New to investing - Advice from Mentors

[Pierre M.]

Dear Mentors,

I do not have any investment properties and I really want to become an investor. Other than the usual fear, lack of cash and uncertainty of how to start investing, I want to start ASAP. I know ... I know ... Just DO SOMETHING NOW. Before I can do that I figure I can ask, get educated, and reduce my risk of making a stupid mistake during these hard times. I am in the mortgage business. I am not really a handyman or know much about the labor involved in fixing properties. I am more of a numbers guy and making deals work.

I plan on purchasing Bank REO's.

Here are several questions I have to mentors:

1) What types of properties would you suggest purchasing as a first time investment? (SFR, Multi-family, Condo, Townhome)
2) Are there certain properties that you stay away from? (wood construction homes, mobile homes, etc.)
3) Would you suggest hiring a management company or manage the properties yourself in the beginning? If there are tenant problems I want to learn how to resolve those issues. Is it better to hire a management company or learn on my own.
4) What areas should I focus on? (section 8, low income, mid income)
5) Should I start an LLC before I start purchasing properties?
6) Where should I look to learn more about real estate law to protect myself or become aware of potential nightmares?

I afford to make costly mistakes in the beginning and I just want to get advice as to how to start. I, like most of the other new people here, am building a "team". I have assembled a appraiser, Realtor, title company, and lender. I am still looking for the missing pieces.

Thanks in advance for your advice,