Instead of keeping your money in mutual funds, IRAs , etc with usually small returns (less than 4%), you can hard money lend for much higher returns (8-20%).

Seller financing is great because in the right circumstance, it gives you leverage to move a property and make money when margins are small.

I was never a residential mortgage broker, however I did work as a branch manager and small business lender.  

Im really not a fan of your plan, are you unable to borrow at a bank, the Commercial lender at a small community bank generally can close fast and at a low cost, I can do 6 mo ir 1 year Interest only at 4.5% on a 20 year amm, i need 20% down and fund fix up, but they would also do a loan based on ARV, and you put 20% of ARV down an they fund purchase and fix up.   

I've never bought property before.Its all barebones, so i can fill in everything the way i want.3/ 3bdrm 1 bath apts, and a small comm space on the ground floor. i've estimated about 24k to rehab it. 

Best bet may be a Fannie Mae Small Balance Loan.

I am looking to gather as much information as possible as I am currently looking to start investing in small properties in about a years time.

Hi Jacob,It's a small world my company has worked with yours for almost a decade (ORS/timesheets/MDM).

The price is high for sure for that small of a house but not so much if they are quoting to remove the stucco and lath and re-do it. 

I am small potatoes with 40k to invest and start to build.