Blanket Loan Mortgages

investor blanket loanAre you an experienced real estate investor who wants to grow their portfolio by more than just a single property?

If so, you should know about one of the best lending solutions for that kind of venture.

With a blanket loan, you can secure numerous properties at once without the same inconvenience and overhead associated with multiple mortgages. Blanket loans offer a number of other unique advantages, as well.


What Is a Blanket Loan?

blanket loanWhen most people think about taking out a loan to purchase a property, they imagine a residential or commercial mortgage. This has been the standard for decades.

Yet, while this has become the most popular version for buying a property, investors often want to buy more than one at the same time. For example, many developers want to buy tracks of land all at once. Real estate investors often find multiple buildings for sale in the same area that they’d like to purchase at the same time.

In these situations, those parties could take out multiple mortgages – one for each property they wish to purchase – but, as many investors and developers have had to learn the hard way, that usually makes for a very cumbersome arrangement – to say nothing about how much money it wastes (more on that in a minute).

Instead, an experienced investor will almost always opt for a blanket loan. As the name suggests, a blanket loan covers multiple properties, allowing an investor to buy, hold, and sell each of them under the same financial agreement.

The investor also enjoys the convenience of making this arrangement through a single lender, instead of having to go through the process with many of them. This means they only need to concern themselves with one payment for one loan – ever.

These business-purpose loans almost always come from non-bank lenders. Generally, a blanket loan is used for buying between one and four properties. These can include:


  • Single Family Units
  • Townhomes
  • Condos
  • Multifamily units


However, they can be used to purchase many, many more.

Streamlined Financing for Small Apartment Buildings using Stated Income

Small apartment buildings and multifamily properties are currently offering up some of the best returns for investors. What financing options are there for investors seeking to add apartment buildings to their portfolios?

Small Balance Apartments

Smaller balance apartment buildings and multifamily properties are among the top property types for investors right now. After several years of giant funds chasing single family homes and larger commercial property deals in prime locations, smaller multi-unit properties can provide some of the most attractive deals for yields and growth.

In the past it hasn’t always been easy for real estate investors to find financing for small balance apartments. Lenders have preferred to put their capital into larger deals. Our new apartment building loan program changes that lender mentality with some of the most attractive rates offered in today’s market on a National level.

Monday, 23 October 2017 00:00

Forecasted Rental Property Growth Rates

Forecasted Rental Property Growth Rates

Why the single-family home rental market is trending up, up, up

Single-family-home rentals are on the rise and all signs point to continued growth and opportunities for investors to cash in on the trend. Millennials opting to rent vs. buy are creating a demand for rental homes across the nation and expanding a market that has seen steady growth in recent years.

Why the huge demand for rental homes?

One reason could be a lack of inventory. According to Time MONEY, single-family home construction still hasn’t recovered from cutbacks, following the financial crisis. Potential buyers are finding housing shortages in cities like Nashville, Raleigh and Kansas City, where low inventory hasn’t historically been an issue.

Stricter credit requirements have also come into play. The loose lending practices during the last housing boom left nearly 8 million homeowners in foreclosure. What resulted was a financial reform law with new, firmer rules for lending.

Single Family Homes Vs. Multifamily Property Investing

What is better; single family home investing or multifamily apartments?

There are passionate advocates for both of these types of rental property investments. How do they really stack up? Which is the smarter move?

The Pros & Cons of Multifamily Property Investment

There are some investors who are very bullish about multifamily apartment buildings, and argue that they have traditionally offered some advantages in the real estate investment space. Let’s look at both the pros and cons.

Rental property growth rate data shows it may be a great time to both restructure and ramp up investment portfolios. Here are the stats, quirks, and opportunities rental property investors should be watching now…

The Rental Property Market Correction

Rental rates began slowing in 2016 according to CoreLogic. They experienced a massive surge in the wake of 2008, and marched upward at an amazing pace for several years back to back. Then credit slowly began to become more accessible to home buyers, while new multifamily construction took off. That construction and completions is believed to have peaked in 2017. Some softness may be patched up by tight inventory, a stronger national economy, and the absorption of new apartment units. Analysts believe that overall, the US should see continued modest gains in rental property growth rates, though trends will be localized.

