Was a blanket mortgage the wrong option?

5 Replies

I have 4 properties within a blanket mortgage with my LLC. The are 5/1 ARM. Any advice about removing the blanket mortgage and separately having 15 year notes on each of the properties. At this point they are all cash flow positive. However, I can't borrow from the equity in the properties because they are all lumped into one mortgage. I think I took a bad deal here. Anyone have experience with this?

Have you thought about doing a refinance for the properties? 

I have considered refinancing. I know that's an option but I'm not sure if financially it's worth it just yet if I have to close on 4 properties. Putting 20% down on all properties then adding closing cost could get expensive and cut into my bottom line. Have you ever had a blanket mortgage and got out of it? At the time it made sense because it expanded my rental portfolio but know that the dust has settled I'm second guessing the deal I took at the time.

How did this workout for you? I'm in contract with two single family homes that may need a blanket mortgage, want to know if this is a good idea or not?

I never thought the blanket loan was a good idea unless you had a couple of sub $50k properties. The mtg closings on 4 properties aren’t that much more money and you have greater flexibility with selling/refinancing.

@Wayne Brooks   we always have defined release clauses in the prom note.. 

however I suspect most dont know to ask..

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here