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My Journey on Passive Income that 99% Population Don’t Hear About 13 – Due Diligence?
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 we pay to the law firm when borrowing money is XX, and the profit-sharing is roughly XXX-XXX. You already know the split between me and the client for each case, and the compensation range for each case is XXX-XXX. The lowest payout in the cases I’ve closed is XXX, and the highest is XXX… (I’ve removed the actual numbers here but he actually mentioned all these info again in the videos that he shared so please watch the videos if you are interested!)”
Wait a minute, how can the highest compensation he won be an eight-figure sum? I said, “That doesn’t seem right; it clearly exceeds the normal range for car accident compensation.” He explained, “Those are for medical malpractice cases which I also do, and I’m not borrowing funds for those cases – high risk high reward.”
I said, “With such high medical compensation amounts, if you borrow money, how high can the returns be?”
He said, “It’s too early to talk about that. When ATE insurance can cover it, I’ll think about it. The two cases I took to the Supreme Court changed Canadian law twice. I believe in my lifetime, I can do it again, so that ATE insurance can start cover medical malpractice cases too haha.”
I ?😂
Then, I went home and crunched a few models – best scenario, average scenario, and the worst. The result made my jaw drop. Till next time!