There is also a vetting process that you can go through (you can actually look up open records with the civil court in your particular county) to see if any of the contractors have open cases against them. 

Graduated from UCF Fall of 2015 with a degree in Civil Engineering.

I am leaning toward setting up an LLC since we will be having others rent and I want to protect ourselves from possible litigation.

Cops wont do anything....civil matter.     

The property is currently the subject of litigation and is subject to a deed of trust.

Definitely post a letter ASAP to protect yourself if future litigation is required. 

Hi i  bought a Tape of properties from the bank and i am happy to say today i close escrow on last one what a good feeling the tape had total of 13 properties in Southern California, 5 in San Diego were i live even one in my little town of Solana Beach, so step 1) Getting them out, Cash for keys or litigation i preferred cash for keys everyday 2) the estimate and finding the right contractor i was lucky enough to have 2 contractors working on my 8 properties at the same time some in Orange and in SD, estimate i come from a developer family and been in this for a while so i got good and knowing the cost.3) the right real estate agent well i didn't put all my eggs in the same basket i went and got 2 killer guys in San Diego, and myself i have a license also so between us with 0 dollars into marketing just with right pricing and todays market the properties sold in average of 11 days. it was awesome4) i also do consulting for first time investors and private equity companies, and banks so i was busy if your going to buy bulk focus 100% cause 2 jobs is crazy.

I'm worried that by holding them all within one, one might be leaving the backdoor open whereby a litigating tenant with a big enough claim in one particular unit can go after not just the asset they are/were living in but the other assets in the portfolio as well.

Or, the borrower has threatened litigation and the bank is trying to get rid of a possible mess.

Has anyone used LexShares before to invest in litigation financing?