Now I'm not trying to do anything illegal or scam-like, I basically want to know can this strategy work for someone who has little to no money for anything dealing with real estate (down payments, monthly payments, etc.).

This deal looks like a scam.

Is this a new way to scam?

Personally, I sounds like a scam to me.

Thanks, I was thinking of using this to expand my abilities, but don't want to be a victim of a scam.

Some borrowers I know have their lender ditch them at the last minute, and although it's not a scam, it can cause you to have to scramble to find another lender or lose the deal. 

The benefit of having less equity in the property may later be accepted even though the equity in the property has been reduced and no longer available to other creditors.Equity stripping or skimming is a whole different animal and occurs when excessive fees are charged in a preditory lending scam, or where equity is transferred to someone who is to acomplish a service in connection with a foreclosure or bankruptcy, such as a promise to save the equity for a homeowner who is about to go into foreclosure.If you use a note and deed of trust to transfer equity as a method to reduce equity between related parties, you really need to see an attorney, do not take any such scheme off the internet or from a book.

I have been to the seminars and most of time feel like I am just being roped in for a scam.

It's ALL A SCAM.

Have we been duped, scammed, bamboozled.