Blanket mortgages sound like loans you take for that really expensive ReST bed you had your eye on. Even real estate professionals aren’t always aware they exist. These multi-property liens are often confused with products like wraparound mortgages. But a wraparound mortgage is just a fancy second lien, whereas a blanket mortgage is a first lien.
Not only are blanket mortgages easier to deal with than those other complicated loans, but they’re typically offered only by specialized companies. This is because traditional banks don’t have the capacity to train staff on how to help professionals who own multiple properties.
Rental home investors with mortgage free income properties are flocking to take advantage of a new loan program which enables them to access pent up equity.
So why are sophisticated buy and hold real estate investors rushing to refinance under this new mortgage program, and why do all those with free and clear properties need to act now?
New residential blanket mortgage loans from Rental Home Financing offer landlords with at least 5 income properties to refinance and receive cash out, at incredibly low interest rates. Many investors have acquired rental homes for cash recently, and while it can feel cozy to some to be mortgage free, there are some very vital reasons for acting on this opportunity now.
There is really only one way for interest rates to go. That’s up. For long term buy and hold investors it doesn’t matter if that takes 2 months, or 2 years. Just a couple point hike (and it will go much higher than that), will make hundreds of thousands of dollars difference in borrowing costs over the time holding even a small portfolio, or single property. That means those that may need to refinance within the next decade or two will be far better off doing it now.
Liquidity is critical to investors. It provides a cushion for unexpected damage and replacement needs, as well as personal needs such as major health expenses. When crises happen it is normally difficult, if not impossible to refinance. That means at least lining up an active credit line now can be invaluable.
Being able to recoup capital means being able to take advantage of current opportunities, and lock in great ongoing passive income and wealth building. Those who delay will suffer reduced returns due to a variety of market factors.
Access to more expansion capital now also means the benefits of greater diversity in a portfolio. This helps to keep income consistent, and protects investors from everything from local job market shifts to natural disasters.
All of the above combine to reduce risk for rental property investors that sensibly leverage their properties now. Additionally, it can work to preserve credit by keeping lines clear and ensure working capital in a pinch.
Smart and modest leverage is a great tool. Those that hide behind the mirage of comfort that a mortgage free property are unfortunately deluding themselves. There is really no such thing as ‘free and clear’. There will always be property taxes, insurance or repairs. So why deny yourself of the best benefits of leverage?
Located in Indianapolis, Indiana, we are a Direct Lender for most anything commercially oriented (for rent) including single family houses, town-homes, condos, & multifamily apartment buildings on a Nationwide basis.
We will always separate ourselves from the competition by providing transparency within the marketplace and personal attention to custom situations and always competing for your business.
Our 25+ years of experience in commercial and multifamily mortgage lending throughout all market conditions there are a few that even come close to being equipped to the needs of over serious investors and the level of expertise & value you will discover with the professionals at Rental Home Financing.
From blanket mortgage loans for recapitalizing on free and clear portfolios of single family homes to restructuring leverage into compact, highly efficient, loans with the lowest investment property mortgage rates for easier management and higher profit margins to acquiring new bulk SFR portfolios we’ve got a solution for you.
More than just a leading U.S. Blanket Mortgage Lender, Rental Home Financing is your partner for long term wealth building and cash flow generation. We’re invested in your long term success.
Contact us today and experience a refreshing new approach to financing investments.
There are no limits on the number of properties your portfolio may include; whether 1 or 3,000, we likely have a solution.
We are now working with the best of breed and savy investor for the most competitive rates available today. Our group is actively searching for the best opportunities to fund in the rental housing market business in most states in of the USA. Loan Amounts ranging $500,000 to $50,000,000+.
New for 2018...Over 5.5 billion under management. We are proud to be providing the first wave by providing a much needed product for investors with sensible underwriting. Rate range between 5.5% - 7.5%
Currently there is no limitation on the number of properties that can be included within the portfolio. Conservative, common since underwriting is used to determine loan proceeds and interest rate.
Contact one of our qualified representatives for more details on this ever evolving product.
We do offer lines of credit for those well qualified sponsors and property managers looking grow towards hundreds of rental and apartment properties.
|Term||Type||Index||Prepay prd.||Recourse||Max LTV||Min. DSCR||Amort.|
|5 years*||Fixed||5-year Swap||Options||Non-recourse||60%||1.2x||30 years|
|5 years*||Fixed||5-year Swap||Options||Full recourse||75%||1.2x||30 years|
|10 years*||Fixed||10-year Swap||Options||Non-recourse||60%||1.2x||30 years|
|10 years*||Fixed||10-year Swap||Options||Full recourse||75%||1.2x||30 years|