All Forum Posts by: Connie Dai
Connie Dai has started 1 posts and replied 2 times.
Post: How to compensate personal guarantor in a syndication transaction
- Posts 2
- Votes 1
Logan, thank you.
Dan, Appreciated. The 5%, 10% in your last sentence refers to the 5% or 10% of "equity"?
Post: How to compensate personal guarantor in a syndication transaction
- Posts 2
- Votes 1
Would like to learn how a personal guarantor is compensated for taking the risk. Sponsor just purchased a land to build an apartment. Sponsor is in the process of set up an LLC with multiple members put in equity money and LLC to borrow a loan. Lender of course requires a personal guarantor. One shareholder of Sponsor and who also takes about 30% membership interest in LLC will be the personal guarantor. Does he usually receive compensation for his taking this risk to be the personal guarantor - such as, he gets more equity interest than the percentage of his investment, or a percentage of distribution being carved out to this person?