What separates a profitable real estate deal from a costly mistake? According to Owen Dashner, Co-Founder of Liquid Lending Solutions — a hard money lending firm that has funded over $100 million across 400+ transactions — it almost always comes down to preparation and risk awareness.

In this post, Owen breaks down the six most common risk factors he sees derail real estate deals: overpaying on the purchase price, underestimating rehab costs, overlooking soft costs like utilities and insurance, running short on cash reserves, taking on complex projects without the right experience, and ignoring appraisal risk when planning to refinance.

Whether you're a first-time flipper or a seasoned investor, understanding these pitfalls before you write your first check is what keeps deals profitable — and lenders confident. Read on to learn what makes a deal solid in the eyes of an experienced hard money lender.