@Manolis Sfinarolakis We would have to review everything to really be able to make that call; the underwriting occurs on the person, the property and the overall proposition (market, exit potential, etc.) so there is no definite terminology for experienced vs. inexperienced.

The problem with this is that buying an existing business entity from a small operator is a great risk. I

This is somewhat risky options because if he is unable to put the funds back within 60 days it would be considered early distribution, which means he will be taxed and penalized on the entire amount.

I know flipping a house gives quicker profit and is also more risky, while holding a house seems to be a little more safe and gives more profit but over a much longer period of time.

I've started to use them a time or two, but by the time you get done doing the deal you've got so much in, monthly payments, and then they have the nerve to ask for a credit app after you're at a 50% LTV with real money in the thing.The best thing to do is find private lenders, people with high savings that can see the value proposition.

But someone who doesn't know exactly what he or his ultimate end buyers wants, and is hoping to have everything locked down so he has no risk, is a waste of everyones time.

Or is it too risky?

@Sharon Tzibgood points all.. and I agree with you C class investments for out of state or newbie investors in my personal opinion are very risky...

A flipper will tell you that buy and hold is risky, while a buy and holder will tell you the opposite.

It is a very risky strategy but I see it a lot in this part of town.