Typically, state or local law provides for when a utility can place a lien on property; typically, the utility must be provided by some government body for that to occur when the utility customer is not the property owner.

@James MiernickiI am not a lawyer, but, my concern would be if a law-suit occurred involving the property owned by the trust would that then put all of the other assets owned by the trust at jeopardy?

No harm no foul you are good, you get all money owed to you.

Didn't occur to me to call the Judge or the bar association :-) I will do both and see what I learn regarding why the account has been frozen as well as if this qualifies as a complaint to the bar.Thanks again!

I don't know when this occurred, but do know the house has been vacant at least 6 months.What are the chances this place has mold?

Should the project fail, it can be very harmful to you financially for many years - if not the rest of your life - and extremely inhibits your ability to have future success in the real estate business, or even buying or renting your personal residence.If I understand your post correctly, you can expect ever member of the LLC to be required to be personally liable and financially responsible for repayment of the debt.I would imagine a non-recourse loan would probably have a much higher loan-to-value ration to ensure a safer loan and higher interest rate because of the higher risk factor.Did anyone track how many financial institutions had liquidity problems, closed, or were sold the past 10 years?

I imagine the average expenses (security deposits too) would have to allow for the freak accidents that occur when you have 4 college kids living at one place.

@Sam Jackson,It is great you have good intentions to help these people.However, this may be a situation where you could do more harm than good.

Also I always aim for, and teach other investors to not settle for less than $300 per month cash-flow minimum unless unforeseen obstacles occur.

Should one or two small investments become challenging, it will be less financially harmful to you and more easily corrected.