Real Estate Investors

Real Estate Investors
If you're are a real estate investor or are working with
real estate investors, this may be the best news you've
heard in years...

Almost every week I get asked this question. I get asked
for a "Blanket Loan" that will cover 5 or more residential
properties for an investor that wants to consolidate all
his properties into one loan.

Until now, my answer has been - it is the White Elephant -
doesn't exist. We have been looking for this loan for
years. The problem is that it is more than 4 units which
makes it commercial, but the properties are all
residential, individually deeded which commercial guys
can't touch or sell.

This is further complicated by the fact that the investor
wants releases which would allow him to sell off a property
if he gets a good price and the lender releases that
property from the security - which again, no one wants to
do.

Now there is a loan for investors for multiple residential
properties (5 or more) where the total loan size is between
$500,000 and $5,000,000. It can do fractured condos as
well!

This allows the seasoned investor who owns 10 rental
properties to put all the properties into one loan, which
will free him up to start buying more residential
properties again since all the existing loans in his name
get paid off!

Better yet, it can close it in an LLC - which gives the
investor added protection and less personal liability.

Investors can take all their properties into one loan.
That frees them up to do more loans at FNMA rates since the
properties will be under one loan in an LLC and may not
even show on their credit at all.

Now here are the parameters: the investment properties MUST
cash flow at 1.2 times. LTV's are 75%. Cash out is
available but again, they must cash flow. Releases will be
granted after the 3rd year. Credit score is not critical
like stated but the credit can't be bad. Tax Returns don't
need to show income because qualifying is totally based on
property cash flow. This is a full doc deal. Now here is
the really good news rates on this blanket loan right now
are very good, around 7.125% fixed.

Remember, many Real Estate investors are paying hard money
rates of 12 to 14% on some Real Estate deals, simply
because they have too many properties. Now they can
finance all of the properties on one large loan under an
LLC and have their personal credit clean to obtain the best
available financing for future purchases.

The other benefit is income, several real estate investors
use cash out of their investment properties as their main
source of income. This is a great way to go from a tax
stand point, because they don't pay tax on borrowed money,
however; from a lending stand point they don't show much in
the way of income. With this type of loan the income from
the properties is what qualifies them for the loan, not
their personal income.

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Brandt Stohr with Advisory Capital Inc, can be reached at
http://www.advisorycapitalinc.com
For residential loans: http://www.wipeoutyourdebttoday.com