Do Investors generally also guarantee the loans?

[Pepper Bradford]

I'm looking at a multi family unit on the MS Gulf Coast (this will be my first deal) and running the numbers. Still waiting on the rent rolls from the current owner, but so far the numbers are working out. I don't have the $70k I'll need for the DP, so I'll need to bring in a partner or investor. But, the bank said that anyone owning more than 20% would also be required to personally guarantee the loan. Is that something that would turn away an investor? In my mind they want an investment, not take on debt. 

[Robin Simon]

Quote from @Pepper Bradford:

I'm concerned that an investor isn't going to want to guarantee the loan, but instead just give the cash and get the returns. 

For DSCR loans, generally its a requirement from most lenders that anyone with above 25% (not including = 25%) would be required to guarantee. Typically banks are a little more stringent, so the 20% lower number there makes sense. To get to non-recourse multifamily, you'd probably need a commercial lender and the property would likely have to be worth a lot / big for it to make sense there (properties generally worth more than $3M or so)