Skip to content
New York City Real Estate Forum

User Stats

168
Posts
52
Votes
Jon Fletcher
52
Votes |
168
Posts

Bank wants my LP to be a Guarantor

Jon Fletcher
Posted Jan 6 2022, 13:54

I've put together a real estate deal where my LP will be contributing 80% of the equity. They're doing the deal because it's a great investment and I'm doing all of the legwork. The problem I'm running into is that every lender is insisting that any person with more than 10% ownership be a guarantor. Are there creative workarounds for this? I know on very large-scale development deals, GP's guarantee the loan all the time without the LP. 

Loading replies...