THE PILOT AT THE CONTROLS HELD A PRIVATE PILOT CERTIFICATE WITH A SINGLE ENGINE LAND AIRPLANE RATING. THE SECOND PILOT HELD A COMMERCIAL CERTIFICATE WITH A MULTI ENGINE RATING, BUT DID NOT HOLD A FLIGHT INSTRUCTOR CERTIFICATE. THE PRIVATE PILOT INITIATED A TAKEOFF IN THE MULTI ENGINE AIRPLANE AND WAS OBSERVED BY A POLICE OFFICER/PILOT TO BE APPROXIMATELY 75 TO 100 FEET IN THE AIR. THE AIRPLANE THEN DESCENDED AND CONTACTED THE GROUND OFF THE RIGHT SIDE OF THE DEPARTURE RUNWAY AFTER A SIMULATED ENGINE FAILURE. THE PILOT INDICATED HE HAD A TOTAL TIME OF 4 HOURS IN MAKE AND MODEL.