The client, a high net worth individual who wishes to remain anonymous, was instructed by his attorney to not provide any personal guarantee. However, non-recourse loans are restricted to investment property only where the bank underwrites strictly on the rental income from the tenants and the rental income is stable. It is unheard of to do a non-recourse loan on a non-credited, single tenant building; especially in this case, which is an owner occupied building.
Johnny Su, COO of ReCap, recalls the first meeting with the client when he asked for a non-recourse loan, “I was shocked and pointed out to the client that it is would be difficult to convince a lender that they should have faith in the business that will support the mortgage to the building.”
The client was adamant on the non-recourse requirement on any finance proposal and realized that he would not need to retain an expert firm like ReCap if he could have gone to his banks directly. Su added, “Even his private wealth banker advised him that it was not possible to do non-recourse on owner-occupied building. But that challenge sparked my interest.”
Tomer Dicturel, CEO of ReCap, remembered the difficult task to convince the underwriter on the merit of the deal. “We needed to convince the bank that the client would never walk away from his business, his building, and definitely not going to default on the loan.” ReCap professionals convinced the bank that the client would not default after the investment in the building and business.
In this difficult and chaos market, and even Triple AAA US creditability and debt are questioned, ReCap continually leverages its expertise and strong trust with its vast network of lenders and recourse in capital market to deliver and secure finance for its client. “Even when the client’s own bank couldn’t deliver for him, the client knew he can count on ReCap to deliver. That’s the type of trust and reputation we want with the market,” says Su.