Not everyone is cut out to invest in foreclosures. Some people would rather watch TV, invest in stocks and bonds, spend time with family members, or hang out with their friends. Others have a low risk tolerance and can't convince themselves to borrow money.

Do you have what it takes to successfully buy, fix, and sell foreclosure properties for a profit? The following list describes the bare essentials:

Sticktoitism. That's a word I use to describe a combination of the determination and hard work required to overcome adversity. When you're flipping houses, you have plenty of adversity.

Time: If you can scrape together enough spare time to go house hunting, supervise repairs and renovations, and consult with a real estate agent, you have all the time you need. Many of the most successful investors are weekend warriors, devoting their evenings and weekends to the pursuit of profitable flipping.

Money: You don't need to be rich to buy and sell foreclosure properties, but you do need to be able to get a loan. You can finance your investments in several ways -- by using your own cash and the equity in your home, borrowing from friends and family members, or getting a loan from a private lender. Talk to a mortgage broker in your area.

Guts and gusto: Guts and gusto combine to create the perfect personality for a real estate investor. You need guts to purchase a house with tens to hundreds of thousands of someone else's dollars in the belief that you can sell it for substantially more in a few weeks or months. A certain amount of gusto is also required to generate the energy and perseverance required to turn trash into treasure.

Family: When a spouse and children are involved, everyone has to sacrifice family time and other indulgences to contribute their fair share to the venture. Families who work well together can make an investment property a family project that draws them closer together. If family members are already a little testy, however, the stress and sacrifice can drive them apart.

Tools: You don't need a truckload of power tools to flip houses, unless you plan on doing most of the repairs and renovations yourself. A pen, a pad of paper, a calculator, reliable transportation, and a cell phone are the only tools you really need.

Tip: Don't get hung up on what you don't have, just be honest about it. Do what you're good at and hire out the rest … or get a friend to help.

For additional tips and tricks about investing in real estate, check out ralphroberts.com, where you can sign up for a free 31-day email course on flipping houses the right way.

Published: June 26, 2008

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Once dubbed by TIME Magazine "the best-selling REALTOR® in America," Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker. Throughout his career, Ralph has proven his commitment to helping other real estate and sales professionals build upon their past and present success, grow and expand their businesses, and provide a rich and rewarding future for themselves, their customers, their employees, and their families. As president and CEO of Ralph Roberts Realty, Ralph has personally helped thousands of consumers realize their dream of homeownership. While selling over 10,000 homes (and buying and selling over 3,000 investment properties) throughout his 30-year career, Ralph has made the time to mentor and coach hundreds of professionals in real estate, sales, and a host of other fields. Ralph is a recognized authority on Real Estate and Mortgage Fraud; Residential Real Estate; Personal Salesmanship; and, Sales Force and Office Management, Motivation, and Design. Ralph's numerous websites, blogs, seminars, and speaking engagements engage, entertain, and educate both consumers and professionals. Ralph is also an accomplished author with several successful titles to his credit, including: Power Teams: The Complete Guide to Building and Managing a Winning Real Estate Agent Team Mortgage Myths: 77 Secrets That Will Save You Thousands on Home Financing (John Wiley & Sons) Foreclosure Self-Defense For Dummies (John Wiley & Sons) Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan) Foreclosure Investing For Dummies (John Wiley & Sons) Advanced Selling For Dummies (John Wiley & Sons) Flipping Houses For Dummies (John Wiley & Sons) Walk Like a Giant, Sell Like a Madman (HarperCollins) Real Wealth by Investing in Real Estate (Prentice Hall/Penguin Group) Sell it Yourself (Adams Media) 52 Weeks of Sales Success (HarperCollins) To learn more about Ralph, visit AboutRalph.com or check out his daily insights on real estate and mortgage fraud prevention at FlippingFrenzy.com. You can reach Ralph at RalphRoberts@RalphRoberts.com or by calling (586) 751-0000.