What a blanket refinance does
A blanket loan secures one credit facility with more than one property. At closing, proceeds can pay off the separate eligible loans and replace them with one portfolio structure.
This may be used for rental portfolios, multiple commercial parcels, or individually titled condominium inventory. The collateral does not have to begin under one umbrella.
- Current loan and payoff schedule for every property
- Title and ownership for each parcel or unit
- Property-by-property value and income
- Combined and individual leverage
- Proposed release price for future sales
- Cross-default and cross-collateral terms
Why release language matters
If one property is sold, the lender may require a specific portion of the loan to be paid down before releasing that collateral. A weak release formula can trap too much equity or make a future sale difficult.
The borrower should compare release provisions, prepayment terms, recourse, reporting, and loan covenants—not only the initial proceeds.
A real condo-inventory example
Ahoo refinanced 20 individually titled units at Edison Midtown in Phoenix together at approximately 75% LTV. The structure created liquidity from remaining inventory after 37 of the original 60 units had already sold.
That transaction shows why a blanket refinance can solve a portfolio-level problem that 20 isolated loan applications may not solve efficiently. Future transactions remain subject to their own underwriting and approval.
Related questions
Do all properties need the same owner?
Often lenders prefer consistent or related ownership, but eligible entity and guarantor structures vary and must be reviewed.
Can I sell one property later?
Potentially, if the loan documents include workable partial-release terms and the required payoff is made.
Can a blanket refinance provide cash out?
Potentially. Available cash out depends on value, leverage, current payoffs, cash flow, reserves, and lender rules.