@James DeRoestI think it looks just as good as being refinished and at a fraction of the cost.

They've been around for 15 years and while they still constitute a small fraction of real-estate transactions, a court ruling in the past 2 (maybe 3 now) years opened the door for them to have access to the MLS system for their listings and has accelerated their growth.

That's an equity investment and would entitle the investors to returns based on their fraction of the ownership. 

I think what confuses most people is the fraction.

Pure fact is that there is only a fraction of 2nd's out there when compared to 1st lien NPN's.  

Often contractors and/or homeowners over buy when doing their own renovations and sell the leftovers for a fraction of their original cost.

It is not a JV but the note broker actually fractions the notes among a few investors.  

Keep in mind we have to support our schools with houses that are worth a fraction of what they cost in California. 

Perhaps I could take out a fraction of a hard money loan to work with my HELOC that would cover the majority of the project.

I don't think you can assume that there is something going on with the banking industry - even with the numbers you gave (less than 20) that is still a tiny fraction compared with the number of people who work in the banking industry.