Smart Strategies: How to Choose Judgments for Investment Success
Download MP3 In this episode, we discuss:
- How to Identify a Good Judgment for Investment:
- Differences between default judgments and litigated jury verdicts.
- Challenges with asset recovery for default judgments.
- Seasoning a Judgment:
- Why judgments should ideally be 6-8 months old but not exceed 4 years.
- The importance of understanding statutory limitations and tolling times.
- Preliminary Asset Evaluation:
- Observing the lifestyle of the debtor without conducting a full asset search.
- How to perform non-intrusive checks like social media or online searches.
- Conducting a Full Asset Search:
- Importance of pulling original source records for real estate, vehicles, and bank accounts.
- How to access corporate records, intellectual property, and other assets.
- Why certified and licensed investigators are essential for accurate searches.
- Understanding the Return on Investment (ROI):
- Weighing the costs and effort of asset searches against potential recovery.
- Examples of small but significant assets, such as websites, insurance policies, or even personal items like jet skis.
- Leverage Through Small Details:
- Using assets like websites or personal property as negotiation points.
- Tracing funds and connections between accounts for hidden assets.
- Ensuring Proper Paperwork:
- The critical role of error-free documentation for garnishments or liens.
- Avoiding situations where rejected paperwork could tip off the debtor.
This episode provides practical insights into evaluating, purchasing, and recovering value from court judgments. Whether you're an investor or a judgment holder, these strategies can help you maximize your returns while minimizing risks.
