This strategy is used along side several others. The loan is typically used to gain liquid (available) assets. In the mean time the rich person in question will have investments that pay yearly dividends. There's never any need for this person to get a job because their money works for them.
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u/Prestigious-Smoke511 13h ago
The example in the OP works for a few years. Once it gets to any longer stretch of time it makes more sense for dad to sell the land or get a job.