BiggerPockets

First it sounds like you are doing the right thing by ignoring the nay sayers.

Second I would be sure that you buy right, have a good understanding of what all of your costs will be in the flip (not just the repairs) and make sure that your ARV comparable are realistic, recent and reflect the neighborhood of the house.

I would also suggest getting to know J Scott who also flips in GA.

David, it sounds like you guys have a good start with the knowledge of your rehab costs.... make sure you have a good idea of the ARV value especially if its changing lower. Good luck... if theres anything i can do just ask.. Doug

David,

I love your cast-out the "nay-sayers" attitude. I started doing Real Estate Delinquent tAx Sales very similar to how you are starting to Invest in REOs (Bank-Owner/HUDs).

To the point:

#1 Explore the 203K process--as an option or
#2 HML-Hard Money Lenders may also be a viable option

One draw-back you have so far is that you have to buy-a-home that cost at least $50K with the lender you have. With that said, I would encourage you and your team to locate a property that requires very little work on-it, but one that will give you all a reasonable amount of profit depending on what will make you happpy ($5K profit, $10K profit, etc..). My point is that in GA (where I am) there are a number of HUD-Homes well below $50K so if you do not have the capital to buy them out-right, than you will have to finance on the lenders terms.

Another Option: Seek a lender that will allow you all, based on your good-credit, to purchase a home let's say between $15K and up---since it is your first. You can hold-on to the lender that you have, just explore one more financial institution (credit union or bank) that will allow you to finance a HUD-Home for less than $50K. There may be one out here--but you will have to check-around. Sounds Cheap I know, but the point is to get your feet wet first before diving in so deep: Manage Your Risks, Weigh The Cost Invovled (especially since everyone works full-time), and definitely have an Exit Strategy already planned (in-advance).

Now, regarding your next step in this Challenge will be coming up with your EXIT STRATEGY---in which you all are really just challenging yourselves for the fun of it (think of it that way so you can have fun in the process). EXIT STRATEGY----MEANING IF you do not have a way out or a buyer or Investor already line-up to purchase the property after the work is done, you will have to either market it yourself to an individual buyer, or just sell-it to an Investor (which you can still do prior to the work you may plan to do on it), or you will need to hire a Broker/Agent to put it on the MLS for you. Now, keep in mind, you said you are aiming to sell it quickly I presume. If so, you all will still have the mortgage to pay on it, plus the rehabb work (unless you hire a good and REPUTABLE CONTRACTOR) to do the rehabb work for you all. Finding a Buyer or an Investor as soon as possible will undoubtedly determine your PROFIT MARGIN ON YOUR FIRST DEAL, SO I am sure that you will want to know your EXIT STRATEGY. Alternatively, depedning on the location, if it does not sell right-away, you can turn to what I call the "Buy and Hold" Strategy where you can Rent it to someone while you are trying to sell it to a potential buyer.

Side Note: Run a few Free-Ads to build up your "Investor-Buyers" List. Should read something like this: Seeking Buyer or Investor to purchase property with $10K-20K, etc. equity. Your goal here is to just get Investors who have cash to buy. Keep their contact info. for future references and deals you all will have in the future. If someone else contacts you, like a buyer, ask if they are pre-qualified. If not, than determine if you want to deal with them or help them get pre-qualified. If they are, determine if they are interested in the type of property you are offering and go from there.

Hope this helps, but do-not give-up or quit. You are on the right tract and Keep asking questions!

Much Success As You Invest!