Investment cloning – Multiply your real estate properties without extra investment

Investment cloning - Multiply your real estate properties without extra investmentInvestment cloning – Multiply your real estate properties without extra investment

A few months ago, there was a comment from one of the readers saying whether investment cloning in real estate is possible or not. While we could not have complete chat on this subject, this concept has been in my head for some time. Do you know that this concept evolves round the investment cloning where you can buy one property with your own investment and you can multiply several real estate properties by doing nothing? This concept could have been tested and would have been yielding results. In this article, I would tell you about the concept of investment cloning in real estate properties.

What is a real estate investment cloning?

There is no specific definition here. What I meant is using an investment option and cloning it to get high returns or multiply your money. The investment concept is Real Estate. If you can buy one residential property or commercial property with your own investment and with the rental income, you can buy subsequent properties by doing zero or minimum additional investment.

Also read: Residential Property or Commercial Property – Where to invest?

How real estate investment cloning work exactly?

I would explain this with an example

1) You have purchased a residential property for say Rs 60 Lakhs with your own investment. Let us assume that you expect a rental income of Rs 30,000 per month. This amount, you can invest in subsequent properties by way of EMI’s.

2) You go for second residential or commercial property by considering home loan of say Rs 30 Lakhs. For this you would need approx Rs 30K for a 20 year home loan. Assume that you have opted for this and purchased second house and the EMI would be paid from the rental income of 1st property. You may receive some rent for a second home. It could be say Rs 10,000. This rental income is surplus and you can utilize this for subsequent properties.

3) Now you  go for 3rd residential or commercial property by considering a home loan of say Rs 10 Lakhs. Assume that you opted for this and purchased 3rd property and pay the EMI from 2nd residential or commercial property rental income. You may or may not get any rent in case you have opted for any residential land, hence let us stop here.

After 15-20 years, all your home loan EMI’s would get closed and additional 2 properties would be in your name along with capital appreciation of the property values. You have not paid a single rupee for these 2nd and 3rd properties beyond any down payment of home.

Do you think it is a silly concept, wait, I have not completed yet. You need to see some pre-requisites and limitations before thinking of this concept.

What are the pre-requisites before we implement the investment cloning concept?

  • You should own the first residential or commercial property and you should be willing to forego the rental income of it, as this would be invested for subsequent properties.
  • There should not be any home loans or personal loans in your name, else you would not get any loans to buy these properties.
  • You should not expect any additional returns from such newly added properties during the process of building the real estate properties.
  • You should have good cibil score to get quicker and high amount of loans at low interest rates.
  • In case there is limit for you to get multiple home loans, you should take help from your spouse for getting home loans.

Also read: Fixed home loan Vs Floating rate home loan – Which is better?

Well, but what are the limitations of investment cloning concept?

  • You may not get loans if you have a low cibil score. You may get stuck during building such properties.
  • Real Estate prices may fall in future in the location where you invested.
  • Too much follow-up for rental income and taking care of financial transactions every month
  • Real estate properties could be under litigation after you purchased them.
  • Interest rates can fluctuate and you may land up in paying higher EMI and the difference would affect your personal cash flow.
  • In case you are taking home loans on your spouse name, Cibil score of your spouse can affect your loan eligibility and you may be charged with high interest rates.

Conclusion: Investment cloning in real estate is a good concept. As of today, I have not explored this option, but I am sure, I would do that in coming months. No doubt that real estate is one of the best investments in India, but the cloning concept would help you to build the properties faster with no extra investment.

Readers, by any chance, are you doing such cloning concept, if so, what are your experiences. Do you feel there are higher risks involved in such concept ?

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Investment cloning – Multiply your real estate properties without extra investment

Suresh KP


  • Shaiju

    Excellet concept Suresh. However I do tend to agree with the comments above that this is very difficult in Indian Scenario. I have seen this work quite comfortably in a developed country scenario where the rent actually pays for teh property itself. The deposit required there is very minimal (between 10-30% of property value). In India with the escalating Property prices, low rental income and lackof clarity in regards to regularity of tenants, the above concept would be fairly difficult to implement. If we do have disposable income fromour primary source, then we could potentially use this as a backup in case all does not go to plan in the case of cloning. 


  • Arjunvasan

    Hello Suresh,

    I kind of liked your example. I would like to rethink in my way:

    Personal savings = Rs.60,000,00/- (Principal)

    FD RoI/annum = Rs.5,55,000/- (~Rs.41,500/- per month)

    Now a good idea will be to use Rs.30,000/- of the above interest to EMI the 60 Lakh residential flat. And then, the cycle could be repeated to buy other flats. So, in the end we could still end up owning 3 or more properties (with appreciated values and rent, of course!) and the 60 lakh principal will still remain. 🙂

    How that does sound!!!?

  • priya

    Hi suresh,

    Help me decide whether to invest in real estate or fixed deposits?  Can you advice on the Pros and cons 


    • Priya, FD’s can be breaked any time and you can enjoy it. Returns are limited. Real estate is where it is long term investment, returns would be very high. But you need to have patience. I could not invest much in real estate, but regretting now. There is huge potential in growing your money thru real estate. 

  • rajesh

    Hi suresh,

    Is it good to take propety insurance. Suppose I had taken propety insurance for 25 years while taking loan. I repayed the loan in 5 year so will my peoprty insurance be valid till 25 years and  can I claim if any natural calamity happens? Is yes then please suggest some options or company nammes.


    • Rajesh, Insurance taken thru your loan provider would close as and when you close your loan. You need to take seperate insurance after that. I have not done much analysis on best insurance available for property insurance yet.

  • Apoorva

    Hello Sir,

    I really like reading your articles. I wanted to invest 45-50 lacs. But I am confused where to invest. Real estate would always have been my first choice. So which city to invest in and type of proerty commercial/ residential, flat or plot. My basic moto invest is getting best returns. Thanks alot.

    • Hi Apoorva, One thing I could not do in my early stages of life is not investing much in real estate, which now I am realising the importance. Read some of my articles about commercial or residential, pros and cons. This is one of the best long term option to build wealth. I have slowly started now.

      • Apoorva

        Hello Sir,

        thanks for replying, i have read your article about commercial and residential, i would prefer to invest in residential as it is considered to be safer and according to recent trends there is a surplus in commercial properties leading to less appreciation. But i would like you to suggest me which city i should target like Banglore/ Delhi/NCR/ Pune/ Mumbai. And i should go for a flat or a plot.

        • Hi Apoorva, It is difficult which city would grow faster. Also the locations with city would also depend. Hence I would not be able to advice you on where to invest. You need to do some ground work that.

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