Why Invest?
Time value of money
Money does not sleep. It either grows or diminishes. If your money is idle, it is diminishing. Provided money can earn interest, this core principle of finance holds that money is worth more the sooner it is received.
From an investment standpoint, anyone with a decent amount of savings needs to invest their money today instead of tomorrow. The sooner you invest, the more your money is worth. As the rate of inflation is ever increasing, reducing the amount your dollar is worth. Savings should be invested to stay ahead of inflation and to generate passive income. A large income does not necessarily grow wealth. Income is what you make.
Wealth is what you keep. Wealth is increased through investment of savings. Wealth creation allows us to spend time doing the things we enjoy most. Spending time with loved ones, enjoying activities or hobbies you have no time for, traveling.
Wealth creation will give you the ability and time to accomplish or enjoy most anything you like.
Being rich vs being wealthy
Everyone wants to be rich. Not everyone knows what it takes to be wealthy.
Being rich means having lots of money. One can become rich through a number of ways, including but not limited to: professional sports, inheritance, lottery winnings, startups, many years working in a field, etc. Unfortunately, nothing lasts forever and everything comes to an end. Many of those who are rich live an unsustainable lavish lifestyle which ends up in debt and back to poverty.
Being wealthy means not only having lots of money, but knowing how to properly handle it. One of the sure ways of doing so is investing into assets that generate passive income. A wealthy person can still enjoy a lavish lifestyle and it will be completely sustainable. Wealthy people stay wealthy. A rich person can turn into a wealthy person by investing and planning. The key to sustaining wealth is having your income higher than your expenses.
Assets - Liabilities = Net Worth
Why invest in mortgages?
Private mortgages are a safe high yield investment vehicle. Private Mortgages are not widely known or used in traditional financial planning. Mainly, where can you buy one? Financial planners and investment advisers will not tell you about them because they cannot profit from them. RIM offers the smart investor an opportunity to participate in a whole first mortgage with as little as 25K.
People are familiar with buying, selling, and renting real estate. Most people are familiar with REITS, Stocks, bonds and funds that invest on real estate. If you are not buying real estate fee simple, you are probably buying a piece of a fund. A fund which you have no control as to what is being invested in or the way an investment is being conducted.
REITS and funds are managed by third parties. Third parties who may have little or no money of theirs at stake. Managers are typically profiting off of performance and heavy management fees. Real estate investments Prospectuses should be rad very carefully. Unfortunately, if a fund manager achieves poor performance they do not participate in the losses.
If there is a market down turn or the fund manager chooses poor investments, investors have no true real estate ownership and only possess a piece of paper as security. Apiece of paper that could be worthless. Or an investor may be left competing for security with other investors who have a piece of paper.
A mortgage is an instrument that secures debt on real estate. Mortgage is a tangible asset. Like gold, silver, real estate and other tangible commodities. Mortgages are great way to invest in a real estate without all the headaches of property management. While at the same time enjoying the security of a hard assert.
