Save yourself and your investors big headaches and lawsuits and use a quality securities attorney from the start. 

Then you've got a lawsuit on your hands.4.

Court cases have evolved from one partner getting included in a lawsuit because the other partner's daughter got into a car accident in the other partner's car, and other seemingly unrelated issues.

Long Island man who hasn’t paid his mortgage in 20 years dodges eviction againA Long Island man who hasn’t paid his mortgage in more than 20 years got another free pass from the courts this week after hiring a new lawyer.Guramrit Hanspal, 52, hasn’t coughed up a dime to live in his East Meadow home since making a single mortgage payment in 1998, but ducked eviction for decades by filing lawsuits and bankruptcies, records show."

This is a process where you as a creditor, file a lawsuit in court, and ask the courts for permission to repossess through an order of repossession. 

Suppose a loan changed hands "Subject To" and it went bad and there was a lawsuit that went all the way to the Court of Appeals and was all over the banking pages.

Over the last two years I've actually made more money settling Do Not Call lawsuits with these jokers than I have earned from my actual real estate portfolio. 

Too many things can go wrong and wind up in a law-suit. 

- one thing to note is that LLCs are not as protective as you might think. people usually put properties in LLCs thinking they could never personally suffer from a lawsuit, but holding a property in a single-member LLC offers the owner little to no legal protection. so if that was the REASON you want to open an LLC, i wouldn't bend over backwards to get one started before buying your first property. you could always do a quit claim deed to the llc later on, if you buy something in your personal name now, and open an llc later.- another thing to consider if that llc filing fees are sometimes expensive enough to wipe out half your cashflow for the year, especially combined with now having to do a tax return for another entity (if you pay someone to do your tax prep, which you prob should with any rental property).- lastly, some loans REQUIRE you to close in an entity. knowing ahead of time what type of loan/lender you're going to use on your first property, might make this decision easier for you.hope this helps!!

Thanks for any help.It could be a previously unrecorded government lawsuit lien.