That said, I think you should start with training wheels, not with a performing note, but with a mentor, experienced JV partner, or some useful training (highlight on the useful). 2) @Dan Zitofsky mentioned this, but I think minimally if you opt to buy non-performing you should at least consider what you would do if it goes non-performing.

My mentor describes that as hedging not diversifying. 

@Ali Parnell, If this is a foreclosure auction, and you determine that this Town Home is a property you want, then it is worthwhile to consider purchasing next in line Junior lien(s) at a discount prior to the auction.   

There is a lot of value in working under a broker who can mentor you through your first transactions.

I am currently a junior in high school and want to start a career in real estate.

I suppose any offer would need to be contingent on obtaining financing......which may not seem like a firm/legit offer to the seller(s).Many thanks and successes to both of you for the mentoring!!! 

A lot of us probably know people who spent their entire life "putting heir ducks in a row" instead of "pulling the trigger".One of my adopted mentors says, "Ready, FIRE!

IE criminal and credit checks....Credit is a credit check on the person.. to not do this I think is a mistake... people talk great game then you find out they have a pattern of not paying bills ... stiffing ex wife and child support etc.you make the call on credit what's important to you.that's basically it and of course buy title insurance with lender endorsement ALT A policy.Keep tabs on hazard insurance ( even will insure them myself and just charge them at payoff) and of course if your going over a year check on property tax's.If your doing rehab loans.. consider a hired inspector for 100 bucks an inspection and charge borrower.NO second or junior position lending ever .. just not worth the brain drain.. 

On top of that, junior enlisted don't typically receive BAH.

Educate myself in real estate investing working with a mentor and apply knowledge in 1 property.