7.Is there a bankruptcy or a divorce involved?

If our government does not stop this crazy spending, and cut the 12 trillion dollar deficit (it does not seem they are slowing down anytime soon) the dollar is going to be worthless and our country will be on the brink of bankruptcy.

If you do take out another loan and payoff other debt, it will have little impact as you are simply transferring debt, but don't do it too often, because that can be seen as restructuring your finances and that's what many do before they take bankruptcy!

Such matters don't really pop up that much until something goes wrong, death, bankruptcy or tax matters, and such where issues arise and then it's found that the use or intent was different or not in compliance.

@Lolita Ellis , bankruptcy is a pretty complicated issue.

Roofer filed bankruptcy.

Then they filed bankruptcy. 

They did not just file bankruptcy or close EquityBuild, they did not walk away from their investors, they worked through the issue and then made adjustments to their procedures to insure a similar situation does not occur in the future.You also mentioned housing or building court cases files against EquityBuild and that is very true, but you need to remember they are buying distressed properties, most with existing building violations that they are assuming, and then repairing the properties to resolve the issues and obtain occupancy certifications for the buildings.

I'd feel a lot better about this book if someone could explain this to me...In Chapter Six (page 116), Kiyosaki details a house he acquired from a bankruptcy attorney.  

Kyle, the property along with 4 or 5 other multi-family properties are part of a chapter 11 bankruptcy sale, so I don't think seller financing is an option.