Displaying items by tag: non recourse loan

Best Investment Property Loans - What to look for.

What should real estate investors be looking for in a great investment property loan and mortgage lender? 

Below are 6 criteria that we feel are important to consider when applying for an investment loan.

TOP 6 Investment Property Loan Considerations

1. Non-Recourse Loans

You want to make sure the loan is non recourse. Non-recourse loans are one type of investment property loan where the lending institution cannot come after the borrower for any reason if the loan defaults.

This type of loan is usually only given to very qualified borrowers with great credit scores and a large amount of equity in the property. This means that if you default on the loan, the lender can only go after the property itself and not your personal assets.

While he hasn’t always followed his own advice Donald Trump has said for decades that selecting non-recourse loans is the smart way to go to reduce liability, and separate personal from business and investment assets and debt leverage.