Don't forget to install a "Go Jak" as well. It makes locating the property MUCH easier should a default occur. Just think of it as very reasonable "insurance".
There is also "lender" insurance policies available, but this may not be cost effective for just one loan.
Depending on the risk taker you are as an individual, Loaning money can be a much better return than just investing it in stocks or a savings account. Lets face it, is the stock market any less of a risk?