Lending with Personal Guarantee

[George Kopp]

I have an opportunity to invest in a real estate related opportunity, but instead of being backed by any hard assets, such as the property, the borrower has agreed to personally guarantee the loan. 

I know this individual well, but not as well as family or a very close friend. He is US based with US assets, but he does have a foreign passport. I mention in case he could move abroad and somehow shield his assets. I will list his known assets at the bottom.

Here are my two questions: If the documents I sign show him as personally guaranteeing the loan (specific language below). Does that mean that if he defaults, I can go after his assets such as his personal residence, 401K, bitcoin, etc.? He is located in Florida.

Question 2 - Is there anything specific I should make sure I include in the contract. I know there's limmited vs. unlimmited liability, etc. Do I need to list his assets? Does his SS# need to be in the contract?

And any other thoughts or watch outs would be appreciated. Please note that I am not discussing the business idea or the rate of return because I am fine with both and don't want that to be part of the discussion. The ROR justifies the risk for me. I will mention that I would be lending $50K-$100K and that there will be other lenders for a total of between 200-300K borrowed. I mention this for visibility into the amount borrowed vs the individual's personal assets.

Current language in contract: The Guarantors, known as John Smith, of Street Address, Coral Springs, FL 33071 agree to be liable and pay the Borrowed Amount, including principal and interest, in the event of the Debtor’s default. The Guarantor agrees to be personally liable under the terms and obligations of the Debtor in this Agreement.

Borrower's Known Assets: Home in Florida with 300K+ in equity, bitcoin in wallet $500K, 401K $500K+, two small businesses (equity unknown).

I hope this is enough info to get the conversation started. Apologies if this has been asked and answered. I could not find any threads, but feel free to post any that exist. Also feel free to ask me any clarifying questions.

Thanks in advance!

[Ned Carey]

Moderator note: Personal attacks are not allowed on this forum.

To the person who repied he sould seek an attonrey, yes that is appropriate.  but to criticize a member reader here because he asked for some general advice is against the principals of this forum.