He's had two successful flips so far and after this third one he's looking to pay off the HELOC and roll the profits into his future flips.

I believe it is a larger issue than what we define as the economy, which is mostly measured in corporate profits and Wall Street performance, this is not what the average person perceives.

For profit and not for profit investors can be brought into the financing structure to work together to meet the needs.

I was determined and wanted something that I could sustain for the long term for my family's livelihood and control the effort I put in and the results I got from that effort.I specialize in sourcing properties for fix and flip investors nationwide (wholesaling, but with real-world experience and closed profitable deals for myself and my investor partners) with a roadmap to acquire rental properties as finances permit.A lot of our deals are currently coming through organic search as I have a background in substantial traffic generation through search engine optimization and organic means.

If his fixed costs are $4000 per month his profit just doubled from $1000 to $2000 monthly.

That house won't have a profit for 3 or 4 years now. 

Fully occupied, the property grosses $5,570/month with $4690 net profit after expenses.

Anyone who has ever tried selling a successful (profitable) business will tell you it's not that easy!

If you catch these at the pre-foreclosure stage as slow pays or initially in default all the better as the bank has less in collection expense.You can still work out a discount but even buying at the payoff it can be profitable depending on the property value.You can practically force a lender to sell as it can fully indemnify them as a full payoff as demanded, continuing with a foreclosure becomes a rather vengeful act by the bank to punish a borrower, they don't want to go there.

I also do consulting from time to time to share how leverage and build a profitable holding company or fix/flip entity.