One of the best ways to obtain a valuable domain that is already search engine optimized is to purchase existing domains via auction sites.  This strategy can be beneficial mainly in two ways.  Firstly, any domain that has already been purchased was probably already researched for potential benefits.  Secondly and more importantly, the second benefit is that many recently expired domains still retain some of the search engine optimization attributes that were built up by the previous owner. For example, a recently expired domain name may still have active backlinks on the web, and the page rank of the domain could still be high, giving the purchaser instant SEO gratification with minimal effort.
Just like a property listing, except much simpler, domain marketplaces are basically massive lists of domain names that are up for sale. The process of using them is simple. Buy a domain and park it, then list your domain on the marketplace for a price you’re willing to let it go for. Once the domain is sold, the marketplace takes a cut and then passes on the remaining funds to you.
Here's an old post on search engine roundtable that claims google's policy is to discount previous backlink juice when a domain changes ownership.  I'm not convinced whether this is actually true or something Google says to discourage excessive domain buying / 301 redirecting for SEO benefit.  The comments above seem to give varying opinions on this matter. Would be great to get to the bottom of that one!
Park the domain with a domain parking service. Since you may not have content to put on the site, a parking service puts up a dummy page with ads. When people visit and click on the ads, that's money for you. This method works best with popular keyword domains that get lots of traffic. In most cases, you will not have control over what ads appear on your domains.[5]

When a domain name that was previously registered expires, it goes through a grace period that allows the previous registrant one last chance to reclaim their domain before it becomes available to new buyers. If the previous registrant still has not renewed their domain after the 77 day deletion process, the domain name will officially expire and enter the Aftermarket.
Yandex replaced TCI with SQI (Site Quality Index). SQI looks similar to TCI, so I re-used the old TCI field, however all values are now the new SQI. Not all domains are checked yet, but all that had TCI > 0, are now switched to SQI and all newly added domains are also checked for SQI (starting today). Updating all domains will take a couple months.

There are many different ways to buy and sell domain names. Many standard domain registrars, such as GoDaddy.com, will facilitate sales via auction. Meanwhile, specialized websites, such as Sedo, are designed exclusively to buy and sell domain names. Finally, parking domains with a for sale page is a great way to draw targeted interest from potential buyers.
The domain name industry is quite similar to the real estate industry in a lot of aspects. There are end users, brokers, consultants and domain flippers or “domainers”. Domain flipping works similarly to buying a house, renovating it (or even sometimes just sitting on it) and then selling it again at a higher price point. The gist of it is: you’re purchasing a domain name and betting it’s worth (or will be worth) more than you paid for it. If you’re right, you get a nice paycheck and move on. Those who make a living out of this just rinse, repeat, and scale.
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