When dealing with lenders (Banks or otherwise) I’ve found that even bankers can have absolutely no clue what it means to think or operate as an investor. I read one time where bankers are nothing more than custodians of money. In many ways thats true. In the banking world just like everywhere else, just because you handle money does not mean you really understand the principles of investing. Take two different bankers, one does investment loans and one does consumer loans. I’ve dealt with both and I can’t get a rock solid, golden opportunity investment deal through a conumer loan banker because I don’t fit the profile of a consumer. (No Job = No Income in their eyes) I couldn’t even get aloan on a 5 year old pick-up because I just didn’t fit the profile. On the other hand with an investment oriented banker, I can make a phone call and get a quarter of a million dollar deal approved (just send me the details they say and we’ll get right on it) And about the pick-up? they say, “tell the dealer to call me and we’ll take care of it!”
Thats just the difference in bankers who supposedly understand finance.What about us regular people. I’ve developed a way of looking at almost everything related to finances in my life as etither “an investment” or “everything else”. Because in my world there are investments and there is everything else. (at least related to finances) Obviously, the investments exist to create income. Everything else is there out of necessity or pleasure. The investments consume capital but returns a profitable income. Everything else consumes capital but not return any income. Thats why its referred to as a “Consumer Loan” in the case of a loan.
Thinking like an investor means that everything is judged by its income value. Thinking like a consumer means everything is judged by its expense value. When thinking like an investor, the value of anything is completely relative as far as size or expense. When thinking like a consumer, everythin is relative compared to your ability to earn enough to pay for it.
I think that is the biggest difference betweeen people when I present them with opportunities. The few investor types see the outcome, the consumer types see only the cost.
Just an observation. Make of it whatever you want.