How Much Equity for Guarantor

[Ryan Blasdel]

I have 10 commercial properties with an outstanding loan total of 5.2 Million. My current loan guarantor is working to get his affairs in order because of health reasons and would like to be off as the guarantor. 

What would I need to propose to a new individual to bring into the deal as a guarantor during a refinance? I don't need their cash, just their willingness to be the guarantor as my balance sheet isn't large enough to guarantee it myself. Is it a percentage of the loan balance every year as a payment? Equity position? Both?

What are some scenarios that you have seen with this and how did they structure it?

Property description: National brand auto repair franchise locations (2 locations are multi-tenant) that have been in business and profitable for nearly 15 years. They are spread out with 8 locations in one MSA and 2 locations in another state. I have owned the real estate for almost 7 years.

[Rick Imby]

You have owned them for seven years and you have not built up significant equity?  My commercial property loans were written for 15 years so by year seven I had significant equity.  Try multiple banks with your experience you should be able to find one that will not need a cosigner.  Good luck.  Build up a really good presentation to take to the bankers.