@Brian Gibbons  chapter and verse.Guru  BP people books  tout the sub too then wrap underlying mortgage to new buyer and make the delta..

The only way I see is to be pretty delta neutral.

Delta Home Services  Jason is the guy . 

I would then lend the money out to fix and flippers at 15 to 20% APR   IE HML  and make the 15% on the 1 mil  that's 150 a year... then make the delta between the 7% bank rate and 15% low side  for 8% spread on 5 million which is 400k a year... there by grossing before tax  a tidy 650K a year...

There's a huge delta on what they advertise to borrowers versus lenders, and even those numbers are false.I guess the recommendation would be1) No work - online only high yield savings account2) Willing to do a tiny bit of work - park it in bank accounts with sick sign on bonuses GL!

@J Martin - the $460K fixer I was using as a comp (770 DELTA St, 94134) appeared to have a tenant paying about $500/month, so I assume they've been there for 20 years and the place would need new kitchens, baths, floors, all windows, roof.

However, the rub us in the perceived value of the problem and what can be negotiated between principals.Thus is my argument about wholesaling: the wholesaler is only a speculator who is working the delta between market value and acquisition value.

That delta can create motivation.

I cant even find turn key for under $40k in the Mississippi Delta.  

The delta is used to pay off the loan.