Who owns a piece of you? (Understanding guarantees)

Disclaimer: I am not a lawyer.  This is one of those topics that causes heart burn for individuals and businesses that may be unfamiliar with how banks and lenders operate.  This topic is almost as bad as discussing bank fees – but not quite.  What is a guarantee?  A guarantee is an agreement that either you or your company is liable for a debt or obligation.  There are 2 basic kinds of guarantees: personal and corporate.  A personal guarantee means you are liable for a debt or obligation and a corporate guarantee means your company is liable for a debt or obligation.  So what’s the big deal? Continue reading “Who owns a piece of you? (Understanding guarantees)”

That moment when someone asks “can you afford it”

I had breakfast today with a colleague who is in the commercial industrial sales/leasing market and we were talking about that moment he has with clients when they do a gut check about financing.  He gave me some examples of clients that take months to consider a real estate transaction only to get to a point where then have to answer questions like: Continue reading “That moment when someone asks “can you afford it””

You need a personal guarantee? No way!

Imagine for a moment that someone approaches you and asks if you would be willing to lend them money.  They proceed to tell you all about the venture and the enormous amounts of money they are going to make as a result of securing money from you in the form or a mortgage or loan.  They continue to tell you that notwithstanding nobody knows the future, their venture is a sure bet guaranteed to make them profit and riches beyond their wildest dreams and Continue reading “You need a personal guarantee? No way!”

Land still tough to finance

Land banking, land development, land servicing all continue to be tough deals to get financing for. Banks and lenders are happy to lend you the money if you have enough pre-sales (of completed lots) to cover up to 100% of their loan. Private lenders have too much land sitting in their portfolio and don’t have an appetite for anymore. Continue reading “Land still tough to finance”

Personal Guarantees – do I really need to provide one?

If you have never had a commercial mortgage or business loan or have had very few, providing a personal guarantee may be something that you are naturally uncomfortable to do. However, non-recourse mortgages and loans where a bank or lender agrees to provide you with money and not ask for a personal guarantee are hard to come by. Continue reading “Personal Guarantees – do I really need to provide one?”