Optimizing Operations

Having just one loan versus many can make a substantial difference in optimizing ongoing operations. Whether you have 5 or 10 properties, or you are scaling to 100 rental properties the time and labor savings of just one loan to manage is immense. That becomes even more important if you are ever to refinance in the future. Less time wasted on debt servicing means more time to focus on growth and other ways to optimize asset performance, or just to enjoy the rewards.

Optimizing Cash Flow

Mortgage interest rates are still great. Lenders like the collateralization of blanket loans. It can make them more aggressive in how much their loan you, the LTVs, and the rates offered. They may even provide stated income loan options. Consolidating debt into one loan now could help minimize debt service, and create more cash flow for years to come.

Optimizing Equity

Thousands of rental homes, small multifamily properties, and larger apartment buildings have been purchased with cash over the last decade. Some investors have accessed some of that equity, others haven’t touched it at all, despite rising asset values. That means true rates of return on that equity continue to shrink. All while new opportunities are passed upon, and cash for improvements runs tighter. It seems far smarter to free up that pent-up equity and optimize its use and returns while solidifying the liquidity of investors.

Optimizing Risk

Blanket mortgages don’t just aid in increasing the upside potential. They also help protect from various threats investors face too. Anyone who has been investing long enough, and big enough, knows that along with many sets of mortgage loans comes heightened risk. That may be lost notices of insurance gaps, overlooked payments, or looming maturity or adjustment dates. Having just one loan definitely reduces risk dramatically. Then there is also the risk of owning properties free and clear. Do not underestimate this. When an accident or natural disaster strikes banks have big legal teams and the power to get what they are owed from insurance companies. Individual investors do not.

If you have properties owned free and clear, and a hurricane, tornado, or fire rolls through, you may not get what you deserve. If you do, if can be years later, and after expending just as much in legal fees. Why not split that risk with a lender, while putting more cash into your working capital accounts to stay afloat, no matter what happens?

Do the math, and learn about your blanket mortgage loan options today…