Introduction: What is a Blanket Loan and What are the advantages of blanket financing?

This is a financial product that offers a wide range of features, including a line of credit. A line of credit can be used to help consolidate rental investment home debt and also for other purposes, such as investing in more property for your LLC.

Many Properties Under 1 Loan

This loan offers many benefits over other loans because it can be used in so many different ways. They are easier to get than most other loans and the interest rate is typically lower than on an unsecured loan.

Blanket loans can be a crucial investment tool for property investors but finding blanket mortgage lenders can be challenging. They aren’t as proliferate as conventional mortgages and they might have more stringent qualifications.

While it can be tough to find blanket mortgage lenders, there are property investment strategies you can take to make the process less time-consuming. Review this comprehensive guide to blanket mortgage lenders before you start your research.

Investment property financing is a hot topic, but it can be difficult to determine the right financial vehicle for your property investment strategies. There are a variety of rental property loans that have different terms and features.

Choosing the right vacation rental property loans is critical to the success of your investment portfolio. They are, in some cases, the only way property investors can enter the market. You need to choose them carefully, though. Review this guide to determine what type of rental property loans you need.

Investing in property requires a significant amount of capital — or easy access to credit — but sometimes you might need multiple loans to cover more robust properties. Blanket mortgages are one tool you can use to finance a property that has a higher value than one loan might cover.

Blanket mortgages allow investors to purchase properties that might otherwise be unattainable, but they’re not for everyone. Before you decide to take this path, review this blog to find out if blanket loans are the right decision for your situation.

It’s easy to start an LLC. Pick a name, choose a registered agent, and file articles of incorporation with your state. This step is always mentioned as a way to protect your investments. But an LLC is more than that.

Businesses are known for generating profits in an efficient manner. You don’t get to the size of a company like Walmart without a lean, mean operating machine. In fact, Walmart is a business you should be emulating with your own investment. Walmart is more than a retail giant - it’s a master at blanket loans.

The 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.

You 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. 

A Guide to Choosing Your First Investment Property

We all have dreams of either a side hustle or retirement renting to others. It’s actually a great idea, so long as you understand what you’re getting into. In fact, 91% of cities in the U.S. are seeing rising rents, so there’s no better time than now to get started.

But securing investment property financing can be daunting. It’s actually a great market, but traditional lenders and investment advisors aren’t always well-versed on these types of purchases.

You may not want to be pigeonholed into the one- to four-unit loans traditional mortgage lenders can provide. This is why companies exist to make it easier than ever to explore and understand the wide world of investment properties, whether you’re renting a room in your home or buying an apartment building.

Are you an experienced real estate investor who wants to grow their portfolio by more than just a single property? Everything you need to know about a blanket loan is right here. You should know about one of the best lending solutions for that kind of venture.

You came to the right place to increase your investment portfolio.

What Is a Blanket Loan?

When most people think about taking out a loan to purchase a property, they imagine a residential or commercial mortgage. This has been the standard for decades. Now things are different, we can provide a loan for many properties under one loan.

Yet, while this has become the most popular version for buying a property, investors often want to buy more than one at the same time. In these situations, an experienced investor will almost always opt for a blanket loan.

Many Properties Under 1 Loan

With a blanket loan, you can secure numerous properties at once without the same inconvenience and overhead associated with multiple mortgages. Blanket loans offer a number of other unique advantages, as well.

These business-purpose loans can include:

• Single Family Units
• Stated Income Loans
• Apartment Building Loans
• Multifamily units

However, they can be used to purchase many, many more. Why not try our quick form and get started today!

Cross-Collateralization Across Investment Properties – and State Lines

Another reason an experienced investor will usually choose a blanket loan is that it allows them to cross-collateralize properties – even across state lines. So, not only is the investor able to finance several properties through one lender, they can also use this arrangement to finance other deals. Look into our Foreign National Investor Financing Program.

