Some banks will do "blanket" mortgages where they take lien on multiple properties, but it certainly not like buying a Duplex...depending on the deal you would be getting, you may likely have to have previous Real Estate management experience and 6 months reserves on ALL properties!!
I have done several of these deals, and I did them in Baltimore. Banks will do blanket loans, just be wary of prepay penalties. Also, how you structure the deal is extremely important. Depending on structure, it can either be a very sweet deal, or your worst nightmare. Ask me how I know this.
bnorton. ANY and ALL advice is appreciated. I want to close this deal rather quickly but dont want to experience a "nightmare". any info on how you would structure would be greatly appreciated. thank you
I am currently doing a one for many trade and I am having separate notes on each property. I was unable to find a bank to do a blanket with the number of properties involved and there were issues about getting paid if I want to sell one of the properties. I have been told that it is common for the bank to take proceeds as a paydown of the loan rather than allocate a loan component to each property.
Quote:
On 2005-10-31 14:03, edmeyer wrote:
I am currently doing a one for many trade and I am having separate notes on each property. I was unable to find a bank to do a blanket with the number of properties involved and there were issues about getting paid if I want to sell one of the properties. I have been told that it is common for the bank to take proceeds as a paydown of the loan rather than allocate a loan component to each property.
Most banks will want the sell of the property proceeds to go to the principle. You can work out an agreement of 75/25. But that would depend on what the house was worth when you bought it and when you sell it. It also depends on your reserves, credit, and cash flow of the properties. I have noticed that on blanket mortgages the bank is using 65% of the gross rental income for the debt service ratios.
I have several pieces of property under one blanket mortgage and I recently sold one, the bank looked at what percentage of the total loan was this piece of property, by using the combined appraisal totals to come up with the percentage. This particular one was 38% and the bank wanted 38% of the loan paid, they released the one property from the mortgatge, re-amortized the loan and I kept the balance of the sale. If you can get banker to work with you like this, it makes things much easier.
A bank you have a very good relationship with!!
Some banks will do "blanket" mortgages where they take lien on multiple properties, but it certainly not like buying a Duplex...depending on the deal you would be getting, you may likely have to have previous Real Estate management experience and 6 months reserves on ALL properties!!
I have done several of these deals, and I did them in Baltimore. Banks will do blanket loans, just be wary of prepay penalties. Also, how you structure the deal is extremely important. Depending on structure, it can either be a very sweet deal, or your worst nightmare. Ask me how I know this.
Good luck.
Bruce..
bnorton. ANY and ALL advice is appreciated. I want to close this deal rather quickly but dont want to experience a "nightmare". any info on how you would structure would be greatly appreciated. thank you
I am currently doing a one for many trade and I am having separate notes on each property. I was unable to find a bank to do a blanket with the number of properties involved and there were issues about getting paid if I want to sell one of the properties. I have been told that it is common for the bank to take proceeds as a paydown of the loan rather than allocate a loan component to each property.
Quote:
On 2005-10-31 14:03, edmeyer wrote:
I am currently doing a one for many trade and I am having separate notes on each property. I was unable to find a bank to do a blanket with the number of properties involved and there were issues about getting paid if I want to sell one of the properties. I have been told that it is common for the bank to take proceeds as a paydown of the loan rather than allocate a loan component to each property.
Most banks will want the sell of the property proceeds to go to the principle. You can work out an agreement of 75/25. But that would depend on what the house was worth when you bought it and when you sell it. It also depends on your reserves, credit, and cash flow of the properties. I have noticed that on blanket mortgages the bank is using 65% of the gross rental income for the debt service ratios.
Good Luck
Laurie
[addsig]
I have several pieces of property under one blanket mortgage and I recently sold one, the bank looked at what percentage of the total loan was this piece of property, by using the combined appraisal totals to come up with the percentage. This particular one was 38% and the bank wanted 38% of the loan paid, they released the one property from the mortgatge, re-amortized the loan and I kept the balance of the sale. If you can get banker to work with you like this, it makes things much easier.