Most REO deals prefer cash or private or hard money.So, many new investors think foreclosures are good because they are priced lower, but they are disastrous options for first-time investors as the inspection ability and repairs requests are limited to none and foreclosures also often times come with tax liens and other liens that may all not be fully disclosed at the time of the auction.If you are a first-time buyer and want distressed, you can look at HomePath properties which are Fannie Mae REO and they can provide a bit more protection to you as a buyer.

Especially if you're not doing it full time with access to the great deals first, the know-how to realize when you see a good deal, the ability to move very quickly and the crews to pull it off, it's going to be tough to get a home-run.

Each fulfill a needed role or element so seek first to understand....and then be understood.

Whichever approach you take to investing or viewing the economy, I find that real estate, even more than other industries depends on your ability to connect and build trust with others.

You want to make a thoughtful, intelligent, sophisticated offer backed by the research, comps and evidence supporting your price and ability to close.

A well rounded base of experience and knowledge is important for the technical aspects of real estate as well as giving you the ability to connect with people.

And I've felt constrained by the limits on my ability to raise rent (market is a bit higher than what Section 8 will pay).

Several reputable companies provide individual investors with the ability to set up self-directed retirement accounts.

I would take advantage of your ability to access freddie fannie backed loans by using a different strategy.

Hey, @Rachel Reese.I’m a newbie but, I like to respond to situations like yours because it makes me call on and employ the knowledge I’ve attained about REI, and the skills and abilities I’ll need to employ to close a deal myself.