PG Rating for a Property Investment
Has your property investment got a PG rating? 🍿 #personalguarantee
Doesn’t that sound reassuring in this game!
⚔️🤕 Not too much drama
🙈🦵 No gratuitous scenes
💪🌏 You have the power to decide whether it’s suitable
Except a Personal Guarantee is far more complex. It does NOT guarantee you will regain your capital, no matter what the intentions.
👉 Tough reminder time:
✅ Read the small print
✅ 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?
✅ Due Diligence on the PG pledger’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 ⏩
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!