How Real Estate Investors Lose Money Real estate investors lose money in two ways. The first is because the actually made a bad investment. The second is because somebody took it from them. And they can do that easily through a lawsuit. Lawsuits are basically just legalized stealing. So one of the key things that we have to do to guard against Half of the way that we would lose our money in real estate investing through litigations, let’s protect ourselves from that. That’s what an asset protection strategy is.