They want to scare off the beginners and make trouble for the experienced...

I work with many beginner level investors and we typically wouldn't want our investors to work with anyone other than a trusted licensed GC.

What is the best way for a beginner to start off by purchasing notes3.

Ladies and Gentlemen,I've read several books now on Real Estate Investing, including the "BiggerPockets Ultimate Beginner's Guide" (which, is a great read by the way). 

Average CAP rates are between 7-10% from what I've heard, but everyone will tell you a little differently; I've been looking for properties with at least 8%, but I'm a beginner so I just need to get in the game anyway, so I wouldn't let one-notch-shy-of-pristine discourage me. 

This is a great place to learn about all things real estate.Be sure to connect with other BP members and make some friends along the way.While you’re at it don't forget to set up keyword alerts for topics that interest you: http://www.biggerpockets.com/alertsAlso check out The Beginner's Guide (http://www.biggerpockets.com/real-estate-investing) and BP Podcasts (http://www.biggerpockets.com/renewsblog/category/p...) are packed full of great info.All the best in your RE ventures!

He made the point that most people lean towards residential because it's what we're used to and it seems to be easier and "more beginner."

Chris Mason  disagree on the smart cookie.... just attend any REIA meeting you have all sorts of folks looking for the unicorn private lender.. and talking folks into lending out of their IRA you have beginners not really knowing what they don't know... and of course maybe east coast were they are attorney driven they can get some advice.. but anyone west coast can just fire up a DT and note record and fund... when I had my HML company in 'Oakland we had a ton of IRA but I was placing the money for them  as the RE broker

Here are a few recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/ If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select that person below.

So I've taken a great deal of my afternoon reading over various threads and forums for beginners like myself.