The Real First Question Every House Flipper Should Ask
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The Real First Question Every House Flipper Should Ask
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Successful house flippers prioritize risk assessment over profit calculations, focusing first on how much they can afford to lose rather than potential gains. This crucial mindset shift separates profitable investors from those who face financial disaster.
• Calculate your maximum loss scenario before looking at properties
• Use the "Murphy's Law Calculator" to stress test every potential deal
• Add 30% to rehab costs, 50% to timeline, and multiply holding costs by 1.5
• Pass on deals that don't remain profitable after worst-case scenario analysis
• Be honest about your skill level and avoid projects beyond your expertise
• Focus on protecting your downside rather than chasing maximum profits
• Real example: A deal with projected $45,000 profit became a $31,000 loss
Calculate your maximum loss limit right now, then share this episode with someone who's still chasing those shiny profit numbers. Trust me, you'll save them a fortune.
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