Using Personal Guaranty Companies to Limit Exposure

If you are a real estate developer with personal guarantees, there may be better ways to secure financing while protecting your personal assets.  It is common that banks require developers to personally guarantee loans in order to provide financing.  This demonstrates the commitment of the developer to the project, provides the bank with leverage in negotiating a workout of there is a default and limits the possibility the developer will walk away from the project.  It is not common for developers with multiple developments to often have multiple personal guarantees.   When considering estate and succession planning, it can be difficult to assess the risk of these personal guarantees. 

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