A blanket loan is also referred to as a blanket mortgage or portfolio loan. As a real estate investor, you want to come up with a portfolio of your long-term properties to ensure they provide you with cash flow for a long time. A blanket loan is the most effective and cost-effective way to manage all your properties. You can combine multiple properties in one loan, with one lender making one payment, and one fee. The challenge is that there are a lot of lenders who provide these types of loans. It becomes a bit challenging to know the right one to choose. Below are important considerations that will help you select the right blanket loan lender.
It is advisable for you to start by doing a thorough background check to come up with a list of reputable lenders who are in the market. Prioritize those who provide loans also to business entities or LLCs. You want to work with a lender who fully understands your needs as an investor and will provide you with a loan program tailored to fit your needs. Check out the websites of several lenders and compare the services they offer. You should also get recommendations from some of your business associates and friends.
It is best for you to choose a service provider who is located nearest to you to encourage fast delivery of services. You will also be comfortable knowing that you can reach them easily in person in case of any problem. Before making your final decision, make sure you go through the list of testimonials and reviews left by their past and recent clients. You will get a good idea of what to expect from them and if they offer loan programs that are appropriate for your situation.
Another consideration when looking for a blanket loan lender is the number of years they have been in business. Experience is a sign that they are well-established, transparent, and reliable. Knowing that you can rely on their services for many years will give you comfort to know that they are professionals who can meet your needs at any time. You want an opportunity that will help maximize your monthly cash flow. It is possible by choosing a lender with experience because they will develop the best loan programs for you. You need to know in advance if the service provider has prepayment penalties and how they will affect you.
Also, consider meeting with at least three blanket loan lenders who match your requirements. You will have a good chance to discuss in-depth the type of service you require. Discuss in advance what happens in case you decide to sell individual units or property in the future. Having this information in advance will help you choose the one who offers the most favorable terms. They should also have the best customer service. Observe how they respond to your questions and choose the one you feel comfortable around. A good lender will explain to you everything in detail to help you make an informed decision.