What do these loons really mean by "other people's money?"

[Meryl McElwain]

If you're in this business you have heard the line "I bought 5000 houses with other people's money" (exaggerated for dramatic effect). I'm aware that experienced folks can generally find investors that would like a consistent return to give them their cash. What I'm baffled by is the amount of people who say on Saturday they were managing a dry cleaners, on Sunday bought "The art of flipping by Joe," on Monday gave up their day job and by Friday used other people's money to buy 5 houses. Is there some kind of equity leverage scheme going on here that I dont understand? Are completely inexperienced people actually going out and getting investors to provide the down? What in the world does this actually mean in real life? Or are these people all just full of it. Can anyone provide a real life story of using other people's money when you have little to no experience?