My wife and I recently opened an LLC to establish our real estate business; something I have always wanted to do, and since my wife comes from an entrepreneurial family, it is very exciting for the both of us.

So, how you enter the business makes a difference in the type of due diligence the note buyer needs to do.Notes are unique and unlike other investments like a bond that is rated and is in an established market providing liquidity at a near par value or an easier valuation method.

Awesome definitely helps a lot to see both of your points of view.

Tom and Jim have plans to buy a house to rehab/flip or rentTom already has an S-corp established for his existing real estate company.

Always leave yourself an alternate route until you have established connections, don't get in over your head, Keep a cash reserve and you should be ok.RR

There is a lot to learn.

There have been a number of foreclosures and short sales on my street which has driven my immediate comps down, but I'm pretty sure I have the largest, or one of the three largest homes in our ~35 unit subdivision (built behind an older/established neighborhood).

Currently we have: Developed a plan (wholesaling) Established a contract to useDeveloped a marketing strategy ( yellow paper mailers)Sent out 10 lettersNow we are trying to establish a buyers list.

I have a lot to learn and look forward to building relationships through networking with my local colleagues.

Kelly Williams:Bill Gulley & Steve Babiak provide you good advise.First use your free cash flow to establish a suitable reserve for your property(ies): that way if you have an extended vacancy in a unit, or the HVAC needs replaced in another, you have the funds to see you through.Once you have sufficient reserves, then it all comes down to cost of money / opportunity costs.