If you are a real estate investor, you need to consider a blanket mortgage for your investment needs. These loans will provide you with a great deal of flexibility to manage your business portfolio.
They are available as fixed, fully amortized mortgages for a 30years period, and you can choose a structure that suits you. Here are some of the benefits you will get when you visit private blanket lenders for these types of loans
Getting a blanket loan requires less paperwork involvement. You can apply for the multiple mortgage option using one credit approval. Therefore, you will not have to submit employment, credit, or asset verification documents several times.
Additionally, instead of submitting many mortgage payments during the month, you can do it once or twice. You can also buy and sell some units by tweaking your existing blanket mortgage.
You can expand your portfolio quickly
Many private real estate investors do not always enjoy the obstacles they encounter with the limitation of so many single mortgages at one particular time.
This cap is usually a real barrier for them to expand their portfolios in as much as there is a workaround process where a landlord can set up a separate company where each company can be used to grasp a few home loans.
A blanket loan can be used to negate all these challenges as you can be able to own many homes using fewer loans.
More cash out
You can combine all the equity you have through your portfolio to expand your business, and it can let you maximize the sum amount you get in cash-out refinance. Further, you will pay closing costs on only one money-out refinance transaction.
Finally, it is worth noting that if you have excellent credit, willing to shop around, and have plenty of cash, you can get a good deal from various blanket lenders.