Non-recourse loan

Under what circumstances could a person use a non-recourse loan? I have a multi-family building I would like to purchase and HML seems a little too expensive.

Is it possible to get a non-recourse with sub prime credit?

Sure it is possible. Best bet is from the seller of the property. If they are motivated they will. If they are not why are you dealing with them. You can also do it with an owner financed note or notes with selling the first to get the seller cash that they want. They could also refi and you take over subject to.

Is a bank and conventional lender likely-no.

I’m not sure of the size of your multi-unit property, but there are numerous commercial lenders out there that offer non-recourse loans, it’s actually pretty standard in the commercial arena. They might charge you a little extra in either rate or points, but if you have a good, strong, cash-flowing property, it really shouldn’t be a problem. For a lot of commercial investors, it’s the only way to go- why be personally liable on the loan if you don’t have to?

thanks guys … I am a newbie and I am trying to qualify for everything under the sun… Haha … I just hate having each broker pull my report and assassinating my credit profile.

I found a non-recourse lender for big commercial properties, the rates are great .5 - 1 points on loan but application fee is 2500 to $5000 :o … add lots of stipulations. But I think if I am going to do big properties in the future I will try using non-recourse.