I try not to gamble with my investment money or my clients investments and can usually identify a good deal in a very short period of time.

Clearly defrauding someone would be out of the scope of this thread, as we are talking about people running real business without the intent to defraud people, which is the main avenue to pierce a vail in the court systems today.The most common factors that courts consider in determining whether to pierce the corporate veil are:whether the corporation or LLC engaged in fraudulent behaviorwhether the corporation or LLC failed to follow corporate formalitieswhether the corporation or LLC was inadequately capitalized (if the corporation never had enough funds to operate, it was not really a separate entity that could stand on its own), andwhether one person or a small group of closely related people were in complete control of the corporation or LLC.Some corporations and LLCs are especially vulnerable when these factors are considered, simply because of their size and business practices.

YES, a good lawyer can sue you personally as well, but they will need to prove a few things to "pierce the corporate veil" (the legal terms of being able to go after you personally).....they can do that a number of ways, but in general they would need to prove that YOU were fraudulent in your dealings as the owner of the company.Check this for a quick and dirty read on how that can happen...http://www.nolo.com/legal-encyclopedia/personal-li...Yes it is a good idea, but you have to follow the rules in order to be able to insulate yourself.

You lower your own equity investment and thus you:- Increase your IRR- Lower your own personal risk if the project goes southIt's easy to make money when you're gambling with other people's money.

At least the last half decade has proven this to play out.. compared to cash flow were hey we are going to do this and gambling that rents go up and that cap rates stay low and credit will be where it is today and then in 5 to 7 years if everything aligns we exit.the pros on those of course is tax treatment and income as you hold and pretty much every syndicator out there will take a 100k investment. 

Incentives don't matter to slobs, and either does security deposits.. they figure who gives a Ya hoo...So we all know we can't fix a apartment for 1 months rent,, but we gamble on the good ones that will leave a clean and tidy unit when they leave..and loose out on the slobs.. 

Did you just publicly state that you're planning to fraudulently obtain a loan?    

All "squatters" are not those walking on your land.Some do so by posting false or fraudulent liens in the property files of your County Clerk's land office.The majority of liens posted in many counties relative to "securitized mortgages" are questionable, if not fraudulent.Question the "squatters' rights" of any "interloper" to real estate closings where "pretender lenders" have insinuated themselves into closings concerning your homes.If your closing documents refer to MERS, or if "mortgage servicers" have filed "robo-signed" liens on your property, now is the time to take personal action to eliminate false claims against your interests.Send Truth In Lending Act (TILA) Rescission Letters to any and all who have at any time claimed an interest in your property... including the "pretender lenders", especially if they are the Too Big To Fail (TBTF) banks, MERS, and mortgage servicers like Ocwen or the TBTF banks own collections arms.These fraudulent liens (used to file wrongful foreclosures), create probable title clouds that are likely to permit previous homeowners to reclaim their properties from unwitting "investors".This reality is exactly why I will not acquire properties at foreclosure sales.... and why I seek farmland uncluttered by the Financial Crisis mess.There's more, but this link may open some eyes.https://deadlyclear.wordpress.com/2016/07/27/about-those-1099-and-other-tax-filings-from-servicers-and-banks/

That will be a big part of choosing the next steps.Some lenders will do a short-sale without missed payments, but usually with a hardship (illness, job / income loss, etc.).If there's some balance between appreciation and the current short fall in the LTV, you might consider subject-to or just make up the short fall at closing and avoid the short sale gambling on appreciation to make you whole (not recommended).Dunno ... too many unknowns ...

About a month later i found out she had used one of my credit card courtesy checks fraudulently, which I had her prosecuted for.