Theme of The Super Wealthy: What the Upper Class Invests In

Filed in Investment Secrets by on September 5, 2018 0 Comments

His father was a successful steamboat operator, yet his mother, Phebe, was forced to make her own money and take care of the kids.  She too was successful, but she made her money by loaning her money.  That secret was passed on to her son, Cornelius Vanderbilt.  Cornelius is the most well-known from a family of very successful business minds.  In fact, his net worth when he died would be equal to well over $200 billion in todays dollars.  He is famous for his work in transportation, but what many people don’t know is, like his mom, he made a safe and steady income loaning money.

I recently started reading his biography and this stood out to me.  I enjoy reading biographies of successful people, and one strategy that seems to repeat itself is that wealthy people lend money.   Often, they make the bulk of their wealth in other areas but investing in loans is extremely common.  There are two reasons wealthy investors choose to invest in loaning money:

  1. Safe and steady income
  2. Low to zero-time investment

It is an extremely passive investment, giving them income while preserving time to build their empires.

I chose to get into the lending business because of my passion for real estate and finance, and later learned how common this industry has been throughout history.  It is exciting to know that I am currently actively participating in, and providing other investors the opportunity to participate in an industry that so many successful investors and business men and women were in.

I read very little about the benefits of the lending business outside the secure profits and passive approach to investing, but there is so much more to this business.  Because I focus on lending to real estate investors, I get to help people improve neighborhoods and help them make money for their families.  Helping my investors make money, while my borrower makes money and I make money, makes this the perfect business for me to be in.  The fact that I get to see the properties we lend on being improved gives me a sense of pride and a sense of security.  I know our loan is secured by that property and if something goes outside of the plan, I have a plan.  I am always in a position to take over the project.  This helps me feel comfortable that my and my investors’ money is safe.

Pine Financial is a growing private lender.  We have an approved Regulation A and over 1,300 funded loans under our belts.  Let me know if you have any interest in learning more about a steady, passive investment that Cornelius and so many other successful investors participated in.

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