Anyone can sign a real estate loan if they have the financial strength, but lenders typically require owners with 10%, 15%, or 25% stakes or those controlling decisions to sign personal guarantees backing the debt.
Anyone can sign on the loan. So if you own 1% of a deal, but you're going to sign on the loan because you have the financial strength, you can do that, you're not required to. Anyone that owns more than some percentage of the deal, some banks it's 10, some banks it's 15, some banks it's 25. Anybody that owns an excess of that percentage, then they are required to sign on the guarantee. Anyone can sign on the guarantee, but if they own a higher percentage or they have managerial control, decision making control, then they need to sign on a guarantee.
NEVER Buy an Apartment Building Without Checking These 5 Things (I'm a Real Estate Attorney)
