How do you prepare to lose on a flip?

[Cha Yang]

I know everyone plans to win and due diligence is key to reducing loss in real estate. Either way there are times you will lose money, be it due to bad judgement, emotions, markets, under calculating repairs or over estimating ARV. After you are done with renovations and put the house on the market, you realize you are going to lose money on this deal, how do you plan for what is next? Do you call your tax accountant to get ready for a loss? Do you try to figure out a pricing strategy with your real estate broker? How do you more experienced real estate investors plan for or deal with a loss?