69. Lawsuits – because plantiff’s lawsuits can be expensive and take a long time, there is an opportunity for investors to finance the plantiff’s legal or other costs in exchange for a portion of the eventual recovery (settlement or judgement).
The key is knowing that the plantiff is likely to win or at least receive a settlement.
There are firms that specialize in financing these lawsuits, but individual investors have had success as well. Also, sometimes a lawyer will loan money to another lawyer friend with the fee from a future judgement as the collateral.
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