Financing Multiple Properties in One Deal

[Brandon Zurek]

Hey BP community!  I came across a promising opportunity on a duplex a couple days ago and I have an offer pending.  I think we would be well on our way to closing on that duplex but the owner has 3 other duplexes in the same neighborhood listed right now and it seems as though he is more interested in moving all four properties in one transaction.  I don't personally have the financial means to purchase all four structures but I am working on a potential partnership that would provide more investment capital to put an offer on all them.  Given that each duplex is it's own property and we would be purchasing all four in one transaction, what options do we have in structuring loan(s)?  We'd like to put 20% down and finance the remainder of the purchase.  Should we just look at taking a traditional 30 year mortgage on each structure?  I've done some research on blanket loans but I don't know how difficult it would be to sell the properties autonomous of one another down the road if they're all on one blanket loan.  Is that an option we should explore further?  What are the pros and cons of holding four independent mortgages vs a blanket loan?  Are there other options we are overlooking? 

Thanks   

[Brandon Hicks]

The beauty of working with small portfolio lenders that do blanket loans is they can modify them as need be in the event of a partial sale.

Back to the deal at hand. Why not see if the seller would sell you all 4 duplexes on a land contract with the funds you do have as your down payment. Keep the deal for yourself vs. diluting it with partners. I once purchased 3 duplexes (decent ones) with around $5k in actual cash and a note for $15k secured by the equity in 3 properties I had financed with a small bank on a blanket loan.

I just closed a 12 unit complex this month with no cash down using a note secured by the equity in these 3 duplexes, which are now financed with my bank on yet another blanket commercial loan. Full circle!

Here's the link on the 12 unit success story.

http://www.biggerpockets.com/forums/223/topics/168...

Let me know if you have any questions and keep us updated.

Good Luck!