If you are thinking of a loan in stages, it’s not the idea at all. What I’m talking about is a mortgage loan as an investment that can be harnessed even if you are not a constructor, contractor or a building tycoon. It’s the building that you will construct in stages. Want to see how?

 

The Starting Point

The cornerstone is as usual a mortgage loan, which is what we use for purchasing property. We must start with the equity of a home or any other real estate. This will need to be harnessed for the purchase of land and the further construction of a house. What I am suggesting from these humble lines is that the plans and layout of the building should be in such a way that construction can be resumed upwards and strong enough to support more storeys on top.

 

The Whole Plan

Have a building designed for three or four storeys, according to the local regulations and then execute the construction in stages, one storey at a time. Each storey should have not less than two units, as in the case of a duplex, so as to obtain the best produce out of the rent of each unit. If possible, four units will be a little smaller, of course, but certainly more productive.

The equity contained in your home or the estate you use to back up the mortgage should be enough to build the first storey. Once this is complete, you can either rent it or wait until you are ready for the next storey. Each storey you add to the previous structure will add equity which you are accumulating and conveniently using to build the next stage.

 

The Design

This will be all of a challenge for the designer, since it will be necessary to continue construction while there are people living in the part already finished. Of course, this has a cost, but the final product will be surprising.

 

The Loan

Since this situation is uncommon in the private world, you will need to communicate your plans to the lender or broker you will be working with. He will surely be able to work out an interesting plan and moreover, good conditions for the mortgage, since it is a long-run plan. Together you will make a good partnership, no doubt.

 

The Final Product

The culmination of the task will be something like an apartment building, which is totally yours with a little imagination, a bit of effort, patience and making good use of the equity in your home, which few people even think of and if they did, it is unlikely that they could have the nerve to carry it out.

 

A Far-Fetched Idea

Yes, it may be, you’re quite right. But isn’t life made up of a good balance between pioneers and users? A good friend of mine always says: In this life, you are one of two things. Either you’re a pioneer or a user. If you are a pioneer, everybody else uses your invention.

So why not do extraordinary things that ordinary people can use? In turn, you will be performing something extraordinary, using only something quite ordinary, namely, cash that you will borrow from a reliable broker.