Displaying items by tag: real estate

5 Questions to Determine ifBlanket 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.

What to Prepare Before ShopThe internet makes it easier than ever to find lenders, check cashing, and other financial services. And we’re no longer stuck using the same handful of lenders our parents did. Today’s financial market is filled with reputable blanket loan lenders and other financial institutions that understand the challenges of a changing market.

You can’t afford to wait five or ten years to get started with a portfolio of investment properties. Research shows rents are rising in major cities like Phoenix, AZ and Las Vegas, NV. Millennial homeownership in the gig economy is nearly 10 percentage points lower than in previous generations.

Find the Best Blanket MortgYou weighed the pros and cons of blanket loans carefully. It’s the right option for you, but you’re not sure who you can trust in the industry. Who can blame you?

Traditional mortgage lenders aren’t equipped to handle some of the more creative and advanced investment strategies. Your loan servicer is an expert in first-lien mortgages for single-family dwellings. The vast majority of loans she’s closing are government-backed FHA and VA loans.

Outliers she deals with are 2nd mortgages, reverse mortgages, and home equity lines of credit (HELOC). That’s about the extent of your current loan servicer’s knowledge, and beyond that, you’re stuck dealing with a commercial real estate agent. 

How can real estate investors find more profit in each rental property by using blanket mortgage financing?

Some media outlets and green property investors have recently griped about increased competition in the market, while others see increased, and even more opportunities opening up. Matters not if its a blanket loan, first single rental home, or commercial property, we got you covered. Whether coming up short on inventory or flush with more deals than you can handle no one wants to leave extra money on the table.

Those that know how to find more room in every property are able to find opportunity where others can’t, and position themselves for maximum per deal, annual and overall returns.

find more real estate profit.jpg

Investing in real estate with smart tax strategies and knowing how to negotiate out liens and other fees others don’t know how to, have a significant advantage in the market today. However, even simple tweaks such as using superior investment property loan programs and lenders can make a substantial difference in profit margins and net returns.

To find more spread in each deal investors need to reduce acquisition costs, and, or increasing operating cash flow. Blanket mortgage financing can enable rental property investors to do both.

There are at least four ways blanket mortgage financing can aid rental home investors in reducing acquisition costs, including:

  • Acting as a cash buyer, or at least being a superior buyer, armed with working capital from a heavy weight and reliable mortgage lender
  • Buying rental properties in bulk, from other investors, at auctions, from government
  • Ability to close fast, providing negotiation power to demand deeper discounts
  • Reduced borrowing and closing costs from using one loan and one set of closing staff

Ongoing cash low and operational profit margins are enhanced by:

  • Reduced paperwork, bookkeeping burdens and staffing or accounting costs
  • Eliminating risk associated with confusion when dealing with dozens of lenders, which can otherwise subject investors to practices such as forced placed insurance fraud, title complications and more
  • Enhanced credit ratings enable real estate investors to continue to obtain better investment mortgage rates and terms in the future. This comes as a benefit of only having one blanket mortgage, keeping other credit sources free, and reducing debt use burden perceived by credit rating bureaus
  • Streamlined access to more capital for rental property portfolio expansion
  • Ultimately blanket mortgage financing can both help investors reduce risk, and increase rental property returns. Why even think of using any other type of leverage?