Quote from @Clive Duncan: I'm not sure if this forum is still active, but I'm looking to chat with a few real estate investors in Ontario who may be interested in raising funds by selling fractional shares of their property.My co-founder and I are doing some market research so we need to talk to some folks to gather more insights before building this out.If this interests you or someone you know, please reach out.

How to Structure the Deal to Protect Your $20KIf you’re willing to cover the $20K arrears, here’s how to protect yourself:Option 1: Secure Your Funds with a Lien or Escrow AgreementUse an escrow account: Deposit the $20K into escrow with clear terms—if the assumption is denied, the funds return to you.Record a promissory note & lien: If the deal falls through, this would give you a legal claim against the property to recover your funds.Option 2: Sub-To + Wrap While You AssumeSubject-to deal: Take over the existing loan payments before assumption approval, securing control.Escrowed deed transfer: The seller signs the deed into escrow only to be recorded after assumption approval, ensuring they can’t back out.Lease option fallback: If the assumption is denied, consider a lease option agreement until another solution is found.Option 3: Negotiate a Seller Financing HybridAsk the seller to carry a small second note for the $60K equity gap at favorable terms.Use your $20K as a down payment, structured as a secured loan against the property.3.

✔ Joint Venture (JV): Find private investors willing to fund equity for ownership (e.g., 30% of the deal for 100% of the down payment).✔ Syndication (Reg D 506(b) or 506(c)): If you're looking at $1MM+ deals, syndicating investors could work—though it requires legal structuring.✔ Networking: Target high-net-worth individuals (HNWI), real estate groups, and doctors/lawyers/tech professionals looking for passive cash flow.3.

I used half the HELOC ($160K) as a down payment on a 12-unit property, making my dad a 35% owner since we used his funds.

Whether you form an LLC together or structure it as a joint venture, you’ll want everything in writing so there’s no confusion down the line.For funding, private investors and local banks are your best bet.

Once the HELOC is in place, your father-in-law could loan you the funds to invest in real estate.

Larger lenders might bundle their loans and sell them en masse to a Wall Street hedge fund, bank, or insurance company.Those who like to label themselves as “note investors,” as you did, typically buy defaulted or non-performing notes.

If you lack the funds to flip any other way, go for it, but do understand it's not a business model for long term success. 

You could put most of your funds in the stock market and access them when needed for a HML.

Texas does NOT ban homeowners from refinancing their home to fund investment properties.