Method of increasing return to owners of income property with intent to reach ultimate goal of zero mortgage debt without major financial stress

A method of increasing the return to an owner of investment real estate property subject to a mortgage that is self-amortizing over a period of years with a balance less than the market value of the property, leaving dormant equity in the owner and generating lease income, comprising the steps of:

• a. appraising the property to obtain a fair market value;
• b. creating ajoint venture between the owner and an organization exempt from taxation under prevailing tax laws;
• c. donating to said organization, by the owner of the property, a percentage of the dormant equity in the property without creating acquisition indebtedness and without creating a gift taxable under prevailing tax laws;
• d. servicing the mortgage and managing the property by the owner over a period of years until the mortgage is extinguished or retired with lease income, and the balance is reduced to zero;
• e. paying income taxes during the mortgage servicing period on the retained percentage representing the owner's share in the principal reduction amount in the mortgage;
• f. selling the property by the joint venture after the mortgage retirement date for a predetermined selling price;
• and
• g. distributing the net proceeds to the owner and to the organization in accordance with the percentages in said joint venture.