Flipping works under the rising tide theory: All boats rise in a rising tide. It is the classic form over substance and appears to be working and creating profits. What it really does is create a lot of income for realtors, appraisers, lenders, etc., while at the same time putting the speculator at greater and greater risk. Why? Flipping is a highly emotional activity that leaves all the investor’s money on the table and doesn’t focus on the intrinsic economics of the area and property. Consequently, when the market turns (and it always does), the speculators lose all their profits and more.