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I talked about practical oversight, and thats very, very important. The legalities are also important. You want to make sure that you are securing your investment to the greatest degree possible. How you can secure that investment will depend, to some extent, on what is the nature of your investment. Is it an investment, or is it actually a loan? In either, case there are things that you can do to protect that investment and/or loan. Im just going to quickly go through some of the most important devices that are used to secure the source of investments. One thing that often makes sense to have, I wont say always, but often, is a promissory note. A promissory note is a promise to pay, and you want to make sure that you have a promissory note and that it has been reviewed by your counsel. You dont want to draft your own agreements. I have seen some of the ugliest agreements that you just cant even imagine. I recall going into one contract review in the context of a partnership dispu
