• 10%+Annual Return, 6 Month Term, 100% Passive Income!

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We Focus on Generating Passive Income!

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!

1. What Is Legal Lending?
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How Do We Generate Passive Income?

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.

Why Does Legal Lending Exist?

Legal lending has existed for many decades, but most 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 and 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 have 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 an 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 in this method of generating passive income 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.

Can I Contact The Lawyer Directly?

Of course, you can!

Firstly, all of the videos are public information, so the lawyer’s name and everything else are easy to find in public records. Many people directly go to the law society’s website to verify the lawyer’s license and past history. Also, some people directly emailed or called the lawyer through their official website, which is very smart. And lawyers usually reply within 24 hours. Thirdly, some people directly arrange to meet with the lawyers in their office to review the contract (this request is not very common among locals but is most common among US lenders or lenders from the East Coast). They either fly over or drive over for the first meeting with the lawyers in Vancouver, and usually signed the contract right after seeing the lawyers in person.

Also, lenders sign the contract directly with the lawyers, and send funds directly to the lawyers’ account, which the lawyers can also confirm. Contacting the lawyers directly is encouraged by us because we found that the more lenders can verify details themselves in order to generate this passive income, the better and easier for us! Every time someone finished chatting with the lawyers and circled back to us, they already had a go or no-go decision in mind.

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

Where Are Our Lenders Located?

Lenders Map

FAQ

According to the lawyer himself:

  • The Lawyer will only take on plaintiff cases that fit the following criteria as specified in the loan contract:
    • 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 an issue.
    • The claimant has a provable injury.
    • The client is credible.
    • The claim is anticipated to resolve within 6 Months of funding.
  • The lawyer will personally guarantee the repayment of the loan in the loan contract.
  • There is a firm wide ATE (After the Event) insurance policy covering the disbursement fund payout as specified in the contract! This is how low risk these files are - even insurance companies are willing to insure these cases!
  • 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) as specified in the contract.
  • If the lawyer were to become disabled, the loan shall be immediately repaid plus interest (if not already paid) as specified in the contract.
  • If the lawyer were to die, the loan would be tied to the cases and could be tracked and repaid when settled; or the cases would be bought out by other lawyers in which case the disbursement fund payout could be immediate as specified in the contract.
  • The cases belong to the lawyer, not the law firm; therefore, if he were to leave the law firm, they would go with him as specified in the contract.

Please click below to listen to one of the lawyers himself:

5. How Are Lenders Protected?

According to the lawyer himself, there is a firm wide ATE (After the Event) insurance policy covering the disbursement fund payout. This means if a case goes to trial (trial rarely happens because 99.9% of cases are settled before trial) and even if the awarded amount is $1, the ATE insurance company will pay out the full amount of disbursements the lawyer has spent on this case, which is the amount that we, as lenders, have lent out on this case.  This is how low risk these files are - even ATE  insurance companies are willing to insure these cases!

Please click below to listen to one of the lawyers himself:

16. What Does ATE Insurance Cover?

  • 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

Please click below to listen to one of the lawyers himself:

7. What Is Rate And Term For Legal Lending?

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

Please click below to listen to one of the lawyers himself:

8. How Does The Lawyer Work The Files?

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. Every year, roughly 2M-3M will be paid back to the account from the settled cases, which he will take to fund additional cases according to the lawyer.

Please click below to listen to one of the lawyers himself:

9. How Does Fund Flow In And Out?

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.

 

Please click below to listen to one of the lawyers himself:

10. What If A Case Falls Apart?

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.

Please click below to listen to one of the lawyers himself:

11. If The Lawyer Were To Die?

According to the lawyer himself, he does not need to profit-share with lenders if he uses individual lenders, whereas if he uses funds from the law firm which is funded by the bank, he needs to profit-share with the law firm when settlement occurs which reduces his profitability for every case.

 

Please click below to listen to one of the lawyers himself:

12. Why Does Lawyer Prefer Individual Lenders?

According to the lawyer himself, below are the numbers that have been realized:

  • Median Average Settlement Amount: $50,000 - $100,000 (car accident cases)
  • Minimum Settlement Amount:$5,000 (car accident cases)
  • Maximum Settlement Amount:$15M (non car accident cases)

 

Please click below to listen to one of the lawyers himself:

13. Average Payout and Settlement Amount Of A Case?

According to the lawyer himself, a typical case usually takes about 12-18 month to settle, whereas a larger case (more serious injuries and larger payout)  could take a few years to settle. However, cases don’t really need significant disbursement funds (for medical reports etc) until about 6-18 month before the potential settlement date, meaning, a case may take a long time to settle depending on its complexity but the funds are only needed for a short period of time right before settlement date. Therefore,  the lawyers are able to offer the 6 month short term for disbursement fund loans.

 

Please click below to listen to one of the lawyers himself:

14. Timeline of Settlement Payout

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, and the success rate of settlement exceeds 99.9%. ATE insurance would cover the remaining 0.01% cases. However, none of the files with disbursements loans ever needed to utilize ATE insurance as of today.

 

Please click below to listen to one of the lawyers himself:

15. Success Rate Of Settlement

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

Please click below to listen to one of the lawyers himself:

 

17. Is There Any Interest On The Disbursement?

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.

 

Please click below to listen to one of the lawyers himself:

18. How Are Profit Split Between The Lawyer and The Law Firm?

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 click below to listen to one of the lawyers himself:

19. How Does Lawyer Maintain Liquidity In The Account?

According to the lawyer himself, a typical case usually takes about 12-18 month to settle, whereas a larger case (more serious injuries and larger payout)  could take a few years to settle. However, cases don’t really need significant disbursement funds (for medical reports etc) until about 6-18 month before the potential settlement date, meaning, a case may take a long time to settle depending on its complexity but the funds are only needed for a short period of time right before settlement date. Therefore,  the lawyers are able to offer the 6 month short term for disbursement fund loans.

 

Please click below to listen to one of the lawyers himself:

20. Will 6 Month Term Impact The Liquidity Of The Account?

Starting from $10k USD or CAD (average loan amount per lender for long time lenders are usually around 250k-500k, but new lenders usually start small).

Please click below to listen to one of the lawyers himself:

 

21. Minimum Required Amount To Participate

  •  We have lenders from US, Canada, Europe and Asia.
    • We assist the lawyer with the paperwork. To initiate your first transaction, please contact us to go over any questions you have. If you are good to proceed, simply provide 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.

 

Please click below to listen to one of the lawyers himself:

22. How Does Anyone Signup?