Portfolio Loan/Line of Credit Non-PG

[Bret Halsey]

Hey all, I have an investor buddy of mine who owns several dozen properties free and clear. They're located within 2 cities adjacent to each other. He's considering leveraging some of the equity to expand his portfolio. My question is this: what products are out there that would allow him to access that equity without a personal guarantee? These properties cash flow heavily so was thinking about some sort of DSCR or commercial portfolio refinance/line of credit option but would love to hear what might be out there regarding this.

[Matthew Crivelli]

@Bret Halsey

Penalty of Non-QM loan options out there for this situation. My question is, why are you trying to skip giving a personal guarantee? Most lenders you talk with will want you to give one, typically if this is skipped the loan terms are not nearly as favorable. 

Our loans are closed in an LLC but we still require the majority owner to give the PG and undergo a credit and background analysis.

Just something to think about!