Small *Nonrecourse* Loans

[Cliff Earle]

I've run across non-recourse lenders. I've run across small loan lenders. In fact, there are multiple good threads for both topics on this very site. But I've yet to run across someone who will do small non-recourse loans. Any thoughts, other than private money?

Thank you!

[Ann Bellamy]

The only reason I can think of that you would require a non-recourse "small balance" loan is if you are buying the property in your SD IRA, and want to leverage the IRA. In that case, you cannot give personal guarantees if the borrower is a self directed IRA.

Other than that, why would you not want to stand behind your promise to pay? Maybe there is another reason I haven't thought of?