Arbitrage is when an investor purchases an investment property below market value and quickly sells or rents it for a profit. Real estate arbitrage occurs when a real estate investor purchases an investment property and sells it simultaneously at a higher price.Arbitrage in real estate is a type of investment strategy where real estate investors find new investment properties, rent them, and then sublease them. In real estate arbitrage, used as a verb "arbitraging," means to buy one property and then sell that same property for a profit. Arbitrage in real estate refers to the practice of taking advantage of price differences between markets or formats to make a profit. Arbitrage is a condition where you can simultaneously buy and sell the same or similar product or asset at different prices, resulting in a risk-free profit.