This is a success story of reality for newbies. I started buying foreclosures from the court house steps for rehab, part time in “98”. I work at a full time job and work on my houses on the weekends. I started by taking a lump some distribution from a personal IRA (40% in taxes and fines..OUCH). With that money I have personally supplied all the financial needs of the deals I have done by doing one deal at a time and snowballing the cash. Being a newbie myself (and still am) I bought houses that landed me in court for periods up to over a year.
I was sold a house that the owner that was being foreclosed upon was unknowingly deceased. I even purchased a property that had been sold at a sheriffs tax sell more than a year earlier and the financial institute foreclosing didnt know it was sold. I HAVE expierienced the school of hard knox!! Now comes the success (I think?). In between all the above mentioned experiences, and a couple not mentioned, I did do some successfull deals and I can truthfully say on the good ones I never netted less than $14,000 profit at the close of these deals, and I have never lost a penny going thru the hard knox lesson deals.
Hopefully this is because I have good Karma!! I have put together a cash pool that is 9 times larger than my initial starting cash sum. I am looking to expand my experiences into other types of REI so that I can one day do only REI. Of course, this is only if I can keep from spending it all!! LOL