Flipping is the purchase of real estate for at least 30% below current market value. In the flipping strategy, you buy a property under its current market value, but you select only properties with some unrealized potential. Then, immediately after purchase, you make whatever changes are necessary to increase the value of the property. In many cases a full rehab is required. In general, you must increase the value by at least 30% within a few months in order for the strategy to be worthwhile. Then the property will be sold (flipped) to collect profits.
Buy and Hold means that you buy a property on terms that has a capitalization rate of 8%-12% or more. The capitalization rate is the net operating income (rent minus operating expenses but before debt service) divided by the purchase price. In other words, it is the cash-on-cash rate of return you would get if you owned the property free and clear. This property will be rented out and held for a long period of time to collect profits.
Wholesale real estate investing is one strategy in which I strongly suggest practicing caution: Wholesale transactions can be used in some cases of your overall investment strategy and can be very beneficial. Wholesale is buying properties that are at least 30% under value and flipping to other potential investors for a small fee. Take Caution: In some cases, wholesale investors may slightly over pay for some of the properties just to get them under contract while looking for unsophisticated investors to purchase them. This strategy can really take advantage of their lack of sophistication. Be careful, wholesale can become unethical, immoral, and sometimes illegal. I do not advocate the wholesale strategy as a goal setting strategy. It should only be used in isolated cases.