A Lawyer in Your Pocket for Real Estate Deals? Leslie Margolies Explains Deal Guard

Leslie Margolies (00:00)

Absolutely, but that is a good example of: you think that these kinds of things will never happen to you. But a lot of times these things can be prevented. And that’s one of the things my focus is on with DealGuard, because problem solving is not just an after-the-fact thing. Most people think of problem solving as, “Now you have a problem, let’s solve it.” But we can prevent a lot of problems from ever happening.

Issa Hanna (01:59)

Welcome back to another episode of the Real Estate Pros Show. I’m your host, Issa Hanna, and today we have Leslie Margolies here with us to share her knowledge. Leslie, welcome to the show.

Leslie Margolies (02:07)

Thank you. I’m glad to be here.

Issa Hanna (02:09)

I’m super glad to have you on the show. You’re a wealth of real estate knowledge, especially in the law space. So you wear many hats in our industry, the main one being a lawyer, and then you also work as a real estate agent. So I kind of want to get what you’re focused on nowadays, and then what a day-to-day looks like in your work.

Leslie Margolies (02:28)

Well, for the past 40 years, I’ve been a litigator—a civil litigator. Most of those are business and real estate disputes. But I’ve had my real estate license for many, many years—more than a decade. But it was funny, because when I got my real estate license, everybody in the brokerage firm I was with said to me, “Well, which are you going to do? Are you going to be a lawyer or are you going to be a realtor?” And I said, “Well, it depends which one is more successful, right?”

I started getting a lot of clients for legal disputes because all of these realtors were throwing clients at me who were having disputes over good faith deposits, inspections, and all these things. As you yourself are a real estate agent, you know what the issues are. Before I knew it, I was overwhelmed.

So 40 years later, I’m a litigator with a lot of experience, but looking back, I’ve reverse engineered all the obstacles that buyers and sellers encounter during a real estate transaction. What I really want to do is educate and service the public in a way that helps buyers, sellers, and their real estate agents get the legal advice they need in a timely manner—right then when the transaction is happening and the problem is arising, not two or three days later or a week later when they finally get a consultation with a lawyer or a legal hotline.

My focus is really real estate transactions. As you and I discussed, I started a service called DealGuard, which is a flat-fee, concierge-type service. If you have a real estate agent—whom I consider the pilot of the transaction—I’m your co-pilot. I’m there to give you risk management advice to help you avoid all those legal obstacles that I have seen people end up in court over, and to be there to swoop in, if necessary, to resolve some kind of dispute.

That happens all the time. It’s a tough balance because a lot of real estate agents have a bad taste in their mouths from previous lawyers. We’re considered arrogant sharks and bottom feeders—you name it. I’m a mediator, a conflict resolution person, and a problem solver. I am not the person who is going to bully you.

It’s been a tough first year for DealGuard because we’re trying to educate the real estate community that we are your friend. We are here to help, not to prevent. We’re here to help you get that deal to the settlement table, but not only that—to make sure no one is going to be sued afterwards, no one is going to lose their good faith deposit, and no one is going to be sued for misrepresentation. And if they do, by some weird chance, then I’m going to represent them for free because that’s my guarantee. That’s my DealGuard protection.

Issa Hanna (06:23)

I love that. So revolutionary, and so necessary in the game. As an agent, I’ve represented over 250 first-time homebuyers in my career. I’ve encountered so many different disputes over the years with deals and all the stuff that you mentioned that it would have been amazing to have a lawyer in your pocket—literally having access to a lawyer in your pocket for a flat fee who is going to take care of everything, make sure your I’s are dotted and your T’s are crossed. You can never have enough protection in a real estate transaction.

Leslie Margolies (06:58)

You took the words right out of my mouth. I always say that: I’m here to make sure your I’s are dotted and your T’s are crossed.

