Considering using a hard money loan? Expect to sign a personal guarantee, here's why...

[Account Closed]

Here's a tip for working with hard money lenders.

Don’t expect to get a hard money loan without signing a personal guarantee. Lenders want to know you are personally involved and have a real desire to see the project through to an exit.

There are many considerations for a lender when looking at a hard money loan request. The bottom line is the lender wants to know how it’s getting paid back. Having the borrower, or members of the borrower when the borrower is an entity, sign a personal guarantee adds an additional layer of security for the lender. The lender wants to know the borrower, or member(s) thereof, is/are serious about the loan and seeing it through to a successful completion and exit.

Do you have hard money loan questions or tips?