Flipping involves buying real estate, upgrading the property, and selling it again for a profit as quickly as possible. This strategy works best when the property purchased is significantly undervalued and in need of repair, and where the repairs can be accomplished within a short period of time. By completing repairs and reselling the property within a few months, the investor pays less interest on his invested funds. Flipping can be a valuable tool for upgrading properties in an undervalued area, but it puts investors at risk of losing money if they cannot find a buyer.

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