You can invest in a web hosting company and just get a reseller and sell shared hosting till you can upgrade.
Agreed, proxies are good for beginners, as they're in high demand, low maintenance and relatively good payout.
Well, at the moment, proxies are an easy way to run a site, you provide basic content, then promote through newsletters, websites, pr building, etc. Do accross a network .... then cha ching
Where's the risk? The only hard part is finding a shared host that accepts proxies, but for a very small price you can jump straight in to a VPS.
Yes you can try http://w-hosts.net/vps.php, Those vps are safe and would handle your proxy site plus you got enough stuff there.
ok, you can't buy an already established site because then you couldn't pay for hosting too. So just get hosting from bluehost.com <domain and hosting> and then install wordpress and make a blog. Don't even buy links, post loads on digitalpoint and do a couple link exchanges with blogs that have higher pr than you. Trade 'blog reviews' for 'backlinks' and get ahead, until you can sell links on your site, and then purchase links on other sites. ah Then make something unique and unbloglike with your newly acquired money
Plz check our trade section.Now I found a great thing from one of our DP member.He is selling a unique script that enable users to download free from rapidshare as premium users. I thing its better to invest $100 for that !