Residential Real Estate Investors Now is still a great time for investors to purchase residential one to four unit income producing property. There are several reasons that make buying and holding real estate a good return on your investment today. Some of these reasons include: property values are relatively low, rents are relatively high and the demand for rental real estate is stable if not growing, interest rates are low and conventional financing is available up to a point. The problem occurs for buyers of one to four unit properties when you have more than four homes financed. Conventional lenders generally limit the number of houses they will finance to four. There are opportunities for funding up to 10 properties, but the requirements are very strict and very few people would qualify for that option even if they found a lender offering it. Today the best answer for long-term financing is a blanket mortgage. This allows the serious investor an opportunity to have own and have leveraged ten, fifteen, even twenty or more units with one loan covering the entire portfolio. When an individual real estate investor decides to have a long term business the wrap mortgage can help them leverage their existing portfolio and continue to grow the number of units they own. Blanket Mortgage This is a commercial loan for businesses that will encumber multiple properties under one loan. For residential investors this allows them to have stable long-term financing. This can get them off the hard money roller coaster, especially if they are looking to hold instead of flip properties. Blanket loan financing will not limit how many units they can have financed as does conventional residential financing. Here are the basic guidelines: Minimum loan amount is $500,000 Minimum number of residential units is 5 Minimum individual property value is $50,000 Minimum occupancy is 90% Properties must be owned by a company – not individual Property types include: single family, 2 to 4 unit, condominiums, town homes, multifamily properties and mixed use properties that are at least 60% residential. Up to 75% loan to value Minimum Debt coverage of 120% Perfect Credit not mandatory Finally If you are a residential investor with more than five units that can use stable long term financing you should consider a blanket loan for purchasing property, refinancing your existing portfolio or getting cash out to help you invest in other properties. Commercial Real Estate Investing is a great opportunity. Louis Jeffries has been a Commercial and Residential Mortgage Finance Originator for over 25 years helping real estate investors achieve their investing and financial goals. To learn more about commercial and residential real estate investing, down payment assistance for commercial properties, conventional and creative financing options. Go to for more information. Call Louis at 708-374-7439 Article Source: “