Danger? Personal Guarantees on Business Loans...

[WillHurtDontCare]

Very sad, by suicide. Was pretty established and then fell on rough financial times. Hope this is not a sign of things to come...

View attachment 52251

https://twitter.com/proudamericapt/status/1720261923839558083?s=46&t=H6_6beq-lcKZKLvfOiKzAA

Yeah. He personally guaranteed the loans, so when his business went under, his creditors were able to go after his personal assets

This guy talked about how ugly creditors can get:

https://twitter.com/i/web/status/1669736643043966977

View: https://twitter.com/ErikKaiser/status/1669736643043966977

 

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[MattR82]

Yeah. He personally guaranteed the loans, so when his business went under, his creditors were able to go after his personal assets

This guy talked about how ugly creditors can get:

https://twitter.com/i/web/status/1669736643043966977

View: https://twitter.com/ErikKaiser/status/1669736643043966977

That is so gross. I feel like taking a shower after reading that twitter post.

 

[MJ DeMarco]

That is so gross. I feel like taking a shower after reading that twitter post.

I moved this to its own thread, it might save someone from a future calamity. It was spawned from the tragic suicide of a RE developer who "allegedly" was going through a similar hell.

That story was hard to fathom.

 

[Kak]

Wow!

I used to think an SBA loan was a decent option for some. I'll never suggest looking into them again.

Another reason to just get investors.

 

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[Antifragile]

The ReTwit is a small community and most with a decent following are well know. I’ve never met Artem but read his posts often.

1. He spoke about depression and how to beat it many times. RE Development aside, it seemed to be an important topic to him.
2. Full recourse loans are the norm in Canada, not the exception. USA recently moved in that direction too. A lot of talk about Artem taking his own life because of recourse. But I’ll say the unspoken here: he left a 2 year old and a wife to their own by this act. That’s not how to deal with bankruptcy. Because of that I’m going to say that mental health issues caught up to him.
3. This is absolutely tragic. I can’t imagine anyone with a healthy mind doing this. And last week I was at a Construction Innovation Summit where I was shocked to learn that the number one benefit used by the industry was mental health care services. As part of employment package, it’s a free service so part can be expanded by being free… still, I’ll argue that post covid, we have more mental health issues than ever before.

For young entrepreneurs:
- Any problem that can be solved with money, isn’t a “real” problem.
- you’ll need to put your money on the line often in your business journey, but try hard to avoid doing anything that could wipe you out. There is always a way to create a small pocket of “protect your downside”.
- the reason why entrepreneurship demands excellence is that your own future depends on it. Focus on being exceptional / excellent.


PS. Success is often just hanging on longer than you ever thought you could. That one extra day or two can be the difference…

 

[Antifragile]

I know I come off insensitive by saying that ending life is a bad decision. There is always a better way.

… love or hate Trump but he’s another developer who had businesses fail and he rose from the ashes.

What I’m saying ending your life isn’t a good thing. Literally anything else is better.

If someone reading this is struggling, reach out. There is help. There is a better future. Any financial challenge can be overcome. It’s just money.

So many people on this forum started at zero or negative net worth. And made it to 8 figures. At 41 he was too young to go… he could have had 40 more productive years of building businesses and real estate.

Very sad. There was a better path. And based on the outpouring of support and love to him on Twitter, he was loved and people cared about him. He wasn’t alone. And anyone reading this who may be struggling… remember, you aren’t alone either.

 

[ZCP]

Find some of the old @SteveO threads. He is my inspiration. Built, lost, rebuilt.
If you can do it once, you can do it better the 2nd time.

I'll echo what @Antifragile said but in a different way .... pay yourself first. Once you have achieved 'survival', take enough off the table to not jeopardize that ever again. hide if from yourself, put in a trust, whatever. keep raising your FLOOR. never lose your capital. however you want to say it.

in the beginning, risk it all. you don't have anything. as you create and build, start to raise that floor you can fall to. money to other investments that aren't tied to you, etc.

and for all of us, LOOK for that person in your group and that initial start into a fatal spin loop. go check on them. make the call. book the flight. we spend countless hours hiring coaches at the gym or consultants at our businesses, our own mind is the most important part of any of those machines. have someone to talk to!

 

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[jclean]

Any problem that can be solved with money, isn’t a “real” problem.

Gold