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

I'm in diapers at this point, I know NOTHING about real estate except things that Robert Kiyosaki said on youtube (and read Rich Dad Poor Dad), Brandon's recent webinar and I'm currently reading Brandon's Rental Property book. 

@Rich Ganim I agree!

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

Harv EkerThink and Grow Rich by Napolon HillThe Scienc of Getting Rich-Wallace WattlesThese books will help to get you into a specific mindset needed for this business. 

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?

Years later the borrower is still sitting in that sub-par deal making no one rich but the loan servicing company. 

Friggin rookies.Look and try to understand this because if you do, riches will follow...As long as google knows what your website is about... and google knows the search intent of the user doing the search, Google will match the BEST website relevant to that search term searched.Get it?

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.