Continuing with my "ideal" real estate matter, the one we never EVER see, here's more reality:
1. A closing is scheduled with just a few calls, in a convenient location. In reality, the scheduling takes many many calls, and even if you "delegate" this to a secretary or paralegal, it takes a lot of THEIR time. If you regularly makes these calls yourself, I challenge you to show me how flat fee real estate is remotely profitable. A tip to save real aggravation.....if you know what is realistic as far as when the closing can happen, assert yourself. Do NOT go with the clients or the brokers aggressively early date. When you do this, invariably you will make the calls, and then get to the last call, and a key player can't do it. As far as convenient locations, other than your own office, all other locations are inconvenient, its only a matter of degree. It's YOUR time, remember that.
2. The closing takes place on time and takes an hour. Uhhh, someone is usually late. When I feel really cynical, I try to arrive LAST, so at least less of MY time gets wasted. I have had a few closings take less than an hour, but I've had many more that took 2-3 hours. That would be ok, if I were on an hourly, but, well...you get the point.
3. The closing is done, and there are no post-closing escrow issues. Was it Shakespeare who said "Nature abhors an escrow"? OK, HE didn't say it, but if a post-closing escrow exists, and we're not getting paid extra to deal with it, WE lose. Of course, many times the only way to resolve a problem at closing is to hold an escrow, so at least you can close. I always try to convince everyone at the closing to "adjust" rather than escrow. The attorneys always understand why, and the clients don't, until you mention the extra attorneys fees....then suddenly they can adjust the problem. (Incidentally, this is tomorrows topic....how attorneys fees affect case settlement) You might think, if proper pre-closing prep is done, all issues should be known and resolved, but WHO CAN DO THIS FOR THESE FEES???? So you show up at the closing, get it done, and hold an escrow (for some taxes, or possession, or a judgment, or a lien, or for any number of things). The times when I have charged for a post-closing escrow issue, I felt distinct resentment from the client. Of course, the times I didn't charge, I felt distinct resentment myself. I finally concluded that I have enough resentment, so this is one I try hard to avoid.
4. You send a closing statement; the client appreciates everything you did.....and refers you all kinds of business over the years. I always leave a closing with my closing statement checked and re-checked so all the math is right, and I can send out a clear statement. Its worth the extra time at the closing to be sure. Getting back and having the numbers not work is frustrating, time consuming, and non-compensable. So, be thorough, EARN your money, and don't spend that $950 in one place.
As far as client appreciation, I've gotten some nice, heartfelt thank-yous over the years, and they are always appreciated. I've also had many occassions where I had run through brick walls for the client, and KNEW they had no idea how hard I worked, or they knew and took it for granted.
Lastly, if you are a generalist, and you do real estate to "increase your client base", and hope to be that clients "family lawyer" and get ALL their business, including the juicy negligence cases you find most profitable....BEWARE. Unless you take steps to educate your clients, they will view you as a "real estate lawyer" and refer their "real cases" elsewhere. I once had some difficult clients who I had represented when they bought their house. Six years later when they were selling, we conducted all our business by phone and mail up until the closing. At the closing the wife was in a wheelchair, the result of a pedestrian/auto accident, which was my first knowledge of this. The husband proudly told me about the big settlement, and the big fee their lawyer had made "without doing hardly anything". I told the wife I hoped she was feeling better, and was thankful for the opportunity to work my ass off for a small fee, and my future "opportunities"
and so, I shall rant no more.....
Sunday, January 14, 2007
Random Thoughts.....on or near my 50th birthday
My 50th birthday was January 9th. I was going to wax philosophical that day, but instead I broke my twelve day blogging streak, and then went into a several day blogging slump. It was probably caused by ending my "law as business" ranting, thinking I'd be profound on my big day, and then realizing that its easier to talk biz than personal. So, six days late, here's what I think about a few things:
Four of my proudest accomplishments: I have never seen a moment of American Idol, Survivor, Desperate Housewives or Grey's Anatomy. This will be an easy streak to maintain.
I was once in a cult for a weekend (long story, I'll tell it some other time). I did not join, BUT I got one useful phrase that I have used many times when confronting long entrenched, apparently unsolvable problems. This is it...."Everything that happened, is just a bunch of stuff that happened, everything else is SPIN".
I love to read, but I have a variation that really enhances the expereience. I like to read books that have been made into movies, especially if I have not yet read the book or seen the movie. Then I like to read the book and rent the movie right after. BTW, I did this with "Fight Club", initially because someone recommended the movie as something "different, not what you think its gonna be". So, I read the book, which was amazing (and discovered an author I now read, Chuck Palahniuk), and followed it up with this great movie. If you have never seen it, try it and let me know what you think.....I did not see it for years because it did not seem like "my kind of movie", but it's creative and thought provoking. Even better, read the book first. A few that I have done this with are "Sideways", "High Fidelity", "Election", "CiderHouse Rules" and "Angela's Ashes".
