flipping houses

Quick-profit strategy in which an investor purchases real estate at a discount price and improves the property in order to sell it at a higher price. This can be a very lucrative profit strategy if the housing market is doing well. Old homes and foreclosures are popular properties use in house flipping because the investors can acquire these properties fairly cheap thus increasing the potential profit. Sometimes contractors are used to do the upgrades to the property, but an experienced house flipper may do the work his or herself.