Arvada, CO · Member since 2014 · 52 posts · 30 votes
I've never purchased anything other than a SFH, and I'm currently eyeing a few deals on 20-30 unit apartment buildings, which puts me into the realm of commercial lending for the first time in my life. For this scenario, let's assume I'm talking about putting a 20-25% cash downpayment on a property that is 95% occupied, and currently making money.
How likely is it that I can find a lender who is willing to do a non-recourse loan on a property of this type?
If I do find a non-recourse lender, am I correct in assuming that these loans come with higher interest rates? If so, how much higher would a comparable non-recourse loan be to a recourse loan?
Obviously it's in my best interest to expose as few of my assets as possible to the loan on any given investment (even though I want to make money, rather than losing money), but it's obviously in the lender's best interest to protect their loan with as many assets as possible.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
9y
What are you guys talking about with this 30 or 40 or more % down to get non recourse? That's not true at all.
Freddie small balance program (1-5m type deals) does 75 or even 80% LTV. 10 year fixed. In the 4% range.
Source: I've done ~$20m of those loans