16 Boring Ways to Make a Bank

By Simi
16 Boring Ways to Make a Bank

One of the surest paths to great financial riches is through building up a real estate empire. The advantages of real estate are that land and buildings are always in demand. They are “hard” investments that are valuable because of their usefulness as an actual, material asset people need.

Because of that, it’s also much easier to secure financing from a bank to help you invest in real estate than it is to secure financing to help you invest in a business idea. If the idea is a bad one, or the market doesn’t respond to it, or if you mismanage the business, the bank loses the money it lends. But even if you mismanage a real estate property and can’t repay the loan, the bank can still repossess the property and make money again under new management.

So you can start out with just a little and begin to build up a real estate empire. However, you will only be given a little to manage and an opportunity to learn how. If you can do that, you can climb to the next rung. If you prove yourself at each rung of the ladder, you can climb to the next rung.

1. Start with a Duplex

Start out by getting a mortgage from a bank for a duplex, which is a property with two houses that are connected. To do this, you will need a steady income to pay the mortgage and a decent credit history. If you don’t have that, you’ll need to back up a step and start out by getting and holding a steady job.

You can live in one of the houses in the connected duplex and find tenants for the other house. But you must vet your tenants well. Do a credit check and a background check. Make sure they have a steady income. Ask certain questions to see if they’ll make good, reliable tenants. There are resources online that spell out exactly how to do this right.

After you’ve built up a solid credit history by paying your mortgage for the duplex on time using your work income and rental income from the tenants, you will eventually be able to scope out another property. Get a mortgage on that, move in and rent out the other half of your duplex. Over time you can continue building up your holdings, but it will take years and years of grinding to start to make good income.

If you keep growing steadily, you will reach a certain critical mass and find that you are responsible for a lot of properties and are in the top one percent of income earners. If you want to retire, hire a property manager to handle your empire and you can sit back and collect the checks.