Nothing Ventured
So for all you investors out there that don’t want to transition your business to deal with the realities of today’s economy, listen up, if you have more than four mortgages then you are stuck. Switch off the light, pull down the shades; you are done for a while.
But wait; there is a light at the end of the tunnel. If you are one of the rare few that has purchased properties with equity and if you are one those educated by a wise old-timer who taught you to always get positive cash flow, you have a choice.
The blanket loan is a viable solution. The blanket loan is a commercial real estate loan that encumbers a group of residential properties. You must have a minimum of five homes, but 8 or more is ideal.
It’s not easy and it’s not a panacea. As a matter of fact only about 50% of the deals applied for are ever funded. But what choices are left?
I have actually had several investors whose deals look fully qualified tell me they don’t want to move forward with an application until they see other deals being closed successfully. When pressed for a reason why, they said it was because they did not want to make the effort for something that might not work.
But I say to them and others with that line of thinking…..Nothing ventured, nothing gained. In the end the process itself will tell you about your situation. It will help take off the rose colored glasses and give you a clear picture of where your business stands.
Many will be surprised to find out that they are qualified to lump 8, 10 12, or 15 residential properties under one loan that clears them from the existing mortgages from their personal credit and gives them the ability to go out and buy MORE residential properties.
Others will go through the process and find that they CAN buy a small apartment building, a small retail center or an office building.
But sadly others will sit complacent and stagnate. Their business will not grow and they will have to make due and employee worn out subject-to strategies to grow their business.
The time to grow is right now. Real estate prices are great and opportunities abound. But you have to be willing to change with the times. If you want to find out if you qualify for a blanket loan or any other small commercial loan then you have to do the hard work and make the application.
Don’t pay upfront cost. We work with a professional that wants to be invested in time with you to achieve the goal of helping you grow your business. Remember, commercial deals are more expensive than residential, but you don’t have to pay the appraisal and underwriting fees until AFTER the lender gives you a commitment letter. By that time, you are almost closed.
Michael Gross is the President of Dividend America Mortgage and has been in real estate for over 20 years. He has been a builder, a Realtor, an appraiser, and currently he is a lender and an active real estate investor. He uses all of his experience and knowledge to show individuals how to properly use a mortgage as a tool to help create greater wealth through real estate investing. For more information on residential and small commercial loans please contact Mr. Gross on his direct line at 770-350-7373 or via email at
mgross@dividendamerica.com
