Avatar's Blog
» Blanket Loans
If you already own commercial real estate, it may be possible for you to collateralize more than one piece of property under a single hard money loan to generate the capital you need. Whether you are buying property or looking for working capital, a blanket loan may be the answer for you. Here is something to consider:
Note that Avatar must lend in the first lien position. Any existing liens on your properties must be paid off or subordinated to the Avatar loan. In general this means that first liens get paid off and subsequent liens, such as second mortgages are either paid off or subordinated to the new loan. If you have a first lien loan at a very low rate, consider what this will add to your monthly payments. If your second lien is subordinated to a low LTV first lien loan and you want to keep that second lien, rather than pay it off with the proceeds, ask the second lien holder now whether s/he will subordinate to the new loan. If the new loan is significantly higher LTV, you may run into a snag. Find out now
