Equity Stripping: Make Your Assets Unattractive Targets

The more equity your property shows, the more tempting it looks to a plaintiff’s attorney. Equity stripping flips that logic by strategically reducing the visible equity in your assets.

How It Works

By recording legitimate liens or loans against your property, you make it appear encumbered. This deters potential lawsuits—no one wants to spend time chasing an asset that seems fully leveraged.

Common Tools

• Lines of credit or mortgages: Create recorded debt that reduces visible equity.

• Intercompany loans: Use related entities to place liens across holdings.

• Encumbrance layering: Multiple liens make legal attacks more complex and less rewarding.

Proceed with Care

All liens must be genuine, supported by documentation, and legally enforceable. Fraudulent liens can lead to serious penalties. Done right, however, equity stripping creates a deterrent stronger than any insurance clause.

Final Insight: Smart investors make their assets invisible to opportunists—not irresistible to them.

⚠️ Disclaimer: For educational purposes only; not legal or financial advice.