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COMMERCIAL LOANS

Non-Recourse Commercial Loans

Protect personal assets and limit contingent liabilities through nonrecourse financing arranged with top-tier lenders nationwide.

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No individual mobile homes or SFRs

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Nonrecourse Commercial Loans - The Madison Group

Nonrecourse Commercial Loans

Nonrecourse commercial loans are a critical financing tool for real estate investors seeking to protect personal assets while executing long-term investment strategies. However, sourcing high-quality nonrecourse financing with favorable terms requires access to experienced lenders and disciplined loan structuring.

The Madison Group arranges nonrecourse commercial loans on behalf of investors nationwide, working with a broad network of institutional capital providers. Our lender relationships include commercial banks, life insurance companies, CMBS lenders, Fannie Mae, and Freddie Mac—allowing us to deliver competitive pricing, flexible structures, and reliable execution across asset classes.

By leveraging nonrecourse loan structures, investors can preserve working capital, limit contingent liabilities, and align financing with stabilized, income-producing assets. The Madison Group provides tailored nonrecourse financing solutions designed to support long-term ownership and investment objectives.

What is a Nonrecourse Loan?

A nonrecourse loan is a commercial mortgage in which the real estate collateral securing the loan is the primary source of repayment. In the event of a default, the lender’s remedies are generally limited to the property itself and do not extend to the borrower’s personal assets, subject to standard nonrecourse carve-outs (commonly referred to as “bad boy” guarantees).

Nonrecourse commercial loans are most commonly used for long-term, permanent financing on stabilized and cash-flowing properties, offering investors predictable debt service, limited personal exposure, and institutional-grade loan terms.

Advantages

  • No Personal Liability: The borrower is not personally liable (except for "bad boy carve-outs")
  • Longer Terms: More favorable loan terms and extended amortization periods
  • High LTV: Nonrecourse loans can offer higher LTV ratios, maximizing leverage
  • Certainty of Closing: Greater clarity and security throughout the loan process
  • Asset Protection: Lender cannot seize non-pledged personal assets

Considerations

  • Higher Closing Costs: Additional protections add complexity
  • Prepayment Penalties: Defeasance or yield maintenance may apply
  • Limited Availability: Only through select commercial lenders
  • Escrow Accounts: May be required for taxes and insurance

Property Types We Arrange Financing For

Nonrecourse commercial loans are available for shopping centers, medical office buildings, office buildings, retail centers, industrial and warehouse properties, self-storage facilities, multi-family properties, and flagged hotels. These loans can be used for acquisition or refinancing of commercial real estate assets.

Loan Program Details

Minimum Loan $1,000,000
Rates Fixed or Floating
Terms 3, 5, 10+
Amortization 25-35 Years
Max LTV Up to 75%
Min DSC 1.25x
Recourse/Non-Recourse Both Available
Prepayment Multiple Options

Why Work With The Madison Group

Increase Cash Flow

Tailored financing to maximize returns.

Save Time

We source the best rates and terms.

Avoid Pitfalls

In-depth analysis prevents surprises.

Multiple Lenders

Access diverse loan programs.

Expert Guidance

Professionals every step of the way.

Ready to Get Started?

Partner with The Madison Group to secure the best nonrecourse financing for your investment.

Call 435-785-8350