This middle ground of taking the cheap houses and getting them performing is not for the lazy, feint of heart or those who aren't willling to physically be in their market for the transition period as these houses go from vacant liabilities to occupied investments.

Because real estate investing is not for the faint of heart.

It appears you may have yoru heart set on becoming a landlord which is certainly a great goal, just know that there are many factors that come with such a business.Lets put some real world figures into an example here.Lets say you can buy a SFR at 70% of real market value here in CA (includes all repairs and costs) and that total is $50k.

They wouldn't do this out of the "goodness of their hearts".

Eddie,I think the banks need a bypass - coronary bypass surgery to be more specific :)As for government creating a "temporary banking system": for some reason, I just don't like the sound of that.Not sure how to solve the "get banks lending again" problem.

While his company is visible on the web, I'm overly cautious at heart and wondered if any investors here who have dealt with private/hard money lending companies or individuals have any criteria they use to verify the integrity of funds being promised.

He had a backup buyer who offered $915K and was heart-broken that he didn't get the place.

That's my ultimate goal after building up cash through wholesaling and rehabbing but admittedly, I haven't studied the subject of rentals much.I really do appreciate everyone's advice and I will take it to heart.

I pay 13k in insurance per year, I can spend that in a heart beat, but I protect myself from anything and everything...

REOs will break your heart if you fall in love with a specific house.