DSCR, Debt Yield, and Recourse: When Ratios Become Personal Risk
DSCR and debt yield do not trigger recourse by themselves. But when those ratios fall, the operational decisions sponsors make to stabilize cash flow are often exactly what lenders point to as carve-out violations.
Can I Just File Bankruptcy to Get Out of This Deal?
Bankruptcy can sound like a reset button for a failing commercial real estate deal. But if you signed a bad boy carve-out guaranty, filing may be the exact event that converts a non-recourse loan into full personal liability.
Bad Boy Carve-Outs: What You Actually Guaranteed
Most non-recourse loans are conditionally non-recourse. The condition is your guaranty — and the real risk is not obvious fraud, but technical violations that spring the full loan balance into personal liability.
Texas has New AI Regulations Referred to as TRAIGA
Understanding TRAIGA: Texas AI Regulation Guide If your business uses artificial intelligence in any capacity from AI-powered hiring tools to automated customer service chatbots to predictive analytics, you are now subject to a new Texas law for AI Regulation that went into effect on January 1, 2026. The Texas Responsible Artificial Intelligence Governance Act, known […]
Non-Compete Agreements in 2026: What Every Business Owner Needs to Know
Non-Compete Agreements in 2026: The Current Legal Landscape The legal landscape around non-compete agreements has shifted significantly over the past 18 months – and if you haven’t reviewed your agreements recently, you may be operating on assumptions that no longer hold. Whether you’re trying to protect your business from a departing employee or you’ve inherited […]
Five Reasons Promoters Should Invest in Deals with Investors
Why Promoter Co-Investment Matters Here are five concrete reasons why a promoter investing alongside other investors materially matters, legally and practically. Key Takeaway:When promoters invest meaningful capital alongside other investors, it can materially change how a failed deal is viewed. Co-investment does not eliminate litigation risk, but it may help reframe losses as shared risk, […]
Can I Just File Bankruptcy to Get Out of This Deal?
When a commercial real estate project is in trouble, the question comes quickly: “Can’t we just file bankruptcy?” The answer is not that simple.
