Hi BP, I've just learned about the concept of being released from a personal guarantee on credit cards and wondered if the same could be done with investment property loans. Anyone had any experience successfully negotiating a release from personal guarantee on their loan(s)? I've got a 4 year old loan that I (personally) had to cosign with my LLC, 30% equity in the property, spotless payment record, and would love to have it solely in my LLC's name. Is it possible? Any advice? Thanks!
Non-Recourse loans are basically what you are asking about. They do exist but they tend to be limited to multimillion dollar commercial or multifamily loans. I have also heard of some banks allowing an entity, such as an LLC, that holds significant assets (and equity) as the guarantor. But again this tends to be more likely for larger CRE loans.
That being said, you never know until you talk to your lender.