Warren Buffet once said, “Risk it not knowing what you’re doing.” He couldn’t be more correct. The only way to prevent something from happening is to pre–empt and prepare, and even still, you may not be so lucky. Real estate is innately a risky business. We all know that. In fact, almost everyone who becomes involved with flipping houses will need to have a desire to take risks. But even if you like to drive a fast car, you should still know how to pump the breaks.