Have you been sued.....yet?

Question

On the topic of using Insurance, LLCs, SCorps,Trusts, etc for asset protection.

Have you been sued, why, how much did the litigation cost you and what was the outcome and how did you have your investments protected? It would also help those newer to real estate investing (less than 5 years for me) to know how many suits you have had vs. the amount of units and amount of time in real estate investing, as well as if the property was class A, B, C or D.

Account Closed · Answer

I've had to sue against a company that tried to defraud me.  My litigation cost 100k.  Time out of my life about 1.6 years.  I ended up getting my principal back.  I had the realtors and brokers license stripped and another guy ended up getting arrested by the FBI and is currently facing prison time.

Arlan Potter · Answer

13 years. No lawsuits.

Joseph M. · Answer

@ Jeanette Adler Thanks for sharing! Are you able to share a little but more about the fraud perpetrated so people can know what to look out for?

Joseph M. · Answer

Thanks @ Jd Martin

JD Martin · Answer

Three times, though none of them relating to me being a landlord. Once as a named party in an employee-filed lawsuit where a bunch of us were named (never went to court); once as part of a lawsuit in an accident my daughter was in (settled through insurance), and once by an insurance company when I had been a renter, from an unscrupulous landlord who leveraged my free clean-up of the property into a check from his insurance, who then abrogated the claim against me. That one was dismissed by a court, they refiled against me in another court, my lawyer showed them they had been snookered (I had pictures of everything). No losses in any of the cases to me except for my time and some lawyer fees, a whole boatload of aggravation and some sleepless nights.

I did, however, learn the lesson of having plenty of insurance. The insurance company only cares about defending you properly when they have plenty to lose. I carry 7 figures these days to guard against more or less anything.

Have you been sued.....yet?

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