Placing A Trust Deed On An Investment Property
to what degree is this successful in warding off lawsuits ?
my thought would be that a property with little equity in it would not be worth going after ?
if so, what sort of separation does there need to be between the owner of the property and the owner of the trust deed ?
i am in california.
I have seen authors (Garrett Sutton, I think?) call encumberment (e.g. a deed-of-trust or trust deed) a form of insurance. Yes, I agree with your comment "my thought would be that a property with little equity in it would not be worth going after" but do not have any "hard data" to back it up. Regarding the "separation" between owner and debt/note holder, you can acquire property in an LLC (another form of asset protection) and have a member (or members, or family of a member) hold the D-T.
Always check with your attorney for the best legal advice for your circumstances.
hi john,
thanks. if you have any knowledge of court cases - if it went to court, would the court want to see evidence of payments, such as cancelled checks ?
thanks so much to everyone who posted - great info.