FLIPPING GAME-EXPLAINED

The Flipping Game–Explained

I haven’t seen anyone really break down how pre-selling property flipping works—so I wanted to shed some light on it.

Let’s start from the very beginning: Developer Project Launches

Step 1: The Quiet Tease

Before any billboard goes up or ads appear online, developers begin by marketing the project discreetly. Often, they even use a placeholder name instead of the real one. This pre-pre-launch phase is exclusive—usually limited to VIP clients, internal staff, and a few in-the-know brokers.

At this point, there’s no License to Sell yet (required by the DHSUD/HLURB), so developers legally can’t sell anything. But they can talk about indicative pricing—ballpark figures that may go up depending on demand. This is similar to what is done for bond issuances in the financial world.

To show serious interest, clients are invited to submit a Letter of Intent (LOI), accompanied by a reservation check (typically

P50,000). The check isn’t deposited—it's more of a token to separate window-shoppers from committed buyers.

And here’s the kicker: These LOIs are then used to build hype. Internal brokers might say,

“We’ve already received 300 LOIs and counting!”

That number alone often drives even more interest.

Step 2: The License Drops, the Race Begins

Once the developer secures the License to Sell, the project is officially launched—this is known as the Priority Selling Event/Project Launch.

At this event:

+ Final prices, payment terms, lot/floor plans are revealed.

+ VIP or repeat buyers (known as “black book clients”) are often given first pick before everyone else.

+ Units are then offered first-come, first-served—but in the order LOIs were submitted.

If the pricing is too steep, or if only less desirable units/lots remain, some buyers will bow out. Their reservation checks? Simply handed back—no harm done.

It’s a fascinating system—one that rewards speed, relationships, and a bit of insider access.

Continued in the next post.