Lawsuits Are A Money Driven Business: What Real Estate Investors Should Know

 The title of this post says it all. As a real estate investor, you have to understand: lawsuits are a business. When someone wants to sue you, they are only looking for money. To be specific, your money.

How Do I Protect My Real Estate Investments?

You get a proper asset protection strategy.

A proper asset protection strategy keeps people from finding out what you own, and if they ever were to sue you, it limits what they can take. But more importantly, a proper asset protection strategy exhausts their will and their resources to fight you.

This keeps people from continuing with the lawsuit. It usually gets them to settle early and for less. It even gets them, in most cases, to stop the lawsuit before it starts.

What you have to understand is that, because lawsuits are a business, the main question people who want to sue you are wondering is: how do we get money out of somebody when we use them?

This question is answered with a proper asset protection strategy. And you better believe it’s the correct one!

How a Proper Asset Protection Strategy Defends Your Assets

A proper asset protection strategy protects your assets from being seized by somebody via a judgement. It makes people (attorneys) believe they’re not going to get anything out of their investment in a lawsuit. This is extremely important.

Because, you see, lawsuits are only paid for in two ways: someone either has to pay an attorney to sue you or an attorney can take a case on contingency. (Attorneys usually take cases like these on contingency.)

Let’s say I’m an attorney who wants to sue you. While researching you, I find out that you have no assets. My research tells me you’ve qualified for food stamps for the past five years.

How much money do you think I’m willing to risk for a judgement which is merely a piece of paper? Without an asset to seize, a judgement is worthless.

Moreover, there’s no attorney worth their salt who’s ever going to take a case like that on contingency. When an attorney takes a case on contingency, that attorney is risking everything. Clients lose nothing.

Attorneys only take cases that they’re very confident they can win and collect on. So when you ask yourself, how do I protect myself from a lawsuit? What you should really be asking yourself is, how do I make it look as if I don’t own anything?

Remember: Lawsuits Are a Business

Well, that’s everything. If you have any questions feel free to ask me in the comments below, I’d be happy to answer  them! Feel free to continue our discussion on this topic or share any of your thoughts on asset protection.

Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.

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