Is it possible to refinance 5 SFH individual loans into 1 DSCR loan?
Member since 2024 · 55 posts · 18 votes
Is it possible to refinance 5 SFH individual loans into 1 DSCR loan?
Most Popular Reply
Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
2yHi Mark,
What you are referring to is called a blanket or portfolio loan. Most hard money lenders will offer these products, but not all are created equal. Portfolio loans tend to have increased fees and interest rates along with a partial release clause that could potentially restrict you from selling one of the properties included in the package.
The loans can be good options, though, if you are trying to achieve a lower blended rate or streamline your mortgage payment by just having one payment as opposed to several.
22 Replies
- Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes2y
Hi Mark,
What you are referring to is called a blanket or portfolio loan. Most hard money lenders will offer these products, but not all are created equal. Portfolio loans tend to have increased fees and interest rates along with a partial release clause that could potentially restrict you from selling one of the properties included in the package.The loans can be good options, though, if you are trying to achieve a lower blended rate or streamline your mortgage payment by just having one payment as opposed to several.
- Lender · Venice, CA · Member since 2021 · 189 posts · 132 votes2y
@Mark Walker Another thing to be mindful of, and this is of course assuming that your properties are in Alabama. Portfolio loans generally have higher minimum loan amounts. I work with several nationwide wholesale lenders that offer these loan programs but as the previous poster pointed out, they come with different features and restrictions. I do have a source that will consider loan amounts as low $100k with a minimum asset value of $50k per property. Its also a no ratio DSCR program. I'm happy to share additional information or answer any questions.
- Member since 2024 · 55 posts · 18 votes2y
Quote from @David Bilandzija:
@Mark Walker Another thing to be mindful of, and this is of course assuming that your properties are in Alabama. Portfolio loans generally have higher minimum loan amounts. I work with several nationwide wholesale lenders that offer these loan programs but as the previous poster pointed out, they come with different features and restrictions. I do have a source that will consider loan amounts as low $100k with a minimum asset value of $50k per property. Its also a no ratio DSCR program. I'm happy to share additional information or answer any questions.
Thank you for the information. This loan amount would be around 1.1M. Unless you have really high interest or short amortization hard money loans this will not increase your cash flow. It will decrease your cash flow as your single payment will be higher than the multiple payments combined.
As mentioned it will often be hard to sell one of the properties before the entire loan is paid off.
- Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes2y
To piggy back off Logan's response, if the lender includes a partial release clause that imposes restrictions or penalties on property sales within the portfolio, this clause would also apply to refinances. Consequently, it could hinder your ability to refinance individual properties within the portfolio.
- Member since 2024 · 55 posts · 18 votes2y
Quote from @Bill B.:
Unless you have really high interest or short amortization hard money loans this will not increase your cash flow. It will decrease your cash flow as your single payment will be higher than the multiple payments combined.
As mentioned it will often be hard to sell one of the properties before the entire loan is paid off.
My SFR are amortized at 15 years so according to my "calculations" a 30y would help cash flow. Tha - Member since 2024 · 55 posts · 18 votes2y
Quote from @Bill B.:
Yes. That’s what I meant by higher interest or shorter amortization. You’d pay more interest and your income would go down but your cash flow would go up.
Right, I'm trying to not refi since I'm knocking down principal 50-60k a year but I may need to increase cash flow in the near future. - Lender · Venice, CA · Member since 2021 · 189 posts · 132 votes2y
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
- Member since 2024 · 55 posts · 18 votes2y
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it. Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
Hurst Real Estate, INC4.992 Reviews- Member since 2024 · 55 posts · 18 votes2yYeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.
Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
- Lender · Member since 2021 · 498 posts · 131 votes2y
Quote from @Mark Walker:
Would like to improve cash flow on 5 SFR, thanks for help.
Happy to take a peek to see if we can help. Quite a few portfolio options, if it is a viable option, I’m happy to give you an honest overview.
Quote from @Mark Walker:
Yeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
A full doc loan will allow the cash flow from the properties that do cash flow make up for the properties that do not. And of course other income like salary income can also make up for the negative cash flow as well.
Hurst Real Estate, INC4.992 Reviews- Member since 2024 · 55 posts · 18 votes2y
Quote from @Jay Hurst:
Quote from @Mark Walker:
Yeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
A full doc loan will allow the cash flow from the properties that do cash flow make up for the properties that do not. And of course other income like salary income can also make up for the negative cash flow as well.
Thank you for the help. On the PPP, does that apply to paying off the loan in full and/or paying down the loan incrementally during the terms? Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Yeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
A full doc loan will allow the cash flow from the properties that do cash flow make up for the properties that do not. And of course other income like salary income can also make up for the negative cash flow as well.
Thank you for the help. On the PPP, does that apply to paying off the loan in full and/or paying down the loan incrementally during the terms?Not sure what PPP you are referring to as conventional would not have a PPP. Can you clarify? It is Monday morning. I am likely just missing it.
Hurst Real Estate, INC4.992 Reviews- Member since 2024 · 55 posts · 18 votes2y
Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Yeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
A full doc loan will allow the cash flow from the properties that do cash flow make up for the properties that do not. And of course other income like salary income can also make up for the negative cash flow as well.
