This invention concerns a Shared Appreciation Mortgage (SAM), that is an arrangement where a customer enters into an agreement with a lender to share the equity in a real estate property. In a first aspect the invention is a method for financing real estate employing a Shared Appreciation Mortgage. The method involves a lender indicating areas where they will employ shared appreciation mortgages to finance a purchase of real estate properties. A customer seeks approval from the lender for the purchase of a real estate property at a price in one of the areas. After approval the customer enters into a contract, loan and mortgage arrangement as well as a residential purchase contract containing an obligation for the lender to pay to the customer an amount equal to the outstanding second loan immediately before the property is sold in order to purchase an interest in the property so that the lender and customer jointly own the property at the time of sale. The amount of the second loan is subject to periodic review. In a second aspect the invention is a Shared Appreciation Mortgage. In a third aspect the invention is a real estate property purchased by a Customer. In a fourth aspect the invention is a financial security. Lender indicates areas for investment I Investors provide funds) va 2 1 given Customer enters main contract to purchase property I Customer borrows 1st loanPart A J 2nd loan - Part B fixed principal + interest J interest rate related to I rental return I I Residential purchase purchase interest in contract the property obliges pre-sale lender to I J Mortgage secures loans pre-sale ] ' I Lenders purchase interest from " customer I Joint sale of property I Customer repays loans r Figure 1 J receive Investors capital