Opinions on using small business non recourse loans

[Stephen Kunen]

Hello BP! Has anyone had experience and success finding, securing, and using small business non recourse loans in an LLC whose funds were used to buy and improve properties? For certain properties that are under 100k I am wondering whether it is a viable option to use a small business loan which may offer better rates than hard money, and fewer fees and less restrictions than traditional mortgages. Finding a company that lends to LLCs is challenging enough, but then to be able to use that money to purchase and improve a property with the same loan funds has been even more difficult. Any thoughts on where this type of financing fits into a BRRRR or turnkey model and how to go about finding such lenders that are reputable? Thanks!

[Joe Villeneuve]

If you can get a Non-lienable loan (non collateralized) loan like you are talking about, you will have been just given the keys to the Kingdom...and you should never need any new money again.  Repeated use of these same funds over and over, will also mean that if you can manage the "expense" of these funds, until paid off, the actual "cost" of these funds sill be rendered completely insignificant.