How difficult are equity reduction strategies to set up?

Structuring secured liens against investment property requires careful planning and attention to detail. You must also observe the applicable tax and other laws involved over the life of the lien. You must also clear a number of hurdles to avoid problems with the lien itself, such as the fraudulent transfer laws and tax concerns. This complexity creates a two-edged sword. To succeed takes knowledge and skill in several different legal areas. The costs involved can be significant when you include the legal fees, taxes and special business services – such as international managers. Yet, executed properly, the complexity of the transaction can impose a formidable barrier against the average plaintiff seeking a fast lawsuit recovery. As more Americans become concerned about lawsuits, and as they more fully educate themselves about asset protection, there will be increased demand for these more sophisticated protective strategies. Third party mortgage arrangements to protect investment properties and other assets will be high on that list.

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