Multi Property Financing

6 Replies

We presently own 1 investment property with about $20K in equity.  We have the opportunity to purchase up to 6 more properties at once.  My previous lender told me Blanket mortgages no longer exist.  Is there any advice on multi-property financing?

Not all lenders are the same, they are more different than most people think

THAT lender may not do blanket loans, the but the vast majority of them do.

you just need a simple commercial loan with 6 pieces of colatteral, nothing special.

Originally posted by @David McPhail :

We presently own 1 investment property with about $20K in equity.  We have the opportunity to purchase up to 6 more properties at once.  My previous lender told me Blanket mortgages no longer exist.  Is there any advice on multi-property financing?

 Yes, as others have said, blanket loans do exist and we also do them all the time.  Having said that, I use them as a last resort.  I think encumbering the properties individually is a much better as a long term strategy than bundling properties.  What happens if you have to sell one or more of the properties. The lender isn't necessarily going to let one property out of the package and if they did, if could either trigger a prepayment penalty or something similar because you're changing the package.  Additionally, what if you wanted to do a 1031 exchange down the road?  All of your properties are tied up and you don't have the flexibility you may need.

So; yes they exist, but I wouldn't recommend using them unless you never have any reason to sell the houses and want to keep them forever.