Which term describes a practice where an investor buys a house and resells it quickly for a profit?

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Multiple Choice

Which term describes a practice where an investor buys a house and resells it quickly for a profit?

Explanation:
Property flipping describes the practice of buying a property and reselling it quickly for a profit. It’s a short-term real estate investing strategy, often involving some improvements to boost value and then selling in a relatively brief holding period to capture a quick gain. This differs from other real estate terms: a real estate investment trust is a company that owns or finances real estate and sells shares to investors; mortgage securitization is the process of pooling mortgages into tradable securities; and leverage is using borrowed funds to amplify potential returns, not a specific buy-and-sell activity.

Property flipping describes the practice of buying a property and reselling it quickly for a profit. It’s a short-term real estate investing strategy, often involving some improvements to boost value and then selling in a relatively brief holding period to capture a quick gain. This differs from other real estate terms: a real estate investment trust is a company that owns or finances real estate and sells shares to investors; mortgage securitization is the process of pooling mortgages into tradable securities; and leverage is using borrowed funds to amplify potential returns, not a specific buy-and-sell activity.

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