A private blanket lender is a lender that approves a large lump sum of money to mortgage multiple properties. Donald Trump for example likely has some blanket loans in his portfolio. That means one bank gives him some money, and he uses it in multiple locations.
However, you don’t have to be Donald Trump to be a good candidate for private blanket lenders. Whether you have two properties to manage or 200, all you need is collateral to be a good candidate for private blanket lenders. These are the most common candidates for private blanket lenders.
Real Estate Investors
A real estate investor is the most common candidate for a private blanket loan. This loan is not going to cover their own personal home or mortgage, but rather the real estate they want to sell.
They will get a mortgage for a home and then resell the home. That gives them access to immediate cash without closing costs or commissions.
House flipping has become a lucrative business in the United States. Blanket loans help house flippers both renovate and sell their homes quickly. A blanket loan lets house flippers keep a running inventory, while still keeping cash on hand when their homes sell.
Landlords make good clients for blanket loans, and it’s the best of both worlds to them. They can buy a home and make money renting it out, while using capital to invest in their properties. They will not only have cash on hand but also a recurring income.
Before you get a private blanket lender, do your research. Compare quotes from multiple companies in today’s competitive market.