There are plenty of reasons to be excited about starting up a new fixer-upper real estate business. After all, it can ignite a lucrative career and give you the ability to take control of your day-to-day life in a way that many others have only dreamed of. However, starting a new business venture in the house-flipping market isn’t always a carefree experience, especially when you’re just starting out and learning how to handle the job as you go. If you’ve recently decided to make a career change and you have your heart set on the fix-and-flip industry, here are some common pitfalls to avoid from the beginning.

Don’t Ignore Setting a Strict Budget

One of the most important aspects of getting into the business of buying and selling homes at a rapid pace is to set a defined budget. This includes determining not only how much money you’re willing to spend and put into necessary renovations, but how much available funding you actually have at your disposal to use once you begin your project.

Before you choose your first fix and flip property, have the house inspected by a professional and consider the home’s immediate needs. Find out which rooms you’ll need to renovate, what kind of materials you want to include, and how much labor you’ll need to invest. Furthermore, you also need to account for any expensive interior problems that must be fixed within the home during the renovation process, such as bad plumbing or poor electrical work. Finally, as an additional safety net, you should also set aside extra cash for potential hazards you haven’t even come across yet, like rotten floorboards under carpeting.

Don’t Hire Multiple Contractors or Real Estate Agents

Working successfully with others in the flipping industry means trusting that they know what they’re doing through years of education and experience. This means finding one dependable contractor that gives you proper estimates, reliably shows up every day to meet deadlines, and does the best work possible for the sake of your home’s value when it’s ready to sell. You should also stick with one real estate agent who knows the local area, one who can give you his or her greatest insights about the properties on the market and indicate which ones will sell for the highest prices in the shortest amount of time.

The fix-and-flip industry can be a great way to build your nest egg, so stay focused, do your research and find supportive partners along the way. As you go, keep these pitfalls in mind to achieve success and find the best path forward.