Know Anyone Who Has Secured Funding Against Property ONLY?

[Michael Filson]

Hello all! 

I co-own about ~$5MM in commercial properties in San Diego, CA, and we're looking to buy out two of the partners. A couple of the remaining partners are on board with financing, but on the strict condition that no personal liability is created. 

In general, I'm curious if lending, hard money or otherwise, secured against the properties only (no personal guarantees) is a thing? Has anyone done this before?

Thank you so much for your insights!

Michael

[Cody L.]

Tons of non recourse options exist.  Just not from local banks.  It'll be cheaper than hard money rates

Or have one owner volunteer to be the guarantor for extra equity.  That's what I proposed to a group of four guys that owned a property 25% each.  I said "What if you give the guarantor 28%, and the others get 24.  That difference was too small for someone to do it.  SO I said keep adding 1% to the guantor's % ownership till someone is willing to do it.  I think they did it where the gurantor is 30%, and the other 3 guys are 23.3%.  Everyone was happy and they got the loan they wanted.