nonrecourse loans

Those in the business of buying and selling commercial real estate have likely heard about CMBS loans. This is a guide to how CMBS loans work, the ways in which they are different from traditional commercial loans, and the advantages and disadvantages of choosing this type of financing. CMBS loans are also known as commercial mortgage-backed securities or conduit loans. These loans are used to purchase commercial real estate buildings like multifamily living communities, office buildings, or warehouses. They typically offer flexible underwriting standards and use the property as collateral. That said, a CMBS loan is different from a traditional…