Guarantor Support
Balance sheet & experience partners
Need additional guarantor strength to close your deal? We connect borrowers with qualified guarantors from our network so your personal financials never stand between you and a closed transaction.
Use Cases
When you need a guarantor
Lenders evaluate guarantors on three dimensions: net worth, liquidity, and experience. If you fall short on any one, guarantor support fills the gap without diluting your ownership.
Net Worth Requirements
Many commercial lenders require the guarantor's net worth to equal or exceed the loan amount. If your personal net worth falls short, a guarantor partner bridges the gap without requiring you to bring in an equity partner.
Experience Requirements
Lenders often require guarantors with a track record of owning or operating similar asset types. First-time multifamily buyers, MHP acquirers, or operators entering a new asset class can leverage an experienced guarantor to satisfy this requirement.
Liquidity Requirements
Post-closing liquidity requirements (typically 6-12 months of debt service in liquid assets) can disqualify otherwise strong borrowers. A guarantor with sufficient liquidity satisfies this requirement without reducing your capital available for the deal.
Key Principal Substitution
Agency lenders (Fannie Mae, Freddie Mac) and CMBS require a Key Principal who meets specific financial thresholds. If your primary borrower does not qualify, a guarantor can serve as the Key Principal on the loan.
Key Distinction
Fee for service, not equity
Guarantor support is a fee-based service. The guarantor receives 1.5-2.5% of the loan balance at closing and signs the guarantee. They do not receive ownership, profit participation, or any decision-making authority in your deal. You retain 100% of your equity and control.
FAQ
Guarantor support FAQ
Guarantor support is typically 1.5% to 2.5% of the loan balance for non-recourse guarantees. Recourse guarantees and deals with unique risk profiles are priced on a deal-specific basis. Compensation is paid at closing from loan proceeds.
Non-recourse guarantor support means the guarantor is only exposed to standard 'bad boy' carve-outs (fraud, environmental, bankruptcy filing) rather than full repayment liability. This is the most common structure and is priced at 1.5-2.5% of loan balance. Full recourse guarantees, where the guarantor takes on repayment liability, carry higher compensation and are structured on a deal-specific basis.
We provide guarantor support for agency loans (Fannie Mae, Freddie Mac), CMBS, bank financing, SBA 504 and 7(a), and bridge loans that require additional guarantor strength. Common asset types include multifamily, manufactured housing, commercial, and mixed-use properties.
Yes. In fact, first-time commercial borrowers are one of the most common use cases. Lenders want to see experience on the guarantor, and our network includes operators with extensive track records across multiple asset classes. The guarantor provides the experience credential while you build your own track record.
No. Guarantor support is a fee-for-service arrangement, not an equity partnership. The guarantor receives a fee (typically 1.5-2.5% of loan balance) and signs the guarantee. They do not receive ownership, profit participation, or decision-making authority in your deal.
Typically 3-5 business days from receiving your complete deal package and lender requirements. For standard agency and bank loans, we can often identify a match within 48 hours. Complex or large deals may require additional time.
The guarantor will need to review the deal summary, property details, business plan, and loan terms. They do not need access to your personal financial statements. You will need to share the lender's guarantor requirements (net worth, liquidity, experience thresholds) so we can match appropriately.
Yes. Borrowers frequently use our bridge loan program for the acquisition phase, then seek guarantor support when refinancing into permanent agency or bank financing where the guarantor requirements are more stringent. We can coordinate both services.