What kind of deal is this and who is the guy giving you $20,000?

[Mike Schorah]

A creative financing deal that is Cashflow positive goes like this. You give the seller, say, $5,000 to give you the deed. Say you put in $3,000 of work in the house. Now you’re at $8,000. Somebody gives you $20,000 to take over. That gives you a positive $12,000 and then you’re earning $300-$500 minimum a month.

[Steve Vaughan]

Quote from @Mike Schorah:

A creative financing deal that is Cashflow positive goes like this. You give the seller, say, $5,000 to give you the deed. Say you put in $3,000 of work in the house. Now you’re at $8,000. Somebody gives you $20,000 to take over. That gives you a positive $12,000 and then you’re earning $300-$500 minimum a month.

I suppose it's possible. The bigger question is who's the seller giving you their house for $5k.

Does your guru count closing costs?  Tranfer/excise taxes? Recording fees?  Is everything free in fantasy land? Even a cheap vehicle costs a few hundred to transfer.

In my state/area it costs $6k to transfer and record the deed of a $400k property, not including title search or title fees or title insurance.

Much less costly if your seller to leave the grantee blank on the deed for you then plug in your 'end buyer' when you resell it if it's a quick turn.