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Who Are We?


We are a group of individual lenders that have been lending and earning 10%+ return on our hard earned money since 2017. Many of us have retired from corporate world thanks to this passive income stream.

This is how we have come across this opportunity – hear our true story here!

What Is Legal Lending?

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Intro

What is Legal Lending?


Legal Lending is where you lend money for 10%+ annual return to a personal injury lawyer who represents plaintiff in car accident cases. The lawyer will take on low risk car accident cases on a contingency basis, meaning the plaintiff doesn’t have to pay any lawyer fees until the insurance company issues compensation payout to the plaintiff at the conclusion of the insurance claim. During this process (which can last for a few months to a few years), the lawyer will have to pay for things like medical reports, court filing fees etc out of his own pocket, therefore the more cases he takes on, the more funding he needs. These expenses that the lawyer has to cover by himself are called Disbursements, and will be paid back by insurance companies when the case concludes. Therefore, the lawyer will need disbursement loans from lenders in order to keep growing and taking on more cases.

Intro

Why Does Legal Lending Exist?


Legal lending has existed for many decades, but everyday people don’t hear about it because in most cases the lending was done in house, meaning the law firm funds these disbursement loans for their lawyers. And in return, the law firm will take a big fat profit cut from the payout when the case concludes which reduces the profit that the lawyer receives in the end. Therefore, lawyers usually prefer individual lenders who will just take interest payment and do not share the case profit in the end. This way, the lawyer earns more on his cases and the lender earns an interest that he/she is happy with.

Why Legal Lending?


Legal Lending is uncorrelated to market volatility nor interest rate changes, so it’s a very good asset class to diversify anyone’s holdings. It’s contained within it’s own system (the legal system), and have insurance put in place for a variety of protections which are explained in more details below. It is short and liquid (6 month term) with 10%+ annual return which is a good stream of passive income for anyone interested.

Who are the lawyers?


The lawyers are top tier personal injury lawyers who has over 30 years of experience in this area, have won several landmark cases at the Supreme Court of Canada, and has changed Canadian law as we know it. In addition, their writing is part of the Canadian law school curriculum and they have processed settlements with insurance companies over 3000 cases. You can hear directly from the lawyers in the FAQ below

What are the case criteria?


The lawyers will only take on cases with the following attributes:

  • The lawyers will only take on plaintiff cases, not defendants;

  • Motor vehicle accident claim where there is insurance to pay the claim.

  • Liability is not at issue.

  • The claimant has a provable injury.

  • The client is credible.

  • The claim is anticipated to resolve within 6 Months of funding.

What’s the return, and term?


10%+ annual return, with 6 month term, interest all prepaid upfront!

How It Works?


It is very easy – anyone interested can provide the name to be on the loan contract and the intended amount, and all the paperwork will be managed via docusign.  The contract is signed with the lawyer directly via Docusign and the amount will be sent to the lawyer’s account directly.

30 days before maturity, you will be notified to give your instructions regarding whether to renew or exit the current loan agreement upon maturity. If you decide to renew, paperwork will be prepared and the lawyer will send you the amount for the prepaid interest for the next term upfront(6 month). If you decide to exit, the lawyer will send back your initial principle.

Intro

Real Numbers


276

Number of disbursed loans from individual lenders to the lawyer in the past 5 years

2186256

Dollar amount of interest disbursed to individual lenders from the lawyer to date

46

Number of redemption requests processed by the lawyer

100

Success rate % on time for interest and principal payment

Intro

FAQ


According to the lawyer himself:

  • The lawyer will personally guarantee the repayment of the loan in the contract
  • If the lawyer were to leave the practice of law for any reason, the loan shall be immediately repaid plus interest to date of repayment (if not already paid).
  • If the lawyer were to become disabled, the loan shall be immediately repaid plus interest (if not already paid).
  • If the lawyer were to die, the loan would be tied to the cases and could be track and repaid when settled; or the cases would be bought out by other lawyers in which case the disbursement fund payout could be immediate.
  • The cases belong to the lawyer, not the law firm; therefore, if he were to leave the law firm, they would go with him.
  • There is a firm wide general ATE insurance policy covering the disbursement fund payout.

