What is a flip in real estate?

In real estate, a flip refers to the process of buying a property, making some renovations or repairs to it, and then selling it for a profit within a relatively short period of time. The goal of flipping a property is to make a profit from the increase in value that comes from the improvements made to the property, rather than from long-term appreciation in the value of the real estate market.

Typically, a flipper will purchase a distressed or outdated property that needs some work, such as a fixer-upper, foreclosure, or short sale. They will then invest money into improving the property, which can range from minor cosmetic changes to major structural renovations. Once the renovations are complete, the property is put back on the market and sold for a higher price than what was paid for it initially.

Flipping can be a high-risk, high-reward strategy in real estate investing. Flippers need to have a good understanding of the local real estate market, as well as knowledge and experience in home renovation and construction, in order to make informed decisions and execute a successful flip. Additionally, market conditions and timing can greatly impact the profitability of a flip.