Concerns over rising interest rates and the real estate market change from a sellers' market to a buyers' market scare beginning real estate investors. A sellers' market exists when sellers have the upper hand with little competition from other houses for sale. When more houses are for sale than buyers making offers, a buyers' market means that prices could drop.

Investors who make money flipping houses don't need to depend on appreciation because they get in and out of the property quickly. These investors buy houses at a deep discount from sellers under stress to sell and then resell the house to a buyer who wants to live in the house who's willing to pay full value. Rising interest rates don't make too much difference because the investor doesn’t keep the mortgage.

Wealthy real estate investors have been making money flipping houses in both sellers' and buyers' markets. Just like any type of business, some investors misjudge an investment and lose money, even during the best market conditions. The difference between the winners and losers, besides experience, is knowledge. Here are three areas you need to know to ensure your success as a real estate investor.

First, you need to know your local economy.

You must know the economic outlook in your area. Follow employment trends and population statistics. Are more people moving in than moving out of town? Because people always need housing, invest in an area with a good rental market. If you find too many vacancies in a neighborhood, that means you should discount any offer or look elsewhere.

Second, you need to know your market.

Knowledge of the market helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property. (Some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?

Examine the sales that sell quickly. What home features and financing options prompted the fast sale?

Third, you need to know about houses.

What makes one property more attractive to home buyers? You wouldn't want to buy a home with a terrible defect like a horrible floor plan, a noisy freeway in the back yard, or structural flaws. The best way to learn about houses is to preview many houses for sale.

When you learn about your local real estate market, local economy, and property conditions, you empower yourself to make wise investing decisions.

Aristotle Onassis said, "The secret of business is to know something nobody else knows." Dig deep in your local market and find the bargain house to flip.