Saturday, 23 September 2017 00:00

Rental Property Investors & The Equifax Hack

What does the huge Equifax credit hack mean for rental property investors?

The supersized hack of credit bureau data could have a substantial impact on real estate, the economy, millions of individuals, and rental property investing. Here’s what rental home investors need to know…

The Equifax Hack & Credit Quality

With the massive data breach at Equifax potentially impacting close to 300M Americans, plus Canadians and the British, there are likely to be many renters and would be home buyers affected over the months and years to come. Some of those who hoped to buy homes will no longer qualify for traditional home loans. The renter pool could see a significant dip in average credit quality due to ID theft and fake accounts being taken out in consumers’ names.Rental property investors should be anticipating this. If the damage really begins to stack up, landlords may have to lower their approval criteria, and dig deeper into credit. Check if this is an applicant who has maintained good credit until recently, and may be a real hacking victim. In which case their rent to income ratios may also be far better in reality than their reports show

Tuesday, 12 September 2017 00:00

Housing Inventory Shortages

Housing inventory shortages have been a hot issue over the last 18 months. Where is this crisis at its worst? What opportunities does it present for investors?

Realtors have been continually stressed about the shortage of housing inventory over the last couple of years. This may bring both advantages and disadvantages for some real estate investors. So, just how tight is the market? What is causing the drought in supply? Where are the opportunities?

Supply & Demand: America’s Tightest Housing Markets

The days of America being a massive buffet of homes capable of filling the appetite of every individual and global fund have certainly changed a little in the last ten years, according to the media. In January 2017, economist Jonathan Smoke said two thirds of the US housing market is seeing less inventory, with tight credit and limited construction remaining factors in this change.

How can income property investors protect their portfolios from hurricane risks?

Natural disasters, and hurricanes in particular appear to be imposing increasing threats to real estate investors. Storm seasons appear to be more active, wildfires have grown worse, and direct hits to residential areas feel like they are larger and more expensive than ever. What can rental home and multifamily property investors do to be better prepared to weather these conditions, and bounce back quickly?

The Risks

Natural disasters like hurricanes bring a multitude of broad and long risks for income property investors.

Just how bad is the impact of hurricane Harvey on the Houston housing market? What will it mean for real estate investors? What does the potential for recovery look like?

Harvey’s Impact on Houston

At least tens of thousands of Houston housing units have been impacted by Harvey. Some estimates put this damage at around $400B. That’s around 4x the cost of Katrina. Add to this the loss and damage to other commercial properties, and interruption of business, and the impact over the next few years could come close to $1T.

Where are the best places to invest in rental homes now?

Home prices are up and rental yields have been squeezed in some areas. So, where are the best markets for rental property investors to acquire new income producing assets now?

The Hunt for Yield

According to The Street, these are 10 of the best markets for rental property yields in 2017:

Yield maintenance can be a new and unfamiliar term to newer real estate investors. What is it? How does it work?

Essentially, yield maintenance helps ensure the lender and their investors achieve a minimum yield on the loans they make. They need to ensure they stay profitable, and deliver on their guarantees to others.

Yield maintenance typically shows up as a prepayment premium or penalty in mortgage loan documents.This is a standard feature in many commercial real estate loans. How much it is can depend on a combination of interest rate, points, pre-payment penalties, and interest rate trends.

How Yield Maintenance Works

There are no absolute rules when it comes to applying this factor. Each lender can apply their own calculations, and desired minimum yield.

Cash flow real estate continues to grow in popularity with individual and Wall Street level investors alike. What’s the big draw to, and advantages of this asset class?

There are many reasons cash flow properties are an attractive investment. Here are seven of those drivers to consider when looking for new investments.

1. Cash Flow

The cash flow itself is one of the biggest draws to both individuals and institutional investors. Cash flow is critical for keeping any business or investment going long term. The lack of it is the primary reason people, businesses, and institutions go bankrupt. Not only do rental homes and commercial properties produce cash flow, but they deliver passive income as well. This is a major advantage, even over flipping houses or new construction.

