blanket mortgage

Definition

A single loan that covers multiple properties, popular with developers and investors who find getting individual mortgages tedious. It's the financial equivalent of buying in bulk, often with a release clause letting you sell properties individually.

Example Usage

The investor used a blanket mortgage to finance all five rental properties, streamlining the paperwork and getting a better interest rate.

Origin

Banking terminology from the early 20th century, 'blanket' metaphorically covering multiple assets under one agreement

Fun Fact

Blanket mortgages are particularly useful for developers subdividing land, as properties can be released from the loan as individual lots sell.

Source: Commercial lending standards

Related Terms

Beginner

rate lock

An agreement that freezes your mortgage interest rate for a specified period while you complete the purchase. It's financial stability in an unstable world, for 30-60 days at least.

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Advanced

air rights

The property rights to use the vertical space above a parcel of land, which can be sold separately from the land itself. In dense cities, this lets you literally monetize thin air by selling the right to build above your property.

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Intermediate

buildout

The process of customizing and constructing interior spaces to meet a tenant's specific needs, transforming empty commercial shells into functional offices, restaurants, or retail spaces. This construction phase involves everything from framing walls to installing specialized equipment, typically negotiated between landlords and tenants with someone inevitably paying more than expected. It's when architectural dreams meet contractor reality and budgets start sweating.

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Intermediate

broker price opinion

An estimate of a property's value provided by a licensed broker rather than a certified appraiser, often used by lenders for less critical valuations. It's the fast-food version of an appraisal—quicker, cheaper, and potentially less reliable.

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Advanced

floor area ratio

The ratio of total building floor area to the size of the land parcel, expressed as a decimal that determines building bulk. A FAR of 2.0 means you can build twice the square footage of your lot, just stack it up.

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dead deal

A transaction that has collapsed spectacularly, usually after everyone involved has invested weeks of time, hope, and paperwork. The real estate equivalent of a relationship that was 'totally going somewhere' until it wasn't.

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