Blanket loans for rental portfolios — what should I know?

Ethan, blanket loans are great for the right situation. Key things to know: 1. Lenders will underwrite each property individually AND look at the portfolio as a whole 2. The DSCR is calculated on the portfolio's aggregate cash flow, not property by property 3. Release provisions matter — make sure the loan allows the borrower to sell individual properties without triggering full payoff 4. Blanket loans are harder to refinance later — the borrower is locked in more than with individual loans 5. Minimum loan size is usually $500k+ for most blanket lenders For 8 SFRs, this is a good candidate. What's the aggregate value and loan amount?

Jennifer covered it well. At Reeves Capital we do blanket loans starting at $750k. The release provision is the most negotiated term — make sure you get 110-115% of allocated loan amount per property, not 100%. DM me if you want to discuss.

Jennifer and Cynthia — thank you so much! The aggregate value is about $1.8M and they want $900k. I'll DM Cynthia. This is my first blanket deal and I appreciate the guidance :)

Release provisions are everything on blanket loans. Don't let the borrower sign without understanding them.

Hey everyone, Felicia Grant from Grant Lending Solutions here. Great discussion on blanket loans! I've done a few of these for DSCR portfolios, and the release provision is definitely key, as Cynthia and Hank mentioned. I usually see 1.25x or 1.35x the allocated loan amount for releases, sometimes even higher depending on the lender and market. For Ethan's deal, with an aggregate value of $1.8M and a $900k loan, that's a 50% LTV, which is solid. My main concern would be the individual property values and cash flow. Are all 8 SFRs performing well? What's the DSCR on the portfolio as a whole, and what's the individual DSCR on the lowest performing property? Sometimes a lender will want to see a minimum DSCR on each property, not just the aggregate. Also, consider the exit strategy for individual properties if they need to sell one off. What are the prepayment penalties on the blanket loan?

Great thread, everyone. Ethan, for an 8-SFR portfolio valued at $1.8M seeking $900k, you're looking at a 50% LTV, which is very attractive for lenders. Most non-QM DSCR lenders will cap out around 70-75% LTV on blanket loans, so this borrower has plenty of equity. Beyond release provisions, which are critical, pay close attention to the lender's appraisal requirements. Some will require individual appraisals on all 8 properties, while others might allow for a bulk appraisal with a few interior inspections, which can save your borrower significant costs and time. Also, confirm if they require an interest reserve, especially if any properties are vacant. I recently closed a 12-unit blanket DSCR where the lender required a 6-month reserve for the two vacant units, which was a surprise to the borrower but a non-negotiable for that specific lender.

Hey everyone, Marcus Bell here from Bell Capital Group. This is a super timely thread for me! I just closed my first blanket loan last month for a client with 12 SFRs, and it was definitely an education. Hank and Felicia are spot on about release provisions – that was the biggest learning curve. My client wanted to sell off a few properties over the next year, so we had to make sure the release fee wasn't punitive. We ended up with a 110% of pro-rata principal release, which felt fair. Also, something I learned the hard way: make sure you understand how the lender values each property for the release. Some lenders use the original appraisal, others might want a new one. For Ethan's deal, with 8 SFRs, I'd also ask about the minimum property count post-release. My lender required at least 5 properties to remain in the blanket. What other less obvious things should we be looking out for on these?

Alright, let's talk blanket loans. For 8 SFRs, if the borrower needs speed or has some hair on the deal – maybe a few properties aren't quite stabilized for conventional DSCR, or they need cash out fast – that's where hard money comes in. We're looking at the asset value, not so much the borrower's credit or detailed income. For an 8-property portfolio, we'd typically go up to 65-70% LTV on the combined appraised value. So, if that $1.8M portfolio needs $900k, that's 50% LTV, which is very strong. We can close these in 2-3 weeks, sometimes faster, depending on the appraisal and title work. The trade-off is higher rates, obviously, but you get the speed and flexibility. Release clauses are standard, usually requiring a 1.25x-1.5x paydown on the principal for each property released. If they're looking to consolidate quickly and then refi out, hard money can bridge that gap efficiently.

This is a great question, and blanket loans can be a solid play for portfolio investors. I've done a few of these, mostly for DSCR borrowers looking to consolidate or pull cash out efficiently. For 8 SFRs, you'll definitely find lenders interested, especially if the properties are performing. One thing to really dig into is the exit strategy. Are they planning to sell off a few properties? If so, make sure the lender offers partial release clauses and understand the associated fees. I had a client with 10 units recently who wanted to sell 3 within 18 months, and we structured it with a lender who had a clear release schedule tied to specific principal reductions. Also, what's the condition of these 8 SFRs? Are they all stabilized, or are some still in rehab? That can push you towards a bridge blanket loan versus a pure DSCR product. What's the borrower's primary goal here?

Blanket loans for 8 SFRs? Absolutely. If your borrower needs speed, or if some of those properties aren't seasoned enough for conventional DSCR, hard money is your play. We're looking at the collective asset value, not just the individual income streams. For 8 SFRs, we're typically talking 60-65% LTV on the portfolio's as-is value. This allows for quick cash-out or consolidation, usually closing in 10-14 days. The trade-off is higher interest – think 10-14% – but it buys them time to stabilize, rehab, or season the portfolio for a long-term refi. It’s about leveraging equity for immediate capital or solving a short-term problem that conventional lenders won't touch. We've done these for portfolios ranging from 5 to 50 doors, always focused on the underlying asset value.

Great question on blanket loans for SFR portfolios. For 8 SFRs, these are definitely viable, and often preferred by investors for efficiency. The key is understanding the lender's approach to valuation and exit strategy. Many lenders will require individual appraisals on all 8 properties, but some might accept a bulk BPO or AVM for initial sizing, then full appraisals for underwriting. Expect LTVs to range from 65-75% for cash-out refis, and DSCR will be calculated on the aggregate portfolio NOI. Pay close attention to cross-collateralization clauses and partial release provisions. If the borrower plans to sell off properties individually, ensure the release fees and process are clear upfront. We recently closed an 8-SFR blanket for a client at 70% LTV, 1.25 DSCR, with a 3-year fixed rate. The main hurdle was ensuring all properties met minimum occupancy and condition standards for the institutional lender.