Flipping

Definition

Buying a property below market value, renovating it quickly, and selling for profit—ideally within 6-12 months. It's where real estate optimism meets brutal arithmetic.

Example Usage

We flipped three houses in 2023, profiting $120k total, but the fourth one sat for 6 months and we lost $40k.

Origin

Slang term from 1990s real estate investors, popularized by TV shows in 2000s

Fun Fact

Most house flips make less profit than advertised due to holding costs, unexpected repairs, and taxes on short-term capital gains.

Source: Real estate investment terminology

Related Terms

Advanced

simplex

A mathematical object that's the fancy geometry version of a triangle or tetrahedron—basically the simplest shape you can make in any dimension. In real estate, sometimes used to describe a single, uncomplex property unit without fancy features or complications.

🏠 Real Estate

Intermediate

Commercial Real Estate

Property used for business purposes (office, retail, industrial), where the stakes are higher and the spreadsheets are more complex.

🏠 Real Estate

Intermediate

price per door

The total acquisition cost of a multifamily property divided by the number of rental units, providing a quick metric for comparing deals. It's how apartment investors reduce complex investments to a single number they can text each other.

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Advanced

Accredited Investor

Someone meeting SEC wealth requirements ($200,000+ annual income or $1M+ net worth) eligible for private real estate securities—basically the rich kids' club.

🏠 Real Estate

Beginner

triplex

A three-unit residential property where three separate families live their best lives under one roof (sort of). Each unit is independently owned or leased, making it the Goldilocks of multi-family real estate—not as simple as a duplex, not as complex as a four-unit.

🏠 Real Estate

Advanced

procuring cause

The legal principle determining which agent earned the commission by initiating the uninterrupted chain of events leading to a sale. The real estate version of 'I called it first.'

🏠 Real Estate

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