Updated over 7 years ago on . Most recent reply
Blanket Loan or keep my SFRs on seperate notes?
Looking into refinancing some of my units. Should I consider a blanket loan that wraps them all together or keep them separate for accelerated pay off schemes? Thank you in advance for any quality advise.
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@Daulton H. I have 10+ blanket loans and enjoy the flexibility that comes with portfolio lending.
However, one big downside that I've noticed is when trying to sell only one or a couple of the properties associated with the note. It can get pretty tricky because the bank will want the loan to stay at the current LTV. That means that they will only disperse roughly the portion of the proceeds that still keeps the same LTV in line. So you can end up selling something and not having much cash to show for it.
If I had to do it all over again I would package together similar properties that I would likely want to sell all together. Just my .02 cents.