What is meant by a non-recourse loan?
Managed commercial property investments feature loans secured by the property alone. It is important to note that while the loan will be in your name with the other unit holders, liability under the finance arrangements is limited to your initial cash contribution. Even if the bank had reason to put the property to market and the property was sold at a value less than the loan money outstanding, you have no liability to make up the deficit for your interest or any other syndicate member’s interest in the property. back to top • How are the returns to investors calculated and paid? The manager will collect the rent derived from the property and deposit it into a separate trust account opened by the custodian. At the direction of the manager, the custodian will pay all the expenses including mortgage interest and management fees out of that account. Depending on the terms of each investment, within a certain period after the end of each quarter the manager will direct the custodian to pa
