Flipping is when you make an offer on a property and then either look to secure a new buyer before you close on the deal, pocketing the difference between your offer and theirs, or you wait for it to rise in value, then sell on.
The secret lies in knowing which properties lend themselves to flipping, and using the right contracts. The idea of flipping might be attractive, but in the real world it’s difficult and can be risky.
If you don’t find a buyer in time, you may end up holding the property, which could tie up cash and lead to capital gains taxes if you choose a short-term resale. If you have multiple deals in progress, you could get really stuck.