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Post by congregatio on Aug 20, 2013 4:06:50 GMT 4
Have been running into some discusions, especially in the Linked In Forums about Non-Recourse Financing and wanted to drop a note:
Non Recourse Financing is not free money, it is a loan or debt which is repaid by the project or collateral used and if default there is no recourse to the person of the owner.
Sure you can use investment routines to generate the income but they are part of the project.
Remember if the money would not have to be repaid it would be income and as such taxable. You can use a non-profit charitable receiver of such income but than you would have to go and issue a donation receipt and apply specific accounting.
A word of warning: While such non-recourse financing exists it is a complex process and not really accomodating for a brokerage.
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