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Updated over 9 years ago on . Most recent reply

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Don Konipol
#1 Innovative Strategies Contributor
  • Lender
  • The Woodlands, TX
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Don Konipol
#1 Innovative Strategies Contributor
  • Lender
  • The Woodlands, TX
Replied

In order for lenders to be willing to do a loan without a personal guarantee the credit. size. stability and income of the business must be of a significant size. Otherwise it is too easy to fold the company, pay out the money to another entity, and all that the lender is left with is a guarantee by a defunct entity. A personal guarantee requires that the borrower walk away from alot more than a defunct entity, personal credit, assets, investments, reputation etc. will be on the line.
Out of 300 hard money loans I've completed in the last 9 years, I have done only 2 without personal guarantees. Both were for companies with $30 million + assets.
I'm afraid if you're looking for a non personal guarantee loan then your going to be missing alot of investment opportunities. After all, if you do not have enough confidence in the deal, why would I?

  • Don Konipol
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Private Mortgage Financing Partners, LLC

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