Imagine looking at three different houses in a certain area of your city. One house could make a nice residence for you. The other two properties could make excellent income producing properties. I don't know about you, but it is a rare investor that can come up with cash to buy one house - let alone three. So, a mortgage is necessary. Unfortunately, conventional loans do not allow liens on three separate properties. Does that mean the investor is out of luck? No. Investors have alternative financing options in the form of blanket loans.



Blanket loans are mortgages that cover purchasing or refinancing many properties. They are called blanket loans just because they wrap up property financing just like blankets wrap us up! Investors use blanket loans to eliminate the crazy rules of conventional lenders like Fannie Mae and Freddie Mac. Instead, blanket loans allow investors to acquire or refinance many properties within a single loan.

What is the benefit of this? Actually, there are a number of benefits. One of the main benefits is the expediency provided towards acquiring the properties. This is no minor point. In some instances, it may be critical to acquire the loan and close the deal as quickly as possible. Completing three separate mortgage applications could prove time consuming. Additionally, there are a host of other problems with such a convoluted process.

Blanket loans are offered by portfolio lenders and give us investors a way to circumvent the conventional lenders such as Fannie Mae and Freddie Mac, the rule makers in conventional lending. Blanket loans are underwritten on the credit-worthiness of the underlying properties and not the borrower.

Blanket loans don't follow the crazy rules handed down by Fannie Mae and Freddie Mac. So, this type of financing opens the door to buy or refinance more than one property at a time. This, obviously, gives us real estate investors a light at the end of the tunnel.

As such, blanket loans are more than a means of acquiring lending capital. Granted, that is what a loan is, but these loans have other value as well. Blanket loans are also a pathway to producing great wealth. Because of this, their value to the real estate market and the economy in general is enormous.

As we all know, time is money. Why waste time if you do not have to? Portfolio lenders provide amazing "off the grid" financing options that you will never find anywhere else. So, if you are an investor seeking to buy or refinance more than one property at a time, look for a blanket loan. It is a great way to go.