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  • Writer's pictureHelen Chorley

PG Rating for a Property Investment

Has your property investment got a PG rating? 🍿 #personalguarantee

Photo credit : Elliott Stallion At UrbanSplash

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!

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