Avatar's Blog

» Blanketing Loans

Posted on 3/31/2005

Within reason, hard money lenders such as Avatar Financial Group can fund loans that are collateralized by several pieces of property. This is called a blanket loan. Blanket loans can be used to collateralize real estate properties within a reasonable distance of each other. In general, there will be a subject property and additional properties that generate the capital needed to purchase that subject property.

Blanket loans do not generally save a great deal of due diligence costs, as all properties will require an appraisal, document preparation, legal work, etc. However, some savings can be realized.in the site visit, escrow, etc.

Posted in Miscellaneous