What typically drives property flipping schemes?

Property flipping schemes are primarily motivated by the potential for quick financial gain from inflated sales. In these schemes, an investor purchases a property, often at a lower price, makes minimal improvements or renovations, and then sells it for a significantly higher price within a short timeframe. This process capitalizes on rapid market appreciation, leveraging the perceived value of a property for immediate profit.

The allure of high returns in a short period encourages individuals to engage in this type of activity, often disregarding the long-term sustainability of the practices involved. Unlike strategies related to long-term home ownership or community development, which focus on stability and benefit to neighborhoods, flipping schemes are primarily transactional and profit-driven. They can lead to market instability as frequent buying and selling can artificially inflate property values and contribute to housing market volatility.