Foreclosure funding
So, I'm a newbie/want to be invest and have been doing a lot of research but still confused about how to get started and take that first leap.
Here is my plan, I would like to start out in a few low balance flips, with limited rehab, and feel the greatest opportunity for the biggest return is through foreclosure auctions. Once I have completed the purchase and flipped the property, I would like to roll the earnings into my next flip, until I have earned enough capital to purchase homes in higher growth, high rental areas to hold and rent.
I feel that I have a good enough just understanding and knowledge to succeed in finding a good deal. However, my dilemma or area of insecurity is knowing how to arrange funding, or locate a parter prior to action.
I've checked out the market place which seems like a good starting point, but understandably so, most of the suggestions are to locate the deal first. The problem is most of the houses I'm looking at would be cash purchases, and you are required to have verified funds at the time of the auction.
Please help educate me on what I'm missing.
Additional question, about foreclosure feasibility. So, I was looking through a few recent foreclosure sales locally and found a house down the street from me with a market value of $145K, and the default was for $113k, and reportedly was purchased back by the bank, and then sold to an investor for $500. The home was immediately placed back on the market by the investor for $145K. Does this sound feasible, or is it likely the reported sale figures are not accurate.
Thanks in advance.