Founders, be careful about personally guaranteeing leases

  • Sometimes you don’t have a choice to do the right/safe thing.

    I signed multiple commercial leases in lower Manhattan, and had serious negotiations with ~10 landlords through our agent - the clause for personal/3rd party guarantee was non-negotiable for every single one.

    This company had WeWork as a major investor, and I’m sure they had good advisors all around, but Manhattan real estate is a special beast.

  • That's relevant to everything in a business and why limited liabilities were invented. If you are guaranteeing something personally then you are the one the needs to pay them at the end