I would start with local banks that should be more motivated to loan on revitalization projects in your area.

when they are very motivated. 

This site is geared towards finding motivated sellers as a wholesaler, not a buyer/listing agent.

What do I do other than continuing my search for motivated sellers?

But RE has motivated us enough to go for it!

I used BP to feel out the Real Estate investing crowd and it motivated me hearing success story after success story.  

One scenario is if I buy a house from a motivated seller and then I rehab it and sell it.

Holding back the money helps motivate them to stay honest and complete the job or never start it once you see their true intentions.Some say they need the money to buy materials.

Just wanting some new perspectives and trains of thought on finding motivated sellers.

They have something going on in their lives that is motivating them to unload the property as fast and with as little stress as possible.I'll give you an example of a seller I worked with that you can share with your wife to help her understand the kind of situations we regularly come across.This guy had his house up for sale by owner because no agent could help him.