Issa Hanna (07:05)

Exactly. And who better than a lawyer who works as both a lawyer and an agent? You understand both sides of the transaction. One of your strengths, as you mentioned earlier, is that you’re a problem solver. Who better to have on the team than a problem solver? Because the end goal—whether you’re the agent, the buyer, the seller, or any party involved in the transaction—is to get that thing to the finish line with no disputes. Who better to have in your corner than somebody like you? Amazing.

I want to shift focus a little bit. I want to rewind and go backward. What made you decide to become a lawyer, and then what made you decide, “Hey, I’m going to become a real estate agent as well”?

Leslie Margolies (07:50)

Well, honestly, the reason I became a lawyer is because my mother said I argued with her a lot and that I should become a lawyer.

Issa Hanna (07:58)

I love that.

Leslie Margolies (07:58)

She said, “You’ll make a good lawyer.” At one point when I was having an argument with her much later in life, she said I was a “worthy adversary.” So that was my mother’s vote of confidence that I’m good at analysis. That’s what a lawyer does—it’s an analytical job and a problem-solving job.

For me, the problem-solving aspect is the part that I love the most because it allows me to use my creativity and my conflict resolution skills. That is something that you have to finesse. You can’t bully your way into a resolution, and you can’t argue your way into a resolution. You have to understand the perspective of all the parties. To tell you the truth, it’s a little bit of emotional intelligence to really understand everybody’s perspective—what they want out of this and what would make them come to the table and resolve it. Sometimes that’s diffusing emotions, and there are a lot of emotions in a real estate transaction, as well as in landlord-tenant disputes. Don’t even get me started about those emotions!

Issa Hanna (09:10)

100%. That is the main goal of conflict resolution: to take the emotion out of it. It’s so hard to do with the actual client or consumer because they’ve got their money at stake, or this might be their personal home that they’re selling or buying. Somebody who can act as an intermediary, think about it from all sides, and try to come to a just solution is truly an asset throughout the transaction. Everybody knows litigation is expensive, so that should be the last resort.

Leslie Margolies (09:43)

Last resort. Honestly, I think TV has played a part in this, with people believing that justice is easily obtained through the court system. It’s not a just system. I’m the first person to admit that our judicial system is not just, and I know there are attorneys who would give me flack for saying that, but I don’t care because this is why I became a mediator. You will not find automatic justice, quick justice, or an even hand in the court system. Typically, the one who can afford to last the longest wins, and that really doesn’t say a lot for representing people who are not of wealthy means. For me, having those resolution skills is what helps people get their problems solved without having to invest in what could be a very long and very emotional battle with no predictable outcome.

Issa Hanna (10:42)

100%, Leslie. Just for context, I’ll share a story. I had a legal real estate nightmare once. A guy forged a document—a quitclaim deed—and tried to claim ownership of one of my properties. Of course the signatures didn’t match, but the guy still didn’t give up and ended up trying to take me to court for it. Although he had no evidence or anything like that, it took me three years to solve that in court to show that no, I didn’t in fact sell him my home. Just a little context. I’m sure you’ve dealt with crazier things than that in your career.

Leslie Margolies (11:19)

Absolutely, but that is a good example of how you think these kinds of things will never happen to you. A lot of times, these things can be prevented. That’s one of my focuses with DealGuard, because problem solving is not just after the fact. Most people think of problem solving as, “Now you have a problem, let’s solve it.” But we can prevent a lot of problems from ever happening by being boots on the ground from beginning to end.

If you come to me after you sign a contract, we’re already behind the eight ball. A lot of people do that, or mistakenly think they only need a lawyer for settlement. They’ll say, “How much do you charge to come to settlement?” What do you want me to do at settlement? There’s very little I can do at settlement other than draft an escrow agreement and escrow funds if necessary.

For me, it’s about solving the problem before it happens. For example, when sellers fill out seller’s property disclosure forms, most often they have not been appropriately educated about how they need to fill out those forms. You should be over-disclosing rather than under-disclosing: anything that’s ever gone wrong with the property, how you fixed it, when you fixed it, and an attached invoice showing that you fixed it—rather than trying to hide, paint over, or conceal things, because that’s what gets you into trouble. Most people don’t understand that at least in Pennsylvania, we’re required to disclose all defects, not just present current defects—all defects that occurred even in the past. So that’s preventative problem solving.

