In a previous post we met 'Rich Man' and 'Poor Man', and why lien certificates were not a viable investment for either one of them individually.
Poor Man may not actually be "poor" as we normally define it. But he doesn't have much cash for long term investment. For now, he's looking for bargain properties.And, Rich Man may not be fabulously rich by the normal definition either.
But, he has several thousand dollars in cash that he's looking to invest safely, and passively (he doesn't want to have to manage the investment). He won't need the money for quite some time.
Poor Man's quandry is that he'd like to get involved with lien certificates so he can get some bargain properties. However, he doesn't have sufficient cash to buy the number of liens required to have a good chance at a property.
Today we talk more about Rich Man.
The Rich Man's Lien Certificate Quandry
So, on the other end of the spectrum from Poor Man, we have Rich Man (or, for that matter, "Rich Woman"!) He has quite a bit of cash available to invest. Not necessarily millions, but certainly several hundred thousand dollars.
However, he requires a totally passive investment and is not willing to get his hands dirty.
He's not some elitist who is afraid to go out and accomplish something. In fact, he's been doing just that for 30 years. 30 years ago HE was in Poor Man's shoes.
Maybe he's elderly, or maybe he doesn't need to work anymore, so he's onto other pursuits.
Or maybe he simply just doesn't have time to get involved in lien certificates, which do require work.
Lien Certificates Bring These Opposites Together
One very workable solution to both parties' problem would be a collaboration to invest in lien certificates.
-Knows a good amount about real estate and lien certificates
-Isn't afraid to get his hands dirty
-Is willing to delay gratification for the future
-Is willing to do whatever it takes to be the Rich Man of tomorrow
BUT Has little money to invest.
-Has a significant sum of money to invest and would like to earn a better return on it.
BUT He will not invest it in something that could become a burden to him to maintain. And it must be safe
So, they fit together perfectly.
In the final post in the series about Rich Man and Poor Man, I'll lay out the perfect arrangement that meets each of their needs, so that lien certificates give them each what they want.