With this money and with money of his own he would make the final payment on the lot and would begin the building itself, paying his labour on the nail, but getting his material, lumber, brick and fittings on time.

When the building was half-way up he would negotiate a second loan from the banks in order to complete it and in order to meet the notes he had given to his contractors for material.
He believed this to be a shrewd business operation, since the rents as they returned to him were equal to the interest on a far larger sum than that which he had originally invested.

He said little about the double mortgage on each piece of property "improved" after this fashion and which often represented a full two-thirds of its entire value.

The interest on each loan was far more than covered by the rents; he chose his neighbourhoods with great discrimination; real estate was flourishing in the rapidly growing city, and the new houses, although built so cheaply that they were mere shells of lath and plaster, were nevertheless made gay and brave with varnish and cheap mill-work.

They rented well at first, scarcely a one was ever vacant.