Investments in real property can take all types of forms.  One form is equity sharing arrangement, which involves one party (the owner-occupant) occupying the property and the other (investor) putting up the bulk of the financing.  Both the owner-occupant and the investor can receive tax benefits and share in the profit according to their investments as described in their equity sharing agreement.  First-time homeowners are the typical owner-occupant while the investor can be a family member, a seller, or any real estate investor.  This is a form of ownership and investment that allows two or more parties to share an interest in real property.  It is used in situations where, because of the high cost of housing, one party, the investor, puts down the bulk of the downpayment, and the other, the owner-occupant (also caller the "occupier") puts down little or no downpayment but agrees to pay a monthly amount consisting of "rental payments," mortgage payments, taxes, and other specified charges, and lives in the dwelling.  The owner-occupant may pay all of the mortage costs as "rent" or may pay two different amounts, one portion representing the rent and the other representing mortgage, which would include interest for which he or she could receive a tax deduction.

[Source: California Association of Realtors, Legal Department, March 2008] Posted by Harrison K. Long, www.ExploreRealEstate.net