As a real estate investor, realtor or consumer, attorney's play a big role in your success.
Attorney's should help you navigate through the negotiations, the contracts and limit your liability. What happens when the attorney is your liability? Unfortunately to often this is the case with attorney's that take on any type of work, even and especially the work they are not educated or experienced enough to take care of; but the all mighty dollar persuades them to learn on your time which equals your money.
Having had many attorney's in my career I can tell you that my experience with small law firms has been just as I stated above.
Large firms have different issues; they bill for everything and anything. They have an internal meeting (the new associate talks to a seasoned attorney to get advice, they bill you), they involve multiple people in the case and bill for multiple attorneys at different hourly rates. They require larger retainers and when the retainer runs out they pull the shades, close the doors and don't take your calls until you replenish it. In large firms it's not about your principles or your heart it's about the bottomline, theirs!
I know that many attorney's will say they are different , if so you can count on them being a marginally performing firm, minimally profitable and always struggling for the next case. The lawyer with this strategy isn't the one you want on your side.
I thought a lawyer who believed in my case was the lawyer I needed ,and wanted , then while going through the process of litigation I realized this has nothing to do with right and wrong and everything to do with the better lawyer, the better strategy, the ability to twist the facts to your way of benefiting and that is how you prevail. I'm certain there are people who will argue this point... I would have prior to my plethora of experiences. Oh and my favorite discovery (sarcastically) is the unethical behavior exhibited by the attorney's in an effort to win. We'll go into that in more detail another day, (it's in my book titled FRAUD- ).
Before you hire an attorney ask them questions about the area of specialization they practice in. Check out their license standing on the state bar website. If there is disciplinary action listed, ask them about it or find a new firm/lawyer. Make sure they have expertise not just a good size law library at their disposal.
Oh beware of this little trick.. they send you the retainer agreement, you pay it and if you don't spend it all (which NEVER happens, in my experience) they don't give it back. The other trick is that they then begin to bill you hourly after your retainer has been exhausted so pay attention to your statements because hourly billing adds up quickly, you'd be surprised how much a 15 min phone call costs at 350-600.00 per hour. Remember it's not just the call, it's the call plus the email they send you afterwards outlining what you talked about to cover themselves and any action items that came up on the call and any partner, senior partner approval required, so in essence more billable time in conversation.
Lastly find an attorney who gets along with other attorney's. If your attorney comes off like a fighter and arrogant it may feel good when your upset with your adversary BUT it will cost you if they really are that fighter and can't get along with opposing counsel because the judge will appoint a referee to make the attorney's play nice and guess what? You will be billed for the referee's time.
Welcome to the world of real estate, it is litigious, cut through and not always rainbows and pots of gold.
The good news is this... being prepared and navigating your transactions with your eyes open is smarter and more profitable than if they are closed or you think this can't happen to you, it can!
Today an article came out showing Rich Dad/ Poor Dad is now a Bankrupt dad, he was in a law suit and lost to the tune of nearly 24,000,000 and he filed BK.
Keep your eyes open!
Tonja Demoff