Avatar's Blog
» Blanketing Loans to Purchase New Property
Blanketing a loan over existing properties in order to buy a new property can be very advantageous. Consider the following scenario:
You want to buy a $1,000,000 office building. You already own an apartment complex which you purchased for $1,500,000 five years ago. Today, the quick sale value of the apartment comlex is $1,600,000. You owe $500,000 on that apartment complex.
Avatar can blanket a loan over the office building and the apartment complex to generate a 65% LTV loan of $1,690,000. Avatar must lend in the first lien position, so you pay off the existing mortgage of $500,000 on the apartment complex at closing. You can buy the new property for $1,000,000 and cover closing costs, etc. with the remaining balance. You'll probably have something left over to get you off on the right foot to making the office building a hard-working property for your portfolio. Ask Avatar about blanketing loans to purchase properties without having to lay out cash at closing.
