Is there any one that can do a blanket mortgage for 5 to 6 investment properties in Maryland?
Why do you want to do a blanket mortgage?
I have a client who is interested in doing a blanket loan on some investment properties.
What are the property types?
OK, why does the client want to do a blanket mortgage?
RJ,
He has multiple properties that are in the process of being quit claimed over to him by family members. He is hoping to save time and money by getting a blanket mortgage. And just paying one note a month rather than six of them.
Are the properties free and clear and the client is trying to cash out or are they already mortgaged?
If they are SFM’s or duplexes and they spread all over town a blanket mortgage is not going to happen. If they are commercial properties and the LTV is under 80% something can be worked out.
In the end, the “client” probably doesn’t REALLY want to do a blanket mortgage either – probably just on “Carlton Sheets Overload”…
Did you discuss with your “client” what happens when (s)he has a blanket mortgage on 5 or 6 properties and then decides to sell one?
Keith
keith is right sort of. you may run into some problems breaking them apart if you decide to sell one. however, if you find a buyer who buys in pack(and they are out there believe me) then you would not have such a hard time. now if they are looking to hold each one for an extended amount of time and cashflow them individually, this may not be such a bad idea. i have seen it done.
<<keith is right sort of.>>
Nah, Keith is right - not sort of…
You WILL have problems severing individual properties from under a blanket mortgage (read: “refinancing”…). If there is an investor that “buys in pack”, (s)he will just as willingly buy the pack with separate mortgages…
Keith
I’ve looked this before for my own siutation; you will have to keep the properties together. Sure I bought stuff in package deals and I ALWAYS expect a discount when I buy that way (I’m sure I not the only guy to think this way). I always sell properties one by one to maximize profit and have the most flexibility
What are the appraised values of these units
What LTV are you looking for ?
It is quite possible that we can help. We can allow
a mixture of residential and commercial properties ?
How is the borrower’s FICO and financials ?
And yes, location is not an issue
I know this has been a product many investors have been wishing and looking for now for many years. I just had a conference call this week and we now have this exact product available for owner of 5 or more investment properties(residential). It would be considered a commercial transaction upto 80% LTV and the rates range from 7.5% ~ 9.5%, but the properties MUST cashflow in order to make this loan work.
Rod
Spoke to 2 lenders this past week about this blanket program and they noted rates could be below 7%.
One professed that this was definitely not such a new product. There were quite a few others that do this at 75% too.
Potential users of this product should be aware that a broker may be able to earn hidden compensation from the lender by increasing your rate.
If you have lenders that will lend below “7” on a multi-residential property blanket loan when the market average is higher then 6.75% for prime borrowers—I’m going to have to call that bluff…
If you are truly are engaged in this industry as you claim, then you would recognize the oddity of the program—I suspect your comments where merely meant to distract and not inform.
PAR rates were in the 7s last week—not inflated with YSP or any other “hidden” fees as you suggest.
Regards,
Scott Miller
I should be questioning your engagement in this industry. Are you the same Scott Miller that goes by $Broker and Loans4All on 2 other forums designed for brokers ‘needing’ advice or help from other brokers or lenders. I read over many of your requests on needing assistance on where or how to place deals. I couldn’t believe how simple some of these questions were. The most recent being your search to find ‘this’ blanket loan back in May of this year that you now market and appear to make yourself an expert on.
You should think twice about challenging me on product knowledge, integrity, or commitment to this industry. Matter of fact, don’t even think about it. In the meantime, if you’d like have a conference call with the lender that I spoke with to hear what they told me, you’re more than welcomed too. Those #s are exactly what he verbally presented to me.
I see no need to escalate this any further as it’s already headed in a negative direction.
Ben,
Not interested in crossing swords, YOU WIN—if you think the AE that you got a verbal from could CLOSE with rates below 7 when the nat. average was around 6.875% LAST WEEK, then all the power to the both of you (and I wish you much success).
As to my alledged incompetence in the area of lending—I’ll let my posts on this forum, my satisfied clients and the many that I have spoken to on this forum speak for itself.
I repeat you WIN—I’m not interested in lowering myself either to defend or further engage you on this matter.
Regards,
Scott Miller
Why limit yourself when you sell them to only dealing with people that can buy the whole group. Trust me when I say this, there are many people out there that for one reason or another need to sell their properties as a group and they have a TOUGH time moving them. One person that I had talked to 6-8 months back emailed me a few weeks back seeing if I would reconsider buying his condos (8 condos in one building, he owns all and will only see all as a package). These units were on the MLS a few times about 1.5-2 yrs back and expired. Now he’s trying to sell them privately and by the looks of things is having no luck.
Another seller had a package of condos that he tried and tried to sell as a group but couldn’t move, even with a discount…had to end up selling them singlely.
If there are 2000 qualified owner occ buyers looking and 2 investors that can buy large blocks of RE would you rather limit your market to just those 2 investors?
Ps- Scott, Ben- Take it to PM please.
To all of you that are recommending the new blanket loan program Scott refers to, remember that there is a 2 year no exceptions lockout period. After that, partial releases are available. It’s a great product if your intention is to hold the properties for a while.