Blanket Mortgage Options


#1

Long time first time. Background - My partner and I own 11 duplex buildings (22 total units) that are 100% occupied as student housing until Fall 2013. All are new construction within the past 3 years. All are on the same block (except one) with title held in 3 entities (long story). Total debt $3.1M with mkt value at $4.5M. Each building has its own commercial mortgage from a smaller local bank. Usually 5 year balloon with 20 year amortization. We have a full time property manager run this and other things for us and do not plan on selling.

Question - does it make sense to get a blanket mortgage on all buildings and attempt to get a better rate and lock it in for a longer period of time? We have a mortgage person looking at the deal now but I have doubts about his ability to get the job done.

Any advise on if a blanket makes sense and/or someone to talk to? Thanks


#2

Does it make sense?

While we could guess, I would just wait for the facts to surface. Let the MB check to see what they can come back with. If the numbers make sense, then look carefully at the conditions. You might not like the conditions so the difference in the rate could be lost to the added conditions.