Commercial loan from 1 Lender, on 2+ properties, totaling 5+ units?

Question

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Do traditional lenders ever lend on more than one property and draft it as a single commercial loan on both properties when they total 5+ units?

If I can detach my partner from direct financial "proof"/liability, then that will help improve our ability for financing. I am just unsure if this is ever done.

We have two duplexes, and one fourplex. All of them are seller financed by the same previous owner, and if we can get a single lender to refinance with, that will greatly simplify everything.

Remrie Arrie · Answer

Also, thank you, Derek and Jon.

Remrie Arrie · Answer

This post is for general information. I'll have to research blanket loans some.

The trick here is keeping the approval subject to individual finances. In this case my dad operates a trucking business that the past couple of years reports a net (phantom) loss which makes it difficult for him to appear capable enough of meeting the financial responsibility of paying his debt service.

Jon Holdman · Answer

Yes, its possible.  Its called a "blanket loan".

But why?  You can get commercial terms on any property.  I have friends who have a bunch of "commercial" type loans on SFRs from a local bank.  Its going to be much harder to find a lender that will do this than a lender (or two) that will fund them independently.

If you are actually looking for a loan, please post in the Marketplace forum.

Derek Carroll · Answer

I do commercial real estate lending on larger properties and just today I was working on the same concept (blending three properties into one loan). it certainly gets done commercially

I'm completely new to residential, but my guess is that you'd be able to find someone to do this.  My only hesitation would be that if the lender then considers your loan commercial you'll likely have increased closing costs and third party reports needed