Are you "still on the hook" if a property fails in your LLC ?

[David C.]

This has been something that I have seen commented on many times in Real Estate Rental property in blogs, podcasts and Youtube videos.

The claim is: "I put no money down, so that if something goes wrong in my property I don't lose anything."  Is that really true?  

1) Each time you sign a loan, a borrower must sign the dotted line with his/her name (You cannot sign the line with "XYZ, LLC").

2) Likewise, most banks (if not all) require a personal guarantor to sign (which is usually the same person signing the loan in the case of a sole proprietorship LLC.    In that case, wouldn't a guarantor would still be on the hook for the remainder of the loan, regardless of if it was foreclosed on or if it were taken in the judgement of a lawsuit ?

- Does this claim above hold water ?  And if so, does it hold water *only* if the bank does not ask for a personal guarantor ?  And lastly, have folks actually found lenders nowadays who do not require a guarantor ?