The idea can seem complicated and really is in my mind quite simple. @bootleggerbob has it rightin the most simplest way 'buy low sell high' in another easy way not to over complicate things I will give it my best shot.
You start a business with your mates as shareholders and borrow money from a bank or finance company on a line of credit. Let's say you buy three vacant undeveloped industrial land properties. (Undeveloped)
The company develops and builds industrial units either on their own or with a joint development partner and rents the units out. The money recieved as rent is directly returned to the finance facility to meet repayments and top up the line off credit available (drawdown).
The developed units are now in a prime area fully rented and the development partner or another business wishes to buy these off your hands and or your wanting to sell.
You sell your company's share of the holding and development hopefully at a very handsome profit %
Sale profits are returned to the finance facility line of credit giving greater buying funds to repeat the process however this time you also have the profit from sales and rental income over the previous period to buy more undeveloped acreage and repeat the process.
At some point in the process you have enough paid out your draw down facility or paid completely to return a dividend to your partners shareholders or you have been bought completely and the final profit is divided to shareholders.
Rule of thumb here is while ever you are buying low to sell high in a highly desirable area (Anadarko basin being the third highest producing oil basin area in the U.S with breakeven per barrel less than $40) each cycle should be in handsome profit
Hope that helps
Keep well cheers Paul
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