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Updated almost 5 years ago, 01/12/2020

User Stats

104
Posts
58
Votes
William Yeh
  • Real Estate Broker
  • Walnut Creek, CA
58
Votes |
104
Posts

Enforceability of Corporate Guarantee?

William Yeh
  • Real Estate Broker
  • Walnut Creek, CA
Posted

Hey BP,

I'm considering investing with a group that does flips and they provide a corporate guarantee backed by both their liquid and non liquid assets on all investor funds that they accept.

While I have some familiarity with personal guarantees on loans received from banks, I've never dealt with a guarantee from the other side of the table. Does anyone have experience in having an investment guaranteed and the enforceability of such a guarantee? If the catastrophic happened, what's stopping the group from liquidating everything and closing up shop?

Thanks in advance.

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