Sorry, I just had to ask… .Are these things for real? Or are they fancy wording to make others feel better about taking the plunge?
I’m thinking of getting one and my understanding is that if I get in over my head for some reason that they can not come after my personal house and belongings to get the amount of the loan they did not get when they foreclosed…
Is that accurate and does anyone do that? I would love to talk to a few of you about it. I’m ready to get a pre-qual i think on a few small 1-4 unit SFH at first.
Please PM me with specifics or offerings but since this is a forum I’d love for you to answer in this topic thread so others can learn and then feel free to send me an email on specifics.
(Thanks Rich, Sorry about the inconvenience)
If you can find a lender that will write a non-recourse loan then go for it. Just as the term implies the lender will look to the security property for repayment and not pursue you personally for any shortfall. These are common in commercial real estate loans and development loans where the security property and the business entity might be on the line for repayment but the owner is off the hook should the sky fall.
Typically these loans are for 1 million or more.
Non recourse is really only available for commercial loans of $1M+ as stated above. There is a residential option available with a few lenders but it is only available if you are investing within your self directed IRA.
Thank you guys, I’ve found some great properties I need to go out and just buy… LOL.
I’m scared to death… lol. Done all my homework and they seem really like nice places; ran all the numbers and it will be putting money in my pocket… The thought of a million dollar loan makes my stomache hurt… HaHa Maybe one day, huh?