Filing Liens On Property To “Protect” (Hide/Mask) Equity

[Bryan Hancock]

I have heard of many investors filing liens on property or on friend’s property in an attempt to fend off legal challenges that would arise from someone identifying this equity. I realize that entities can be used as a form of protection in lieu of doing this, but I was wondering about the legality of this action. It seems quite guruish to me. I am all for it if there are not downside risks to doing it.

It is probable this has been discussed elsewhere, but I couldn’t think of what to search on to find other threads. What are your thoughts on this?