I’ve herd that Non Recourse Loans are done in the US, and I’m interested in them as I might have a commercial property over $1M that I’m wishing to buy (of course it depends on the figures, but apparently it *should* stack up).
Although the upside is very high I don’t want to lose my RE portfolio if it falls through (I don’t mind paying a much higher interest rate or a higher deposit).
I remember reading about Non-Recourse in an api mag article by Stuart Wemyss?
I think you will find that non-recourse loans are only available to the very experienced larger corporations.
Robert Bou-Hamdan
Mortgage Adviseri wouldn’t write it off that quick – depends on overall strenght and the property itself. Oh, and it depends on lender.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneI have never ever seen a non-recourse loan. I have only heard about them from Henry Kaye.
I suppose if you are talking baout huge loans, there is not much point in personal guarrantees.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
They are certainly not common in Australia at the retail level.
Robert Bou-Hamdan
Mortgage AdviserThey can be done and we have helped a client with this before (commercial loan). Max LVR is normally 60% to 65%. Net rental income needs to be at least 1.5 time interest only repayments. Commercial lenders probably wouldn’t consider it for loans less than $1m.
The main uses of these facilities are listed/unlisted property trusts.
Cheers
Stu
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