What’s The Value Of A Personal Guarantee?

…and how can a personal guarantee be enforced?

HERE’s the document….

 

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8 thoughts on “What’s The Value Of A Personal Guarantee?

  1. Thinking of how Walter might make good on his guarantee, I began to wonder about his assets . . . looked at the Contra Costa County Recorder website to see if there had been a transfer of the Ng homestead. There was, on November 5, 2010. I wonder who the members of 4010 Canyon Partners LLC might be? This link should take you to top line information on the recording of the Grant Deed.
    http://www.criis.com/webtemp/71.146.65.216/17446.00081042.f1.htm

  2. One of the Bar-K fairies just sent me the “circular” that is the basis of investments in the fund (2004 edition). It is a well prepared document and clearly delineates that RE Loans was planning to inflict major rapage on the investors through commissions and ongoing fees. Some comments after a brief review:

    – Date of first loan is stated to be November 2002, but the contribution to RE Reno was December 2001.
    – Only 15% cumulative was allowed to be loaned to related parties, but the $20M to RE Loans for One South Lake was way more.
    – Maximum loan value is capped at 20% of funds under management. But the fund was only at $216M in December 2003, and $333M in October 2004.

    If it were only the economy hitting the fund I wouldn’t be so angry. But Bar-K has been lying from the beginning of RE Loans, ignoring their lending standards especially to “related” parties and size of loans. Throw in a diddling scandal between the brothers Ng and their kin.

    Recourse? These LLCs will go BK if any significant pressure is applied. If you have a 10 year horizon, staying the course is probably the best plan of action. If less, forcing BK and picking up the crumbs may be a more reasonable scenario. In a standoff between parties with conflicting interests, th BK option will win.

    So the LLC structure will eventually fold, so our pound of flesh has got to target the Ng’s (all of them) personally. Any tips on how to make it personal?

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