Getting my feet wet?

[David Arney]

Alright guys, maybe I should get the ball rolling. I'm hoping you all could help me along the way!

So I was chatting with one of my friends last night and we talked about maybe going in on a deal together as an investment home. I have been reading through a lot of threads and so far the consensus seems to be go it yourself, but I think he could be extremely beneficial for me for a few reasons. He's already in the real estate business, he works for a company selling townhomes in the N. Raleigh area. He also has many close contacts with contractors and he is certain he can get the best deal because he does so much business with them and the company he works for. His brother is also a contractor too. He also has taken real estate classes, and his experience in the field goes back for ~5 years.

We thought that as a first investment, to maybe find a home we could live in for a few years, and then sell it for a potential profit. He suggested duplexes might be a good idea because we could both get our own 'home' to live in, and when we are ready to move out, we could either sell it, or if need be rent it out.

He also advocated flipping homes because of its short term nature and he thinks he can get cheap rates for contracting. I am also willing to learn how to do repairs to try and help keep some costs down as well.

As far as $$ we both have some access to funds to help us. We're both pretty sure we can get loans from our parents for a good rate, and his credit is really good so he can get a good bank loan if needed. I honestly have no idea what my credit is. Someone who looked it up for me in '06 told me it's normal for my age (it was my landlord, and I'm 25 now). He also talked about setting up an LLC and having the house tied up with that. I forget what he said the benefits to doing that were

So that's kind of where I'm thinking right now. I'm a little worried about flipping as an alternative, just because I recently had a friend do that and I don't think it's going well for him at all. He also rushed into it really quickly, though, and his inexperience is costing him.

I looked at another thread on real estate and got these rates, which apparently are pretty low (not sure what they mean exactly, but i can take a guess).

wachovia custom mortgage 30 yr fixed rate on friday was at:

5.125 % + 0 + 1.
5.250 % + 0 + .5.
5.375 % + 0 + 0.

What do you guys think is the best way to help me get started? And at the same time, any bird dogs in the raleigh area that could maybe help me find a good deal on a home to live in? THANKS!!!!