Certified Fraud Examiner 2025 – 400 Free Practice Questions to Pass the Exam

Property flipping in real estate primarily involves buying a property at a relatively low price and selling it quickly at a higher price. This strategy capitalizes on short-term market movements and aims for quick profits, often without a long-term holding period. Flippers typically seek undervalued properties, which they may renovate or repair to enhance their value before reselling.

The other choices represent different aspects of real estate investing. Holding property for long-term investments emphasizes a strategy focused on appreciation over time, rather than rapid turnover. Renovating properties for future resale is a component of flipping but does not encapsulate the entire concept, as flipping specifically involves the quick sale of the property. Investing in properties to rent reflects a different approach where the investor seeks steady cash flow through rental income rather than immediate resale profit. Thus, the correct answer highlights the core of flipping: the rapid buying and selling process to achieve a quick return on investment.