@Allen Masry you stated you want to invest passively, so real estate is out, except for REITs, which are part of the stock market.You might be tempted to invest in a syndication, but those are high risk and you really need to research and then monitor them.

What this model does is provide funding by sharing future income, without adding debt and, except for those about income gathering to the platform, without adding repayment obligations to the property owner.

There's exceptions to everything.

It’s a move that worked out exceptionally well, especially in a growing market like Phoenix.Here’s how you could approach it:Unlocking Equity:A HELOC is great for flexibility, while a cash-out refinance might be better if you’re aiming to make multiple acquisitions quickly.

Numbers always look good on paper but between holding costs when acquiring and renovating property, closing costs on can also add up.I am not saying it cannot be done, as I did it with about 75 loans in a very similar fashion (except I was buying NPL's and got them reperforming).

EXCEPT!...

Who cares about lifetime interest costs, except to the extent you can easily lower them (refinance to a lower interest rate) to increase your cashflow.

There's no charge to me to get these funds except a yearly fee of 200.00. 

Everything went really well except for the fact that they sold the loan to a hedge fund before closing and the hedge fund's fees were added to the loanguys fees and it all added up quite a bit so I changed my mind at the closing table and used a private lender that is friends with the closing attorney. 

The only exception might be if you plan to and if your market supports short term rentals.