Core Concept - Blanket mortgages are single loans that cover multiple properties, streamlining the purchase process for seasoned real estate investors and developers [2][3]. Group 1: Definition and Functionality - A blanket mortgage allows investors to secure one loan for multiple properties, simplifying the application and repayment processes compared to traditional mortgages [2][3]. - All properties under a blanket mortgage serve as collateral, and borrowers make regular payments to one lender [3]. Group 2: Unique Features - A notable feature of blanket mortgages is the release clause, which permits the sale or refinancing of individual properties without affecting the entire loan [4]. Group 3: Requirements - Blanket mortgages are primarily designed for experienced investors or real estate companies, requiring substantial assets and a detailed portfolio [5]. - Lenders may impose stricter requirements, including higher credit scores, significant cash reserves, and larger down payments, potentially up to 50% [6]. Group 4: Advantages - The streamlined application process saves time by allowing one mortgage application instead of multiple [10]. - Borrowers benefit from fewer fees, as they only pay one set of closing costs [10]. - Repayment is simplified with one payment covering all properties, making it more manageable [10]. - The release clause facilitates easier portfolio management by allowing property sales without full loan repayment [10]. Group 5: Disadvantages - Blanket mortgages come with significant risks, including stricter borrower requirements and potentially high closing costs [15]. - A balloon payment structure may result in lower initial monthly payments but a larger sum due at payoff [15]. - There is a significant foreclosure risk, as all properties serve as collateral, risking loss of all if payments are defaulted [15]. Group 6: Target Audience - Blanket mortgages are suited for serious real estate investors with substantial net worth, while beginner house-flippers or buyers are advised to avoid them [11]. Group 7: Application Process - To obtain a blanket mortgage, investors should find specialized lenders, understand borrower requirements, complete a detailed application, and thoroughly review loan terms [16][17].