Have package deal for 5 home, need financing
I have an opportunity to buy 5 homes as a package deal. Agreed to 365k on a 440k price. 2 with renters, 1 ready to rent 2 needs final finishing to rent.
How do I get this financed. I do not want to do 5 closing on 5 houses. Only commercial lender I know only does ARM rates.
What lender should I go to? Any one done deals like this?
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#3 Real Estate Deal Analysis & Advice Contributor
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- Los Angeles, CA
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#3 Real Estate Deal Analysis & Advice Contributor
- Lender
- Los Angeles, CA
@Byron Paille What's wrong with 5 simultaneous closings and 5 separate notes? You can do commercial notes as 30 or even 40 year fixed and not have to worry about all of the issues surrounding partial payoffs associated with blanket loans. Typically, lenders will offer some sort of "bulk discount" on misc. processing fees for at least 5 at a time. Unlike periods of the last 2 years, I'm not seeing much of a rate/cost advantage to blankets especially when you consider the worse prepay penalties and guidelines surrounding what happens if you want to sell one of the properties within the blanket? (typically they force you to pay down additional principal in that event negating the benefit of a sale). Personally, I like the flexibility associated with having separate notes. (unless perhaps you're talking about a huge batch of properties where it becomes unfeasible).
- Alex Bekeza
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