I saw this a lot first hand doing commercial small business real estate. Hard money lenders give someone a loan to start a restaurant, and if it fails to meet t

I saw this a lot first hand doing commercial small business real estate. Hard money lenders give someone a loan to start a restaurant, and if it fails to meet the obligations of the loan, they can foreclose on the restaurant and other property or assets the person has signed as collateral. Taking money as a loan with a personal guarantee is always a very high risk situation and should be avoided unless you absolutely have to.