They fix it up and instead of flipping they refinance into a traditional 30 year mortgage. 

Prefab homes (not mobile homes) are usually built to the same standard as traditional homes, they are just built offsite and assembled onsite.

If you are on this platform looking for the best agent she has the best team in the city!

The same can be said for my brother who invests with me.If there simply aren't traditional lenders out there willing to do something like this, I'll look at other ways of spending my liquid cash, but this would be my first choice if possible. 

What’s your point of view on flipping a traditional sale vs an REO?

Hi @Jonathan Guerrero - $40k is plenty to work with ... but it depends on the financing you can obtain, if that $40k will be used for renovations, or maybe you are just using that for closing costs and looking for a turn-key (ready to go) property and doing traditional financing. $40k can buy you a place to rent in a few select towns in South Jersey ... on occasion with renters already in place, but those areas will be rough. with $40k you have many options.

Depends your DTI, W2 income and property condition for Traditional.

(This sort of information isn't readily available and most traditional bankers are equipped for this conversation, unfortunately.) 

What method does traditional banking use.

Sometimes we can meet our clients goals but in more creative, less traditional ways.