Asset leveraging. Whats the Deal?

I have a friend that put one of his investment properties into a corporate trust account. He claims that after it is in the trust he makes three mortgage payments and over a 5 year period the corp. will pay off the mortgage.  His explanation to how this would benefit the corp. is they leverage all the properties in the trust to invest on a much bigger scale.  I believe this to be a scam.     
Has any body in this forum done this before or have you known an other who has? What was the outcome?