You have to tell me, but let's say it's $1,000If I'm a buy and hold investor looking for positive monthly cash flow of at least 10% per year, I need to make a net profit of $125 per month if I were to pay off the existing $55K mortgage using a conventional 20% down mortgage, 6% APR based on the following:Mortgage owed: $55K20% down = $11K + closing costs = required investment (say $15K)10% ROI on investment = $1,500/year = $125/monthNew mortgage owed: $11K with a monthly payment of $386 principle and interestEstimate taxes and insurance at $175/month based on 3%/year of market valueMonthly PITI cost: $561/monthOther property management costs: $200/monthTotal monthly cost: $761/monthMonthly rent: $1,000Monthly profit: $239/month = 19% ROIInvestor is looking for 10%, so you give the investor $125 and you split the rest of the monthly profit between you and the seller ($114/month)Takes 175 months (over 14 years) for you and the seller to make $20K, but you've made a deal where you've sold house so there's no mortgage on the seller's credit (didn't do subject to or seller finance), there's no out of pocket costs for you or the seller, you both have monthly income for the life of the mortgage and you can actually create second and third mortgages against the property to secure your position, so if the new buyer sells, you must be paid your $15K and $5K respectively.There are a whole bunch of assumptions that you will need to verify and tighten, but the concept I am trying to show is that you can always make a deal even when there doesn't look like one. 

The banks feel safe with that concept.

(This is what I use in California) The concept is to keep the fact that the property has been transferred private.The sales transaction remains unrecorded i.e. the deed is not recorded or the contract of sale or the financing agreement.The transaction is maintained in the records of a settlement /escrow management companyEnough documentation is recorded to protect the seller and buyer in the chain of title without making the fact that the property was transferred public record Existing loans, taxes, insurance are paid by the buyer into a collection account, which in turn pays all the accounts required to service the propertyRecording a deed or contract is not required in most states to make a valid transferNot disclosing the new sale to the underlying lender is not illegal in most statesKeeping the transfer from the lender is not a crime or against the law.

And then your proof of concept won't work.Its definitely a good idea though.

I understand the concept but I need some in-depth training.  

I figure, if I can teach someone else this concept, then I understand it.

I'm just getting introduced to this industry, but loving the concept.  

@Brian Gibbons its an interesting concept it would be very important to run this by a good Real Estate attorney to make sure the risks are understood.

The pyramid concept does not seem to sink well yet.

The concept isn't foregin to me, but I still think its a pretty cool way of leveraging technology to source funding ...Have any users tried crowndfunding to finance any real estate projects?