That's right I make roughly 100k on a 100k portfolio every year, for the last 7-8 years. This is how I do it. In my home state you can write bail bonds with an investment portfolio as proof of assets. At the first of every year I send in paperwork to the department of insurance showing the value of the portfolio and how much I want to use of it for proof of assets, they then use whats called x15 rule. They take the value of the portfolio and multiple it times 15, this gives me 1.5 million in bonding power. I can have 1.5 million in bonds active at one time. I never get close to having that much active, as people plead guilty or have cases dropped the bonds become inactive. I write on average 1.5 million in bonds per year, I make 10 percent of that amount in premiums roughly 150k. I have a 1 percent forfiture rate, meaning the defendent failed to appear and was not located, btw the courts give me up to two years to find them so forfiture is extremely rare. My average gross return is 135k per year on a 100k portfolio. I of course pay taxes on that then invest some back into the portfolio and also an individual roth ira, I'm still young, mid 30s. I have friends in the business who have scaled this up larger, but they contribute a lot more time to it then I'm willing. I also have a friend that does this with rental property, and does substantially more then me, close to 7 million wrote per year. the state also allows use of that for assest proof. They also allow assest pledge from third party's, Example Bill the farmer has 100 acres of crop land that is prone to flooding but has an assessed value of 3k per acre. Bill pledges this land to Joe the Bondsmen who can now use this as proof of assets and gets 4.5 million in bonding power from the state. Joe gives Bill 25 percent of the gross premiums for the year.
Yep...if this was real, millions of people would not be wasting their time working or slaving a 9-5 job,...you wouldn't even need to go to college or learn a trade..you could just sit home and write bail bonds all day and night and make free money.......if this were that easy to do don't you think the masses would have been all over this by now...you could even start with $10,000 and make $10,000 ...if it's free money why not put up a million to make a million. Why are you playing with $100k...go all in...fu$k go for $5 million or $10 million for that matter.....
Isn't this more like "rendering a service" and "providing insurance", rather than investing or trading? If it helps someone, it's a service.
Assuming everything you say is true, there will be fewer opportunities in the future to take advantage of this strategy. Several states, including California and New Jersey, have gotten rid of all cash bail in the past two years, and every other state is considering it. Why? Analysis show that in some states 45% or more of their daily inmate population are jail not for being convicted, but for inability to post bail. At $35,000 to $85,000 per year each to house a prisoner, it was far cheaper for the states to say if the accused is not a danger to society, and has not previously missed a trial date, then release until trial date. Otherwise, lock up until trial data.
Think "Selling Puts." Nine clients show up for trial and you make your percentage. The 10th skips off to the Bahamas and sticks you with the full bail amount. Pick up your pennies in front of the steamroller. Same game.