Financial investors are quick to suggest that investors diversify. One of the best ways to diversify your investments is to loan money to others. Effectively, you are the bank. You are entitled to the return of your investment (principal) and interest on the loan.
Real Estate Law
One of the more common defenses in a foreclosure actions is the “show me the note” defense. The defendant is effectively saying “I may be guilty of not paying my loan, but you can’t prove that you own it.” For a while, this defense might have worked, due to poor record keeping or some other reason. However, as more courts address that defense, it is becoming very limited.