Judgements and Investment Property

[rburkhalter]

What is the name of your state? TX

All right, I admit I am in the dark about this one and I am a licensed real estate broker in Texas.

Can I set up an LLC to buy investment properties and shelter them from any creditors that may file a judgement against me? The judgements, if any are ever filed, would be unsecured debts. Although Texas is a Homestead state I obviously can't file homestead on investment property. My question is could a creditor from my past who has not recorded a judgement against me at this time, do so and record a lien on that property? And is it just that? A lien? Or can they cause me to sell to satisfy the judgement?

Any help would be greatly appreciated.

[BradleyS]

RE Broker in Kansas:

Would a C.P.A. or a "qualified" financial/tax/investment broker have the answer to this?

Or you might post this thread on the "TAX" section.

[HomeGuru]

Originally Posted by rburkhalter

What is the name of your state? TX

All right, I admit I am in the dark about this one and I am a licensed real estate broker in Texas.

Can I set up an LLC to buy investment properties and shelter them from any creditors that may file a judgement against me? The judgements, if any are ever filed, would be unsecured debts. Although Texas is a Homestead state I obviously can't file homestead on investment property. My question is could a creditor from my past who has not recorded a judgement against me at this time, do so and record a lien on that property? And is it just that? A lien? Or can they cause me to sell to satisfy the judgement?

Any help would be greatly appreciated.

**A: the LLC: it could be done but must be done the right way. Otherwise, a creditor could "pierce the corporate veil" and get at the property.

Q: My question is could a creditor from my past who has not recorded a judgement against me at this time, do so and record a lien on that property?

A: Yes, if they could prove you were conveying property to defraud creditors.


Q: And is it just that? A lien? Or can they cause me to sell to satisfy the judgement?

A: A lien can be foreclosed upon, which means the property will be sold to satisfy the lien.

[HomeGuru]

And I accept those answers.