Investor · Chicago, IL · Member since 2015 · 34 posts · 9 votes
I know I should have a buyer's list and I'm working on that but in the interim a deal came up here in the Chicago suburbs and fits a few needs of mine. My question: Should I do a blanket loan as these are 4 SFR's two with renters and I have two renters for the others.? Not sure on this one.
Blanket loans aren't super common loan instruments and the ones I've inquired about are mostly asset based commercial loans, which look at the DTI for the properties. If you wanted one loan to purchase all four, this would be the correct instrument, however, without knowing the purchase price, rent rates, expenses, etc, it's hard to really to give much in the way of constructive advice.
@ChristopherBrainard Thanks for the reply. Here's the deal, literally:
The four houses are in the suburbs of Chicago in primarily stable locations. My problem is that the deal seems skimpy for a wholesale so I thought buy and hold. My background in commercial made blanket loan seem like a perfect fit but I'm not sure where to look.
The properties are being bought w/deed from a tax sale buyer.
Price 19,500
30,000
32,000
and 20,000
for a total of 101,500
Two have renters paying 500 and 1100 to the tax buyer currently and I have two renters lined up for the other two. If I wholesale I'd be looking for 3000 for the two with renters and I'd keep the other two for the cashflow charging 750 each.
My estimation is that if the buyer wanted to they could put 15-20 into the rented ones and the ARV would be around 55-60. See too tight for fix/flip, but good for buy/hold strategists. Property values are in the 50-70 range for O/O
But if I keep all four, I'm getting a nice cashflow that can help me in my primary business at the moment.
The wholesale seems to only work for 2 of the four if I'm right but I'm new so I may be way off base. But I doubt it.