Rental Property Investor · Houston, TX · Member since 2019 · 1 post · 0 votes
Who knows about loans for a portfolio of a few houses. Does anyone have good or bad experience with that? I guess the key is to be able to pull a property out or even add one back in in the future without a lot of costs or paperwork.
Who knows about loans for a portfolio of a few houses. Does anyone have good or bad experience with that? I guess the key is to be able to pull a property out or even add one back in in the future without a lot of costs or paperwork.
Hey Marilena
Some people like blanket loans and others don't. The convenience of having one payment for multiple properties is a big deal for some, but the hassle and cost can be excessive. If you want to pull a property out of the portfolio it will be costly and may or may not be allowed by the lender. There are many factors that affect the ability to pull a property out of the pool including, but not limited to, the overall LTV, the number of properties in the pool and and percentage of value the one property you're pulling out. The lender is lending a dollar amount on a specific value and the property coming out of the portfolio contributes to the overall value. By taking one out, you're depleting the value of the entire loan which has probably been sold once or twice to a variety of servicers. Short answer, it's neither cheap nor easy to pull a property out of a blanket loan and a lot goes into the decision. I would say it you're even thinking of starting a blanket loan with the thought that you'll be pulling one or more properties out, just do them individually and save yourself some hassle and a lot of money.
Lender · Charlotte, NC · Member since 2021 · 218 posts · 117 votes
4y
For portfolio loan, taking one out is easy, just do a partial release. You may need to pay a certain percentage (15-20%) over the loan amount you owe for that property just to pay down the principal. But adding one to a portfolio loan is not easy. Usually just get a new loan with the new property. Not much benefit to add one later on.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
4y
@Marilena Medina Bernal thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things.
You have some good posts above but I wanted to provide a little bit more information here just in case. I think what you are referencing is formally called a "Blanket Loan". A "blanket loan" is one type of portfolio loan that covers multiple properties. As mentioned above there is usually a "release clause" to many blanket loans. Meaning, if you remove one property you might have some type of a penalty. There's always exceptions out there of course so some lenders may have this or may not depending on your properties, equity position, etc.
And just to be clear, you can absolutely get a portfolio loan on an individual property. Meaning, one loan per property. And then you won't have any release clauses at all.
I hope all of that makes sense but feel free to ask anything else if you need. Thanks!
Who knows about loans for a portfolio of a few houses. Does anyone have good or bad experience with that? I guess the key is to be able to pull a property out or even add one back in in the future without a lot of costs or paperwork.
Hey Marilena
Some people like blanket loans and others don't. The convenience of having one payment for multiple properties is a big deal for some, but the hassle and cost can be excessive. If you want to pull a property out of the portfolio it will be costly and may or may not be allowed by the lender. There are many factors that affect the ability to pull a property out of the pool including, but not limited to, the overall LTV, the number of properties in the pool and and percentage of value the one property you're pulling out. The lender is lending a dollar amount on a specific value and the property coming out of the portfolio contributes to the overall value. By taking one out, you're depleting the value of the entire loan which has probably been sold once or twice to a variety of servicers. Short answer, it's neither cheap nor easy to pull a property out of a blanket loan and a lot goes into the decision. I would say it you're even thinking of starting a blanket loan with the thought that you'll be pulling one or more properties out, just do them individually and save yourself some hassle and a lot of money.