Private Money Multi-Property Blanket Loans
Private money multi-property blanket loans are being used by real estate investors who have built a significant real estate rental portfolio and need to consolidate their holdings into one single loan at a lower fixed interest rate in order to realize a better return on their investment.
The majority of FCTD’s blanket loan borrowers began accumulating distressed properties at the bottom of the market in 2009. Most investors used 12.00% hard money financing to make their initial purchase, rolling over those loans several times. In the years that have passed, many investors have seen their properties nearly double in value and would like to tap into the equity in their rental portfolio to acquire additional properties and/or reduce their interest rates from 12.00% to 5.50%-8.50%.
Multi-Property Blanket Loans Program:
- Up to $5,000,000 loan amount.
- Interest rates start at 5.50% to 8.50% (Lower LTV = Lower Interest Rate).
- 5, 7, and 10-Year Fixed Rates available.
- Up to 70% Loan-to-Value (LTV).
- Loan amount and LTV determined by rental cash flow rather than income tax returns.
- 5, 7, and 10 year balloon payment options.
- Sliding scale prepayment penalty during first three years (3%, 2%, 1%) on the 5-year program or 114 months on the 10-year program.
- One to four units preferred. 5+ multi-family properties also eligible.
- Closing within 10-28 business days.
- Valuations done by drive-by or full interior/exterior appraisal.
- Vesting through Individual, Corporation, LLC, Trust, Self-Directed IRA, Foreign National allowed.