In 2005, Americans refinanced their homes to the tune of $450 billion. That figure represents lots of homeowners taking a lot of equity out of their most valuable asset, and 26 percent of them invested it right back into their homes in the form of home improvements. 

That means a whopping 74 percent spent the money on everything from vacations to plastic surgery — or to pay off their debts. Those numbers are staggering. What do they mean in a changing market? 

A few years ago, you could buy any old dump, throw some paint up, hold it for 30 days, and double your money. In case you hadn’t noticed, those days are over. Nevertheless, real estate as an investment can still be profitable and rewarding. As the market starts to slow, how can you, the real estate enthusiast, take advantage of the current conditions and plan for a profitable future? 

The answer is simple: Make smart, informed decisions. There are some great deals to be had in this changing market. Spot them, buy them, fix them up, and sell them, and you will be successful. Can I tell you how many flippers on Property Ladder jump into incredible opportunities unprepared and uninformed? That is the first step toward their failed flip. 

If they had created a detailed budget, looked at their skills, secured the proper financing, worked with the right realtor, and taken their new business seriously, they all could have made money, but at every turn they relied on things to figure themselves out. You cannot survive in the arena of flipping without accountability, curiosity and a keen sense of who you are and the right property to begin with.

Follow these guidelines through every phase of your flip and you’ll have a better shot at avoiding a flop:

* Buying the Right Property

* Timelines and Budgets

* Inspectors and Contractors