A Blanket Loan Can Free Trapped Equity in Your Portfolio Loan

Not so long ago, developers and investors alike depended on leveraging the equity they had in properties to finance further ventures. Unfortunately, this means the investor’s equity has essentially become “trapped” within the property.

A Blanket Loan Can Leverage the Support of an LLC. While the investor’s personal financial history may play a role, as well, it’s usually very helpful to have the backing of an LLC during the consideration phase. This can lead to a much larger blanket loan than they would have otherwise received.

The Release Clause & Closing Costs

The last trait of a blanket loan that we need to talk about is the release clause. This is an essential feature because, without it, these loans would lose a crucial degree of flexibility.

In short, the release clause of a blanket mortgage gives the investor the right to sell off individual properties it covers without selling all of them. Having a way for extra money to throw at closing costs is quite an advantage. Call us today – 1-888-375-7977and speak with one of our qualified representatives

7 Advantages of a Blanket Financing Loans for Term Rentals

Aside from the traits described above, there are a number of other reasons so many investors choose to use a blanket loan for their deals. Individually, most options don’t offer these advantages. However, only a blanket loan offers all of them. Check out our top seven advantages for a blanket loan below.

1. There Is No Limit to the Number of Properties You Can Own

Fannie Mae and Freddie Mac can only offer so much help. Both FNMA and FHMC limit the number of properties they finance to just 10. Once you hit that limit, you’re on your own when it comes to financing. That’s not ideal.

Fortunately, there is absolutely no limit to the number of properties you can pay for using a blanket loan. There is also no limit to the number of properties you can own in order to be eligible to apply for one.

2. Consolidating Your Properties into One Type of Loan

Of course, that’s not the only reason a blanket loan works so well for investors with multiple properties. Even if it wasn’t one of the only sound options available, it would still be one of the most attractive simply because you can consolidate all of the properties you own under a single loan.

You could even use the additional properties to negotiate more favorable terms with a lender. Want to consolidate your properties?APPLY ONLINE NOW

3. Rental Property Financing Streamlined Accounting with Just One Small Business LLC or Business Partnership

If you think taking out multiple loans is going to be inconvenient, wait until you need to maintain the related bookkeeping year after year. Quite the nightmare with many properties. The alternative is 5 or 6 blanket loans with each one covering 10 mortgages. That is much more manageable.

4. Leverage the Equity from Many Properties or Partner Buyouts

The next time you find a great property to invest in, you can pool the equity from your existing properties, cash it out, and use it as a down payment toward the purchase of this new rental home – or rental homes. Got a partner buyout planned? APPLY ONLINE NOW!

5. Greater Borrowing Power with No Debt to Income Ratio

You’ll be able to prove you’ve already been responsible with a large sum. That means you shouldn’t have much trouble securing even more.

This is a huge advantage far too many investors miss out on when they utilize individual loans for their properties. 

6. Take Advantage of Your Strong Cash Flows with your Mortgage Loan

When a lender considers you for a blanket loan, they’ll conduct a global cash flow analysis on each of your properties using a Debt-Service Coverage Ratio (DSCR) assessment.

All of this works to your advantage when you bundle properties because those with stronger cash flow will help make up for those that are weaker.

7. Reduced Risk & a Low Interest Rate than Traditional Mortgage from local banks with a Single Mortgage

 

Although purchasing multiple properties may seem like it does the opposite, recall that a blanket loan involves the benefits of an LLC. Just one of these many benefits is that the LLC protects the investor against liability issues. These issues could otherwise put the investor’s personal finances at risk. Instead, the LLC would take the brunt of any legal recourse.

Reduce your investment risk, APPLY ONLINE NO or Call us today – 1-888-375-7977 

Rental Home Financing

Your Residential Blanket Mortgage Lender for money loans!

Our residential blanket mortgage loans are specifically designed for income property owners and investors on a Nationwide basis. Borrowers, brokers, and hard money lenders now have access to an unlimited fund, backed by experienced professionals, that has attractive financing options with no seasoning and reasonable underwriting guidelines.