CalculateRealEstateROI

Financing

Recourse vs non-recourse — which should I prefer?

Non-recourse when available — limits liability to the property itself.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Non-recourse when available — limits liability to the property itself.

Expanded explanation

Conventional residential is recourse. Agency/CMBS commercial is non-recourse with carve-outs (fraud, misrepresentation). Worth the slight rate premium.

Examples

  • Agency non-recourse on 80-unit asset vs recourse small-bank.

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