A blanket loan has a couple advantages for investors. The first advantage is the blanket loan program allows investors to roll several properties into one loan so that they have one mortgage. Many of my investors that managing one mortgage is considerably easier to handle. Another reason investors like the blanket loan program is that if they own 10+ properties they find the blanket loan has lower rates than hard money. Typically 10+ financed properties have rates in the double digits. The blanket loan rates typically start around 4.99% to 5.99% depending on the program. Lastly investors consider the blanket loan because many blanket lenders allow you to form an S Corp. for the properties in the blanket loan. These investors are than allowed to purchase new properties under Fannie Mae and Freddie Mac residential loan program.
The blanket loan has come a long way from prior to 2008. The blanket loans of the past had to have the properties within a short distance from one another. Today investors can have properties that are located all over the country. I have several deals in my pipeline right now where I even have an investor that is purchasing an investment property and refinancing his remaining for cashout all in one loan. The goal for many of these investors have ranged from pulling out cash to lowering their rate, to purchasing more investment properties, to just wanting to have one mortgage payment. Below are the criteria for a blanket loan.
- Types of Transactions are Purchase, refinance and cash out
- Types of Properties: condos, single family residence, duplexes, apartments
- Location of the properties can be spread out between different states
- Loan to value goes up to 75% LTV.
- Minimum loan amount is $500,000 up to $50MM.
- Minimums: value of each property is $50K and 750 sq ft.
- Non Recourse is allowed on loan amounts around $3MM+
- Foreign Nationals Allowed
- Minimum Number of Units is 5
- Must be leased up 90%
- Terms are 5 or10 year balloon
- Amortization 30 years
Give me a CALL TODAY at 512-354-5949 or get started by filling out this form!
Wishing You the Best,
|Commercial Capital LTD|
P.S. I specialize in helping finance SBA Start-Ups, Special Use Properties, Commercial Investment Properties, 30 Year Commercial and Hard Money Bridge Loans. I BRING COMMERCIAL MONEY FROM AROUND THE COUNTRY TO LOCAL MARKETPLACES INSURING THE MOST LIKELIHOOD OF CLOSING. The key is placing the borrower with the lender that most suits that borrower's strengths. I do it better than anyone. Give me a call today at O:512-354-5949 or get started by completing the form.