The principal and founder of Mench Real Estate Capital in Lake Oswego, Oregon, Steve Mench provides loans and advisory services to clients in the United States’ Pacific Northwest and the Southeast. Steve Mench has decades of industry experience with transactions totaling over $1.5 billion.

1. UNDERSTANDING
RECOURSE AND NON-
RECOURSE LOANS
Steve Mench

2. Introduction
• The principal and founder of Mench Real Estate Capital in Portland,
Oregon, Steve Mench provides loans and advisory services to
clients in the United States’ Pacific Northwest and the Southeast.
Steve Mench has 30 years combined industry experience with
transactions totaling over $1 billion.
Mench Real Estate Capital specializes in non-recourse commercial
loans, as opposed to recourse loans.The difference between the
two relates to the actions a lender can take if a borrower cannot
repay.
In both cases, the lender can seize and sell the collateral if the
borrower defaults, such as nonpayment of a mortgage. Under the
terms of a recourse loan, the lender can sell non-collateralized
assets and garnish the borrower’s wages if the proceeds do not
equal the loan value.

3. Loans
• In a non-recourse loan, the lender can go no further than taking the
collateral and must absorb a loss.
Non-recourse loans are advantageous for developers.When their
developments have stabilized, they can refinance their recourse
construction loan with a non-recourse term loan.This effectively
takes the construction loan off their balance sheet and enables
them to get a recourse construction loan for the next project.