Multiple Loan or One Big Loan

[Christy Holt]

Hello everyone!

This is my first post/question on Bigger Pockets.  I'm looking at 5 single family homes in Georgia.  Price ranging from 45,000 to 90,000.  Should I do an individual loan for each property or one big loan for all properties?  I think I should do individual loans.. What do you think?

Thank you,

Christy

[Andrew Holmes]

@Christy Holt

Ms. Christy: It depends on many factors. Depends on your goal and intended purpose. Length of ownership and how you plan on disposing off the assets if that is in the plans. 

In some cases it is cheaper if you do 1 loan with 1 lender and wrap it all. When you sell it the can do partial releases but keep in mind they will make you pay bigger chunks of money when you dispose of a property or two in the portfolio. 

We have done both and there are pro's and con's on both end but it's more goal dependent and your business plan dependent according to me.