My aunt, who was a real estate broker was instrumental in sharing with me the importance of earning income and creating passive streams through real estate investing.

Other than purchasing instruments that earn interest or dividends or what have you, it's the most straight-forward source of 'passive income' that you'll find - your money earning you money without anything further that you have to do (well, other than keeping up with your property manager, etc).Flipping, on the other hand, is a job, even if you're just the general manager.  

What instruments are available or recommended?  

It has been so instrumental in our investing journey, and in my growth as a real estate agent.

So if you wanted to "replace the mortgage" you can by using seller financing.Most people do not have cash reserves to replace a mortgage so they have to take a debt instrument in order to fulfill the two criteria above. 

As secured lender with a voluntary lien, you generally have the equitable position as of the date the security instrument was recorded.From an estate reps position, there is an asset with debts and there may or may not be sufficient equity to justify and Pay cost of administration. 

For instance, if the seller of a property finances the purchase of their property for the buyer, the seller acts as the lender (rather than a bank or mortgage company) and a Note and “security instrument” (i.e.

You'll need to pull the instrument and review it to confirm.

Mortgage interest is calculated on a bond year of 360 days unless otherwise explicitly stated in the instrument.  

Either through the loan it self, like limiting the loan to value to a level which will accommodate recovery of the advances required to enforce the security instrument, or through limiting the capital invested in the loan through discounting.