How to get homes from sellers who own home, with tenant rent....?

[Ralph E.]

I met a man who told me he had acquired real estate with bad credit. He said he'd walk into realtors office and say something like "I am looking for houses that the owner has paid off mortgage, that the owner is renting out the home. I have bad credit, and no, or low money to put down". He said they laughed at first, but then later, after   these types of houses, they would send more houses his way.

He said that the trick was to have the closing on the day rent was due from tenant, and I think he said he'd have $1,000 earnest money for the closing too. I'm guessing the tenants rent, and the earnest money were the down payment.

His plan was to get 20 homes this way, and said that it would make him look like a millionaire on paper.

Can you tell me more about what this man was doing to get these types of deals closed? How would you explain to me, how I could take action to do this, in a way I might understand better?

How would I go about finding these home owners, who own their homes, free and clear?