I've been managing for 15 years and have helped a couple owners change/expand their portfolio. 

We've had this note in our portfolio for about 5 years which was sub-performing at best when we bought it, got it back re-performing again and been paying like clockwork since. 

They’ve completely changed how we’ve built our rental portfolio by focusing on new construction homes in the best U.S. markets.

If you’re referring to the “newbies” with $10k to their name that watch a video by Pace and get excited and pay for joining, go out with their last $5k and do a sub to with a “desperate” homeowner without revealing all the possible consequences (because they are unaware of the consequences through lack of experience and lack of knowledge and or choose not to inform the seller) then I agree, it’s probably going to turn out badly for all concerned.If on the other hand you’re referring to a seasoned investor with excellent credit, significant cash reserves, who wants to add a property to their portfolio without going through loan qualifying, and can pay enough to give the seller “walking away” money because of the low existing interest rates and or, and is dealing with a informed seller, then I find nothing wrong or negative about the transaction.  

This is home for us, and our portfolio is based here.

Valid point about the out of state rhetoric and showing my portfolio of flips in CA seems like the right way to go. 

Quote from @Chris Seveney: @Francisco AvancenaThere are specific lenders who will do land dealsBut of course not as many as traditional real estate.The key will be skin in the game - typically for land because it is less liquid than a home the lender will want to have a lower ltv on the deal I fund land flippers currently in  CO FLA WA ID MT NV AZ OR TX SC GA VA  one thing about land though LTV is lower and RATES are NOT the same as typical HML rates are higher for raw land but its a specialty niche and a business that I grew up in..

Plus, having a dedicated account for marketing ensures you always have funds to invest in finding your next deal.For those looking to scale their portfolios, this structure becomes even more important.

Most of my clients:1) Put 20% down for a conventional investment loan.2) Put 10% down for a second home loan3) Something else, either hard money, DSCR, or portfolio loans.These are the most common ways. 

I have a few MTR's in my personal portfolio.