Wealth Systems: Direct Lending, Part III
One of the most powerful wealth engines is lending.
When executed properly a direct lending strategy delivers on several fronts:
creates multiple upside scenarios for the lender
creates current yield
protects principal
In Part I we covered the history, terminology and operating mechanics of a Direct Lending business. The first rule of this business is simple:
do everything you can to protect your principal.
You are risking cash, time and other resources in exchange for repayment including interest in the future. In Part II we focused on protecting wealth by exploring methods of risk mitigation + upside creation.
Now its time to put the pieces together and spin this engine up.