Wednesday, 28 June 2017 00:00

NO DSCR vs DSCR Ratio Loans

No DSCR and DSCR based loans offer different advantages to investors, depending on their status and the type of property they are acquiring.

DSCR stands for Debt Service Coverage Ratio, which is a fancy way of saying, "is there enough cash flow from the monthly rent to cover the mortgage payment, insurance and taxes?"

What is a DSCR Loan?

When you use a DSCR loan product, you are choosing a loan driven by the ratio of monthly rent to mortgage payment, taxes and insurance. This ratio will drive the size of the loan and the pricing.

Real estate investors often run into issues with financing properties once they hit about 10. Having more than 10 mortgages isn't allowed by many lenders. Some won’t loan to borrowers who have as few as 4 mortgage loans on their credit. So, how are you supposed to build your empire to 20, 30 or even 100 properties?

There are a few ways you can find the financing you need, when you have more than 10 rental properties. Since most lenders will stop loaning you money after you have 4 to 10 mortgages showing up on your credit report, you need to know where to turn, in advance. Here are a few ways to finance more than 10 properties as an investor.

A blanket mortgage allows you to finance an entire portfolio of rental properties, without limits. Builders and developers often use these types of loans along with commercial property investors. When you need to fund more than one property, you can use a blanket loan, which will act as one loan with a single servicer. This not only helps you to finance more than ten properties, but also helps to cut down on the paperwork of managing payments each month.

The goal ofinvesting in a vacation rental is to create an income. Without using the right vacation rental listing site, this may become far more difficult. While the process starts with financing and finding the right loan program for your specific needs, it won't matter much if you cannot get anybody to stay in your vacation property.

You have a few basic choices when it comes to listing sites. HomeAway, VBRO and Airbnb are the three main choices. Here's a look at some of the important information you should know about all three of these sites.

The Traveler Service Fee

Most of the major booking sites for vacation properties will charge a traveler service fee. This is calculated based on the total nightly rate and fees. These fees can affect your bookings as the traveler will have to pay the fee in order to stay in your property.

After you've gone through the process of finding the right vacation rental property financing and you've purchased your new assets, what do you do next? Maybe you've decided you want to use the home a few weeks out of the year and the rest of the year you want to rent your vacation home on Airbnb. This is an option many choose, and for good reason.

Airbnb provides one of the top options for those looking to book a vacation rental in some of the best destinations around the world. They have more than 1.5 million listings in over 34,000 cities with all kinds of accommodations. Here are seven tips you can use to make sure you get more bookings when listing your vacation rental with Airbnb.

Take Great Pictures

The one thing you have to set you apart from your competition is the picture you include with your listing. Sure, price might matter to some travelers, but if you don't show off great pictures, the price will become insignificant. If you have the means to get professional pictures taken, this is always a good option.

Stated income loans could provide the liquidity and confidence needed to fuel an extended surge in the US property market.

Home sales are up, the economy is looking up, and demand for real estate is growing. However, it could be stated income loans which finally offer the fuel needed to get investors more active, and provide the new round of growth analysts have been watching for.

US Investment Trends

New data from the National Association of Home Builders shows US home builder confidence hitting yet another new high in March 2017. It is now at its highest level since June 2005. CBRE’s new Global Investor Survey also shows $1.7T in capital is waiting to be deployed into property markets this year, with North America being the preferred destination. This could be compounded further with Eric Trump’s recent revelation that his organization is planning to halt developing projects overseas, in favor of more domestic investment.

There are a lot of investment options out there. Why are savvy and experienced investors still trending towards investing in single family homes? What are the benefits?

1. Passive Income

The need for passive income far outweighs simple returns or potential for asset growth. Single family homes are true workhorses for churning out cash flow and passive income month after month. With good property management investor-landlords can put their portfolios on autopilot and just let the returns flow in.

