Let’s face who would not want to buy a property with no money down!  Use someone else’s money.  If it was that easy we would all do it right?
OK so here is the catch.  You purchase a property with a mortgage to 80% and then you ask the seller to hold a venders take back for the remaining 20%.  After 2 years the property appreciates, you go back to the 1st mortgage holder, and you refinance the property and pay the seller the remaining 20%.  Just like that you did not use any of your money!

But what happens if the property did not appreciate as much as hoped?  What if the lender does not want to do the refinance?
This is common practice on commercial and units 6 plex or larger, mostly because of the high sale price it’s the only way to get these deals done.  For someone that owns several properties and has a high net worth this can be a great way to build your portfolio.
For the beginner or small-time investor this can be very risky and costly.