Quote from @Robert Bell: As a private lender, we use reserve funds as a way to gage whether or not someone is financially ready to take on a real estate investment. 

The area of which I am green in is real estate investing.

All, I consider myself a beginner in real estate investing, but savvy in business/finance.

I invest in and out of states.First, is to make sure you understand your financing options when investing out of states (not sure if you are a first-time investor or not). 

That gives the agent a stronger offer and you have a greater chance of winning the home with a loan commitment versus a Pre-approval letter.As of this morning rates are down on all programs for Primary homes, Second/Vacation homes, and investment homes. 

Start by reading the Ultimate Real Estate Investing Guide: https://www.biggerpockets.com/guides/ultimate-real-estate-investing-guide/introduction2.

Additionally, some lenders may offer rate locks, protecting you from further interest rate hikes.By staying adaptable with your financing and strategic with your spending, you can protect your margins and stay competitive in a challenging market.If you need help exploring financing options for your next project, feel free to reach out!

I've saved up a little bit of money, and with my brother as a partner, am looking to start house hacking with hopes of investing in his and my future.

Investment Info:Single-family residence wholesale investment.

Check local courthouses or legal publications.Foreclosure Lists: You can acquire these from local courthouses or subscription-based services.Tax Delinquent Lists: Homes with overdue property taxes can be potential investment opportunities.