of them. Thanks for any help.
Talk to local portfolio lenders who have a commercial loan dept.
I can help with your blanket loan needs. I can offer 30 yr loans at competitive rates, please contact me when you get a chance
Conventional financing limits you to 10 mortgaged properties. For a fixed rate 30 year mortgage, you could rate and term the first 7 and then purchase 3 of the 5 with conventional financing.
You could cash out refinance on the first four mortgaged properties, with a 30 year fixed rate. You could then use this money to put down payments on the next 6 properties. Or you could take out hard money, private money as long as there are liens on the properties and then rate and term refinance them, up to ten mortgaged properties. I am posting some info and ideas below that will hopefully help you with conventional financing.
- On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a 2-4 units is up to 70% equity.
- On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and 2-4 units 65% LTV) You can take out up to the purchase price plus closing costs on the property.
- RATE and TERM REFINANCE - PROPERTY 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
Please note cash reserve requirements;
- If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
- If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.
I want to thank all of the great people here for answering my question so quickly. I want to back up for a second, I'm really in the market for a blanket HELOC (Home Equity Line of Credit) loan. This way I can use the money when I'm ready to buy these properties, tax lien certificates, etc. Thanks.
The blanket mortgages are typically taken out to cover the costs of purchasing and developing land that developers plan to subdivide into individual lots.
@Lenny Shwartz , I am in a similar situation and a portfolio lender (small local bank) offered me a commercial LOC against the properties for 1% over prime, renewed annually.
I believe HELOC is for personal property, at least that's the terminology that was used.
We offer blanket loans nationwide for residential properties!
Below are general terms for your reference. Please give me a call to discuss and hopefully we can help you out!
Max LTV: 75%
Min. DSCR 1.2x
Term: 5 year or 10 year Fixed
Amort: 30 years
Type: SFR, Condos, Townhomes, Small Multi-Family
Min # of Properties: 5
Min Loan Amount: $500K
Min Asset Value: $50K
Must be stabilized rental portfolio; at least 80% occupied
Eric Kang, Colony American Finance
A blanket mortgage is used to finance the purchase of multiple parcels of real estate simultaneously under the umbrella of a single mortgage. All real properties being financed are held as collateral by the creditor. If there is a release clause, the integrity of the mortgage can remain intact if one or more parcels of real estate within the blanket mortgage are sold.