Accumulating wealth through your real estate investments does not end only when you’ve got the cash on your pocket and the equity on your hands. In order to generate real estate wealth and enjoy it for a long period of time, you have to master two important skills:

1. You must excel in accumulating equity and profits in the shortest time and in the most efficient way.

2. You must know how to keep doing skill # 1 and keep your profits and equity without damage.

Investing in real estate properties can sometimes lead to a lawsuit against you. Believe it or not, your odds of getting sued are greater than the times you get yourself to a hospital. Needless to say, one lawsuit can wipe you out of a clean record and a business.

Asset Protection Myths

Myth # 1: “I won’t be sued. I’m too careful.”

You can never be too careful with money and investments. Maybe you are careful. But that doesn’t mean there aren’t people out there who want to bring you down and want your assets. There may be people out for your investments. You can never be confident that you can avoid them easily.

Myth # 2: “I don’t need asset protection. I don’t have enough assets to protect.”

Not having that many assets is not a reason for you not to have asset protection. What would happen if in the future, there is that chance that the little amount of assets you own are in danger of disappearing. It may be little, but you’ve worked for it. What would you do if it would be taken away from you? What would happen if that small asset was the only thing you have left, and they still took it away?

Myth # 3: “I don’t need protection. I’m insured.”

Being insured does not mean that everything you own is protected. Insurance doesn’t cover everything! For instance, insurance does not cover breach of contract, a defaulted loan, a family dispute, or sexual harassment.

Myth # 4: “Asset protection is too costly. I can’t afford it.”

Money should not really be a concern when you’re trying to protect your assets. It would be more costly if you are dealt with a lawsuit. The less you have, the more you need it. If you can’t protect even a small amount of your property, how could ever hope to protect more?

In all these myths, one thing is pointed out: Lawsuits can be merciless. Law isn’t about fairness. It’s about technicalities.

Getting Sued Puts You in a Bad Position

Getting sued can also turn out to be worse than what you expected. When you’re a landlord or owner or a property, chances are you’re on the losing end.

Why? First of all, juries are made up of mostly tenants. These tenants more or less have hard feeling towards landlords, maybe because of past situations they had with their landlords or just because of plain envy. They are jealous because they don’t own a house and you do (you might even have more than one house!).

Even the judge may think ill of you because he or she earns less than you.

Considering this situation where you are figuratively fed to the wolves, applying for asset protection shouldn’t be so bad. And it’s better to be protected right now or as soon as possible — before you get sued!

This entry was posted on Wednesday, September 12th, 2007 at 9:39 am and is filed under Real Estate Investor, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.