New Idea On How To Get Started, Need Advice

[Antione D.]

Hey BP!

Ok so, I know I don't post very often. But I've been reading articles non stop, trying to take in as much info as I possibly can. Now I like to think I have a pretty good idea as to how REI operates, and I really want to dive right in.

Ok so, the reason I'm posting now is because I'm still completely brand new to all of this, but I think I've come up with a pretty good way to get started. But honestly I'm terrified that I may have overlooked something important and I could mess up because of it. So I'd like to tell you guys my plan, and I guess anybody can tell me if it's good or not.

I guess to sum it all up, I'd like to use a hard money loan (unless anybody has more useful suggestions) to purchase foreclosures (in the Atlanta area) and resell them to flippers. Or, I guess whoever wants said property. Is that a good way to start? Am I missing anything important? Do you guys need more details? I'll take any kind of criticism I can get, be as blunt as you need to be.

Thanks guys. Oh and by the way, just out of curiosity, if I start out like that, would that be considered flipping or wholesale? I feel like it has elements of both, and I'm not to sure what category that falls into.

[Kyle Kufeldt]

@Antione D.  You won't be able to use hard money to buy foreclosures.  If you buy at the steps, which I don't recommend for beginner investors, you will need cashiers checks to pay for the purchase after winning the auction.

I would recommend you look at different types of motivated sellers and creating a direct marketing campaign to find your first deal.  It's more work but that is where the money is.  The harder it is, the less competition you will have.  Especially in Atlanta where the MLS inventory is low and the competition is high.  In parallel, I would reach out to some hard money lenders and go through their qualification process so that you understand their terms and also have a lender lined up if you get a property under contract.  My real estate investing education has always been a "just in time" strategy.  In the beginning, just learn enough to take the next step and potentially know what to do for the step after that.  Don't get into analysis paralysis and keep yourself from taking action.

Good luck!