Cross-collateralized blanket loans allow investors to finance 5 to 50+ doors under a single closing, including properties worth $55k–$75k that fall below standalone loan minimums. However, an aggressive 120%–125% partial release clause can trap your sale proceeds when you sell a single house.
Standard blanket notes require you to pay down 120% of the allocated loan amount when selling one property out of the pool. By selecting a portfolio lender with a 110% release factor (and ensuring the remaining pool maintains >= 1.20x aggregate DSCR), you retain tens of thousands more net proceeds per disposition.
Most standalone DSCR lenders enforce a $100,000 minimum loan amount per property. Grouping four $65,000 Midwest cash-flow rentals with one $250,000 property inside a single $385,000 blanket loan unlocks institutional DSCR pricing across the entire package.
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