Speaking of movies, my favorite baseball movie is Bull Durham.
My favorite movie of all, though, is Groundhog Day. I have come to learn that I am not the only one, and I will make a blog entry about Groundhog Day on 2/2, which is also my brothers birthday. Here's a link to a site which talks about Groundhog Day, and has a link to other Groundhog Day material.... http://www.schindler.org/psacot/20010813_ghd.shtml
From personal experience and careful observation, there IS an epidemic of autism and related disorders going on, and it probably is related to vaccines. I would not give two cents for any government sponsored "studies" showing the contrary.
The Iraq war will go down in history as the worst foreign policy blunder in U.S. history. If the powers that be actually believe the justifications they gave (that by removing Saddam we'd set the stage for democracy etc.), then they are delusional. If there other nefarious business reasons, then they are butcherous liers. Choose your poison.
I don't like political labels. People should think and have opinions based on ideas. If someone goes with their party, I don't give much credibility to their positions. I used to enjoy Rush Limbaugh and Sean Hannity, when their ideas seemed to confront the liberal boobs with the fallacy of their positions. Unfortunately, they have now become the exact things they used to rail against, and you have to check your brain at the door to listen to them. They are not interesting, or fun, or entertaining, unless you like being at a pro-government rally. I listen to a guy named Lionel, on WOR-AM, usually around 10 PM. Here's his site http://www.lionelonline.com/ Check him out and let me know what you think.
Diet soda makes people fat. It also CANNOT be healthy, and this should not be a surprise to anyone.
Am I the only person who remembers what Jesse Jackson used to talk about when he was first on the political scene? When he used to say that responsibility rests with families, and if people were going to advance it had to start THERE, at home, with family values and religion and spirituality. His message was identical to what we would now call Republican religious fundamentalism. What evil forces threw out that message, and made him the spokesman for government largesse as a political movement?
I don't care much for lawyer jokes, even though I will laugh at a good one. Its the assumptions behind the jokes that irk me. Most lawyers I know are hard working, decent people, who contribute to society in a positive way. To the extent there are greedy, lecherous lawyers out there (and I don't deny there are some), this is a reflection of a greedy, lecherous populace.
There should be a rule that families can take their kids to Disneyland, or world, or whatever it is, ONCE. The other times you go on vacation, DO SOMETHING ELSE. See some sights, take hikes, go to restaurants in a new city, let kids see what gownups do on vacation, so they don't think that what grownups do on vacation is "take kids to Disney".
If your child got a college scholarship for "cheerleading", would you tell anyone about it?
High school and college kids should work at part-time jobs. I'm not saying it should be a law, I'm suggesting their parents should recognize the immense value in this experience, and encourage them to work. It helps a young person value their education, to understand the business world, to learn discipline, and to respect all kinds of people. In high school I worked in the local dry cleaners (making deliveries, working the counter, and putting plastic bags on garments). During college I worked in a leather warehouse in lower Manhattan, mostly loading and unloading trucks with "men". I also worked at a temp agency, where we were assigned to a different office almost every day. In my present office, I have interviewed new lawyers whose first job, OF ANY KIND, was the one they were applying for with me. What were they and/or their parents thinking?
The weakest word a person can use is "should". The strongest word is "YET".
Is anybody reading my blog? Comments are welcome.
Next entry....back to perils of real estate.....part 3
Four of my proudest accomplishments: I have never seen a moment of American Idol, Survivor, Desperate Housewives or Grey's Anatomy. This will be an easy streak to maintain.
I was once in a cult for a weekend (long story, I'll tell it some other time). I did not join, BUT I got one useful phrase that I have used many times when confronting long entrenched, apparently unsolvable problems. This is it...."Everything that happened, is just a bunch of stuff that happened, everything else is SPIN".
I love to read, but I have a variation that really enhances the expereience. I like to read books that have been made into movies, especially if I have not yet read the book or seen the movie. Then I like to read the book and rent the movie right after. BTW, I did this with "Fight Club", initially because someone recommended the movie as something "different, not what you think its gonna be". So, I read the book, which was amazing (and discovered an author I now read, Chuck Palahniuk), and followed it up with this great movie. If you have never seen it, try it and let me know what you think.....I did not see it for years because it did not seem like "my kind of movie", but it's creative and thought provoking. Even better, read the book first. A few that I have done this with are "Sideways", "High Fidelity", "Election", "CiderHouse Rules" and "Angela's Ashes".
Speaking of movies, my favorite baseball movie is Bull Durham.
My favorite movie of all, though, is Groundhog Day. I have come to learn that I am not the only one, and I will make a blog entry about Groundhog Day on 2/2, which is also my brothers birthday. Here's a link to a site which talks about Groundhog Day, and has a link to other Groundhog Day material.... http://www.schindler.org/psacot/20010813_ghd.shtml
From personal experience and careful observation, there IS an epidemic of autism and related disorders going on, and it probably is related to vaccines. I would not give two cents for any government sponsored "studies" showing the contrary.
