Non-Recourse Loans for Commercial Real Estate

Protect your assets while securing long-term financing.

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?

Common Use Cases

Loan Highlights

Non-Recourse Loans vs. Recourse Loans

Recourse Loans:

Borrower is personally liable.

Lenders can pursue personal assets if default occurs.

Typically smaller loans or riskier projects.

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?

Why Work With Nelson Funding

Investors choose Nelson Funding for non-recourse financing because we:

“We help investors protect their assets while securing long-term financing.”

FAQs Bridge Loans

What properties qualify for non-recourse financing?

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.