Blanket loans across several rentals and the refinance step of the BRRRR method.
A portfolio or blanket loan finances several rental properties under one loan, with one payment and one closing, instead of a separate mortgage for each. Investors use them to consolidate scattered loans, to buy several properties at once, or to cash out equity across a portfolio. Because the properties are cross-collateralized, release clauses matter: they set what it takes to sell or refinance one property without paying off the whole loan.
The BRRRR method, buy, rehab, rent, refinance and repeat, depends on the refinance step: a long-term loan, often DSCR, that replaces the short-term purchase and rehab debt once the property is renovated and rented. These guides cover blanket loans, release terms, seasoning requirements and how investors finance each stage of BRRRR.
A blanket loan is one loan secured by several properties. It simplifies financing a portfolio with a single payment and closing, but it cross-collateralizes the properties, so the release clause determines how a single property can be sold or refinanced separately.
After buying and renovating a property with short-term financing and placing a tenant, the investor refinances into a long-term loan based on the new appraised value, which repays the short-term debt and can return part of the invested cash. Lenders commonly apply seasoning rules on how soon after purchase that value can be used.
Conventional mortgage programs limit the number of financed properties an individual may hold, while DSCR and portfolio lenders commonly allow many more because they underwrite the properties' income. Lenders still review the investor's experience, reserves and the performance of the existing portfolio.
Real Estate Funding — DSCR, fix and flip, construction, bridge and portfolio loans for investors.