The South Korean Teacher's Pension fund, or the entity managing your Roth IRA, or whatever, that buys the mortgage backed security wants the safe asset paying a steady ROI, but doesn't want to deal with consumers directly at the point of origination.

In Ohio we have to pay interest of 5% on security deposits kept over 6 months, so if last month's rent doesn't count as a security deposit it might be worth it.

Secured by real property.

If you don't have much money to start, try driving for dollars, putting out bandit signs, and some other more time-extensive/cheaper methods.

You can purchase a multi family home with your entitlement, live in one and rent out the others  with 100% financing.That should be your preferred method of financing for the least amount of money out of pocket.  

What is not legal in NJ is any form of required prepayment in excess of 1.5 months security.

I believe the greatest security you could put in place would be to take a 2nd position lien on the property behind the bank her financing is coming from.

In exchange for their money, they get first mortgage on the property to secure their funds, with monthly interest payments.

Seems to keep valuations pretty fair or you can agree on another valuation method.

Also make sure they haven’t pocketed security deposit.