If it goes bad, instead of losing your investments you take a diminished return.

Inventory has diminished greatly in last 5 months and most people don't even know it is going on.

LUMP SUM because the money paid out over time has diminishing returns.The payment stays the same but inflation eats up the value.I can take all the money TODAY and make it worth much more in 10,20,30 years time.2.With that kind of money I could have my own team of accountants to do this for me.3.I would still invest in real estate because I LOVE IT !

This, of course, doesn't factor in the latency of my money when it isn't loaned out, but it shows the power of leverage.Ryan, IMHO you neglected one major factor into your return equation ... loan losses Not all borrowers that you make will fully repay what they owe and not all borrowers will pay on the dates that the payments are due ... yet your bank still requires you to make payments on your note on the due dates.If a borrower is seriously late or defaults, your returns diminishes due to legal expenses associated with collecting or foreclosing.While you may be very good at selecting your borrowers there are no guarantees that your customers will follow through as promised.* * *I'd certainly like to know what lender ... especially a commercial bank will fund you with a 5 to 1 line of credit based on a $100,000 CD?

Seriously, you're diminishing your pool of buyers/tenants but if the numbers make perfect sense and yours isn't the only residence on this street then I'd say go for it.

Tires will need to be replaced sooner, and the vehicle value will diminish faster.

I think it's fine for real estate though, which is a people centered businessYou've got a good point about nobody being able to spell your name-- unless you want to buy up the domains of all the possible misspellings and set them to redirect then you could really diminish people's ability to find you. 

When that time hits, then it's time to sit back and outsource the system - when everyone's paying "fools price" for property again.Yeah, I don't chase fads and those of us who were doing the foreclosure thing long before it became fashionable know we are already past the point of diminishing returns.

They end up breaking too much and the profitability is diminished.

(I don’t know how much the value is diminished for the rest of the property’s life by having that box checked on every sale, but that’s not zero either.)