Category Archives: Texas home loan home loan Texas Blog 17: Speaking with Your Mortgage Broker Texas

Benefits of Non-Recourse Commercial Loans

There are many options to explore when seeking commercial loans. One of the factors which can reduce personal liability and risk of assets is a non-recourse loan.

As you begin to explore the options for commercial loans you will quickly find that there are two main categories for these loans, recourse and non-recourse. The more common of the two is the recourse loan which requires the borrower or borrowers to personally sign as the guarantor of the loan. This simply means that in the event of business failure or inability of the business to make the loan payments for any reason, then the guarantor is personally responsible to make the payments. Obviously, this presents a significant personal financial risk to the guarantor.

Non-recourse commercial loans do not require the borrowers to become personal guarantors of the loan. Therefore, these loans do not require the risk of the personal assets of the borrowers. This is one of the biggest advantages for any borrower. Knowing that a business failure means the loss of income is bad enough but to also be faced with the responsibility of personal liability on a commercial loan can be devastating. No business owner ever chooses to take out a loan which they believe the business will default on but there is always that rare possibility, and the added stress of personal liability. But a non-recourse loan eliminates that stress and potential issue.

An additional benefit is that non-recourse loans are assumable. This can be a huge advantage if you plan to sell the property in a few years or if a situation changes and you need to sell the property quickly. Currently, commercial lending rates are very favorable, but they are expected to increase. So the current loan rate is likely to be much lower than a rate which will be offered on a loan in a few years. So when you do decide to sell the property, you have the ability to offer to have the buyer assume your loan. This will be a great incentive for the buyers as the interest rate could be significantly lower than the current rate.

The Perfect Non-Recourse Loan Candidate

Non-recourse loans are most often used to purchase properties which provide a strong cash flow as the property is the only collateral. This means that even if the property is not the more visually appealing or if it needs a face lift, it could still be a candidate for a non-recourse loan. The critical factor is the cash flow. As long as the property is generating 1.25 times the proposed payment of the loan then lenders will be eager to offer this financing solution.

Great Benefits if the Fit is Right

Non-recourse commercial loans can offer a huge benefit for the right borrower and the right commercial property. Knowing that the property does generate a strong and steady cash flow allows the borrower to get a great loan and rate without having to personally guarantee the loan in the event of a business failure. It also provides added benefits to the borrower when it is time to sell the building by allowing the buyer to take advantage of a lower interest rate on the assumed loan.

Dennis Dahlberg
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177 NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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Hard Money Loans with Your Texas Mortgage Broker

Are you making an attempt to flip a home or a property however you don’t even know the place to start out getting the money? In case you are frightened since you don’t have the credit score that you really want or want, you don’t should be. There are different alternate options that may assist you. There may be hope for individuals who have weak credit. That hope, and you may discuss to your Texas mortgage broker about it, is known as a hard money loan 
A hard money loan might need a troublesome identify, nevertheless it truly goes to be candy on your property purchases. It’s true! These can actually assist you. Right here’s why: a hard money loan isn’t like a standard smooth money loan that not solely takes a very long time to obtain however makes you undergo a variety of process to get it- in the event you even do! Many are denied a smooth money loan due to their prior monetary standings. Chances are high you don’t need to be a kind of individuals, so make an appointment to speak about your hard money loan to get that money and bypass that frustration.
Speak to your Texas mortgage broker about hard money loan alternatives. This may very well be a good time to flip the home you need or buy a property you want. A hard money loan is a lot simpler than your conventional loan and dealing with a private money lender will probably be way more pleasurable than working with a financial institution.
Contemplate this various to the smooth money loan and you should have no regrets. The time is now to get your property purchases beneath management. Your Texas mortgage dealer desires that can assist you make the most effective selections doable so make an appointment right now to get the very best hard money loan deal for you. 

Texas Hard Money

Texas Mortgage Broker

Private Hard Money Lender in Texas
Large Daddy Dennis Hard Money Lender, Texas Mortgage Broker

Dennis Dahlberg
Level 4 Funding LLC

Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917
NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400
Austin TX 78701