When I teach individual Financial Management, one of my first rules is, "Never go into debt on a non-appreciating asset".

You can locate prospects among your family and friends, your local REIA meetings, or even by advertising on Craig’s List.•Private Money lenders – You can also locate private individuals that have cash they would like to invest in real estate.

Safe" is a word used often, is a very broad term, and depends on each individuals account on the subject.

I did a cost analysis and found that it is not very profitable to flip, however I am really curious about renting.An example is a place I am looking at an 8 plex that does not have individual gas and electirc thus land lord must foot these costs.

In more detail.If you contract an option on a property you have contracted the right to buy it.You contract the lease with right to sublet.Now you have all of the rights to the property with the exception of the right to the tax benifits.When your tenant excercises their option you exercise your option and do so thru a double close.Real Estate has bundles of rights that can be bought and sold. you can seperate the rights and sell them individually.

I've learned that this is a business that is very unforgiving to unexperienced individuals' who lack a complete understanding.

FYI: Fannie Mae/Freddie Mac have both gone to a maximum of 4 financed properties per individual.

I have located a structurally solid duplex for $69,000 (asking price) in an area where rents for these individual units would go for $575.

Ultimately, an individual needs to act as Trustee.

Any buyer would welcome that.In return you would like to be compensated for your efforts once they purchase the deals you bring them.This is many times refered to as being a "locator" or a "bird dog".I would also learn as much as possible from these individuals.