All Forum Posts by: Hector Avila

If he signed the personal guaranty then that possibly gives him complete exposure because the fine print clearly states that it will become a "personal guaranty" in the event of the LLC. failing to comply with terms. This is the risk that most hard money lenders predict, so that's how they make their business. Not all of them but a few do.

The liability from a LLC reduces exposure from assets in the event of a lawsuit. I'm not an attorney but a friend gave me this same advise when I opened up my first credit account with an equipment rental company. I skipped on signing the personal guarantee for that reason and I had to dispute it with the credit department. Luckily I had good enough business credit that they allowed me to proceed.

Hope this helps and good luck

Hello all,

I am working on buying an investment property where .89% of the interest belongs to a heir that I cannot come into communication with. None of the other family members know where they are or how to communicate with them. I've done all the due-dillegence to try to communicate with them but no luck.

All other parties are in agreement but there is that small interest pending. Has anyone had an experience with this type of risk? I'm wondering if there is a way to exclude or eliminate that parties interest? Any lawyers or investors familiar with such dealings? 

The Title company I'm working with said they cannot close the deal if the title interest doesn't add up to 100% due to potential lawsuit risks? 

Thanks!