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Welcome to the entrepreneur like you with business attorney and entrepreneur chance reynolds, a daily podcast that brings you the best legal tips, marketing strategies and storytelling tactics that will help you grow your business the right way.
Today is the first day of the month and the first day of the month. Always. It’s kind of a huge eye-opener because a lot of money gets trapped it out for a lot of different things. You know, like obviously like rent everywhere is, do office rent is due. Um, I have a storage unit that I say every month I went to clean out because it’s a pointless expense and that’s like 200 bucks a month and its, you know, then there’s like website building software that uh, the monthly charge comes out on that and it’s just like, holy crap, like that are just so many. Like auto drafted funds that come out at the beginning of each month. And I’ve been talking about on here how April was, was by far my most successful month. But then I look at my bank account at the beginning of the month and you’re just like, OK, gotTa, build it back up, get up, get ready for next month.
Like one of the biggest expenses that we have is just health insurance. That’s something you’ve got to think about when you’re an entrepreneur is that you’re not really able to rely on kind of cheaper health insurance right now in health health care, health expenses are some of the most expensive. That’s one of the most expensive things on earth to deal with. Um, that’s why it’s so important to have health insurance. But that’s also like one of the reasons that health insurance sucks so bad because it’s so expensive and most of the time, especially for an entrepreneur, you’re on the cheapest possible plan if you have a family and it only covers hardly anything. It’s just there in case of like you break your arm and you have like, you know, $20,000 hospital stay or some crazy thing, which isn’t that hard to get to. Like it’s doesn’t take that much to get to stay in the hospital.
But that leads me back to kind of why the [inaudible] when you’re dealing with real estate is so freaking important because when you have tenants on a property, like you own a piece of property and there’s somebody renting that piece of property, those are human beings in that house. And I talked about this with somebody yesterday. She called and was like, do I need a separate llc for this one aspect of my business versus this other aspect. One of the, one of the sides of our business was buying and holding real estate and putting tenants in there. I was like, look, everybody’s different. It’s all about how much risk you’re willing to take. But here’s an example of, of how the type of risk that’s associated with having tenants in the house. Human beings are very fragile and very, um, opportunistic sometimes. But that’s not even really what it’s about.
It’s not about like scumbag lawyers or something like drug dredging up a case that against your, your, your business or your or you personally. If you don’t have an we’ll see a just to make some money. A lot of times that’s because people have medical bills, medical bills are expensive, and there’s not really a great way to get a break on it like you’re getting billed by the hospital. If you go to the hospital, maybe you have some way to pay those bills, maybe you have insurance, maybe you don’t, but a lot of times people don’t, or insurance companies don’t pay or they’re looking for some way to just get themselves out of like a $10,000 hole, which can happen real quick with medical expenses. So somebody slips and falls. This is an example we talked about. Somebody slips and falls on the, on the ice, despite the fact that that’s not your fault as the owner of a house.
Um, it doesn’t even have to be somebody that lives. There could be just some kid walking to the bus stop or something. Somebody slips and falls and breaks their arm. That’s a lot of money for them to get that fixed. You don’t know their situation. You don’t know what their insurance company is going to do. You don’t know how much that hospital is going to charge them. You don’t know if they have some special circumstance where they get their bones broken, especially easy. There’s this rule in a civil law tort law that’s called the, I think it’s called the egg shell. What is it? I can’t remember the actual t, the, the nickname of the rule, but the rule means this. You take the, the injured party as you find them, meaning like if they have some special disease where every time they fall down like the guy and unbreakable, they break every bone in their body.
You can’t say, well, that’s like a weird circumstance that we shouldn’t have to pay for that because that’s an odd circumstances. Does that person know that’s that person’s situation? And if they fall and break every bone in their body just because they slipped on some ice and just tumbled off one stair or something like that, uh, that. And you lose that lawsuit, you’re still responsible for all those bills. So it’s, I really don’t use scare tactics in my marketing or when I’m talking with potential clients or people that want to get an llc set up that are asking me questions about how lawsuits can come about. Um, I’m just, that’s just the honest truth of what can happen. This is not some random situation that I’ve made up that stuff happens every day. The courts are so full with litigation and lawsuits that they force people to try to arbitrate first because there’s so many cases that came and handle them.
That’s like everywhere around the country lawsuits or one of the ways that we settle grievances in the United States. It’s not that it’s like slime ball attorneys are slimeball opportunistic, a tenants or whatever. It may be somebody slipping and falling in a grocery store or something like that. It’s not that there’s, they’re out necessarily always to just get an opportunity or it’s always some frivolous bad thing that they’re doing. One of the time. It’s just, that’s the only option they have. You have to look at it from their perspective. Like medical bills are expensive, so you need to protect yourself. They’re just trying to protect themselves. Lawsuits are how we recoup money, how money changes hands in this country, like it or not, that is just the way that disputes get settled here. So I mean, we’re not like using, you know, 15 paces turnaround engine and dual or something to shoot each other lawsuits or a civilized way to do it.
And uh, I don’t know of any better way to do it unfortunately, and, but you don’t want to find yourself, you know, on the, on the losing end of a lawsuit and not have an LLC in place. Those are kind of the things that, that I’ve been dealing with this month. Finances for people. You don’t know what their situation is, you don’t know what your tenant situation is. And um, you know, if they get injured, they have every right to come back on and, and look for something from you to help them if, if there’s been an unsafe situation. So either way, not trying to scare you, these are just the realities of doing real estate business. Talk to you guys soon. Hey guys, thank you so much for listening. I really, really appreciate everybody tuning in and all the great feedback I’m getting about the podcast, so I’m going to keep it up and I just wanted to say thank you. Also if you want to figure out the three ways that most entrepreneurs are getting themselves sued, you can head over to llc, freedom dot [inaudible] slash get sued. I have a little freebie there that kind of outlines the three major ways that people are getting sued and how they can easily be avoided. So hop over to llc freedom.com/gets sued and pick that up today.