Credit Agreement Personal Guaranty: Fill & Download for Free

There are already some great, detailed answers to your question which really boil down to understaing that an owned personal residence is a liability rather than an asset (which is a perspective I generally agree with).However, I would offer this :Some real investors do not own their own homes because: (i) they cannot afford to purchase a home; or (ii) they have poor credit and lenders will not provide them financing to purchase a home.Real estate investing is a complicated, labor intensive endeavour, but it isn’t rocket science. Further, the only barrier to entry is finding a real estate deal to invest in. As such, there are quite a few individuals or companies who have gotten in over their heads and have lost everything in real estate investing.Anecdotally, there are quite a few personalities in the industry that live beyond their means and have assumed significant leverage against their projects and their own balance sheets. Personal bankruptcies and often many other outstanding obligations (e.g. settlement agreements, personal guaranties on loans, etc.) prevent these individuals from sourcing debt from most major financial institutions.

In general, absolutely not.If you have a portfolio of credit cards, and good credit, then you can go from one 0% promo rate card to another, to another, to another. But, at some point, you’re going to begin paying interest. And, those credit card APRs are going to be higher, or double, what you could get from a bank.Cash-flow wise, what credit cards offer are lower repayment requirements than a bank loan (installment loans). — As you can imagine, it’s very complex.If you are very lucky, you might have a 7.9% credit card (c/c) that has a low minimum payment.You may get a bank loan for prime + 1% (which — I’ll just choose 6.5% as an example). You can look up “prime +1” — but, the numbers I’m using here are just pro forma. — It’s an example.What you’ll find is that, if you have a 6.5% installment loan, you have a term (of repayment). — It’s set at the beginning of the loan. You have to pay a certain amount, based on the amount of the initial loan and the interest rate, so that in X number of years, the loan is paid off.A credit card is a revolving line of credit, so you don’t have to pay it off so quickly. Many c/c’s have terms of 13 years or more, so you can pay very little per month, helping you cash-flow-wise, but you will end up paying multiples of the amount you took out at the end of that very-long-term.Let’s take Texas. The maximum interest rate that can be charged, by law — lest it be usury (a felony) — is 18% per annum.Many c/c’s charge more than 18%.Can you get a c/c with an APR of 0% for some period? — Sure.Is it likely your bank will charge you 17% APR on an installment loan? — No.Can you do an interest-only loan? — Sure.These are the “balloon payment at the end” loans. — You take out a loan for $20,000; you only pay the interest each month, and then, you hope, when the term of the loan is over, you can refinance the loan. Otherwise, you will owe $20,000 immediately.If you can’t, and the bank is unwilling to work with you, that makes your collateral forfeit, and it also hurts your credit score.Most of these loans, just like trade credit agreements, have a personal guaranty contract in place, which defeats everything about having a limited-liability type of business construct.Bank loan and credit card financing should be your backup. — Get trade credit with your vendors/suppliers. — These are, by nature, 0% if you pay on time.If you can do that with one trade creditor, then you can start doing it with many trade creditors.If you make concrete, then you will need a cement supplier. — If you can get that supplier to allow you to buy cement on NET 30 terms, then you can buy mostly whatever you want and only have to repay the amount in 30 days. INTEREST FREE.This is how you grow a company. — If you find yourself unable to monetize your receivables within that time frame, then — and only then — hopefully, will you have to fall back on your bank promises or credit cards.A robust capital structure, for most every company, should include a revolving line of credit with a bank. — The goal is never to need to draw that down. To do so is a sign you are in trouble, and the bank knows it.If you are talking about taking out a collateralized installment loan from a bank, then you are talking about (hopefully) necessary CapEx (capital expenditures). — If you need a new work truck, your cement vendor isn’t going to pay for that upfront, and you’re not going to want to come up with the money to pay for it in just 30 days.You may not be able to get, in the beginning, bank loans or commercial credit cards or trade credit agreements without your own personal guaranty. That means — even if you are a corporation or limited liability company, you are still on the hook for the business’s inability to pay.In my experience, I just fill out the applications (for trade credit) and omit the personal guaranty page, as if I forgot to print out the last page or two.You may be approved for trade credit based on what’s on the application, and you’d be a fool to just — because it’s part of the application — fill out the part that says, if the business can’t pay, you will.If you get a call from them saying they didn’t receive the personal guaranty, just say — “Oh. That’s because my assistant is new. He is terrible at his job and I’m gonna have to fire him. I’ll get it to you as soon as I can get back to the office.”LOL — and then, don’t send it.An FDIC-insured bank is not going to let you off like that.A commercial credit card issuer might let you off with no personal guaranty, but expect the rate to be high.Only when you spend lots of time assembling a portfolio of 0% or other low promo rate cards will he credit card aspect be cheaper than the banks.The credit cards just have lower minimum payments than bank loans do. — That’s going to be true whether you have an installment loan or an interest-only loan, in most cases.

The Trump International Hotel Washington, D.C. is located in a building owned by the federal government, the so-called Old Post Office Building. Construction began in 1892, which was completed in 1899. The total cost of construction at that time was $3 million.The Trump Organization leases the building from the federal General Services Administration (GSA). According to Wikipedia:“On June 4 [2013], GSA reached a final agreement with The Trump Organization regarding redevelopment of the Old Post Office building. The Trump Organization negotiated a 60-year lease under which it paid $250,000 in rent per month, with annual increases tied to the Consumer Price Index. Rent payments were to begin either eight months after construction started or 20 months after the lease's signing, whichever came first. The company had the option to extend the lease another 40 years. The Trump Organization agreed to spend at least $200 million redeveloping the property, with Trump using his personal funds to pay for the redevelopment. To allay concerns by critics that he too often defaulted on developments, Trump agreed to provide a $40 million personal guaranty as well as a "bad acts" (to cover failure to pay taxes, fraud, or other forms of misconduct). The Trump Organization agreed to pay all taxes, although the lease did not bar the company from seeking a historic preservation tax credit.”