Monday, 17 April 2017 00:00

Vacation Rental Property Financing

Vacation rental property investing is trending. What factors are driving this sector now? What financing options for vacation rentals are there?

The premium rents and returns that short-term rentals like vacation properties can deliver are drawing more and more investors. Income property investors are realizing that they can often get 2-4x the monthly rent by offering Airbnb style accommodations. By avoiding the traditional long term lease these investors are also able to avoid much of the risk normally associated with being a landlord, and stay poised to capitalize on rate increase opportunities. townhomes

New No Ratio Loans offer real estate investors simplified financing options for taking advantage of the current market, fast.

This is expected to be another record year for the US real estate market. In order to take full advantage of the opportunities investors need leverage. Interest rates may still be low, but many investors have been holding back due to fears of the hassles of applying for financing. Fortunately, a variety of new lending products are available in 2018, including streamlined loans with limited documentation requirements.

Learn More

New YearAvailability of rental home financing continues to give real estate investors an edge in the market. A tight mortgage market has been blamed for holding the US property market back from its full potential for years. However, while that hasn’t changed too much for regular home buyers, capital markets appear to continue to be fueling rental home investment activity.

Tight Mortgage Lending Standards Continue In 2017

The latest reports show that despite increased confidence and sales activity in the housing market, mortgage lending remains tight for consumers. The National Association of Realtors’ Economists Outlook and mortgage originator survey shows both concerns over servicing issues and regulatory risk as significant factors in restricting new lending activity . The Urban Institute and Market Watch report that lenders have still been turning down over 1 million loan applications per year, from borrowers who would have been approved in 2001. In fact, Market watch says more people aren’t even bothering to apply for credit.

New YearIs a blanket mortgage loan just what you need to optimize your rental property portfolio? There are thousands of real estate investors out there with multiple rental properties, who are not yielding the best possible returns. Blanket mortgages could be one of the simplest and most effective options for turning this around.

What is a Blanket Mortgage Loan?

A blanket mortgage loan is a single loan which can be collateralized by multiple properties. For example; instead of applying for and juggling 10 individual loans on 10 single family homes or apartment buildings, investors can use a single blanket loan to borrow against all of them. It is one set of paperwork, just one loan to service each month, or to consider refinancing or retiring in the future.

There can be many advantages of these loans for optimizing income property portfolios.

New YearRental property investment activity is expected to soar in 2017 fueled by new confidence and a brighter economic outlook. Home sales hit a new record in January 2017 according to NAR and the US Census Bureau. Builders are expected to continue to expand, and investors are eagerly searching for deals. It all bodes well for the market for the foreseeable future. At least for those with the capital and financial sources to seize on current opportunities.

The New Economy

We are clearly in a new economic mode, with multiple fundamentals signaling greater times ahead. In February 2017, private US employers added almost 300,000 jobs, beating expectations by close to 30%. Tens of thousands of addition jobs are to be added as manufacturing firms return to the US, or expand their American footprints. Fox Business reports that wages have finally been rising. Up 3% already, higher pay is likely to be compounded as employers compete for workers.

At the same time stock indices have been notching up new record highs, and the Snap IPO has pushed tech to what some call almost ‘too big to fail’. So, while the economy looks great, forward thinking investors are looking to capitalize on the yields and equity gains that can be locked into in rental property investments.

New YearStated income loans are making a big comeback for commercial real estate financing After years of tight credit markets commercial real estate funding is flourishing again. Many have been sitting on the sidelines waiting for more lenient loan programs to return. Now they are here!

Stated Income Loans

Stated income loans are a vital part of the real estate industry, and the economy. Now that they are returning the effects may not only brighten the finances of individual investors, but the wider market as well.

Stated income loans allow borrowers to qualify for real estate financing, without having to jump through all of the paperwork hoops, hassles, and time drain of full documentation underwriting. This not only provides investors speed and efficiency advantages, but can be an absolute necessity. Many experienced and savvy property investors have sat on the sidelines because they don’t want to deal with the inefficient complexities and quirks of income documentation. Others, who are self-employed, are full time investors, those who have complicated finances or advanced tax sheltering vehicles in place simply can’t verify income thoroughly enough. That ironically even spread to former Fed chairman Ben Bernanke, when even he couldn’t qualify to refinance his own home.

