I recently met two successful business partners in the real estate investment business. They were frustrated about a real estate transaction they had been involved in for a while. They proceeded to tell me how many hours they spent on doing the legal research that ultimately brought them to my conference table. They said they spent an estimated 300 hours of their time researching whether they had a case or not. That’s 300 hours! After reviewing their documents, the time it took for me to tell them that they did indeed have a legitimate legal concern and claim? 45 minutes.
Time is Money
Why is this so important? Let’s assume 300 hours is fairly accurate. At the bare minimum, they make $100,000 per year. With 2080 hours a year, that means a person makes about $50 hourly; 300 x 50 is $15,000. One investor could have used their time more wisely and spent the equivalent of 10% of this money with an expert who would not have only reviewed the matter but also given a professional legal opinion regarding ready and available courses of action.
Effective Use of Time
Imagine what better deals these partners could have found using their $300-hour on research, due diligence, and networking. One deal would more than adequately have paid for the cost of a legal opinion multiple times over.
Conclusion
Bathroom surgery can be messy and expensive. The scenario above brings new meaning to the adage ”if you think dealing with a professional is expensive, just wait until you hire an amateur.”
About David Soble: David is a seasoned real estate and finance attorney with more than 35 years of experience, combining his background as a “big bank insider” with a commitment to demystifying complex legal issues for his clients. As the founding attorney of Soble Law (also known as Soble PLC / Proven Resource), he leads a specialized team in Michigan and Ohio that handles real estate transactions, contract disputes, probate, and financial litigation. Known for a practical, no-nonsense approach and peer-rated excellence (Martindale-Hubbell AV Preeminent), Soble and his team strive to protect clients’ property and financial interests with clarity, integrity, and experience.
Disclaimer: You should not rely or act upon the contents of this article without seeking advice from your own qualified attorney.
