My question is pretty basic...

Are banks allowed to fix and flip?

I am trying to figure out how to get my foot in the door. My market (NYC) is pretty competitive and I don't really have too much that I am able to offer to any successful F&F's. So I thought maybe I could approach a small bank with the idea that I would show them the numbers, comps, arrange to bring in the contractors and run the fix and flip and kind of partner with the bank. Probably there is a glaring problem with this approach but I can't see what it would be. Either we would keep the property in the banks name or we could try to arrange a HM loan where the bank lends me the cash for the property. 

I think where this question kind of leads to is, why don't the banks themselves engage in the F&F industry. If a company becomes proficient enough, instead of the F&F's making the margins available, the banks would be able to keep the profits for themselves.

I do understand that banks are not in the REI business, and that would be a primary reason why the bank would not be interested in this approach. That being said, I don't understand why banks don't have a business relationship with contractors or F&F's that would allow them to profit more than what they are already making. The margins are so large here in NYC that there should be a way to profitably split the $. I am hoping you guys can enlighten me.

I have way to many problems of my own with this idea but I figured I would put this out there for you guys to consider. 

Thanks for your time.

(If you made it this far, lol.)

Sam Harris.