They only come in about 30 or so sizes, so they aren't totally custom.

Look at this thread, one guy has one built on lot:https://www.biggerpockets.com/forums/311/topics/250188-how-is-custom-builders-in-tacoma-wa-hiline-homes-etc

In hot markets, they are simply letting the customer select a property, that meets property requirements and an agreeable price. 

)  My assumption is, for example, I pay $3,000 for supplies to fix the bathroom and once done, its adds $7,000 in value..

Here are some ideas:Control the property with a delayed settlement skinny contract of sale with the right of possession and the right to renovate.After ratification of your contract - do a lien and title report - make sure you are in a good position and the seller is able to close.Ask the seller for a "subordinated mortgage on the property for as much as possibleComplete your rehab and find a tenantGet the property appraised at a higher price due to your rehabUse the seller financing as your down paymentObtain a loan to pay the seller off - always ask for a prepayment discountAlternatively -Ask the seller to borrow as much as he can on the building with a one time assumption of the mortgage with release of liability after he assigns property to you - he keeps the proceeds, holds some of his equity on a second and you are in for nothing down.Ask to partner with the seller - you both apply for the loan - he keeps the cash and gives you a quick claim to the real estateAsk seller to give you the deed and you'll pay him later after you get a loanHave FUN this is a great business as long as you don't over FUND the deal!

So EMWV and I guess it's simply a matter of taste and local market customs.

Haha Jeff, pretty much what I suspected, the initial contact from your well know idiot borrowers probably didn't meet the "known to you" aspect, sooooo, repeat customers don't make it "private".As I mentioned, all the aspects must be met, your own money is irrelevant as you're in "the business of" lending, you even advertise in your signature.....BTW, a real estate attorney is most likely one of the last people to properly advise in the financial and securities arena, finance is not real estate.  

I would like to tell you that you will find custom building to be less than what you have been told, but that is not the case.

I now have the skill and knowledge to not only make a decent living on my engineer salary, but I can also continue to serve my customer base I created over the last five years and grow my portfolio of rentals.

I am not happy with Sprint's customer service, but hey if I don't have to call them because their actual service is good then I can live with that.It even works in South Bend.