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Continuing from last post, I asked him about the success rate of all his cases so far, and whether he had gone through the claims process with the ATE insurance in the event that settlement amount was not enough for his disbursement amount on any file. He explained that the cases themselves were pretty standard to process and out of his several hundred cases up to today, only one couldn’t recover costs (which was the only time he actually went through ATE), so the overall success rate for the cases themselves was definitely over 99%. He also shared that the one time... Continue reading

Continuing from last post, I asked him directly about his income range, and he made a gesture (to me it was 7 figure range and this was several years ago). I said, “I need to verify this myself. I know how many cases you have, can you tell me the compensation for each case, the profit-sharing situation at the law firm, etc.? This way, I can estimate your future income level. I need this information to consider my decision.” He smiled and then said, “I’ll give you a range; you go ahead and do your due diligence. I have approximately XXX-XXX cases on hand. The interest... Continue reading

Continuing from last post, I created three models based on the profit-sharing data provided by the lawyer. Simultaneously, I cross-checked the various pieces of information online to confirm the range of the numbers he gave, making conservative adjustments. The results were surprising – even the worst-case scenario indicated that he was making a substantial profit on each case, after deducting interest. I mean, a lot of $$! This also included the costs of his team’s salaries and other expenses I could think of! And this was only for car accident cases, not including the compensation from the medical cases he... Continue reading

Continuation from last post, I told the lawyer that I could start with a small amount so that he could start “buying back” a few cases from the law firm to test the waters. I proposed a 10% annual return, a short and quick 6-month term, with full interest prepayment upfront. In addition, I required his signature, a witness signature as well as the corporate seal on the contract. I also mentioned that I would regularly check his real estate holdings and his license status. Surprisingly, he didn’t negotiate much and agreed to the terms.  He even asked if I wanted... Continue reading