Kinloch, as an African-American community, developed out of a land purchase model similar to the Brooklyn, Illinois model. Since it was not legal to sell directly to blacks, the Olive Street Terrace Realty Corporation sold the parcels to whites for an average price of $150. The new owners then sold the plots to blacks for an average of $350. This allowed the company to use the white people's loans as collateral for further bank notes. To get white investors, the company circulated testimonials of investors who paid in $50 towards a parcel and received returns of $500 to $1,000 on the investment. In an advertisement to the "Argus", Olive Street Terrace Realty said, "The good colored people of South Kinloch Park have built themselves a little city of which they have a right to be proud. More than a hundred homes, three churches and a splendid public school have been built in a few years."