What Are Blanket Loans?
The US is the hub of economic activity, and to sustain this economic environment, loans are crucial to. It is estimated that the loans granted by US banks were 15.5 trillion dollars in June 2021. However, surprisingly, even these loans are not enough to finance the projects started in the US, which is why private lenders have to step in. When the banks reject you, you go to a private lender for different types of loans, one of which is a blanket loan.
Basics Of Blanket Loan
A blanket loan is a loan that takes several properties as collateral. If you’ve more than one property, rather than finding a financing option for each one, it would be better for you to acquire a blanket loan.
Pros Of Taking A Blanket Loan
Taking out a loan has many costs associated with it. One such cost is the fees paid to the lender on every settlement. If you have more than one property, blanket loans provide you with a way to pay the settlement fees only once rather than paying it for every property, saving you a lot of money.
Think of a blanket loan as a wholesale transaction. For example, if you buy a single good, you won’t have any negotiating power. But if you go to a market to buy in a large quantity, the seller will decrease the price for you and give you attention. A blanket loan also works like this when you go to a lender with multiple properties instead of you; the negotiating power lies in your hands.
Who Should Get A Blanket Loan?
It’s sensible for individuals who have or want to buy more than one property to get a blanket loan.
Real estate builders are the first thing that comes to mind that fits the above description. If you’re a real estate builder, you will need to buy several properties at one time and then develop them simultaneously. A blanket loan can help speed up the finances you need to start the construction. If you’re a real estate investor, you can look to acquire blanket loans as they can provide you with extra finances to buy more properties and enhance your portfolio. If you are looking to expand your franchise in multiple locations as a business owner, you may want to look towards a blanket loan instead of getting separate mortgages; a blanket loan can act as a single financing option for you.
Get A Blanket Loan Now!
If you’re looking for a single financing option for your multiple properties, visit Commercial Private Equity now. We provide blanket loans to individuals who want to buy more than one property. We have been in this industry for over 75 years and strive to provide the best possible deals for our clients. Apart from blanket loans, we deal in other loans, including commercial loans, construction loans, hard money loans, private equity loans, and much more.
Fill our application form to start your financing.