Mar 26, 2020
Most business owners are afraid of being sued, but in the real estate industry it’s unfortunately far more common. What can we do to safeguard ourselves from the inevitable? Is there anything we can do to protect our assets in advance? On this episode, founders of Leafy Legal Services, Brian Price and Jennifer Gligoric share how to protect our businesses from legal action.
Three Things We Learned
Being sued is inevitable - get used to
it
When most people
hear they could be sued, the initial reaction is panic - but it
pays to remain calm and in control. Anyone working in real estate
needs to know that being sued is part of the business. The best
thing we can do is have a strong legal team on hand when it
happens.
Establish an operating company
Set up an operating company and think of it as
your ‘face to the world’. Operating LLCs should be used to hire
contractors, pay property managers and collect rent. They can also
be used to get financing. However, this operating LLC should be our
parent company - not the place we keep our assets.
Set up a series LLC
From our ‘parent’ company, we can set up
‘child’ LLCs. Each of these child LLCs are in an anonymous land
trust, meaning they’re not available to the public. This is a great
way to dissuade people from suing, because they don’t have
visibility to the assets involved.
Guest Bio-
Brian Price and Jennifer Gligoric are the founders and CEO/COO of Leafy Legal Services and hosts on Leafy Podcast. This dynamic duo has been helping entrepreneurs and real estate investors get started for the last 20+ years individually, and together for the past 8 years. Both Brian and Jennifer have harrowing backstories.
Brian 'lost his shirt' in the 2008 recession, losing everything and filing bankruptcy before climbing back out and into success. Jennifer found herself homeless as a teenager and managed to put herself through college and become a successful business owner despite the odds against her. They both attribute their success to a mindset of abundance and paying it forward is the means to happiness.
For more information on Brian and Jennifer and Leafy Legal Services, head to: https://www.instagram.com/leafylegal/