All Forum Posts by: Ryan Blasdel

Thanks for the reply. My original loans were written at 90% LTV with a 20 yr amortization (10 yr balloon payment) because of the financial strength of my original guarantor. He owned a large number of shares in the bank and has a net worth of likely 9 figures. The bank had no worries in other words. The current value of the properties are around 7 million so I'm at about a 75% LTV now. Most banks I've talked to want someone who has the net worth to cover the 5 mil. I can cover close to 1 mil.

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.