 

  • Lenders and the lawyer sign contract directly
  • Term: 6 month term, open for renewal
  • Interest Rate: 10% Annual Rate or more depending on the amount
  • Upfront Interest Payment: All interest is paid upfront. For example, to lend 100k, lender only needs to deposit 95k for 6 month, and the contract is still signed for 100k
  • End of the term: lawyer will repay the sum on the contract, or the lender can choose to renew in which case the lawyer will pay $5000 for the new term upfront in the above example
    The contract will have a witness signing from the law office and a corporate seal as well

 

According to the lawyer himself, when an injured plaintiff comes to the lawyer with a claim, the lawyer takes the claim on a contingency basis. Legal Fee will be a % of the settlement of the claim. In addition to that, they lawyer will also pay disbursements for the plaintiff such as medical records, documents. Etc. (This is what the funds are used for).

 

According to the lawyer himself, all funds will be parked at lawyer's personal account, lawyer will use the fund to pay for the disbursement of the cases. On average, 200k-300k disbursement money will be repaid to lawyer’s bank account every month from newly settled cases. When the cases are settled, the disbursement money will be paid back to lawyer’s personal bank account. Every year, roughly 2M-3M will be paid back to the account from the settled cases, according to the lawyer.

 

According to the lawyer himself, the funds in lawyer’s bank account will only be distributed to the files that has no fault of the plaintiff. Thus, even if the plaintiff only gets $1 for injury, all the disbursement money will still be covered by insurer. No one’s funds will be specifically allocated to a specific file as the fund is deposited into lawyer’s personal account and distributed into various cases. These files are covered by ATE insurance through a firm wide ATE insurance policy.

 

According to the lawyer himself, if he were to die, the loan would be tied to the cases and could be tracked and repaid when settled. Another scenario would be that the cases are bought out by other lawyers, in which case the funds could be paid back immediately, depending on the term of the sale.

 

According to the lawyer himself, he will receive a higher cut when he borrows money individually to fund the cases. If he uses funds from the law firm, it's actually borrowed from the bank using his own line of credit, which impacts his personal credit.

 

  • Median Average Settlement Amount: $50,000 - $100,000
  • Minimum Settlement Amount:$5,000
  • Maximum Settlement Amount:$15M

 

According to the lawyer himself:

12-18 months Or 4-5 years between case start date and funding date. (When Larger Disbursement Needed.e.g. medical reports .etc)

The period between the funding date and settlement date typically ranges from 6 to 18 months, depending on the complexity of each case.

 

According to the lawyer himself, funding is disbursed to low-risk car accident files which are insured by ATE insurance. The fund is injected not at the beginning of the case, but at a later stage of the case, roughly 6–18 months prior to settlement.

 

According to the lawyer himself, disbursements are covered by ATE insurance.

 

According to the lawyer himself, 12% on fee contract with plaintiff, but it fluctuates depending on each case.

 

According to the lawyer himself:

  • 30% average contingency rate in BC
  • 24% contingency rate – Law Firm where the lawyer works now
  • If lawyer is using the fund from his own account, lawyer's spread is higher than law firm's spread.

 

According to the lawyer himself:

  • $1M+ - lawyer’s own money in his files as part of the funding support
  • 200k-300k flows in and out every month from disbursement funds paid back on exited files

 

Please watch the video below to hear what the lawyer said:

 

Starting from CAD $10k

 

  • We assist the lawyer with the paperwork. To initiate your first transaction, please send us the following information:
    • Legal name
    • Amount
  • A loan contract will be sent to you and the lawyer to sign directly
  • You will also receive payment instruction. We don’t touch anyone’s money, you will make deposit to lawyer directly!
  • 30 days before maturity, we will follow up with you on behalf of the lawyer and get your instruction on whether you would like to exit or renew. The lawyer will follow your instruction to either send you the principal or the new interest payment.

 

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