The Iraq war will go down in history as the worst foreign policy blunder in U.S. history. If the powers that be actually believe the justifications they gave (that by removing Saddam we'd set the stage for democracy etc.), then they are delusional. If there other nefarious business reasons, then they are butcherous liers. Choose your poison.
I don't like political labels. People should think and have opinions based on ideas. If someone goes with their party, I don't give much credibility to their positions. I used to enjoy Rush Limbaugh and Sean Hannity, when their ideas seemed to confront the liberal boobs with the fallacy of their positions. Unfortunately, they have now become the exact things they used to rail against, and you have to check your brain at the door to listen to them. They are not interesting, or fun, or entertaining, unless you like being at a pro-government rally. I listen to a guy named Lionel, on WOR-AM, usually around 10 PM. Here's his site http://www.lionelonline.com/ Check him out and let me know what you think.
Diet soda makes people fat. It also CANNOT be healthy, and this should not be a surprise to anyone.
Am I the only person who remembers what Jesse Jackson used to talk about when he was first on the political scene? When he used to say that responsibility rests with families, and if people were going to advance it had to start THERE, at home, with family values and religion and spirituality. His message was identical to what we would now call Republican religious fundamentalism. What evil forces threw out that message, and made him the spokesman for government largesse as a political movement?
I don't care much for lawyer jokes, even though I will laugh at a good one. Its the assumptions behind the jokes that irk me. Most lawyers I know are hard working, decent people, who contribute to society in a positive way. To the extent there are greedy, lecherous lawyers out there (and I don't deny there are some), this is a reflection of a greedy, lecherous populace.
There should be a rule that families can take their kids to Disneyland, or world, or whatever it is, ONCE. The other times you go on vacation, DO SOMETHING ELSE. See some sights, take hikes, go to restaurants in a new city, let kids see what gownups do on vacation, so they don't think that what grownups do on vacation is "take kids to Disney".
If your child got a college scholarship for "cheerleading", would you tell anyone about it?
High school and college kids should work at part-time jobs. I'm not saying it should be a law, I'm suggesting their parents should recognize the immense value in this experience, and encourage them to work. It helps a young person value their education, to understand the business world, to learn discipline, and to respect all kinds of people. In high school I worked in the local dry cleaners (making deliveries, working the counter, and putting plastic bags on garments). During college I worked in a leather warehouse in lower Manhattan, mostly loading and unloading trucks with "men". I also worked at a temp agency, where we were assigned to a different office almost every day. In my present office, I have interviewed new lawyers whose first job, OF ANY KIND, was the one they were applying for with me. What were they and/or their parents thinking?
The weakest word a person can use is "should". The strongest word is "YET".
Is anybody reading my blog? Comments are welcome.
Next entry....back to perils of real estate.....part 3
Monday, January 8, 2007
Perils of Real Estate Practice, Part 2
Yesterday I outlined a simple, albeit fictional, deal, and promised to compare it to reality. Here goes:
1. You meet the client and establish a "relationship". Sometimes you start out just on the phone, and you either connect or you don't. Sometimes you have an initial meeting and you realize this client should not be buying a house, but how do you convince them of it? Sometimes you just get a bad feeling. Sometimes the initial meeting takes way longer than you thought, and you know that every aspect of the deal is going to be like that.....and that's always a profit killer when you are on a flat fee.
2. You advise them "pre-contract" so they understand the process, and if the first deal doesn't go through maybe you get paid something for your time......and for a lot of reasons, maybe you don't.
3. You get initial details on a solid deal from an honest real estate broker. Pardon my oxymorons, but in general I have come across real estate brokers who are "hard-working", "tenacious", and even "enthusiastic", but then I run out of complimentary adjectives. One thing they do a lot is CALL you, and they want one thing.....to find out when the closing is. I have had brokers who actually told my client, and the other party, when the closing was, even though we attorneys had not scheduled it yet. I guess the way they saw it, they took a shot. You can't make these things up.
4. You represent the client on the contract (which of course goes smoothly and is all done via the mail). Uhhhh, usually it goes back and forth and back and forth and takes WAY longer than it should, and engenders numerous calls to and from EVERYBODY. When brokers offer to pick up and deliver the contracts, I usually let them, let em WORK.
5. The client gets timely financing without a hitch. OK, sometimes this happens, but only because some banks are so careless they'd give a loan to a ham sandwich. Of course, when your client has trouble getting financing, everybody's stress gauges go up, and you realize your client should have gone to one of those ham sandwich banks, and everyone is blaming you for not sending him there. Any lawyer who has ever been in one of these mortgage problem deals, knows all the extra work thats coming (for no extra fees and tons of pressure)......and all the questions from the client.......is my down payment at risk? can we kill the deal? can I get an extension? can I re-apply? when is the closing? who put that mustard all over my back?
