Avatar's Blog
» Financing bridge loans for multiple properties
Posted on 1/19/2005
As a hard money commercial bridge lender, Avatar Financial Group can 'blanket; or 'wrap' several pieces of property into a single loan. There are some significant advantages for doing so, including some cost savings. However, some costs are still incurred on each property, which can on occasion make the process too expensive to be cost effective.
In general, the costs of underwriting are not significantly reduced. These costs include appraisals, inspections, financial documentation review, document preparation and escrow, site vists, etc. If the properties are close together, there is a cost savings on the site visit by an Avatar representative.
If the properties are each valued in excess of $500,000 blanketing a loan may be advantageous while still being cost effective. If the properties are valued at $1,000,000 or more each, you might even consider blanketing up to three properties into a single loan to generate sufficient capital to meet your needs.
Posted in Miscellaneous
In general, the costs of underwriting are not significantly reduced. These costs include appraisals, inspections, financial documentation review, document preparation and escrow, site vists, etc. If the properties are close together, there is a cost savings on the site visit by an Avatar representative.
If the properties are each valued in excess of $500,000 blanketing a loan may be advantageous while still being cost effective. If the properties are valued at $1,000,000 or more each, you might even consider blanketing up to three properties into a single loan to generate sufficient capital to meet your needs.
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