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Larry Zucker
  • Real Estate Agent & Investor
  • Raleigh Durham Chapel Hill, NC
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Non-recourse loan suggestions

Larry Zucker
  • Real Estate Agent & Investor
  • Raleigh Durham Chapel Hill, NC
Posted Jul 25 2023, 12:14

I am looking to finance the purchase of a long-term rental under an LLC. Any suggestions on lenders offering non-recourse loans in NC?

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Nick Conley
  • Lender
  • Dallas, TX
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Nick Conley
  • Lender
  • Dallas, TX
Replied Jul 25 2023, 14:23

Hi Larry,

Most Non-QM lenders allow you to close in an LLC including DSCR. The question becomes what terms can you get with different type of Non-QM loans?

I am happy to give you a few quotes, feel free to reach out and we can discuss your NC purchase.

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Erik Estrada
  • Lender
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Erik Estrada
  • Lender
Replied Jul 25 2023, 15:10
Quote from @Larry Zucker:

I am looking to finance the purchase of a long-term rental under an LLC. Any suggestions on lenders offering non-recourse loans in NC?


 There are a few posters on here that offer non-recourse loans. 

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Nick Belsky
  • Residential and Commercial Broker
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Nick Belsky
  • Residential and Commercial Broker
Replied Aug 18 2023, 12:48

@Larry Zucker

Why non-recourse? While fairly common in commercial banking, not so common with DSCR loans mainly targeting 1-4 unit residential properties.

Most lenders who do offer it, use it as a way to charge you more for a "safety net" that doesn't really offer you any more protection that an entity or umbrella policy.

Cheers!

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Larry Zucker
  • Real Estate Agent & Investor
  • Raleigh Durham Chapel Hill, NC
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Larry Zucker
  • Real Estate Agent & Investor
  • Raleigh Durham Chapel Hill, NC
Replied Aug 18 2023, 16:46
Quote from @Nick Conley:

Hi Larry,

Most Non-QM lenders allow you to close in an LLC including DSCR. The question becomes what terms can you get with different type of Non-QM loans?

I am happy to give you a few quotes, feel free to reach out and we can discuss your NC purchase.

Many lenders are requiring personal guarantees even on DSCR loans to LLCs which sort of removes the protection the LLC provides that is why am I asking about non-recourse for DSCR LLC loans