Is there any way to make millions in RE without taking on recourse loans at some point?

[Account Closed]

I wanted to have a discussion with regards to recourse loans.  I'm referring to loans (usually construction or acquisition) that you get from a lender that require a personal guarantee.  In the even a particular project does not work out, the borrow is personal liable to the lender and the lender may come after the borrower's other assets to recoup their loss.

I hear so many people on the forums talking about how they want to build spec homes, do large development, own apartments buildings, etc, but are people really aware of the risk in doing so?  Default on a recourse loan and that usually means personal bankruptcy.  

Most spec builders, developers and major commercial/apartment players I know don't blink an eye at personal guarantees and continue to push their chips "all in" on a regular basis.  I'm beginning to think people who do that regularly are born that way.

Is there a way to become a major player (let's say over $5 million in net worth through real estate) without having to take on recourse loans at some point in one's career?

A couple quick examples:

1. You want to be a developer.  Most/all construction loans are recourse.  Apartment buildings, spec homes, office, retail, you name it...project doesn't work out and meet predetermined hurdles and/or you can't lease up or sell, game over.

2. You want to own large apartment buildings.  Once you get into the Fannie/Freddie space, have a strong track record as a sponsor, etc you can typically get non-recourse loans, but for argument sake let's say these deals are 100 units+.  Building up to that point with 10, 20, 30 unit deals means you'll be getting bank loans and signing personal guarantees/recourse.

3. Buying single family rentals and/or 4-plex and below.  Unless you want to own 100s of individual homes, when you are ready to trade up into commercial/apartments (see #2), you'll have to start dealing with recourse loans.

What am I missing?  Is there a way to achieve a $5 million net worth in real estate without taking on recourse loans and signing personal guarantees at some point in your career?