Safeguard yourself and your asset.

It looks to me like it's a safe guard against people filing a mechanic lien. 

Welcome to BP, @Demetrius GatlingIf you're going for it, you better spend hundreds and safeguard thousands by seeing an attorney!

Does this effect your deed and how can you safeguard yourself from this if they can take the property back via bankruptcy eliminating/reducing the tax lien that caused the property to be auctioned in the first place?

And yes, that is generally the "hood", so if you are considering some sort of rehab you may want to have a conversation with your contractor as to ways to safeguard the house while the work is going on if you decide to move forward with it.

And if the people they sold to won't just willingly deed it back they can't even control the asset.. since they no longer own it.Sub too while nice for a buyer is incredibly Risky for a seller ... unless very detailed safeguards are put into place.. which of course are rarely done... most sellers just figure this out when they get a late notice and freak out. !!! 

Are there other ways to safeguard my cash in case the property doesn't sell right away?

Make sure there are safeguards for control of any construction fund with accountability.

You must demonstrate to your RE investors that you are methodical and meticulous on your numbers and can safeguard their investment while bringing them a good cash flow / ROI.

At the end of the day, it is a judgement call depending on the particular facts and circumstances of the situation.I believe that 2 flip transactions per year would expose an IRA or 401k to UBTI taxation and we would advise our clients intending to flip houses with such frequency to consult with their tax attorney and/or CPA in order to evaluate the potential impact of such taxation on their investment strategy.DisclaimerPlease keep in mind that I am not personally a licensed tax advisor and the following should not be taken as tax advice.At Safeguard Advisors, we have a continual dialog with our tax attorney/CPA on matters of taxation and are well versed in the application of the code to self directed IRA & 401k plans.