The situation
A longtime real-estate investor was frustrated by managing numerous individual loans and servicers, repeated servicing transfers and the administrative burden of tracking insurance and payments across the portfolio.
Why the obvious route did not fit
The default way to finance rentals is one property, one loan. That is how this portfolio had been built, and it was the source of the problem: every property meant another loan to track, another servicer that could transfer the loan, and another insurance and payment record to keep straight. Refinancing the properties one at a time would have recreated the same structure.
The structure that was used
We located a portfolio/blanket DSCR structure and refinanced 16 properties into one blanket loan. The result:
- One loan relationship in place of numerous individual loans and servicers.
- A consolidated insurance structure instead of tracking coverage property by property.
- Access to substantial portfolio equity at approximately 75% LTV, subject to lender valuation and underwriting.
What approximately 75% LTV means
Loan-to-value compares the loan amount with the lender's valuation of the collateral. At approximately 75% LTV, the blanket loan was roughly three-quarters of the portfolio's value as valued by the lender, leaving roughly 25% of that value as equity across the 16 properties. The lender's valuation, not the owner's estimate, sets that base.
What it means if you own several rentals
As a rental portfolio grows, financing every property separately is not always the most efficient structure. Blanket financing can simplify administration and may provide access to accumulated equity. Questions worth working through:
- How much is the administration costing you? Count the loans, servicers, insurance policies and payment dates you manage today.
- How will the portfolio be valued? Leverage depends on the lender's valuation of each property, not your own estimate.
- Do the rents support the combined payment? Blanket DSCR lenders look at the portfolio's rental income against debt service. The DSCR calculator shows the basic ratio.
- What do your current loans say about payoff? Review each existing note for prepayment terms before you plan a consolidation.
- Is cash-out the goal? See how DSCR cash-out refinances are evaluated.
Relevant LoanFight program pages
About these scenarios
These anonymized examples are educational and illustrate financing strategies used in specific transactions. Guidelines, rates, values and results vary by borrower, property, lender and timing.
Historical transaction. Terms, values and results were specific to the borrower and transaction and are not representative of current offers or guaranteed results.
Have a deal that doesn't fit neatly?
Tell us what you are trying to do, what you own or want to buy and what has already been tried. LoanFight matches borrowers with lending partners; it is not a lender and does not make credit decisions. You can explore options without entering a Social Security number on the initial intake.
Tell Us About Your Deal → Call 732.801.0376More real-world scenarios
- How a Family Paid Off a Reverse Mortgage and Kept the House
Reverse mortgage payoff → DSCR refinance into a family LLC - Keeping a 3% First Mortgage While Accessing Equity With a Fixed Second
Keep a 3% first mortgage → access equity with a fixed second - Buying a House From an Uncle With a $100,000 Gift of Equity
Buying from an uncle → $100,000 gift of equity - SBA vs Conventional Commercial Financing: Comparing a 9% Bank Approval
Pharmacy owner's strip center: 9% bank approval vs 5.875% close
Educational information only, not an offer, approval or financial, tax or legal advice. LoanFight is not a direct lender and does not set final loan terms. Equal Housing Opportunity.