LLC New Construction 8 Unit Apartment - Non-Recourse Loans

[Sam G.]

I am developing an 8 Unit Apartment Complex in Texas. In a perfect world, I would get a non-recourse construction loan, one-time close to permanent financing. Does this product exist? The LLC already owns the land and has for multiple years.

[Clayton Silva]

True non-recourse is extremely rare when investing in small commercial or residential properties and frankly does not really exist at the feasible LTVs most investors are looking to do. For your scenario, there are no one time close options for something like that, but I wouldn't do a 1 time close anyway because they are an absolute nightmare for clients and developers/contractors who actually want to get paid in a timely manner generally. We do DSCR loans for 8 units and could likely connect you with a commercial broker/lender for the construction loan. If I may ask, why are you looking for non-recourse?