Credit partner / personal guarantor
Hi All,
Recently I met up with a gentleman who has a few REI businesses. Very personable guy, I liked him. We discussed REI over lunch and he mentioned he is looking for a credit partner to complete a current project and suggested I may be interested in becoming one. I don't know if the two are the same but essentially it's a personal guarantor for his LLC to obtain business line of credit, approx. $150,000.
My biggest concern is a potential default as I would be personally liable and if I could be protected in some way. He mentioned that I would be a guarantor as well as a member of an LLC that owns this one property as well.
To me the best way to minimize my risk would be to have a contrast stating in case of a default, I keep the property or some other collateral. Would that be something that’s common/normal to ask, and does anyone have any other input on credit partner and/or a guarantor?