In the commercial lending world, there are a number of reasons why a borrower would not want to offer a personal guarantee. We have programs available for non recourse California commercial hard money bridge loans for these situations.
One program we have access to will offer loan to value ratios of up to 75% on commercial property. The preferred property types include multi-family, office, industrial, retail and even single family residences, provided they are non owner occupied and the use of funds is non consumer. Typically speaking, these loans will range in size from ~$2 million - $20 million - although we do have programs available for loans falling outside these amounts.
These bridge loans can be written for up to 24 months, and typically carry no prepayment penalty. Rates will vary by situation, but are typically in the high single digits and are always interest only, fixed for the term of the loan. As a non recourse hard money bridge loan, this product is secured purely by the equity in the property. No personal guarantee is required, and the property stands alone for qualification purposes.
These non recourse bridge loans do not always require the property to cash flow. They are a good tool to use for transitional situations. It is more important to see the vision for the property. Having a clear vision and exit strategy can overcome existing cash flow issues.
One example of a situation where this product could help would be the repositioning of a vacant property. Bank money may not be an option due to cash flow concerns, but on a bridge loan we could help finance the property, allow the borrower to improve, market and rent at market rents, and then exit through more traditional means.
Another example may be a single tenant property where the tenant is leaving or has left. With a plan to reposition the property, a commercial hard money bridge loan could step in and provide the liquidity needed when the banks will not.
There are many reasons why a non recourse hard money bridge loan may be right for you. Please call for more information, I'm always happy to discuss your scenario and let you know how I may be able to assist!