Because buying a house in excellent condition and then totally changing the layout can be expensive, especially if it's involving load supporting walls. 

That is exactly what I did and told my story on BP Podcast 238 in 2017.

The PM had a plumber go to the house, incurring an after-hours emergency fee, but was unable to assess the exact cause of the issue at night, stating it's either a frozen pipe or pump issue and they need to return during the daytime to fully address.

So having a borrower sign a deed in lieu AS A CONDITION FOR MAKIMG A LOAN is not going to stand legal challenge.  

@henry Clark has posted on BP exact detailed steps to create a self storage facility.  

I too am an AHP, AHPS funder and looked into a preREO on their site offered for $19k which they provided a $90k BPO in current AS-IS condition.

From a lender’s perspective, hard money and private money are exactly the same. 

Even if I do exact same thing I will have two houses instead of one to pay loan back.

This is exactly the sort of discussion I was hoping for.

Exactly, why Im here on BPSincerely,Jason