Non-Recourse Loans for Commercial Real Estate
Protect your assets while securing long-term financing.
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What Is a Non-Recourse Loan?
A non-recourse loan is permanent financing where the borrower is not personally liable for repayment. Instead, the loan is secured only by the property itself. If the borrower defaults, the lender can seize the property, but they cannot pursue the borrower’s personal assets.
For real estate investors, non-recourse financing provides peace of mind while preserving personal and corporate protections. These loans are common for multifamily, office, retail, industrial, hospitality, and mixed-use propertiesonce they are stabilized and income-producing.
At Nelson Funding, we source non-recourse permanent loans from life companies, CMBS lenders, banks, and private capital providers across the U.S.
Why Choose a Non-Recourse Loan?
- Protect Personal Assets
Liability is limited to the property securing the loan. - Preserve Corporate Structures
Ideal for LLCs, partnerships, REITs, and family offices. - Access Institutional Capital
Many large lenders offer non-recourse as a standard for stabilized properties. - Fund Larger Deals
Loans typically range from $2M to $100M+ for qualified assets. - Improve Risk Management
Investors can scale portfolios while minimizing personal exposure.
Common Use Cases
- Multifamily Investors:
refinancing stabilized properties into long-term, non-recourse debt. - Private Equity & Family Offices:
acquiring or refinancing large portfolios. - Commercial Developers:
transitioning projects from construction/bridge into permanent non-recourse loans. - Institutional Investors:
structuring financing that matches long-term holding strategies.
Loan Highlights
- Loan Sizes: $2M to $100M+
- Terms: 5 to 30 years
- Non-recourse permanent financing with carve-outs for fraud or misrepresentation (“bad boy carve-outs”)
- Fixed and floating rates available
- Eligible Properties: multifamily, office, retail, industrial, hospitality, mixed-use
- Nationwide coverage
Non-Recourse Loans vs. Recourse Loans
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Recourse Loans:
Borrower is personally liable.
Lenders can pursue personal assets if default occurs.
Typically smaller loans or riskier projects.
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Non-Recourse Loans:
Liability limited to the property.
Personal assets are protected.
Typically reserved for stabilized, income-producing properties with strong performance.
Example Scenario
Borrower Profile
Family office in Los Angeles, CA
Project
Refinance of a stabilized $60M office portfolio
Challenge
Existing bank debt was full recourse, exposing principals to personal liability. They wanted to restructure into long-term, non-recourse debt.
Solution
Nelson Funding secured a $42M non-recourse CMBS loan at 6.2% fixed for 10 years. The loan provided liquidity while removing personal liability from the principals.
The family office maintained asset protection while freeing up cash for future acquisitions.
Who Benefits Most from Non-Recourse Financing?
- Institutional Investors: with stabilized commercial portfolios
- Family Offices & Private Equity Firms: prioritizing liability protection
- Multifamily Owners: refinancing large stabilized properties
- Developers: moving projects from construction into long-term holds
Why Work With Nelson Funding
Investors choose Nelson Funding for non-recourse financing because we:
- Provide Access to Institutional Capital: life companies, CMBS, banks, and private lenders
- Structure Creative Solutions: fixed, floating, portfolio, and hybrid loans
- Offer Nationwide Coverage: across asset types and geographies
- Move Quickly After Stabilization: smooth transitions from bridge/construction to permanent non-recourse
- Have a Proven Track Record: $100M+ in loans closed for investors, family offices, and developers
“We help investors protect their assets while securing long-term financing.”
FAQs Non-Recourse Loans
Stabilized, income-producing assets such as multifamily, office, retail, industrial, hospitality, and mixed-use.
Yes. Most loans include “bad boy carve-outs” for fraud, misrepresentation, or intentional misconduct.
Typically $2M, though some private lenders may go lower.
Rates are generally competitive but can be slightly higher than recourse loans due to reduced borrower liability.
Terms range from 5 to 30 years, depending on lender and property type.
Protect Your Assets With Non-Recourse Financing
Nelson Funding connects investors, developers, and family offices to non-recourse permanent loans nationwide. Protect your personal assets while securing long-term financing for stabilized properties.
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