It is common to find real estate marketing in full swing in an urban country.  There are several builders willing to put up condominiums in strategic locations to be able to gain a profit.  There are also some individuals who would like to get in the business and rake some profit with as little capital as possible. 

Flipping in Real Estate

Flipping is a word used extensively in the US and is about the practice of acquiring a property then quickly transferring or selling it again to gain more profit.  Essentially, this means that the real estate flipper is not interested in acquiring the property for his personal use, but rather for the profit it can acquire. 

In some instances, a case of selling from one flipper to another occurs.  In this instance, the negative effects of real estate flipping come in.  This is called the “musical chairs syndrome” where the first flipper tries to sell the property before any additional payments come in especially when construction actually begins to gain as much profit as possible.  Normally, payments of at least 10% are required every few months which starts to increase when construction for the project begins.  Final payment will be required as soon as the certificate of occupancy is available for release.   Should this buyer fail to make any more payments, the builder can keep the money deposited and sell the unit again.  The flipper will try to get ahead with the sale before this happens.  But problem starts when the buyer gets another flipper as a second buyer of the same unit and the second buyer sells to a flipper again.  The syndrome gets to a final close when the price has gone up so high that the last flipper cannot resell it at a gain but at a loss instead.

Gaining from Flipping