Poindexter surety, Lexington National, Roche Casualty and Fire, American Surety Company. Have data you can research. In 2017 over 2 billion in profit was made nationally on bail surety bonds.
I'm going to give you an example of what happens when somebody doesn't show up on court, when they no show they send us a letter and a court date usually 2 months or so out. We attend this if we haven't found them. They then push it back again usually for around 2 years. After that they make a final judgement. We then have about 6 months before it's entered. So we get roughly 2.5 years. If we find the defendant or he is arrested at anytime or in the hospital during this 2.5 years they stop the forfiture and release us from the bond. Also having a good relationship with the judge helps, they sometimes will release you from the bond without finding the defendant if you have a high show up rate. Any final forfiture goes to the local school district.
Good points here this isn't something you could compound, only so much business to go around. I live in a state that has an obscure law that allows investment portfolios to bond, I like that I can make money on it from the investments and also off the bonds. You can still freely trade the portfollio, you have to sign an affidavit once a month saying it still has the same value or more.
The point is, you are running a lending business basically earning 10% on your loan portfolio. Certainly higher than a mortgage portfolio but that is because the risk is higher and not sure how collaterlized the "loans" you are making, i.e. unsecured loans. You are making it sound like you are making 100% return on your "investment" but your risk is 15 times that due to leverage and your capital at risk is $1.5 million. This is not changed just because you perceive the risk is low. You need to look at this as a business model of making 10% gross returns on your risk capital. Just because you define the risk as low with your statistics does not change the business model and what it is based on. You are running a business service and that is what this is no matter how you want to define it.
The real question that goes to how risk is reduced is what collateral you require defendants to put up in addition to the 10-15% premium they have to pay. If you are getting liens on houses or cars for bial amounts then your loans are somewhat secured and the risk drops significantly though foreclosing on a house of the defendant's mom or family member is a very arduous process. You never mentioned the collateral you request for the bail posted.
Slight details missed from the OP.... This is a non-scalable, high competition business using high leverage. Last time I checked this was Elite Trader not Elite Investor. Me thinks, writing Iron Condors on Tesla is way less time and just as rewarding...
Yes it is. I use the invesments in the portfolio, I can still freely trade them. So I make my returns off my investments and profit from the business. The state doesn't hold the investment, you just sign an affidavit every month saying it still has the initial value or more. They give you surety bonds that you post with the Court, I understand how you would think bonding is high risk, but a lot of risk factors are weighed before a bond is posted. All bonds over 15k are fully collateral backed usually by real estate. No cash is posted you use the surety bonds.
You can do both, you can still actively trade it. The state doesn't hold it. You show them proof of value they give you 15x that amount in surety bonds. Once a month you sign a affidavit stating it still has that value or more.