I am in the process of "flipping" my first property as well. There are a LOT of obstacles that one must overcome. Here are some of the major ones:
1) Capital: Investors typically want a predetermined return on the "loan" or "investment." So, it may be hard to find the capital to get up and running if you do not commit to a specific percentage of return on their principal. Also, investors want to work with a proven system. How are you going to convince them that you have a good strategy? Just because you know how to do the improvement work doesn`t necessarily mean you can make any money at it. The current real estate market is very volatile.
2) Taxation: of course the government has to get their piece of the pie. Consider that if you do not set-up a business whose trade is something home-improvement related, you will pay capital gains taxes on any gains. This rate is 35%. So, if you commit to an investor that they get 50% of the "profit," I would be clear that they get 50% of after-tax profit. Structuring your business properly can reduce the amount of your tax liability.
3) Rehab Loans: someone mentioned rehab loans above. There are a lot of fees that go along with these loans and they require a 3% or 5% down payment. In addition, there are typically additional fees for closing, roughly $1500 plus 1% of the purchase price, which is on top of your regular fees to close.
4) Market Downturn: there are a lot of great buys out there right now. This is good for someone who is a buyer, however in flipping real estate, you will soon be a seller. So, in a month when you go to sell, there will be other great buys as well. This leads to longer holding times for properties, which in turn is more costs.
Real estate over the years has proven to be one of the safest, most consistent ways of making money. So, it is hard to go wrong when thinking about pursuing a business idea remotely related to the industry. Just be smart about what you do and things will turn out fine! Good luck.