Trying to hit a grand slam on your first deal is not near as important as simply getting that first deal and off of the sidelines.

I'm now seeing a lot of potential investors stay on the sidelines, but when something good comes up, they pounce quick.  

I recently started listening to the BP podcast and I’ve become extremely motivated to start diving into real estate investing.I’ve been sitting on the sidelines for about a year because I’m younger, 24 years old, fell on hard times (injury put me down for 7 months), I fell into a fog, trashed my credit, foolishly filed for Bankruptcy even though I wasn’t in a massive amount of debt (30k) and I ended up deeply regretting doing so.

However, both purchases look like great purchases today (Purchase 1 in 1993: purchased for $167K, depreciated to ~$140K is worth ~$600K today, Purchase 2 in 2004: purchased for $741K, depreciated to ~$620K, Trulia has it North of $1M today).My point is that sitting on the sidelines during a hot market may be safe but it may not be the smart play.

If talking about first deals, this seems to mean not sitting on the sidelines any longer than necessary.

Here’s the stats - -$500 to activate line (credited back if deal closes in 90 days) 
- 3.5 % origination fees 
- Close to 10% rate 
- Each project is reviewed/underwritten by FoA, which could take up to 30 days 
- Up to 90% acquisition & rehab, I believe 
- Standard draw rules on rehab side - Line is up to 5x of assets, equity in home, 401k, etc- Line has to reset to zero once per year

Ideally I'd love to partner with someone on the first deal or two but I can't continue sitting on the sidelines waiting for a partnership opportunity either. 

Do you advise to be on the sidelines next few years and build capital?

You will find tons of "investors" that are sideline "investors" and never take the leap.

Sometimes the right decision is to angle the punt to the sideline and not give them a chance of a return.