Updated over 6 years ago on . Most recent reply
Looking for advice non-recourse loans
Hello BP.
I have 3 duplexes and a paid off sfh. I cash flow $2800/mo and live in a side of one of the duplexes for free.
Recently I was contacted about a non-recourse loan. I have mortgages on the duplexes and the sfh is paid off. If I do a non recourse loan and put these four properties into an LLC, I will free up my own debt to income ratio and be able to get more properties with regular loans for each place.
I am not looking to pull money out. Just put the properties into one loan. What are the downsides? I google searched and came up with a few things. (Defeasance or yield maintenance for example, I have to research what those terms mean)
What I am looking for is things to watch out for.
My current strategy is to acquire four mortgages, pay one off then find another deal. Keeping four loans so I benefit from leverage but am not over leveraged. However, now finding out I can bundle properties I may change strategies.
Thanks in advance for any insights.