That’s what my goal is. That’s what risk management is. When I say risk management, everybody’s eyes glaze over and they fall asleep because it sounds like a boring topic, but it’s actually something that we all do in our daily lives every day. If you take the long road home because you want to avoid rush hour traffic, that’s risk management, right? We do this. If you park in the back of the supermarket parking lot because you don’t want anybody to door-ding your car, that’s risk management. That’s what I’m applying to the real estate transaction.

Issa Hanna (13:38)

100%. Like I said, DealGuard is revolutionary. It’s a lawyer in your pocket; it’s insurance. And it doesn’t cost that much—in terms of closing costs, it’s just a normal closing cost. Why not have a lawyer at your disposal just to go over everything, make sure everything is right, and have that peace of mind and insurance?

Leslie Margolies (14:00)

Much less than the commission that the real estate agents get.

Issa Hanna (14:03)

100%. 100%. Moving forward now—we talked about the past, let’s talk about the future. Five years down the line, DealGuard is in Pennsylvania and you have some big plans. Can you give us your plans for DealGuard?

Leslie Margolies (14:18)

Well, I’m moving from Pennsylvania to Maryland. As I get older, I’m thinking more and more about where I want to be, and the Eastern Shore of Maryland is where I want to be. I was born in the month of June—I’m a cancer baby—so I love the water: lakes, kayaking, rivers, oceans, you name it. So I’m going to be doing DealGuard in Pennsylvania, Maryland, and Virginia.

My hope is that if I can really educate the real estate community and get that trust from real estate agents and brokers that I’m there to help and not hurt—that I’m not the kind of lawyer who is going to bully or patronize anybody, and that I’m there to help them get their deal to closing and get their commission—then I would like to take DealGuard nationwide, franchise it, and teach other real estate lawyers how to show up for real estate agents and their buyers and sellers. The way they’re showing up now is not what they need. They come in after the fact, throw their weight around, make everybody intimidated and nervous, and make everyone afraid that they’re going to make the deal go away or tank the deal. That’s not my goal; it’s the opposite.

Issa Hanna (15:34)

You’re coming into it with the best intentions to A, protect the consumer, which we all have the duty to do, and B, keep the deal together. You’re a problem solver, someone you want on the team.

I’m going to give you the floor: if people want to get involved with DealGuard, where can they get ahold of you guys?

Leslie Margolies (16:40)

They can contact our office. Our telephone number is 215-904-3006. But the fastest way to contact me is my email, which is lesliethelawyer@gmail.com. I know it sounds hokey, but I’ve had it for 40 years, so nobody forgets it because it’s so easy. If they email me at lesliethelawyer@gmail.com and have a question, I’m always happy to answer.

If they’re not in Pennsylvania, I can’t actually represent them, but I can give them some guidance. Even for people who don’t want to hire an attorney, we provide strategy sessions for an hourly rate for landlords and real estate investors who just want to talk out a problem. They want to talk out, “Here’s what’s happening with my tenant. What can I do? How do I approach this? How do I manage this situation?”

We are available for mediations for any business and real estate disputes nationwide. As a mediator, I can mediate a dispute as long as both parties are willing and ready, and they split the cost. It’s a drop in the bucket compared to what you would spend to hire a lawyer to go to court. And there’s no satisfaction in going to court.

For anybody who has any kind of business or real estate dispute and doesn’t know where to turn, the first place to turn is a mediator. I’m listed with Agreement Works, which is a nationwide body of mediators. Agreement Works mediators are all what we call “neutrals.” Neutral means that you have the capacity to not take any side. I’m not landlord-friendly, I’m not tenant-friendly, I’m not investor-friendly, and I’m not consumer-friendly—I’m right down the middle, willing and able to listen to both sides, understand what the issues are, and help them come to a resolution that’s satisfactory for everybody. The goal is for me to be objective, neutral, and help them reach that resolution so they don’t have to go to court. They get a quick resolution: it’s signed, sealed, everybody’s happy, and everybody goes home. Nobody has to pay $10,000 to a lawyer. As I always say about litigation, the only ones who win are the lawyers.

