Non-Recourse loan to redcue risk on commercial loan

Non-Recourse Loan

One of the real benefits of TIC investing that is often overlooked the potential ability to go from a typical secured loan to non-recourse debt.  This is a loan in which the borrower may have pledged collateral, but the borrower is not held personally liable. The lender of a non-recourse loan generally feels confident that the property used as collateral will be adequate security for the loan.  The collateral is the only security or claim the lender has against the borrower, and the lender has no further recourse against the borrower for any deficiency remaining after foreclosure against the property

This is a great risk reduction and estate planning tool that should be considered as another reason to consider TICs as an investment.

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