Clearlake, CA Blanket Loan for Rental Portfolios | Hanover MC
By Hanover MC On June 16 2023
See how a Lake County landlord used a hard money blanket loan to cash out $75K for rental property renovations in Clearlake, CA.
CLOSED DEAL · CLEARLAKE, LAKE COUNTY, CA
By Hanover MC | June 16, 2023 | 3 min read | Lake County, California
$75,000 Blanket Loan Funds Rental Renovations in Clearlake, CA
A seasoned real estate investor/landlord used a first trust deed blanket loan — cross-collateralized across a rental and vacant-lot portfolio — to pull cash-out working capital for renovations, arranged through Hanover MC's network of trust deed investors.
$75,000
Principal
48%
LTV of ARV
60 Mo.
Term, P&I
1st TD
Lien Position
Quick Answer
A seasoned Lake County landlord used a business-purpose blanket loan — a first trust deed cross-collateralizing single-family rentals and a vacant lot in Clearlake, CA — to pull $75,000 cash-out working capital for renovations, at 48% LTV of ARV over a 60-month term. Hanover MC arranged the financing through a whole trust deed investor.
The Transaction
Deal Snapshot: Clearlake Rental Property Blanket Loan
A closed Lake County hard money blanket loan combining single-family rental and vacant-land collateral, arranged for renovation working capital. The properties sit in Clearlake, roughly 4.5 miles north-northwest of Lower Lake on the shore of Clear Lake.
Figures describe this specific, previously closed transaction only — not a quote or commitment to lend. Every borrower and property is underwritten on its own terms.
Why a Blanket Structure Fit This Lake County Rental Portfolio
Rather than financing each rental separately, the borrower's single-family rentals and a vacant lot were cross-collateralized under one first trust deed. That let the cash-out working capital fund renovations across the portfolio instead of tying financing to one address — with the 48% LTV of ARV leaving meaningful equity cushion in the collateral pool. Investors weighing a longer hold after renovations sometimes roll a deal like this into a long-term rental property loan, while others prefer a shorter bridge or term loan depending on their exit plan.
Per Redfin's Clearlake housing market data, home prices in the area run well below the statewide median, and separate industry analysis from HomeAbroad's 2026 California rental market rankings has flagged Clearlake for above-average short-term rental yield — part of why blanket structures that consolidate several lower-basis rentals under one loan are common here. Figures shift regularly; pull current comps before underwriting any specific property.
This is a business-purpose commercial transaction, not a consumer mortgage. Hanover MC is a California-licensed hard money mortgage specialist; it arranged this financing through a network of private trust deed investors.
Quick Q&A
Common Questions on This Structure
What is a blanket loan?
A single loan secured by two or more properties instead of one — commonly used by landlords consolidating several rentals under one lien and one payment.
Can vacant land be included alongside rental homes?
Yes — blanket structures can combine property types, including single-family rentals and vacant lots, within the same collateral pool, subject to underwriting.
Is this available for owner-occupied homes?
No — this specific transaction was a business-purpose loan on a rental and vacant-lot portfolio, not an owner-occupied property.
How does a blanket loan differ from a DSCR loan?
Blanket describes how many properties secure one note — DSCR describes how the loan is qualified, using rental income rather than personal W-2 income. The two aren't competitors: a blanket loan can be, and often is, qualified on a debt-service coverage basis across the whole portfolio.
Can a blanket loan be paid down and one property released?
Many blanket structures include a release clause allowing a single property to be sold and removed from the lien once its allocated share of the loan is repaid, while the rest of the portfolio stays financed under the original note. Whether and how that applies is program- and lender-specific. Release clause in not guaranteed.
Not ready to call? Get a no-pressure portfolio review.
Send your property list and Hanover MC will scope whether a blanket structure pencils out — no obligation, no hard credit pull.
Own multiple rentals in Lake County?
See if a blanket structure fits your portfolio — whether it's in Clearlake, Lakeport, Kelseyville, or Hidden Valley Lake. Business-purpose loans only — terms subject to underwriting and investor approval.