Re: buying portfolio - blanket loan - Posted by Ed Garcia
Posted by Ed Garcia on January 28, 2007 at 13:23:22:
The first thing I?d like to say is, you being an investor for 4 years, the time has come for you to find and build a relationship with a local bank.
Because of the various types of properties in this portfolio, meaning the 6 unit building, I agree with Jimmy, if I?m not sure at the time of purchase what I plan to keep or sell, a Blanket lien could be one way to go.
Gene it?s difficult advising you, when we don?t have all of the information.
For example there may be a property or a few properties in the portfolio that have existing financing currently on them that you plan to sell. Why would you want to refinance old existing loans with new money, paying refinancing fees etc. and then immediately pay them off when you sell them? Wouldn?t you be better off restructuring the deal utilizing the existing financing until you sell them, it would be far more advantages.
That?s why I mentioned to a previous investor who just recently posted on this board that when purchasing a portfolio, chances are you?ll use a combination of financing.
When looking at a portfolio, my first instinct is to do it with a combination of seller carry-back, new financing, and using some of the existing financing as well.