Personal Guarantees - Posted by mjp

Real Estate Investing Real Estate Financing
1

Posted by James Strange on November 16, 2002 at 06:29:18:

GMann,

Great advice locking in a low rate now would be the way that I would go! Just watch the bond rates when they go down lock in!

2

Personal Guarantees - Posted by mjp

Posted by mjp on November 15, 2002 at 15:54:47:

Hi,

I am in the middle of splitting up a limited company. Myself and my partner are 50-50 in the ownership. The assets include cash, mortgages, and some real estate properties. The situation is that I am to get a 51 unit apartment building for part of my 50% but my current partner and her Company are on as guarantors for the mortgage. She has agreed to stay on the guarantees until the end of the term (4 years) but wants off at that time. She wants me to agree to sell the property if I can’t remove her from the guarantees at that time. I don’t want to put myself in a potential forced position down the road.

My partner is stronger on paper then I am so I know the bank won’t let her go easily.

Does anyone have any ideas of alternate ways of dealing with this to satisfy both parties?

Thank-you

3

Re: Personal Guarantees - Posted by GMann

Posted by GMann on November 15, 2002 at 19:54:15:

I see two options:

  1. Wing it! If you have 50% equity in the property I don’t see a problem getting financing. Even if your credit is shaky. If your bank won’t do it, go to a small local bank. They are always hungry to lend. If they lend you the money. Throw them a bone and make a deposit.

  2. Refinance now! Rates are great. If you a person that doesn’t like things unsettled, get it over with now and save 4 years of grief.

Best of Luck!