The real estate market in the United States has been soaring since the beginning. Following the trend, the US real estate market is expected to rise by 3.3 percent between 2021 and 2024, according to statistics. This hot market necessitates real estate investors to make quick decisions and close deals.
Many real estate investors use hard money loans to fund their transactions. Blanket loans, meanwhile, are a common loan alternative among real estate investors.
Let’s look at why real estate investors might think about taking out blanket loans to fund their projects.
1. They Can Help You Get Better Loan Terms
Consider someone who has ten typical mortgages totaling $300,000 in debt. They are borrowers with a $300,000 loan to each lender. There’s nothing too extra about it.
However, if you have a blanket mortgage of $3,000,000 and owe this much, you might be given exceptional and luxurious treatment.
You can use your high-roller status to get better loan conditions and customize the terms as per your needs. You can demand lower interest rates helping you increase your monthly cash flow.
2. They’re A Great Way to Broaden Your Investment Portfolio
Real estate investors can benefit from having multiple properties throughout town because diverse locations can yield higher earnings. As a result, holding properties in various locations can help them secure revenue and extend their portfolio, and blanket loans can help!
3. They Boost Your Cash Flows
Taking out multiple loans for different houses involves different loan repayments. It can be tough to repay the loans. Regular monthly payments can also impact your financial situation and result in losses.
On the other hand, blanket loans allow you to refinance several homes with a single loan. As a result, real estate investors can save money on various repayments while also improving their cash flow.
4. They Are Simple To Obtain
The ability to acquire many properties with blanket loans makes blanket loans an attractive option for real estate investors. It can be challenging to obtain multiple loans for a new property.
Fortunately, blanket loans make it easier for real estate investors to acquire many homes. Most investors can avoid wasting time and effort filling out numerous loan applications and waiting for approvals.
Most significantly, submitting multiple loan applications increases your chances of making mistakes, costing you a lot of money in the long run.
If you’re an aspiring real estate investor looking to build your portfolio, Commercial Private Equity is the best lender in town.
We also offer a three-tiered lending program with varying loan requirements making loan acquisition simple for our customers.
Contact us to learn more about our commercial loans.