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Prepaid Legal Services – Are You Throwing Good Money Away?

by Lisa Phillips on June 10, 2014 · 12 comments

  
Prepaid Legal Services - Are You Throwing Good Money Away?

Hello!

I have used pre-paid legal services over the past year, and I definitely recommend their services! Although there are many positives, there are also draw backs. What I want to focus on in this video is, do you get the quality you need from such a small fee/yearly fee? Let’s discuss!

Related: How to Save Money: 5 Areas of Your Life Where You Can Save Serious Cash

**Note, I am not endorsing any particular service over another, but merely listing the advantages and disadvantages that can be found with using this in your real estate investing strategy**

Lisa Phillips

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{ 12 comments… read them below or add one }

joseph ball June 10, 2014 at 6:37 am

I had it for almost two years-dropped it. Every single case I brought forth was not covered-had to pay extra, and the “discounted fee” for extra was no bargain.

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Lisa Phillips June 10, 2014 at 10:07 am

Thanks for sharing! I know there are competing needs. For asking basic questions about real estate law for that state, its is working out to be a good resource. HOWEVER, it looks like it can drop the ball for carrying through to actually hiring them for a case! Thanks for sharing your experience!

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Tom McCombs June 10, 2014 at 8:11 am

I have been a member and a reseller for at least 10 years, and I still do not know if it is a good value. I do know that most members do not continue with it for very long.

How do we know if we are really getting that 25% discount for legal services?

And Lisa. the membership you have will probably not help you much if you have a business related problem involving any kind of legal action. You would need an upgrade to a business program, and they are considerably more expensive.

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Lisa Phillips June 10, 2014 at 10:08 am

I agree! I definitely think they have a place, but its GREAT for everyone to know what limitations they will have going forward. You can use them for a piece, but not necessarily the whole picture. Thanks for sharing!

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Jeff Rabinowitz June 10, 2014 at 9:10 am

I have had great results. I use my prepaid legal service for advice on how to fill out legal documents and for advice on how to present my case when I go to court. I have had them review the operating agreements for investments I have made and to advise on potential structures for business ventures I have planned. I call almost every time I get a threat to lawyer up from a tenant (or anyone) just to review the law, my situation, and the most prudent response.

When my multiple phone calls, letters and e-mails received no response I had my legal service provider write a letter to the mortgage company that mistakenly filed a lien on the wrong property. The result of that was that the mortgage company’s lawyer reviewed the situation and removed the improper lien. I avoided a quiet title action and was not charged anything for the letter. My plan does not charge anything for the unlimited phone consultations or document review.

I think prepaid legal plans may be one of the most cost effective tools available for real estate investors.

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Lisa Phillips June 10, 2014 at 10:12 am

I have had the same experience: Sending letters to previous landlords or tenants,and the ADVICE (which is really the key word) has been invaluable so I know if I am in the right or wrong. And, I have used them for reviewing documents (although for HOA and tenant matters, not as a landlord for those occasions), and again their perspective was invaluable. From the comments it seems to be clear that they can be an excellent resource for advice, sending letters, and document reviews, but for more complex issues that you encounter, you may want the best law office money can buy. Thanks for sharing, all of our experiences will help everyone else to make their best decisions.

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Kimberly H. June 10, 2014 at 11:15 am

Thank you for posting this! I had no idea there was such a thing for real estate investors.

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Lisa Phillips June 10, 2014 at 12:45 pm

Your welcome! I’ve used these services for the last 5 years as a tenant, as a landlord, and as a real estate investor who does business in in different states (OH, MD, VA), I’ve had to follow up to find out the local tenant/landlord laws for that state. This has been a great value for its relatively low price.

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Kimberly H. June 10, 2014 at 4:06 pm

I looked at the legalz website and looked through the attorneys they have. Only three cover Illinois, and none had any real estate experience at all. Actually, the experience they did have didn’t seem that relevant to issues an every day person would have. They had patents, securities fraud, stuff like that. Bummer.

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Lisa Phillips June 10, 2014 at 6:59 pm

For my service, there are 5 listed attorneys for VA. On their listings, they don’t have real estate as their listed service, but I found out that they all actually have the experience, you just have to ask send in an initial request. Just a tidbit on how I discovered it was much more useful than it looked on the surface. But, there are a lot out there, some with much wider networks than others. Biggerpockets has a partnership with a service where you can get a discount. Its one of their partnerships: http://www.biggerpockets.com/renewsblog/2013/05/10/rocket-lawyer-review/

You have to keep searching, sometimes, when the first door is closes on you. If this doesnt work, there are a TON of others, you sometimes have to search more than one offer.

Kimberly H. June 11, 2014 at 2:52 pm

I have not had the best success asking advice of attorneys outside of their field of expertise. Your lease may read one way, but only a landlord tenant litigator who works in your area will be able to tell you how to handle your tenant based on their experience with tenants and judges in your specific county. However, I will check out some others, thanks for the other link!

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Rachel June 12, 2014 at 5:21 pm

Interesting topic for discussion!

Personally, I’ve never used the service. Though, I can see where it may help fill a need for new investors. I guess the issue would be customer service related. Sounds like the experiences are all across the board which could vary and be pretty subjective. Just another service to think about!

Reply

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