How Fix-and-Flip Profit Is Really Made

This lesson reframes fix-and-flip profit as the result of a disciplined business model, not a lucky resale. Professor Daniel Martin explains where margin is created, where it is commonly lost, and why the best investors think in terms of spread, risk control, execution speed, and buyer demand.

Students learn the basic profit equation behind a flip: buy below finished value, improve the property in ways the market rewards, control transaction and holding costs, and exit before time and uncertainty consume the margin. The lesson sets up the rest of the course by defining the core levers that every later underwriting, renovation, funding, and exit decision will affect.