As a real estate investor, you have to understand that lawsuits are a business. If anybody is looking to sue you, they’re looking to get your money.
A proper asset protection strategy keeps people from finding out what you own. If they follow through with a lawsuit, it limits what they can get from you.
More importantly, a great asset protection strategy exhausts their will and their resources to fight.
This keeps people from continuing with the lawsuit.
It gets them to settle early.
It gets them (in most cases) to stop the lawsuit before it even starts.
Because lawsuits are a business, the attorneys who drive them have one job: to figure out how to get money out of the real estate investors they are suing.
An asset protection strategy dismantles their approach. It protects the assets from being seized by in a judgment. This person doesn’t believe that they are getting anything out of their investment in a lawsuit.
Lawsuits are only paid for in two ways: Either you pay an attorney to sue or the attorney takes it on contingency.
If someone can't find any assets on paper have no assets on paper, how much money should you be willing to risk for a judgment?
Moreover, there’s no attorney who is worth his salt that is ever going to take a case like that on a contingency. Contingency is free for the client. The attorney risks everything.
In addition, attorneys only accept cases when they are confident they can win and collect.
So, when you ask yourself, "how do I protect myself from a lawsuit?", what you should really be asking yourself is, "How can I make it seem as if I don’t own anything?"
You get a proper asset protection strategy. Start with our investor quiz and we'll take it from there. We'll make you look like you qualify for food stamps. Remember ... without an asset to seize, a judgement is worthless. How much money will someone risk for a judgement which is merely a piece of paper?
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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