Is It Normal for 20 Percent Owners of a LLC to Personally Guarantee?

So I'm just starting to explore this. I've been looking at more like seller finance stuff. I'm just starting to like contact banks and see what they, what, what's available. Is it normal for 20% owners of an LLC, any 20% and up, to all have to personally guarantee? Yes, that is normal.

That 20% is the magic number. 19% ownership probably don't have to sign. 20% or higher almost universally must be a signer on the loan. They just have too much. They're too big of a factor in the LLC, the bank says like, hey, we have risk on this person, we need to underwrite this person.

Okay. And when we're talking about long-term fixed rate debt, if they have a, a rate adjustment every 5 years, is that also normal? That's normal.

It's not uncommon. So the last loan that I did conventionally Um, I just closed their refinance, uh, 2 weeks ago. They'd say it was like $9,000 a month, which is crazy. The deal is a 10-year balloon, 5 years fixed. I'm treating that like 5-year debt because it's good. I don't know where rates will be, so if it goes variable, that's bad, but it's a lot better than the loan just expiring in 5 years because it's not a callable note. It's just going to change. It could get better, it could get worse, but I have a 10-year window, uh, I'm going to treat that as something where it's like, hey, we should try to get into new debt before the 5 years is up. But if it's 4 and a half and you're like, man, rates really came down and they're trending really well, you can roll the dice, but might as well just lock in a rate. You always want to have fixed rate debt, but it's not uncommon to have, uh, 5 years locked and 10-year variable. That's a pretty common debt product. Just only do your underwriting off the fixed portion.