As stated income and other expanded qualification loans roll out and spread we should expect many more seasoned investors return to the market, while firms expand their acquisitions.

Friday, 30 December 2016 00:00

Happy New Year from Rental Home Financing

New YearEach year is a new journey, it’s time to choose your paths and where you’re heading. It’s time to choose who you’re going with, how you’re going and when you’re going, we want to be there with you to help in that success.

Choose to experience beautiful twilights and incredible trips, and to smile spontaneously. Choose to cultivate friendships, and spend time among good friends.  Choose to love, constantly and abundantly, and may this never be too little. Because every good choice we make deserves to happen someday.

As this year draws to a close, we at Rental Home Financing would like to wish you a Happy New Year and thank you for your patronage over the years. Our company would not have been this successful had it not been for the support that we have been provided with by our most prime assets – our customers.

We anticipate that the coming year will bring with it more in terms of mutual success. Rental Home Financing is committed to providing you with exceptional services and we will do our best to keep our service standards high in the next fiscal year as well.

Thursday, 08 December 2016 00:00

Indiana New Building Property is Hot

Supply is Shrinking, Investor Profits Rising!

indianaThe rental housing in the Indiana real estate market market has been growing fast in the past 3 years. Real estate agents are selling homes now faster than ever seen. Our highly competitive rates, plus the improving job markets and recent expansion of flexible lending requirements for blanket mortgage loans has Indiana property the best since 2006.

The increase in Indiana home buying has led to a shrinking supply. This is leading to a robust market providing rental home investors the best accumulative values not seen since the last peak a decade ago.  New blanket loans for investors helps ensure the pace.

top 10 investment locationsFuture Investor Profits Look Great
There’s still plenty of demand from renters and buyers on the in search of a home.  The low supply and high demand means your rental and resale profits continue to grow. 

Demand for real estate continues to push forward and it's economic foundations remain strong. We agree with most forecasts for the upcoming year expecting expecing continued growth in the real estate markets for investors

Data for the locations where homes are in most demand are provided in the chart below.  The data is ranked by montly progress by, not yearly so keep that in mind. For example, Oregon has a huge housing demand growing from the influx of people from california, on a yearly progress chart would surely make the top.

2016 Real Estate Trends: Urban vs. Suburban Investment Properties

What current investment property loan, development, and media trends are impacting urban and suburban real estate? Where are the opportunities? How can investors take advantage of them?

2016 Real Estate Trends

There are a number of significant trends influencing the direction of the market, and where the profits are this year.

These include:

  • Low investment property mortgage rates
  • Affordability
  • Local city planning and appetite for revenues
  • Developer profits
  • Millennial buying power and preferred property features

buyguideInvesting in property is an art, seldom mastered by only a few. Managing a successful rental portfolio is not as easy as its seems on the surface. Sometimes, investments backfire and you have to quickly get rid of them to save your entire portfolio. People can go under sooner than they think and often end up in a lifetime of debt. As gloomy as it may sound, if done correctly, there is nothing more rewarding than real estate investing.

Professional investors work their way through complex property loans to achieve success. If this is something you aspire to become, here's a comprehensive guide to investing in real estate the right way.

Wednesday, 23 December 2015 00:00

Top 10 US Investment Locations for Buy to Rent

Top 10 Investment LocationsWhere Should I Be Investing?

Buy-to-Rent returns are showing buying more affordable than renting in 66 Percent of Markets. Potential buy-to-rent profits increased thanks to rental rate growth outpacing home price growth from a year ago. Some location returns increased to nearly 60% over the previous year.

What locations had at least a 59% increase in buy to rent potential for 2015? The best locations for  With a 2015 average range of 3% to almost 27% gross rental yeild depending on location, our question now demands more attention. The average individual average is around 9% but who wants just average results when it comes to investments.

Page 1 of 2