any thoughts on blanket loans

[Ric Weidner]

greetings pocketeers

did a quick google search and found there are firms out there that offer blanket loans. it seems a lot of these companies cater to RE investors, small and large. Since we are at nine mortgages and would like to acquire more than one SFR, was wondering if anyone else on BP had any experience or thoughts on blanket loans

thanks

ric and kazuko

[Upen Patel]

@Ric Weidner Cross collateralize (i.e. blanket) loans are commercial loans. They are typically 25-30 yr amortization, but the rate is fixed for only 5-7 yrs. Its a balloon payment as the end of the fixed term. You have to refi at that point.

In contrast the residential portfolio loan is a true 30 yr fixed just list a conventional loan. You do pay a bit higher rate for this piece of mind.

So you have to decide what you care about, short term cash flow or long term rate stability.