Then ask property managers to distribute them to new move ins.

BTW, Ophelia, this is not MY bubble to burst, any more than I derive pleasure from painful failure and its manifestations upon any person or group.

You can invest in anything you want, so long as you follow some rules (see Loren's post) and rely on your custodian (the company holding the money) to do some paperwork, distribution of the money, etc.

My goal is to derive sufficient income from doing real estate deals so that eventually, I wont have to worry about losing my day job and be able to retire comfortably in the later years.My question as a newbie is about my particular situation and plan: I am 41 yrs with a low six-figure income and I have excellent credit.

Try looking here:Calculating a Derivative Capitalization Rate

Proceeds of the sale would satisfy his lien first and the remainder distributed to us based on the terms of our agreement.This leaves two unresolved challenges for me.1) I want to be fast and nimble on the ground with buying materials , paying contractors and misc expenses.

Being new to Bigger Pockets I was not sure how best to distribute information such as this.

The seller only sees your Offer and EMD, not how you derived the offer.

If you decide to take distribution from your IRA early - you will be penalized. 

I found this chart recently while tooling around online:I found it a bit disconcerting because it basically represents that about 3 in 1000 people derive more income from capital than from labor in our country.