Thank you for the help. On the PPP, does that apply to paying off the loan in full and/or paying down the loan incrementally during the terms?Not sure what PPP you are referring to as conventional would not have a PPP. Can you clarify? It is Monday morning. I am likely just missing it.
Pre payment penalties, yeah happy Monday. Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Yeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
A full doc loan will allow the cash flow from the properties that do cash flow make up for the properties that do not. And of course other income like salary income can also make up for the negative cash flow as well.
Thank you for the help. On the PPP, does that apply to paying off the loan in full and/or paying down the loan incrementally during the terms?Not sure what PPP you are referring to as conventional would not have a PPP. Can you clarify? It is Monday morning. I am likely just missing it.
Pre payment penalties, yeah happy Monday.I get that PPP is pre-payment penalties but the products I talked above would NOT have a PPP. DSCR loans typically do have a PPP but if it kicks only when payoff in full or payoff of over a certain % would depend on the terms in the note, and would be different on the many DSCR programs out there.
If you are asking about the partial release on a blanket loan, those are much trickier because the loan was given to you at a certain loan to value across the whole portfolio so you cannot simply sell on of the properties without posting more collateral because the act of selling one property changes the loan to value. This is not a PPP but is even more restrictive.
Hurst Real Estate, INC4.992 Reviews- Member since 2024 · 55 posts · 18 votes2yApologies, I was asking about PPP on DSCR loans. I like to pay addition small increments when possible.
Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Yeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
A full doc loan will allow the cash flow from the properties that do cash flow make up for the properties that do not. And of course other income like salary income can also make up for the negative cash flow as well.
Thank you for the help. On the PPP, does that apply to paying off the loan in full and/or paying down the loan incrementally during the terms?Not sure what PPP you are referring to as conventional would not have a PPP. Can you clarify? It is Monday morning. I am likely just missing it.
Pre payment penalties, yeah happy Monday.I get that PPP is pre-payment penalties but the products I talked above would NOT have a PPP. DSCR loans typically do have a PPP but if it kicks only when payoff in full or payoff of over a certain % would depend on the terms in the note, and would be different on the many DSCR programs out there.
If you are asking about the partial release on a blanket loan, those are much trickier because the loan was given to you at a certain loan to value across the whole portfolio so you cannot simply sell on of the properties without posting more collateral because the act of selling one property changes the loan to value. This is not a PPP but is even more restrictive.
Quote from @Mark Walker:
Apologies, I was asking about PPP on DSCR loans. I like to pay addition small increments when possible.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @Jay Hurst:
Quote from @Mark Walker:
Yeah that’s the issue. I have 3 with little equity and negative cash flow. (Long story) so I was thinking package those 3 with 4,5,6 whatever it takes to get the cash flow/DSCR ratio needed? Thoughts? Thanks for the advice.Quote from @Jay Hurst:
Quote from @Mark Walker:
Quote from @David Bilandzija:
@Mark Walker I honestly think you would be better off doing 5 individual loans. Keep your flexibility by not encumbering them together. Also, when I handle a "multipack" of files the borrower receives a discount on total fees. Shoot me a DM if you have any additional questions.
4 of the 5 don't meet the DSCR ratio so I need to combine 5 and maybe 6 to meet it.If you have some decent equity the DSCR ratio actually can go below 1.00 for a lot of programs. And of course there are always full doc options that the entire global cash flow is taken into account not just the individual property. Either of those would be much better option then a blanket loan to (as mentioned above) the issue with partial release.
A full doc loan will allow the cash flow from the properties that do cash flow make up for the properties that do not. And of course other income like salary income can also make up for the negative cash flow as well.
Thank you for the help. On the PPP, does that apply to paying off the loan in full and/or paying down the loan incrementally during the terms?Not sure what PPP you are referring to as conventional would not have a PPP. Can you clarify? It is Monday morning. I am likely just missing it.
Pre payment penalties, yeah happy Monday.I get that PPP is pre-payment penalties but the products I talked above would NOT have a PPP. DSCR loans typically do have a PPP but if it kicks only when payoff in full or payoff of over a certain % would depend on the terms in the note, and would be different on the many DSCR programs out there.
If you are asking about the partial release on a blanket loan, those are much trickier because the loan was given to you at a certain loan to value across the whole portfolio so you cannot simply sell on of the properties without posting more collateral because the act of selling one property changes the loan to value. This is not a PPP but is even more restrictive.
Yeah no worries. That will just depend on the actual product. There are any number of DSCR products and the details are all a little bit different.
Hurst Real Estate, INC4.992 ReviewsQuote from @Mark Walker:
Would like to improve cash flow on 5 SFR, thanks for help.
Hey Mark, yes you can do a portfolio/ blanket loan, have seen up to 30 in 1 blanket!
Rates have gone up on these programs though, so I am unsure if it will improve cashflow as the rate be higher than your current but it does combime them all into 1 payment, which makes it easier.
Happy to look at this more with you.
- 1wErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Hey Mark,
Yes you may obtain a DSCR loan across 5 SFRs.
Happy to connect!
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