6. You review the title report and it is clean. Maybe one out of ten you don't have an issue. The rest of the time, somebody from your office who knows what they are talking about (YOU?) has to make some calls or draw some affadavits to solve a problem. Extra fees? NO, its included.
I have a few more, but I will deal with them on Wednesday, in Part 3.
Tomorrow is my 50th birthday, so I will post some random thoughts on that......for a goof....
1. You meet the client and establish a "relationship". Sometimes you start out just on the phone, and you either connect or you don't. Sometimes you have an initial meeting and you realize this client should not be buying a house, but how do you convince them of it? Sometimes you just get a bad feeling. Sometimes the initial meeting takes way longer than you thought, and you know that every aspect of the deal is going to be like that.....and that's always a profit killer when you are on a flat fee.
2. You advise them "pre-contract" so they understand the process, and if the first deal doesn't go through maybe you get paid something for your time......and for a lot of reasons, maybe you don't.
3. You get initial details on a solid deal from an honest real estate broker. Pardon my oxymorons, but in general I have come across real estate brokers who are "hard-working", "tenacious", and even "enthusiastic", but then I run out of complimentary adjectives. One thing they do a lot is CALL you, and they want one thing.....to find out when the closing is. I have had brokers who actually told my client, and the other party, when the closing was, even though we attorneys had not scheduled it yet. I guess the way they saw it, they took a shot. You can't make these things up.
4. You represent the client on the contract (which of course goes smoothly and is all done via the mail). Uhhhh, usually it goes back and forth and back and forth and takes WAY longer than it should, and engenders numerous calls to and from EVERYBODY. When brokers offer to pick up and deliver the contracts, I usually let them, let em WORK.
5. The client gets timely financing without a hitch. OK, sometimes this happens, but only because some banks are so careless they'd give a loan to a ham sandwich. Of course, when your client has trouble getting financing, everybody's stress gauges go up, and you realize your client should have gone to one of those ham sandwich banks, and everyone is blaming you for not sending him there. Any lawyer who has ever been in one of these mortgage problem deals, knows all the extra work thats coming (for no extra fees and tons of pressure)......and all the questions from the client.......is my down payment at risk? can we kill the deal? can I get an extension? can I re-apply? when is the closing? who put that mustard all over my back?
6. You review the title report and it is clean. Maybe one out of ten you don't have an issue. The rest of the time, somebody from your office who knows what they are talking about (YOU?) has to make some calls or draw some affadavits to solve a problem. Extra fees? NO, its included.
I have a few more, but I will deal with them on Wednesday, in Part 3.
Tomorrow is my 50th birthday, so I will post some random thoughts on that......for a goof....
Sunday, January 7, 2007
Perils of Real Estate Practice, Part 1
After 24 years, I recently decided to stop taking new real estate matters. These are what many general practitioners would call the "bread and butter" of a general practice. I am talking about basic representation for the buyer or seller of a residence. In New York, this is generally a house or a co-op apartment. I know that real estate practices differ from state to state, but I'm sure many of the business issues are the same. I also know that while I can, and will, list a litany of real estate perils, many of them have solutions. I will even try to offer some, I just won't being doing them any more.
Let's define a few "givens" in the market:
1. Clients expect to be quoted a fixed fee, for handling the matter from start to finish. I know there are attorneys who charge hourly for real estate closings, my hat is off and I bow as I say it, but generally market forces have made this a flat fee affair.
2. It is a huge responsibility for the attorney. There is a lot of money at stake, and there are often multiple deals hinging on each other. And Lord knows, we all need more pressure in our lives.
3. A real estate matter is very "client intensive". For the client this is often the biggest transaction of their life, and THEY are under pressure. This is something they love to share.
4. There are no simple deals. Think about this....here's the outline of a simple deal, where all goes well.....You meet the client and establish a "relationship"; you advise them "pre-contract" so they understand the process; you get details on a solid deal from an honest real estate broker; you represent the client on the contract (which of course goes smoothly and is all done via the mail); the client gets timely financing without a hitch; you review the title report and it is clean; a closing is scheduled with just a few calls, in a convenient location; the closing takes place on time and takes an hour; there are no post-closing escrow issues; you send a closing statement; the client appreciates everything you did.....and refers you all kinds of business over the years.............If this EVER, EVER happens, I'd say the $950 or $1250 or $1500 you received was MAYBE worth the time, but......
I have done hundreds of closings and I have NEVER, EVER had a transaction go that way. Tomorrow I will review some aspects of the usual deal, and then we can re-visit what the proper payment for such fun should be.
5. Not only are the deals client intensive, the deals rely on multiple parties performing their role correctly. On a New York co-op sale, as sellers attorney I rely on the following parties knowing their stuff and acting professionally: the buyers attorney, the buyers mortgage broker, the buyers lender, the co-op board, the co-op managing agent, the lenders attorney, the lien search company, the attorney for the mortgage payoff bank, and the brokers. Thats a lot of people "getting it right", and the consequences of any of them being a bozo are significant. Additionally, if the buyer or seller flakes out at some point (something that always seems to happen when the rest of the players are top caliber), you end up working your tail off.
