Flipping is a term used to describe purchasing a revenue-generating asset and quickly reselling (or "flipping") it for profit. Within the real estate industry, the term is used by investors to describe the process of buying, rehabbing, and selling properties for profit. In 2017, 207,088 houses or condos were flipped in the US, an 11-year high. In the United Kingdom, "flipping" is used to describe a technique whereby Members of Parliament were found to be switching their second home between several houses, which had the effect of allowing them to maximize their taxpayer funded allowances. Types Wholesaling and assigning a contract Wholesalers make a profit by signing a contract to purchase a property from a seller and then entering into an agreement with a third party to sell their role of buyer in the contract to an end buyer. All rights to the original purchase contract are assigned to the new buyer and the new buyer pays an "assignment fee" to the wholesaler in order to gain all rights to purchase the property at the original purchase price. The original purchase contract usually has an "inspection period" which allows the original buyer to back out of the contract and not close on it if they do not find a buyer to assign their contract to. Many wholesalers have no intention of actually purchasing the property and simply use wholesaling as a tool to locate properties for other investors. The general process of wholesaling real estate is as follows: Establish a wholesaling business entity. It is possible to be a wholesaler without a legal business entity (i.e. as an individual or working under a DBA). However, the majority of real estate wholesalers form a limited liability corporation (LLC) or C- or S-corporation for tax and liability protection purposes. Find undervalued properties to wholesale. This can be done using online advertising, direct mail, personal networking and canvassing neighborhoods. Wholesalers often work together to source properties, as well. Sign a purchase and sale agreement with the property owner, often with a wholesaling or assignment clause of some form to allow assignment of the contract to an end buyer. Assign the purchase agreement to a buyer or another wholesaler for a fee. The buyer or new wholesaler pays the original wholesaler a negotiated fee to purchase the right to buy the property from the seller at or above the stated price in the purchase