Manage episode 257063765 series 2516289
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 itWhen 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 companySet 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 LLCFrom 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.
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/