Commercial Foreign National Funding

[Oren K.]

As a Canadian (read foreign national) I have read and understand that many (most?) lenders simply will not do a loan just based on that fact.

Having said that, as reasonably successful commercial real estate investors over the past 15 years here in Canada, we are looking to expand our holdings and are looking at a couple of properties in the US. We only consider solid cash flowing properties (Office / Retail) with good tenants, limited short term lease turnover and some potential upside (e.g. built in escalations, operational efficiencies, vacancy that can be filled, etc.). We buy and hold for the cash flow.

Also, my understanding is that loans under <$2M are generally handled by local / regional or private lenders and are recourse loans.

We have the capital to do an all cash purchase but would prefer some leverage for obvious reasons. Since we will be putting in more equity (>25%) and the property would have a higher DSCR (>125%), is it possible to get a non-recourse loan?

Is asking (I know you can ask for anything but just don't expect to get it) for a non-recourse loan expecting to much regardless of equity and DSCR?

Let me turn the question around; How much of a down payment is needed and how high a DSCR ratio before a non-recourse financing becomes NOT unreasonable?

Thanks all.