Who likes personal guarantees? Non – Recourse Debt on Real Estate as an Asset Strategy by Seay Development Real Estate and Business Brokerage – David Seay, CCIM, BIC.
Sometimes it takes a guarantee to get a deal done, however sometimes it does not and with some non-recourse loans back in the market, it only makes sense to see if you can protect your assets by seeking non-recourse financing. Call me if you want further details, but I have off market investment properties with non-recourse debt that is transferrable if certain conditions are met. Essentially, the properties that can stand on their own two feet financially can increase your chances of protecting your other assets if you understand how to apply non-recourse loans. By the way, non-recourse debt can also help you put real estate inside of self-directed IRAs.
DEFINITION OF ‘NON-RECOURSE DEBT’
A type of loan that is secured by collateral, which is usually property. If the borrower defaults, the issuer can seize the collateral, but cannot seek out the borrower for any further compensation, even if the collateral does not cover the full value of the defaulted amount. This is one instance where the borrower does not have personal liability for the loan.