What banks give non recourse loans? What is the criteria for non recourse loans?
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[{"id": "fz77402", "text": "Pension funds, life insurance funds, freddie mac and fannie mae are not banks but all give non recourse loans. The requirements are going to change for each but typically require stability in the cash flows supporting the mortgage and a 1.2x debt service coverage ratios. I have only gotten one non recourse loan from a local bank but that was not standard of them to do.", "replies": [{"id": "fz77tq1", "text": "Thanks sayjeff", "replies": [{"id": "fz7jji0", "text": "Yeah big banks won\u2019t do it. Only local or regional banks will but probably not so much right now. Also look into CMBS, but I think that\u2019s not very active right now either.", "replies": [{"id": "fz85dr3", "text": "CMBS is coming back...depending on the property type and leverage, agency or CMBS could be a good fit.", "replies": [], "depth": 4}, {"id": "fza6jkn", "text": "Some of the  biggest banks have the best non recourse programs.", "replies": [{"id": "fzaw3rr", "text": "Yes for institutional investors.", "replies": [{"id": "fzbiekn", "text": "Not at all, for 60-55% ltv and strong cash flows. For the big banks, major markets only pretty much. Rates range from high 2s - low 3s.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fz85g57", "text": "Can you please provide more info on your property type/loan amount, etc?", "replies": [], "depth": 3}], "depth": 2}, {"id": "fz7jg2u", "text": "My local banks' non-recourse products have a 5mm minimum loan amount.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fz8cgd3", "text": "based on these answers, you\u2019d be surprised. most banks will provide non-recourse loans for the right deal. If you are seeking low leverage financing on a stabilized deal you will find a plethora of non-recourse options out there. CMBS is definitely a good option, but depending on the profile of your deal you will find non-recourse options at most institutions. I work in CRE finance, feel free to dm for more specifics.", "replies": [{"id": "fzc99wx", "text": "CMBS market is totally fucked rn.", "replies": [{"id": "fzc9jw5", "text": "it was, but things are opening back up. deals are certainly getting done at terms that aren\u2019t all that unattractive to a borrower.", "replies": [], "depth": 3}, {"id": "fzdnwmk", "text": "Depends on the deal. working on some industrial products rn and getting great cmbs quotes at 60% leverage with all in rates in the mid 3s", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fz8toif", "text": "Some banks I\u2019ve worked for will do it for good deals (low ltv, homerun property)\n\nCMBS does all non-recourse\n\nThen you have the life insurance companies, etc.", "replies": [], "depth": 1}, {"id": "fz90sxa", "text": "Without knowing your locality hard to say specific banks. Generally speaking you need a stabilized building with a dscr of at least 1.2x. LTV of 65% tops unless your going agency or cmbs. Those come with their own issues.", "replies": [{"id": "fz9gkam", "text": "What\u2019s dscr of 1.2x?", "replies": [{"id": "fzc0fvo", "text": "Debt service coverage ratio", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fz9hwbh", "text": "You posted the same question over in RE investing.  Recourse is the legal ability of a lender to look at your personal assets in order to be repaid in event of default and only matters if everything goes well and truly south.  No reputable lender wants to sue a guarantor to satisfy the debt. It is time consuming, expensive, has large reputational risks and usually doesn't fully satisfy the obligations due to the bankruptcy code. If you can only see yourself investing on a non recourse basis you a) don't have much risk tolerance so you should eschew leverage or b) are planning to pull some shenanigans that are the reason non recourse financing is limited the way it is", "replies": [{"id": "fz9m3vf", "text": "Thanks for your info", "replies": [], "depth": 2}], "depth": 1}, {"id": "fza6h32", "text": "Debt and equity broker here. In the after pandemic world there are still a small number of banks that are offering non recourse but your cash flow has to be really strong and leverage 55% or below. Or a lot of experience. Sometimes recourse makes sense but it\u2019s all about finding the right loan not a loan.\n\nEdit: typo", "replies": [], "depth": 1}, {"id": "fzbkm3f", "text": "It\u2019s a combination of the loan metrics (low LTV, solid cash flow), experience of the owners, and financial wherewithal of the parties involved. \n\nSome banks would seriously look at a loan with a 50% LTV and a 1.55x DSCR on a property owned by someone with 20+ years experience owning similar properties under similar circumstances.", "replies": [], "depth": 1}, {"id": "fzh7ayx", "text": "I\u2019m working a deal right now with pacwest on an office asset.", "replies": [], "depth": 1}]