Protecting personal assets while investing in real estate

4 Replies

I own (within an LLC) two rental properties outright (SFH's). I'd like to own 20 or more by using loans and equity from these properties as down-payments. My concern has always been that I don't want to lose my personal residence, savings, retirement, etc. if the market tanks, tenants move out, and/or I can't meet the payments. I understand the risk of losing the properties themselves within the LLC, and subsequently my investment there, but I don't want to risk everything I have personally.

Most banks I've dealt with seem unwilling to loan to an LLC without a personal guarantee (i.e. my home and assets). I've heard of "non-recourse loans", but can't find a bank willing to issue that. How does one structure the financing for multiple properties without risking personal assets?


I have not yet used this lender, but plan to in the near future. They are a national lender, but if remember our conversation right, there are some states they dont lend in. Make sure to do your due dilignece on any lender you use. It took me a while to find them, so thought I would help others out who are looking for non-recourse loans.

JASON ZOOK| IRA Loan Officer (NMLS ID#: 415110)
NORTH AMERICAN SAVINGS BANK, F.S.B.(NMLS ID#: 400039)P: 855.211.3340 F: 816.508.2797
903 E. 104th Street, Suite 400 | Kansas City, MO 64131 |www.nasb.comOnline Application:www.iralending.comRead our new

Dan Dietz

@Tim Hitchens  

The other leading provider of non-recourse loans on a national basis is:

First Western Federal Savings Bank Roger St. Pierre

Being in the IRA business where non-recourse loans are a requirement, we refer many folks to both First Western and NASB when they have borrowing needs. Jason, Roger and their respective teams are real professionals.

As disclosure (or non-disclosure), we have no financial or ownership relationship and do not receive commissions from either institution. We do have 10 years of experience sending clients their way and seeing them treated well.

Some sellers are able to offer non-recourse owner financing with down payments as low as 10%. If the firm is seasoned and the properties are good quality, this can be a great finance option. Make sure that it is an ARM not a balloon, and that there is no prepayment penalty!

Jeremy Vogan

Countryside HomeCrafters, LC

540 487 0480

Thank you for your responses. I've had good results so far using my own money and am now ready to bump up to the "next level".  I knew most people don't wait to raise their own capital, and also don't risk all their own assets.  I'll pursue the non-recourse loans through the sources you've recommended, as well as look for some owner-financing options.

Thanks again, Tim

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