Flipping Houses
Real estate flipping Profits from flipping real estate come from either buying low and selling high in a rapidly-rising market, or buying a house that needs repair and fixing it up. Fix and Flip Under the “fix and flip” scenario, an investor or flipper will purchase a house at a considerable discount from market value. The discount may be due to the house’s condition (i.e., major renovations and/or repairs needed) or due to the owner(s) needing to sell a house quickly (e.g., relocation, divorce, pending foreclosure). The investor will then perform necessary renovations and repairs, and attempt to make a profit by selling the house quickly at a price nearer to full market value. It is this type of scenario that is featured on the numerous reality shows which show amateur investors getting into this business.