Cash lender or Finance?

[Bob Romano]

Question: I have a cash lender that will finance my next deal at $225,000 at 4%. No monthly payments , he just wants his money back within 2 years . Either i refinance to cash him out or sell it at the 2 year mark, no biggie. I ran the worksheet with using his money and me putting 20% down the traditional way. The ROI is actual more when I do the 20% down than it is borrowing off of my private lender, what am I doing wrong? Shouldn't the return be more with using 100% of other peoples money?