The whole point of purchasing judgments on Judgment Marketplace is to earn a profit. How, exactly, do you make money when you buy judgments? People often have concerns about how they are going to collect on judgments when the original person (who they bought the judgment from) was unable to collect. There are a couple of options that allow you to overcome this challenge.
Tap Into the Judgment Collection Network
One of the resources that you have access to when purchasing judgments is the Judgment Collection Network. This is the part of Judgment Marketplace that consists of professionals who specialize in collecting judgments. They are experienced law firms and collection agencies that do the work of collecting on your behalf.
You will be able to search under Collector Listings to find someone who can help you collect on a judgment. When you browse or buy judgments, you can look up the last known location of the debtor. You should use this information when searching the Collector Listings. A collector located near the debtor will be in the best position to collect.
If and when the collector succeeds, you will pay a pre-determined fee and the rest of the money will be yours. For example, you might purchase a judgment worth $15,000 for $1,000. A listed collector might charge you a 40% fee, so when he collects he will keep $6,000. Your profit on this transaction will still be $9,000, which is quite good considering that you did not have to do any collecting yourself.
In addition to hiring someone to collect on your behalf via the Collection Network, you also have the option of reselling the judgment. You can resell the judgment in full or you can resell after recovering part of it. One thing you should know about the process is that a collector might succeed in recovering a portion of the judgment.
Let’s return to the above example and assume that the collector was only able to recover $10,000 rather than the full $15,000. In this case, his fee would be $4,000, leaving you with a $6,000 profit. Yet you would still be holding the remainder of the judgment, worth $5,000. You could resell this on Judgment Marketplace, which could net you a larger profit.
These are two ways to make money with Judgment Marketplace without having to do any collecting yourself.