Tim Bell explains how bail bondsmen work as lenders, taking collateral like a free-and-clear house when someone skips bail. He walks through a scenario where parents guarantee a bond with their home and lose it when the defendant doesn't show. Bail bondsmen also lend money for fix-and-flip and rental investments.
So the next method here, after attorneys, of course, is bail bondsman. Now you might be thinking, wait a minute, bail bondsman, how does that work? Well, if we need to think about it, we can think about what business are bail bondsmen in? And of course the business they're in is loaning money to help people get out of jail. So let's have a little scenario. Okay? Poor little Johnny is accused of a crime and he's arrested and, and he goes to jail and he calls up enabling mom and dad and says, oh mommy, daddy, they're so mean to me here and the food's awful and I look terrible in stripes, please come bail me out. And enabling mommy and daddy said, okay son, we'll help you out. So then they go down to the bail bondsman, they don't have the money to bail them out, so they go down to the bail bondsman to borrow the money. Well, the bail bondsman says, sure, I'll loan you the money. What do you got for collateral? Poor mom and dad say, well, we don't really own anything except we have this free and clear house, that's all we own. And then bail bondsman says, okay, sign here. And they sign off on the bail bond. Now again, poor enabled little Johnny gets out of jail and he decides that Brazil looks good this time of year. And so he skips bail and goes to Brazil. Well, the bail bondsman call the the bond or the loan due and the parents can't pay it. And so he comes and he forecloses on the property and takes back the property. Very, very sad, but it does happen from time to time. Well, here's the thing. Does a bail bondsman want a house? No, bail bondsman wants their money. And if they can call you and quickly convert that house to money, then they typically will do so. Another little tip too, bail bondsman can be a great lender for private lending for a fix and flip property and also for a buy and hold long term rental property too. So again, a little extra there on a bail bondsman.