I knew I might rant a bit when I started this, thats why I called it Part 1. Part 2 tomorrow....
Let's define a few "givens" in the market:
1. Clients expect to be quoted a fixed fee, for handling the matter from start to finish. I know there are attorneys who charge hourly for real estate closings, my hat is off and I bow as I say it, but generally market forces have made this a flat fee affair.
2. It is a huge responsibility for the attorney. There is a lot of money at stake, and there are often multiple deals hinging on each other. And Lord knows, we all need more pressure in our lives.
3. A real estate matter is very "client intensive". For the client this is often the biggest transaction of their life, and THEY are under pressure. This is something they love to share.
4. There are no simple deals. Think about this....here's the outline of a simple deal, where all goes well.....You meet the client and establish a "relationship"; you advise them "pre-contract" so they understand the process; you get details on a solid deal from an honest real estate broker; you represent the client on the contract (which of course goes smoothly and is all done via the mail); the client gets timely financing without a hitch; you review the title report and it is clean; a closing is scheduled with just a few calls, in a convenient location; the closing takes place on time and takes an hour; there are no post-closing escrow issues; you send a closing statement; the client appreciates everything you did.....and refers you all kinds of business over the years.............If this EVER, EVER happens, I'd say the $950 or $1250 or $1500 you received was MAYBE worth the time, but......
I have done hundreds of closings and I have NEVER, EVER had a transaction go that way. Tomorrow I will review some aspects of the usual deal, and then we can re-visit what the proper payment for such fun should be.
5. Not only are the deals client intensive, the deals rely on multiple parties performing their role correctly. On a New York co-op sale, as sellers attorney I rely on the following parties knowing their stuff and acting professionally: the buyers attorney, the buyers mortgage broker, the buyers lender, the co-op board, the co-op managing agent, the lenders attorney, the lien search company, the attorney for the mortgage payoff bank, and the brokers. Thats a lot of people "getting it right", and the consequences of any of them being a bozo are significant. Additionally, if the buyer or seller flakes out at some point (something that always seems to happen when the rest of the players are top caliber), you end up working your tail off.
I knew I might rant a bit when I started this, thats why I called it Part 1. Part 2 tomorrow....
Saturday, January 6, 2007
Location Location Location
Of course its true in real estate, and its true for the venue of our cases and clients. When you make that big decision to take a matter or not, you must consider the venue, not just of the case itself, but of the clients and other players.
Where I am in Queens County, New York, there are 8 counties in reasonable proximity to my office (5 boros of NYC, and Nassau, Suffolk & Westchester Counties). When a new matter is being discussed, I've learned to consider WHERE will the action take place. If there is litigation involved, we all think of this from the outset.....as a plaintiff where will I venue the case, as a potential defendant, where will plaintiff venue it, and why.
I think of non-litigation matters as having a "venue" too. Will there be meetings with clients and counsel? WHERE will they be? Here's a reality, if I have to attend meetings in Brooklyn or Manhattan during the day, add two hours. If its not the kind of case or client where you KNOW you are truly compensated for your time (and be HONEST with yourself), factor this in when deciding whether to get involved. This is primarily why I have stopped taking real estate closings on a flat fee basis (aside from all the other reasons, more on this tomorrow.....)
Is it the kind of client who will need to be in your office more than once during the matter? If they have to commute an hour each time, how long will it be till they resent that?
On litigated matters, will your adversary have "home court advantage"? Don't overlook this, and its not just because they know the Judges and Clerks and customs of the home court. A simple status conference with the court, where your adversary is there anyway because ALL his cases are there, is a big waste for you. You may be better off paying a "per diem" lawyer to go, but do you prefer that?
How much more confident do you feel when you are in YOUR home court. I know that the case is still the case, and I think they invariably turn out the way they should, BUT we are talking now about BUSINESS, and profits, and convenience, and lifestyle. I will often decide to refer a case to "local counsel", even if its in Manhattan or Brooklyn or Nassau counties (all contiguous to Queens and all close by), for business reasons. I also have cases referred TO me because of my Queens presence.
Bottom line, venue, venue venue.
Where I am in Queens County, New York, there are 8 counties in reasonable proximity to my office (5 boros of NYC, and Nassau, Suffolk & Westchester Counties). When a new matter is being discussed, I've learned to consider WHERE will the action take place. If there is litigation involved, we all think of this from the outset.....as a plaintiff where will I venue the case, as a potential defendant, where will plaintiff venue it, and why.
