Beginner that is extreamely confused!!!

[Dev Why]

I have been reading a lot of stuff on here for sometime now. I finally figure out which direction I might want to start in with Real estate investing which is investing in multi family homes and using a FHA loan then my dream gets shattered by how bad an idea that is. I don't what to do or where to start I need a little guidance. I have about 5 thousand saved up to invest can someone guide me in the right direction?

[Darrell Shepherd]

I got started in rehabs, luckily I missed my ARV by as much as my repair estimate on my first one and still made out OK. I screwed that sucker up in a million ways but still walked with $25k or so. That was in 2000. I've done just about everything out there, but am doing almost all rehabs now and only 1-2 at a time.

My advice? Read, read, read. Not so much that you never do anything, but the more you learn, the more you earn. I spent six figures on seminars my first couple of years and it was money well spent. Not just the info, but being around people that are doing this and killing it is crazy motivation. There wasn't a resource like this back then, there is gold in here if you'll take the time to digest it.

Hard to say what the best course of action is without knowing you or your market. I lost more money than most people will ever see when the market tanked and had to make some pretty significant lifestyle changes so am pretty adamant about not "owning" things unless they are paid for these days. Therefore I dont go for the FHA buying rentals so much, just because I dont borrow money from banks, but do have to say that buying at these prices with crazy low interest makes a lot of sense. $5k doesn't go very far if you have to fix things, though.

If I were starting out I'd be looking at wholesaling. There aren't very many things more important than buying right in this biz and wholesaling will teach you that. Real wholesaling, anyway, not pimping stuff from MLS or other wholesalers like so many try to do. Some of that $5k would be a good head start on a marketing budget. MUCH less downside risk in that game.

Nothing is going to be better than a mentor, though. Go you your local REIA meetings and network, most of the people that are in this game love to share what they know. Just talking to people that are actually doing deals goes a long way. There is a LOT to this business, especially if you do all the angles, but none of it is rocket science.

Doing deals is like drinking when you're hung over: "First two are the hardest!"