Up to this point the financing of the small house, for the one who has the money, is not complicated, but this is the unusual condition, because the average person who builds the small house has not the ready cash to put into it, for that is the reason he builds a small house. The average individual who builds the small house generally has a certain amount which can be invested and the rest must be borrowed, and there are many who advise that even if one did have the whole amount to invest, it would be better to borrow some for the building operation, and keep out as much as possible for investments in other lines where the money might bring in greater returns. The problem naturally turns upon where and how much can be borrowed for the building operation. Here again a very personal matter is involved. Some will have very close friends from whom they can secure a large first and second mortgage at a fairly reasonable rate, others may be able to secure a first mortgage from some financing institution which will be an amount equal to one-half the total cost of land and house, and then they may be able to secure a second mortgage from some friend, for most business houses are not prone to take second mortgages. Often a greater sum can be raised on the contract system, for by this method the person lending the money is more certainly assured of securing quick control of it in case of the necessity of action when payments on the interest fail. By the contract method, the individual lending the money holds the deed of the property, and can secure control of the property more quickly than if he had a mortgage and the owner held the deed. In many cases where foreclosure of mortgages are found necessary, there may be a delay of a year or more before the money-lender can secure control of the property, but if he holds the deed the delay is shortened, and because of this fact he is apt to lend more money than 50 per cent of the total value. Of course, in the contract method the owner secures the deed to the property when his last payment is made upon the principle and he has wiped out all of his interest indebtedness. But probably one of the most satisfactory systems yet devised for financing the small house is through the various building and loan associations which have grown to great strength in this country. These associations not only offer investment opportunities for small investors, but they make excellent and easy terms for those to whom they lend money for home-building. The arrangements with these institutions make the payments on mortgages almost like the payments in monthly rents, and yet at the same time the principle is continually being reduced, so that in about twelve years it is completely paid off. Then, too, one is assured of not being in the hands of some unscrupulous money-lender, as sometimes one discovers a friend to be, however trustworthy he may have seemed before this business relation developed.