Kansas City Business Journal, How Real Estate Developers and Investors Should Handle Non-Recourse Loan Carveouts, November 22, 2016
Non-recourse financing is an option typically used for longer-term, permanent commercial real estate loans by developers and investors. Like many borrowers, you may be drawn to them because the arrangements can shield you from personal liability. But non-recourse loans don’t provide protection in all cases. “Carveouts” in the loan documents can saddle you with full liability if violated. However, you may be able to minimize risk through savvy negotiating.