I don't mean to go against the grain of those who are selling that idea - all I can say is that it did not work for me.So.......... back to taking seminars, buying cassette tapes and books - I wanted to learn everything I could about investing in real estate ---- so--I had to get money, working capital, and I needed to go on the cheap - A friend told me about cheap properties you could buy in Baltimore - houses for only $2-3,000 and many of them could be found at public auctions.After borrowing some money and getting some credit cards and a new job - one in sales - I was ready - ready to invest in cheap- junk properties in the City.And wouldn't you know it - I got lucky at my first auction and purchased a cheap house that was boarded up - Because of all those expensive seminars I enrolled in I WAS READY - prepared with my pry-bar, flash light, level, marble and probe - I decided to go to this building that was being auctioned the next day - I sort of removed some plywood and crawled through a window to take a look -Boy was I surprised - this place looked great - I later found out that the estate boarded it to keep squatters out.The next day - I was ready with my deposit and waiting for the auctioneer to start his melodious hypnotic chant - 5 bidders appeared but did not bid because they could not get it - I was the only bidder and got the house real cheap.Today as an auctioneer, investor and developer of commercial properties - if someone would ask my opinion on how to get started I would suggest ---Continue to study but learn how to cut through the BSGet a credit line Learn 20 creative financing techniques - no money down systems (that is none of your own money)Hang with a few successful investors and pick - pick - pick their brain*** Look at 50 houses in the area you intend to invest (not expensive, blue collar, mixed rental and home owner neighborhoods)When you are finished looking at 50 properties - you will be armed with knowledge that most agents and other investors don't have - knowledge of values -Keep a journal, put listings in it, write down everything the agent or owner says, keep a record of the cost per square foot - this will help determine values -Have agents send you expired listings - go knock on the door or send a letter to ask if they are still accepting offers on the property - Remember an expired listed is a property that failed to sell - the seller should still be motivated to sell. 

I've found a number of deals from both wholesalers in the area and the MLS, but am struggling to find GCs to bid on the rehab work, so I've already had to let a handful of potential deals go.I'll PM you later with a list of the wholesalers that I have been working with who may be able to help you.

@Dion DePaoli  f IRS redeems  then I think they have to make you whole plus statuary interest which I was thinking was 9%... but any improvements you do to the home past any that are for health and safety of the home would not be reimbursed.I have bought quite a few at the court house steps over the years with IRS liens I liked them actually because 99% of bidders won't bid on them because they cant backfill right away with their LOC or HML... this lead to some pretty spectacular deals in the day. 

typically, although I haven't looked closely, counties set the opening bid at the tax amount owed. 

If you don't get a good feeling about someone, don't go with them - even if they give you the lowest bid.

I did have bids from a few 3rd party companies for full management that were very appealing (5% fee which is great for a 32), but it hurt the returns enough that I wasn't going to be able to get my investors the returns I wanted. 

@Khaled Helmi, the best advice I can give (although you may not like it- I know I didn't) is to get (or find one for bidding and vetting purposes) a set of plans you're happy with and a list of specs and bid it out to different builders/subcontractors.  

How are you savvy BP investors making money a hot market, bidding quickly on deals, and not overpaying (before a pending crash)?

Obviously I am pretty excited, but I am also in need of a recommendation for 2-3 contractor(s) to bid the job for me.

Two years later I can't wait to finish the one project I currently have with them so I can bid them farewell forever!