Updated over 12 years ago on . Most recent reply
Capping the recourse liability
Want to discuss the issue of capping the recourse liability. Let's say I want to buy a $2 mil hotel. This would be acquired through an LLC that has hardly an assets, so the lending bank would require recourse lending to me. Since I do have assets, I'd like to protect myself in case things go south. Is it possible to cap the maximum exposure of the recourse lending to a certain percentage of the total funding needs? If so, what would be that cap amount in percentage terms of the total funding needs? Thanks!