I think of non-litigation matters as having a "venue" too. Will there be meetings with clients and counsel? WHERE will they be? Here's a reality, if I have to attend meetings in Brooklyn or Manhattan during the day, add two hours. If its not the kind of case or client where you KNOW you are truly compensated for your time (and be HONEST with yourself), factor this in when deciding whether to get involved. This is primarily why I have stopped taking real estate closings on a flat fee basis (aside from all the other reasons, more on this tomorrow.....)
Is it the kind of client who will need to be in your office more than once during the matter? If they have to commute an hour each time, how long will it be till they resent that?
On litigated matters, will your adversary have "home court advantage"? Don't overlook this, and its not just because they know the Judges and Clerks and customs of the home court. A simple status conference with the court, where your adversary is there anyway because ALL his cases are there, is a big waste for you. You may be better off paying a "per diem" lawyer to go, but do you prefer that?
How much more confident do you feel when you are in YOUR home court. I know that the case is still the case, and I think they invariably turn out the way they should, BUT we are talking now about BUSINESS, and profits, and convenience, and lifestyle. I will often decide to refer a case to "local counsel", even if its in Manhattan or Brooklyn or Nassau counties (all contiguous to Queens and all close by), for business reasons. I also have cases referred TO me because of my Queens presence.
Bottom line, venue, venue venue.
Friday, January 5, 2007
Expanding Your Network
Expanding your database of attorneys should be a constant, ongoing process, and you should always recognize its importance. I like to maintain an actual computerized database, so I can do searches, BUT a rolodex and a brain can suffice for this purpose. The quality of your referrals will depend on the quality of this database. If you have one, make it better, if you don't have one to speak of, start one. It takes very little effort, and pays dividends almost immediately.
I have a few tips on building the database:
1. Be a card COLLECTOR, more than a card giver. We all go to functions, lawyer functions, meetings, family events, parties. The tendency for many lawyers is to "look for business", and give out cards. Of course you should seize opportunites to give your card and try to make connections, but the real opportunites at functions is expanding your database and collecting cards. Want to make a real connection with a fellow attorney who you have just met? Ask what they do, ask them questions about it, and ask them this question "What kind of cases should I refer you?" When you get their card, make notes on it (discreetly, after they walk away, we don't want to be wierdo stalkers here).
2. Make updates and corrections promptly. We all get notices of new offices and affiliations....update your database, you want it to be accurate when you need it.
3. If you know lawyers who seem to know a lot of lawyers, do not hesitate to call and ask them for referrals......So many times I have called lawyers like this and said "Who do you like for a ______case in ______County". I always assure the attorney that I will tell the specialist where the lead came from......this type of thing is OUR currency. It should be obtained with passion, and circulated, not saved.
Incidentally, I referred to cases being in _____ County. I am always interested in the location and venue of a potential case and the various players.....more on this tomorrow.....
I have a few tips on building the database:
1. Be a card COLLECTOR, more than a card giver. We all go to functions, lawyer functions, meetings, family events, parties. The tendency for many lawyers is to "look for business", and give out cards. Of course you should seize opportunites to give your card and try to make connections, but the real opportunites at functions is expanding your database and collecting cards. Want to make a real connection with a fellow attorney who you have just met? Ask what they do, ask them questions about it, and ask them this question "What kind of cases should I refer you?" When you get their card, make notes on it (discreetly, after they walk away, we don't want to be wierdo stalkers here).
2. Make updates and corrections promptly. We all get notices of new offices and affiliations....update your database, you want it to be accurate when you need it.
3. If you know lawyers who seem to know a lot of lawyers, do not hesitate to call and ask them for referrals......So many times I have called lawyers like this and said "Who do you like for a ______case in ______County". I always assure the attorney that I will tell the specialist where the lead came from......this type of thing is OUR currency. It should be obtained with passion, and circulated, not saved.
Incidentally, I referred to cases being in _____ County. I am always interested in the location and venue of a potential case and the various players.....more on this tomorrow.....
Thursday, January 4, 2007
Making Great Referrals
Let's examine what happens when you make a great referral:
1. You have provided your client great legal services. By YOUR knowledge of the clients legal issues, and contacts in the legal community, you got them to the right lawyer. You also probably gave the client some real advice, AND you got the new lawyer started right, by narrowing the issues. You would have (probably....maybe) done a credible job with the case....your specialist referral will do it better, and we all know it.
2. Referral/participation fees. You make money the old fashioned way. When you make money and someone else is doing the bulk of the work, and you are repeating this process, this sounds like smart business. In the sophisticated business world, as opposed to the lawyer general practice world, this is called LEVERAGE. Leverage, in this context, is a good thing.
3. You will receive referrals back. Remember, although you specialize in general practice, there are some areas of law that you still do, and you do them well. Every time you make a referral, you have an opportunity to market for the cases you DO want. Specialists all get calls for cases outside their field, and they refer them out (because they are specialists). BE one of the lawyers they refer cases to.
