Yes, flipping homes can make you some excellent money. However it isn't for the faint of heart or the shallow of pockets! There are some things you should know to keep yourself out of trouble as you get started. As a professional real estate agent and real estate investor, I have seen many mistakes made and hope the tips below can keep all your fix and flip projects profitable!

Find some good partners!

Unless you are one of the unlikely people that has cash to invest, a strong knowledge of construction costs, and your area's real estate market, then you are going to need partners! Take time to look at what skills you have and consider where your weaknesses lie. Partners can help you find projects that are profitable and steer you away from the ones that are money pits!

Remember, if you are hesitating taking on a partner for your fix and flip projects, that half of any profit is better than all of a project that loses money!

Arrange your financing!

One thing that doing a fix and flip takes is money! This doesn't mean that it has to be yours, but it does have to come from somewhere. Money sources can be partners with strong credit and/or cash to invest, lines of credit drawn off your existing properties, or even hard money, short term loans.

In any event, having the cash and capability to close a deal fast is almost always essential in getting the best deal on a fix and flip property. Additionally, you will need cash to complete the repairs and renovations.

BONUS TIP - Never forget to reserve enough money to make the payments on the property while you fix it up and market it. Delays in repairs or in selling can quickly eat up your cash reserves!

Start small and work your way up.

Try to make your first flip an easy one! While this means that you may not make as much profit on it as you might like, it is good to learn the ropes and complete a few easier projects before you tackle a complex project.

Remember that the more risk in a project, the higher to potential profit and potential loss. Know your comfort zone before you dive in. Finding out that your cosmetic fixer actually needs a new roof, new foundation and plumbing can be a real heart attack inducing event!

Find yourself a great real estate agent!

Having a real estate agent on your team that will be honest with you, and that is on board with your goals is essential. While it is true that you can market a home yourself, it is also true that you are better off leaving it to the professionals.

Your real estate agent can not only give you information on your project before you buy it, maximizing your profits at purchase, but also can efficiently market and sell it. Remember that buyers approaching a FSBO listing will discount the price of your property immediately because they know you are saving the real estate agent fees!

Additionally, your professional real estate agent can help co-ordinate and smooth out the selling process and sometimes even hold deals together when they are coming apart at the seams.

BONUS TIP - You often times get what you pay for with real estate agents. Reduced fee agents or companies often times mean reduced services and value!

Build a great reputation!

While there is profit to be made taking advantage of sellers that are in distress, there is also something to be said for doing your best to foster win-win situations in all your transactions. In any market it doesn't take long for a persons reputation to spread amongst builders, lenders, and real estate agents, and being known as a shark or all around bad guy can hurt your ability to do deals!

Strive to build good relationships with everyone involved and your business will grow! If real estate agents know that you will help their clients out instead of fleece them, they are far more likely to call you with a possible property!

Are you a real estate investor in the Seattle area? I am always interested in meeting with real estate investors and developers of all experience levels from the Seattle area. My team and I have handled many transactions small to large from Tacoma to Marysville.

Feel free to visit my site http://www.jacquiecliff.com/ to find out how to reach me. I would be happy to sit down and discuss your real estate goals and what I can do to help you achieve them!

Jacquie Cliff