Starting out in real estate investing in Northwest Arkansas!

[Anthony Garcia]

Hello. I'm a new investor here in the Northwest Arkansas area. I live in NYC but travel to NWA every two months from NY. 

I'm being mentored currently by a real estate flipper here in NWA. He has done a few property flips and wholesale contract flips. He has mentioned that the RE agents could be looking for foreclosure deals for me, since they get the lists all the time. He's a family friend so I feel that he has my best interest. 

I'm presently trying to qualify for a conventional FHA loan with 5% down. After I get the pre-approval amount I plan to look for my first (cosmetic fix) deal with two RE Agents I am currently connected with in NWA.

The agent's suggested that it would be less competitive if we avoid the foreclosure list but I feel that I would be able to find a better deal with foreclosures, (Being mindful of the "move-in ready" requirements for the FHA loans) also it wouldn't be such a large investment since it is going to be my first deal. Any thoughts on going for a regular traditional buy, or foreclosure buy for starters in the business?  

[Allison Lane]

Foreclosures are a good option but keep an open mind. There are also good deals with HUD, Home path and Fannie Mae. And, next time you are in the area look for "we buy houses" signs or advertisements in the area. Call those wholesalers and tell them what you are looking for. Let them find you the deals, too. Remember, you make your money when you purchase the property. Not when you sell it. Being new, double check your numbers and run your deal buy more than one person just to make sure you're buying right and your rehab numbers are correct. You want to make sure you are going to make a profit after holding cost, rehab cost, the cost of your money, and closing cost are all paid. New people often forget some of these and that ends up costing them their profit. Best of luck to you!