4. You expand your network. Sometimes you don't have an attorney in your rolodex, or in Outlook, or wherever. Don't turn the client away. Get the facts, and use your resources to find them an attorney. Use the internet, call your attorney friends, check the County Bar Association committee lists, but MAKE SOME EFFORT. A specialist that you call after tracking them down, and hearing you say "I'm ______ an attorney in _____ County, and I have a client who needs an attorney who can do ______, and I found you by ___________" will respect you, will probably take the case, will pay you, will refer business to you, and will be someone you can refer to again. Expanding your network is always good.......
1. You have provided your client great legal services. By YOUR knowledge of the clients legal issues, and contacts in the legal community, you got them to the right lawyer. You also probably gave the client some real advice, AND you got the new lawyer started right, by narrowing the issues. You would have (probably....maybe) done a credible job with the case....your specialist referral will do it better, and we all know it.
2. Referral/participation fees. You make money the old fashioned way. When you make money and someone else is doing the bulk of the work, and you are repeating this process, this sounds like smart business. In the sophisticated business world, as opposed to the lawyer general practice world, this is called LEVERAGE. Leverage, in this context, is a good thing.
3. You will receive referrals back. Remember, although you specialize in general practice, there are some areas of law that you still do, and you do them well. Every time you make a referral, you have an opportunity to market for the cases you DO want. Specialists all get calls for cases outside their field, and they refer them out (because they are specialists). BE one of the lawyers they refer cases to.
4. You expand your network. Sometimes you don't have an attorney in your rolodex, or in Outlook, or wherever. Don't turn the client away. Get the facts, and use your resources to find them an attorney. Use the internet, call your attorney friends, check the County Bar Association committee lists, but MAKE SOME EFFORT. A specialist that you call after tracking them down, and hearing you say "I'm ______ an attorney in _____ County, and I have a client who needs an attorney who can do ______, and I found you by ___________" will respect you, will probably take the case, will pay you, will refer business to you, and will be someone you can refer to again. Expanding your network is always good.......
Wednesday, January 3, 2007
Specializing in General Practice
Is general practice a specialty?
Just "doing general practice" is the antithesis of a specialty, and will have all the pitfalls of an unfocused activity. It will have all the problems and few of the benefits that specialists reap.
However, if you do general practice RIGHT, if you "specialize" in it, it can be as rewarding as any specialty. Here are a few ideas:
1. Make great referrals. This is the backbone of specializing in general practice. It is analogous to a medical GP. Patients rely on them to identify what specialty they need, and make the referral. There are GP's who are great at this, and others whose network may be weak. As attorney GP's, our referral network is one of our most valuable assets. It should always be growing, it should be alive and lively. By the way, I encourage all GP's to receive proper and ethical fees on referrals made. Contrary to what attorneys sometimes think, the ethical rules tell you exactly how to do this. We are one of the few professionals that spells it out. I am tired of self-righteous attorneys who view the ethical rules on referrals strictly for what you can't do (and yes, there are things you can't do). But, the rules tell you what you CAN do, and you should welcome opportunites to make referrals......more on this tomorrow
2. Learn to say no and respectfully decline losing situations. If you can't make a referral, and its not for you, DON'T get involved. Have a form declination letter and USE it. Resist the urge to "just write a letter".
3. Take pro bono cases by choice, not by default. Never rationalize your mistakes (the ones where you hate the client and aren't being paid) by saying they are "pro-bono". Learn from the mistake, and find pro bono cases where you care.
4. Constantly improve the way you handle the cases you DO take.....your specialties within your general practice.
5. Specializing in general practice is a philosophical approach. Any associates and support staff should understand what you are doing. This will help your referral network develop.....
Just "doing general practice" is the antithesis of a specialty, and will have all the pitfalls of an unfocused activity. It will have all the problems and few of the benefits that specialists reap.
However, if you do general practice RIGHT, if you "specialize" in it, it can be as rewarding as any specialty. Here are a few ideas:
1. Make great referrals. This is the backbone of specializing in general practice. It is analogous to a medical GP. Patients rely on them to identify what specialty they need, and make the referral. There are GP's who are great at this, and others whose network may be weak. As attorney GP's, our referral network is one of our most valuable assets. It should always be growing, it should be alive and lively. By the way, I encourage all GP's to receive proper and ethical fees on referrals made. Contrary to what attorneys sometimes think, the ethical rules tell you exactly how to do this. We are one of the few professionals that spells it out. I am tired of self-righteous attorneys who view the ethical rules on referrals strictly for what you can't do (and yes, there are things you can't do). But, the rules tell you what you CAN do, and you should welcome opportunites to make referrals......more on this tomorrow
2. Learn to say no and respectfully decline losing situations. If you can't make a referral, and its not for you, DON'T get involved. Have a form declination letter and USE it. Resist the urge to "just write a letter".
3. Take pro bono cases by choice, not by default. Never rationalize your mistakes (the ones where you hate the client and aren't being paid) by saying they are "pro-bono". Learn from the mistake, and find pro bono cases where you care.
