soldMost people think real estate flipping is financial suicide. They’ve been burnt in the past or are inundated with the negativity the media shoves down your throat about the housing market. Don’t listen to those “Debbie Downers“! If you find a delicious piece of property to offer, you can be rolling in the dough! Here are five essential tips to making money with flips.

1.) Bite the budget bullet: Few people find budgets fun and stimulating, but unfortunately it’s an integral part of the real estate flipping process. Know every bottom line cost for your property purchase whether you’re buying new, short sale, or a foreclosure. Remember, fixer-uppers are like a first year college kid to parents; a draining financial nightmare! Budget carefully for renovations and take expert advice by adding 20% to your final estimate costs.

2.) Not every deal is your friend: Savvy real estate moguls are hungry lions, ready to snap up the first gazelle that wanders into their path. It’s easy to find that tasty morsel of a low-priced foreclosed home and begin licking your chops, but not every deal is a good investment. A low-priced condo surrounded by raging meth labs won’t be so quick to sell, no matter how many nice fixtures you’ve added. Location is not just a cliché, it’s a staple!

3.) Wear the white glove: Home inspectors are your friend. They’ll comb through your property with a metaphorical white glove as not to miss a spot of imperfection that could make or break a sale. They’re well worth the cost if they can save you thousands now on a disaster later.

4.) Surprise, your house exploded!: Property flips are magnets for the unexpected. Whether it’s a transfer of ownership snafu or a sudden gopher infestation. Keep a level head and like a boy scout, always be prepared!

5.) Cry me a river: Whoever said real estate is easy bluntly lied to your face. It’s an emotional beast that stirs up raw emotions. Don’t get so attached to a bad deal that you’re crying into your beer every night. It’s a business so if something goes wrong, move on!

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