How to Structure the Deal to Protect Your $20KIf you’re willing to cover the $20K arrears, here’s how to protect yourself:Option 1: Secure Your Funds with a Lien or Escrow AgreementUse an escrow account: Deposit the $20K into escrow with clear terms—if the assumption is denied, the funds return to you.Record a promissory note & lien: If the deal falls through, this would give you a legal claim against the property to recover your funds.Option 2: Sub-To + Wrap While You AssumeSubject-to deal: Take over the existing loan payments before assumption approval, securing control.Escrowed deed transfer: The seller signs the deed into escrow only to be recorded after assumption approval, ensuring they can’t back out.Lease option fallback: If the assumption is denied, consider a lease option agreement until another solution is found.Option 3: Negotiate a Seller Financing HybridAsk the seller to carry a small second note for the $60K equity gap at favorable terms.Use your $20K as a down payment, structured as a secured loan against the property.3.

If you expand your rental business in the future, an LLC may be worth considering, but for now, keeping good records and securing appropriate insurance should provide adequate protectionThis post does not create a CPA-Client relationship.

For the record - I am an international investor.

Understanding exactly who is the decision maker for property is not as simple as looking through the assessor records.

U dont hear much about it .. its a niche and anyone who has taken back a seller carry back note usually gets a few direct mail peices offering to buy your note.. thats all it takes  its public record make contact offer to buy .. etc. 

Never put all your eggs in one basketread the PPM and documents and have an attorney review understand what your investing in, fees and hold Timeunderatand their track record a lot more to consider those are just a few 

I got the deed recorded today and I'm going try to get the numbers from the state and reach out to the developer tomorrow and see what we can work out.

This is the recording of an "affidavit of facts related to title" under Ohio Revised Code Section 5301.252.

Did your borrowers mention securing your investment with a recorded mortgage or deed of trust, personal guarantees, lender’s title insurance, or anything else?

You might consider: Consulting a Real Estate Attorney – Your emails may possibly prove misrepresentation.Requesting Public Records – A FOIA request might reveal why the city denied you but later approved the duplex.Escalating to City Officials – Bringing this to local officials could expose inconsistencies.Exploring Tax Write-Offs – A CPA might help offset your financial loss, if it is possible.I’d definitely seek legal advice.