4. Constantly improve the way you handle the cases you DO take.....your specialties within your general practice.
5. Specializing in general practice is a philosophical approach. Any associates and support staff should understand what you are doing. This will help your referral network develop.....
Tuesday, January 2, 2007
Specialize in Something(s)
Generally speaking, the most successful lawyers (by any measure: financial, personal satisfaction, recognition) are the specialists. I am qualified to say this, having been a misguided generalist all these years. Here are some things we can observe about specialists:
1. They know their stuff. When we generalists are up against a specialist, we know our stuff too, to a point, but on more substantial cases we are soon "out of our element", we are in THEIR element.
2. They get paid more.....and with confidence, and they should, they give their clients value.
3. They tend to find their chosen field interesting and exciting. I have been a generalist because I find all areas of law interesting, to talk and think about, and to strategize about, but to actually DO.....not so much fun. Have we all, as generalists, had the experience of calling someone who "really knew"? I'd like to be that person all day long.
4. They have systems geared for their specialty......we have general, all purpose systems, that work....to a point....and then our inefficiencies haunt us.
5. They know the players in their field, and they know the fakers (us).
I have two main pieces of advice for general practitioners:
1. Specialize in something(s). Even if you are still a generalist, have one or two areas where you act like a specialist. Define yourself by it "I'm a ________ lawyer", make systems for it, take extra CLE in it, follow all the cases, and otherwise get really good at it.
2. Specialize in general practice......I think this IS a specialty unto itself....more on this tomorrow.........
1. They know their stuff. When we generalists are up against a specialist, we know our stuff too, to a point, but on more substantial cases we are soon "out of our element", we are in THEIR element.
2. They get paid more.....and with confidence, and they should, they give their clients value.
3. They tend to find their chosen field interesting and exciting. I have been a generalist because I find all areas of law interesting, to talk and think about, and to strategize about, but to actually DO.....not so much fun. Have we all, as generalists, had the experience of calling someone who "really knew"? I'd like to be that person all day long.
4. They have systems geared for their specialty......we have general, all purpose systems, that work....to a point....and then our inefficiencies haunt us.
5. They know the players in their field, and they know the fakers (us).
I have two main pieces of advice for general practitioners:
1. Specialize in something(s). Even if you are still a generalist, have one or two areas where you act like a specialist. Define yourself by it "I'm a ________ lawyer", make systems for it, take extra CLE in it, follow all the cases, and otherwise get really good at it.
2. Specialize in general practice......I think this IS a specialty unto itself....more on this tomorrow.........
Monday, January 1, 2007
Refine How You Define
Happy New Year! Todays topic can be viewed as helpful advice, and can be adopted as a resolution.......REFINE HOW YOU DEFINE
How many opportunities do we have to answer the question "What do you do?" The answer can say a lot to the questioner, in both content and tone, but it should also say a lot to YOU. Do you notice how you answer the question? Do you use vague generalities? "I am in general practice.....I do a lot of different things.....I do some real estate, some estates, some litigation.....I work for a small firm......" Do you give a disparaging answer? (How would you view someone who defined themselves as doing something they hated......and then when you saw them again a year later they said the same thing? It sickens me to recall having answered that way) Are you enthusiastic?
Here are some basic suggestions:
1. Observe how you answer that question (or would answer it, hypothetically)
2. THINK about what it indicates: (a) to the hearer, and (b) to yourself
3. Experiment with some different ways to answer, first by thinking of some, and then trying them out when asked (btw, you will be amazed how many opportunites you have to answer the question), and then follow the above.....observe your response, and THINK about what it indicates to the hearer and to yourself.
4. Keep refining how you define, it will move you in the right direction.
You will also notice that specificity, and specializing in SOMETHING(s) improves your approach to practice, and results in new, QUALITY business........
How many opportunities do we have to answer the question "What do you do?" The answer can say a lot to the questioner, in both content and tone, but it should also say a lot to YOU. Do you notice how you answer the question? Do you use vague generalities? "I am in general practice.....I do a lot of different things.....I do some real estate, some estates, some litigation.....I work for a small firm......" Do you give a disparaging answer? (How would you view someone who defined themselves as doing something they hated......and then when you saw them again a year later they said the same thing? It sickens me to recall having answered that way) Are you enthusiastic?
Here are some basic suggestions:
1. Observe how you answer that question (or would answer it, hypothetically)
2. THINK about what it indicates: (a) to the hearer, and (b) to yourself
3. Experiment with some different ways to answer, first by thinking of some, and then trying them out when asked (btw, you will be amazed how many opportunites you have to answer the question), and then follow the above.....observe your response, and THINK about what it indicates to the hearer and to yourself.
4. Keep refining how you define, it will move you in the right direction.
You will also notice that specificity, and specializing in SOMETHING(s) improves your approach to practice, and results in new, QUALITY business........
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