Wish more people would study up on Internal Revenue Service installment sales for residencesIt's important not to confuse the seller about the toy using and teach them every in and out re: the legality of installment salesThe wonderful thing about a private mortgage is it's a note that can survive the seller's death, and if they love their kids the kids will get the money surviving, and if they love the church or college, the charity can get that cash flowThink about this get 10 houses on installment sale that cash flow with the tenants paying the private note and down the road you will have 10 properties free and clear without even going to a bank to buy them!

This cash flow is like an annuity where you will get a monthly payment and if you pass away before the note is paid off in full D's cash flow payments can continue to either your children were to charity like a church or universityThe biggest risk to you as a seller on a private mortgage is what if the payments stopped for some reason, and we can set up a automatic payment directly to you as a private lenderAlso to protect your interest we can open up an escrow account and if for any reason these payments are 60 or more days late you will get title returned to you so you do not have to go through a foreclosure process

Need for tenants to meet living expenses by getting food from food banks, clothing from charity closets, and/or letting go of owning a vehicle.4.

Also, to gain financial independence and the freedom to live life on my own terms with more time for family, hobbies, adventures, and charity work. 

That is not an investment, it's a charity and you should mentally burn that money.

In another context if this family had approached me for charity, I would probably have considered helping them out.What would you do -Option 1 or 2 (or something else) ?

I would also give some to charity, but that's just me.The typical cap rate in Boston is around 4.5% right now, so making 8-10% in this market is tough unless you partner with somebody who absolutely knows what they are doing. 

I want to organize and host big, fancy charity balls with $10,000 VIP tables & a red carpet where CEOs take pictures with the big check their companies donated to (insert NPO). 

What percentage of your gross yearly income  do you donate to charity?

@Christian Martinez Hi there, I'm just starting out just like u and I agree with all of the above, to break it down, this us what I have made a habit of doing for 3 months now to prepare myself and to begin heading in the direction I want to go: 1: calm urself down and write a simple plan of what u want to do (ie- buy 1st REI in 6 months - 1 year.)2: write out what u need to do to achieve this (ie- start saving, educate urself, build a network if likeminded people around u, look for contacts and info in ur area)3: finances- pay urself first, have 3 accounts: SAVINGS & INVESTING, EXPENSES, CASHFLOW, put 10% for savings and 10% for investing into ur S & I acc, if u tithe 10% to ur church or charity and any expenses in ur expenses acc for any auto payments coming outer to set aside weekly amounts for any monthly payments...reasons for all this is to create a habit, to show on ur financial statement discipline and consistent records of managing ur finances and so u have money for investing.