That way if someone looses more money than they expected, or in any way feels slighted, being able to point back to what you previously agreed upon helps to prevent the bulk of the "he said, she said" and hard feelings that can ruin valuable relationships.  

It doesn't prevent lawsuits, but it limits potential losses should one be successful and raises an additional barrier between your business holdings and your personal assets and properties.An S-Corp is easier to manage than a C-Corp, plus there's no "double taxation". 

Do a CSI on that and figure out what happened and how to prevent in the future.In the meantime, I like @Curt Davis idea of talking with a lender to see where you're at.  

This serves several important functions: prevents questions of comingling of funds, sets a professional tone for your plan and also provides privacy of financial information that all involved parties might not want disclosed between everyone in the group.I wish you success and would be happy to discuss further or answer related questions!

And your mentor will be sort of like your safety net to prevent you from making a lot of mistakes along the way.

There are multiple factors now that would prevent you from building even a patio in Bellevue.

It also allows us to only pay interest on the money we actually need versus getting a mortgage up front and holding onto the money.Concerns:I want to protect his position as much as possible without putting a lean on this property that would prevent me from getting the HELOC I need.Possible Proposal:Assuming he requires this be secure, I can put the lean on another property or properties to protect his position.  

@Ryan Moore, the regulation I believe they are referring to is TRID and I don't believe TRID (TILA RESPA Intergrated Disclosure Rule) prevents them from putting the security deposits and pro-rated rents on the CD (Closing Disclosure), I think the problem is they don't want to put them in because they are technically transferring outside of the loan (i.e. meaning it is not a condition of financing).

As I alluded to in the podcast, I don't want to foreclose and do everything I can to prevent it -- not letting them get too far behind, working with them to restructure the note, forgiving some penalties, cash for keys, etc.And you're right -- the early 80s was a great time to buy with owner financing.  

Many lenders would also note, however, that there is nothing that would prevent the Land Trust trustee from changing trustees or would prevent the Land Trust beneficiaries from changing.