Getting started question

[Corey Jenrich]

Greetings,  Getting started and looking to do a 1031 Exchange and purchasing multiple properties. I have been reading that Blanket loans facilitate this process, but in talking with lenders they do not recommend because the loans can be difficult to work with when trying to refinance or make adjustments.  Does anyone have experience (Good/Bad)? 

[Dave Foster]

@Corey Jenrich, a blanket loan can help.  But it's not a "have to have" if you've got the right lender team.  I've had more clients doing the diversification exchanges (purchasing multiple replacements) with individual loans for each than I have with blanket loans.

The key if you're going to get one loan is to make sure you have a partial release clause and substitution of collateral clauses that allow you to sell individuals and buy individuals down the road without requiring a recast or pay off of the entire loan.