FLIPPING GAME-EXPLAINED (PART 5)

The pre-selling flipping model is no longer the easy money it once was. The formula still works in rare pockets, but the margins are thinner, the risks are higher, and the exit timeline is far more uncertain.

What are flippers doing now?

Many are still trying to offload units they bought years ago.

The savvy ones—the ones who already exited—have shifted strategies.

They’re no longer chasing new launches. They’re bottom fishing—scouring the secondary market for distressed sellers willing to absorb losses just to exit. It’s no longer about riding a wave of appreciation; it’s about picking up value where others are forced to let go.

Still thinking of flipping a pre-selling unit?

Here are 3 things you must do before diving in:

1.⁠ ⁠Know the developer's flipping policy.

Ask the developer—and get it in writing (email is fine).

+ Does the developer allow re-assignments? Ask for the precise process.

+ Assume you’ll be taxed. On what amount: the original contract price or the new selling price?

2.⁠ ⁠Prepare for Plan B

What if you can’t re-assign the unit before turnover? In that case, you’ll have to wait until the title is transferred to your name before selling. That’s not always quick. Most developers say 6 months, but in reality take 2 to 3 years. Some units still don’t have titles more than a decade later.

Talk to past buyers of projects by the same developer and from the same city. Ask how long it took for them to get their titles.

3.⁠ ⁠Know your exit price—and work backward.

At what price would this flip be worth it?

Then, compare that number to the current prices of similar units in the secondary market.

From there, calculate the required annual growth rate to hit your target:

= [(Exit Price ÷ Current Market Price) ^ (1 ÷ Years to Exit)] - 1

Now, reality check it:

If the number is above 7% for condos, or 10% for lots, then you're likely being overly optimistic. These rates reflect the historical growth rates from the most recent real estate boom. Banking on more than that? You're not investing—you're gambling.

My final advice:

Know the rules. Anticipate the traps. And most importantly: be okay walking away if the numbers don’t make sense.