There are other ways.
You could use what I call the ‘sugar daddy’ model: buy a house and have a girlfriend in this model. Asking for $25,000 a year for your girl (about a house and a car), plus $2,000 a month for $250,000 worth of investments you’ve made in the same way as I described, is going to work. If your girlfriend’s income is lower than that and she doesn’t have a good education, you could get a good student out of her and live together.
You could also buy a house and live in it with a good, low-income girl you like. This makes sense; if it’s cheap (like the guy I just described, above), and you have a nice house and a house-sitter, the house and her income will be more equal so the mortgage payment won’t be excessive.
But you could also buy a decent house and live in it with a $10,000 student and a $25,000 house-sitter, which would be a lot cheaper.
In a sense, I think we can all agree that the sugar daddy model is a lot more expensive than the old model of renting. On the other hand, I don’t know of any other situation where the money from a $100,000 loan was going to pay for a very nice house for you and your family. So that’s a trade-off, in my view, between being able to have your girlfriend on a low rent and getting a house that is low-rent and affordable.
Is the $100,000 model for rich guys any good? Or is it only good for rich guys?
No, it’s good for just about any person. We’ve already discussed the point above that it is expensive to live out of a car or house, so a $100,000 loan, even for a good, low-income girl, is still expensive. But it’s also expensive — if you have a nice house and a girlfriend — it’s expensive. It makes more financial sense to buy a decent house and a good (but low-rent) car than to rent and take a $100,000 loan.
For any person, the bottom line is a $100,000 loan is usually not as great a deal as a $5,000 loan from a friend that makes $500,000 each year. I mean, just like a $5,000