What commonly used term describes the strategy of buying a property to sell it quickly for a profit?

Study for the Florida Real Estate License Renewal Test. Prepare with detailed scenarios and multiple choice questions offering explanations. Boost your confidence and ace the exam!

The strategy of buying a property with the intention of selling it quickly for a profit is commonly referred to as "flipping." This term captures the essence of the practice, where investors purchase properties, often in need of repairs or renovations, make necessary improvements, and then sell them swiftly on the market at a higher price. The goal is to capitalize on short-term market fluctuations and realize a return on investment in a relatively quick timeframe.

In contrast, the term "investing" is broader and encompasses various strategies, including long-term holds, rental property ownership, and other forms of real estate activities. "Holding" refers to maintaining a property over a longer term to benefit from appreciation or rental income rather than seeking a quick sale. "Transforming," while it may imply making changes to a property, does not specifically connote the quick turnaround aspect associated with flipping. Thus, flipping is the precise term used for the specific strategy of rapid resale for profit.

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