Hello! I have a small real estate development/construction/investment company with four partners. We've been honing in on a pretty good development/investment formula that is working for us where we buy an existing single or multi-family house that can be improved or easily split into smaller units, and then we also add small new construction units to the property (townhomes or duplexes or cottages) and, generally, we rent them all out (though we have sold a couple of single family rehabs and we may sell the units in our next big project... TBD).

We have a few projects under our belt that we also own/manage at this point...we completed an 8 unit project (all rented) and we completed a 5 unit project (all rented) and we are in-process on a 9-unit project and have a larger one in the hopper (maybe 18 small units that will be sold, currently has two units rented). 

So far, our local bank that has financed all these projects has required personal guarantees of all four of the partners. But, my partners have asked me to figure out when and how we could be able to access nonrecourse loans against just the company collateral instead... It's been a bit of a dead end asking this question of our current banking partner... I'm starting a conversation with another local bank but I have a feeling it won't go anywhere. What do we need to do to get to the point that we don't need to personally guarantee each property/project loan? Is this is a size thing (company just needs to get bigger/have more equity), or perhaps a business structure issue, or should I be looking at different financing sources other than local banks? If we DO find nonrecourse loans, I assume the interest rates are higher (how much higher should we expect)? Thank you in advance for your help! Dani