Quote from @Martin Jones: YouTube gurus will tell you to borrow money from someone else, but that's bad advice for a beginner.

In certain situations—especially with motivated sellers—this can be a way to structure a deal with little money down and flexible terms.

It's slow money.

It doesn't even take into account the pref!

I always am amazed when someone selling a $600,000 house brings me a listing agreement where they agreed to pay a stranger $30,000 to list their house for sale and they didn't even read the agreement much less spend the $250 to have a lawyer tell them that yes, if they sell it to their cousin during the listing period they still have to pay the $30k.

Why Part of a Good Deal is Better Than 100% of No DealHey BiggerPockets Community,As real estate investors, we all want the perfect deal—the one where we control everything, make the most money, and have the best terms.

Pretty easy to make 2% or more when you're spending that kind of money.

You want to buy real estate with no savings, which even if you can scrape together a 10-20% down payment, means you will have no cushion to fall back on when the inevitable surprise expense happens. 

If you like the home, area etc, you could refi and pull out the same amount of money.

You are losing money on both properties.