GuidesRefinancing
Consolidating several properties
Combining loans: terms, security and effects on flexibility.
One payment instead of several
Sometimes a lower rate on the total
A higher overall amount
What consolidation allows
- One payment instead of several
- Sometimes a lower rate on the total
- A higher overall amount
- A single maturity date to track
What you give up
Selling a single property becomes harder. The lender holds security over the whole group.
When consolidation helps
It helps when a weaker property is supported by a stronger one.
The lender then reviews the group, not each property alone.
When it hurts
- If you plan to sell one property soon
- If the properties have different maturities
- If one property carries all the risk
- If you may refinance separately later
The release clause
Negotiate the right to release one property against a partial repayment.
The effect on future sales
Selling one property from a consolidated group needs the lender’s consent.
They will require a partial repayment, calculated their own way.
That amount often exceeds the share the property represents.
What to prepare
Gather rent rolls and expenses for each property.
Also present a table summarizing the group on one page.
That summary greatly speeds up a multi-property review.
