top of page
  • Writer's pictureHelen Chorley

PG Rating for a Property Investment

Has your property investment got a PG rating? ๐Ÿฟ #personalguarantee

Photo credit : Elliott Stallion At UrbanSplash

Doesnโ€™t that sound reassuring in this game!


โš”๏ธ๐Ÿค• Not too much drama

๐Ÿ™ˆ๐Ÿฆต No gratuitous scenes

๐Ÿ’ช๐ŸŒ You have the power to decide whether itโ€™s suitable


Except a Personal Guarantee is far more complex. It does NOT guarantee you will regain your capital, no matter what the intentions.


๐Ÿ‘‰ Tough reminder time:


โœ… Read the small print

โœ… Ask yourself why a PG has become your reassuring exit strategy for this deal. Has risk been mitigated enough through deal analysis? Yours OR theirs. Is there a hint of urgency or desperation?

โœ… Due Diligence on the PG pledgerโ€™s other business dealings and relationships. This PG could mean diddly squat with co-ownerships or undisclosed deals and holdings outside of this project!


Go back and check the exits โฉ


What are your thoughts on PGs?


For more discussion about the dangers of legal guarantees in property investment check out my article out now in Property Investor News!


#PINmag #propertyinvesting #angelinvestor #propertyspeaker #investing

1 view0 comments
bottom of page