Issa Hanna (18:59)

100%.

Leslie Margolies (19:01)

That makes me very unpopular with other lawyers.

Issa Hanna (19:04)

What makes you unpopular with some is going to make you super popular with consumers and my viewers, because we love that somebody holds themselves to the utmost integrity, is there for the consumer, and takes the deal to the finish line.

At home, “lesliethelawyer”—we admire each other’s business cards and emails! I was going to compliment you on the email. I was like, “How’d you get that email?” It’s such a great email. So it’s not hokey, I love it, and I’m sure the viewers will love it and remember it.

Leslie Margolies (19:35)

If we have time, I’ll tell you the story of how I came up with that. I’m 25 years old, graduated from law school, and being sworn into the Pennsylvania Supreme Court. My parents are there, and they bought me my first suit. My mother wants to take a picture of me. At that time, there were old phone booths outside the courtroom at City Hall in Philadelphia. She has me standing there pretending I’m on the phone, like negotiating some deal with a labor union. I don’t know what she wanted to take a photograph pretending I was this powerful lawyer for! She takes the photograph, and years later I found the photograph and on the back of it it said, “Leslie Lawyer talking to the labor union” or whatever. I must have remembered that because that’s how I came up with lesliethelawyer@gmail.com. Years later, it still makes me laugh. My mother is gone now, but to see her handwriting on the back of the photograph and remember that’s how I came up with the email is a nice remembrance of her, because she’s the one that convinced me I ought to be a lawyer.

Issa Hanna (20:43)

Mom was right from the start! She said you should be a lawyer, and here you are killing the game.

Leslie, I want to leave with one piece of advice for our young professionals. We’ve all started our businesses, and relationships and your network are super huge in our business. If you had to give one piece of advice on where to start growing this network and establishing these business relationships, what would you tell them?

Leslie Margolies (21:06)

For me, it wouldn’t be about the relationships or the network—it would be about having what I call an SOP: Standard Operating Procedure. A Standard Operating Procedure is how you anticipate and prevent risks. What do you do when it snows? How fast is your guy going to get there to shovel the walk where your tenants or pedestrians are going to walk? What do you do when somebody makes a claim, and how do you create a paper trail? There should be a standard operating procedure for every known risk in your business.

It’s just like McDonald’s. McDonald’s in business school is the example they always use for how to standardize operations. They want those burgers to all come out exactly the same—they don’t want any surprises, and they don’t want them underdone or overdone. How do they do that? They don’t leave it to human error. There’s a button they push when they put the patty on there, and the button goes off when the patty comes off. That’s a standard operating procedure to guarantee a standard result and prevent the risks that are known in their business. We should be doing the same. You should have a standard operating procedure for your business.

Look, we have artificial intelligence now at our fingertips. It’s very easy to just describe your business, describe what you do, what assets you manage, and create a standard operating procedure to prevent those risks so that you don’t end up in court or with huge insurance claims.

Issa Hanna (22:44)

Golden advice: Standard Operating Procedure. In every business, for every successful entrepreneur, show me a successful one and I’ll show you a great operation. Golden knowledge you brought to the show today—such a breath of fresh air. It was truly an honor to host you, Leslie. Thank you so much for coming on.

Leslie Margolies (23:02)

Great host. Thank you.

Issa Hanna (23:03)

Thank you. And to our viewers at home, if you enjoyed my conversation with Leslie and want to see more like it, make sure to hit like and subscribe. I talk to people every day who can bring us different knowledge on every aspect of the real estate industry. Until next time, The Real Estate Pros are out.