The BiggerPockets Podcast Episode 728 takes a deep dive into what these are and how you can get into them. 

Im confused why note seller would be selling the note at this point before auction at such a deep discount.

You take on the role of digging deep into their pro forma and grading it like a teacher instead of writing the paper yourself. 

You’re neck deep in Paralysis of Analysis, a virus more debilitating than the Spanish flu, Bubonic Plague, and the latest virus du jour, Covid.I’m no different than you. . .well, I’m Italian, so I’m a better cook and I have three Uncle Tony’s who collect my rents.

For example my simple spruce up would be, renno bathroom, and kitchen, paint, and redo carpet upstairs.But if i think real deep into what I could do to make it a STUNNER then I think, knock down walls, create more open/broken floor plan, add central air, possibly do an addition to add a 3rd bedroom and second bath.So when you could do ANYTHING .. how do you draw the line of what you should do?

Most of them are also not very deep, leaving many situations unregulated.

Be wary and seek advice about everything before you dive into the deep end.       

So if you have deep enough pockets I'd hold the property for longer and refi into a conventional loan if possible.

@Chris SeveneyI agree the sponsor is the most important factor, but passive investors can not ignore what they are trying to accomplish, and have a deep understanding of the business.The trinity!

Quote from @Adriana Collado Hudak: Hi Jason - I did a deep dive into turnkeys and MidSouth Home Buyers checked off all the right boxes.