Hello, my name is Dennis. I own a business and have over 44 years of experience helping business owners worldwide, from seven-figure enterprises to small businesses and startups that grew to millions in annual revenue.

Why do I do this work? Years ago, someone made a significant sacrifice to help me. I learned that real purpose and happiness come from giving, not taking. This drives me to help you reach your business goals and personal fulfillment. Serving others defines wealth and happiness. Your success is my success. With this in mind, I will share some challenges I’ve faced.

A few years ago, my wife and I lost everything: our business, home, and savings. We lived in our van and my office, facing lawsuits and asset seizures. Through this hardship, my wife’s support never wavered. Eventually, we moved our belongings into storage and began life anew, determined to rebuild.

Despite working long hours, I realized I needed a new approach. I explored flipping homes and, with determination and education, created a strategy that worked. This guide is the result, designed to assist you.

House Flipping Mistakes That Can Bankrupt You | Do This Instead

Your Guide to Flipping Homes – 8 Things You Must Do To Be A Successful Home Flipper

Let’s begin with step 1: Calculate your profit before you purchase the home.

The old saying is, “you make your profit when you purchase the home, not when you sell it.”  This means calculating the project’s profit and loss before you purchase.  Determine the gain before you buy – work backward.  Do not do a project unless there is clear profit potential.

Calculate your profit/Loss.  The sales price minus costs is your profit.

Costs

Acquisition

• Purchase Price
• Back taxes and other lines
• HOA Fees (and HOA transfer fees)
• Keys
• Bid or Real Estate Fees
• Title closing costs

Repairs

• Contractor or do it yourself
• Appliances + much more

Holding

• Cost of your capital to hold                        
• Payments on hard money loans
• Utilities
• Insurance
• Maintenance

Selling

• Real Estate Commissions
• Staging
• Title closing costs
• Marketing plans

Administration

• Bookkeeping/accounting
• Other non-related expenses

Moving to step 2: Have a good team of Contractors/others to do the work.

• Suppliers
• Real Estate Agent (hopefully it will be you)
• Hard Money Lenders (give me a call)
• Insurance agents

Now on to step 3: Get educated.

Do not start buying homes without knowing the process.  The best way to get started is to get your Real Estate License.  Yes, it is work, but it will give you the knowledge you need to understand how homes are transferred and the laws associated with Real Estate.  Also, you will have access to the Multiple Listing Service, which is invaluable for your research.  Plus, you can avoid paying the seller’s commission in full when you are the listing agent.  Every successful flipper I’ve ever met had a real estate license.  So, GET IT!

Next, step 4: Be patient.

Courthouse auctions once offered many properties daily; now, there are fewer. Explore alternative ways to find opportunities. Renovating and selling takes patience and time. Success is possible, but real estate requires precise timing.

Step 5: Have Money.

Be wary of claims about no-cash deals; they are mostly false. You’ll need your own capital. Hard money lenders often want 20–30% down and interest rates from 9–18%. Include these costs in your calculations. Though some advertise 100% LTC, it’s rare. Occasionally, hard money lenders share in profits, but still judge your experience and usually require at least 10% investment.

Step 6: Do not buy something you cannot fix or ever sell.

Many deals exist for a reason: some can’t be fixed or sold, no matter the money or effort. Avoid homes with major, unchangeable issues, such as being near landfills, dumps, sewage plants, or major airports.

Now let’s look at step 7: Buy your project through your LLC.

There are many tax and liability reasons to do this.  Plus, private money lenders prefer to lend to LLCs.

Finally, step 8: It is going to be work.

Don’t believe flipping shows. You must work hard and spend time on-site. Check progress often and visit daily after listing.

Matt Prosory RI/MLO/Broker
NCO Enterprises LLC
Private Hard Money
DBA Setabay/SetabayLoan/Level 4 Funding
26731 N 90th Drive
Peoria AZ 85383
Matt@Level4Funding.com
Level4funding.com
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493