The wild side of real estate investment is real estate trading. Real estate traders, like day traders, are not the same as buy-and-hold investors. Real estate investors purchase properties with the goal of owning them for a brief length of time, typically three to four months, and then selling them for a profit. This method, often known as flipping properties, involves purchasing homes that are either extremely cheap or in a hot market.

Real estate trading involves a shorter length of time in which funds and effort are invested in a property. Even on this shorter time frame, depending on market conditions, large gains can be obtained.

As property flippers, we frequently avoid investing any money into a house for upgrades; the investment must have the intrinsic value to produce a profit without any changes, or we will not consider it. This type of flipping is a quick cash investment. To take advantage of potentially substantial gains, we must have cash on hand, as regular financing is not typically available for this type of transaction.

There is also a second type of property flipper. These investors generate money by purchasing low-cost houses and adding value to them through renovations. Depending on the scope of the modifications, this could be a long-term investment. The limiting feature of this investment is that it is time consuming and often only allows investors to take on one or two properties at a time; therefore, we try to avoid properties with high maintenance costs and focus more on properties with high undervalue.