Real Estate marketalways attracts both major and minor investor because they see the chance that house is the one of requisites which its needs never decrease. While population is increasing more and more, land spaces are still same. So, house also would be wanted more too.
Many investors want to make profits from this opportunity. It’s absolute that good investment will has the chance to success highly. We would know well with Speculationthat is purchase and sell it out quickly and Capital Gain that is to make profits from area and economic probability in the future. But you may not know if mention about Quick profit making investment or Flip.
Flip is popular for a long time in USA. Due to value of brand new real estate that expensive, it makes USA has the pre-owned house market that large and bustling most in the world. When lands' value in Thailand is increasing more indefinitely, houses and residents are also expensive too. Therefore, Flip will be interesting investment which its definition is trading real estate by possess it in shortest time and sell it fastest for most profits.
Buy and sell in low price (still make profits) and buy in low price but sell so high. Flip investment is being popular more and more indefinitely because it is the investment which uses less capital and gain the profit faster. So, it is suitable for minor investment, able to flip many assets at the same time and get returns from difference of selling price and market price, not focus on making profits from selling by press the price to make it lowest. There’s no condition of duration that is you don’t have to wait for certain time and sell it. So, there’s no condition in economic changing related. Flip investment has name differently by type of real estate such as
Property Flip,House Flip and Condo Flip
There are 3 types of Flip as follow. 1. Multiple Investor Flip
      that is first person buy the asset and sell it to second person and second person sell it to third person that means sell to others indefinitely
Profits will be increasing whenever sell to others until there’s buyer who doesn’t think to sell it such as want to live or keep it to invest for long term that means keep it and wait for good time for sell it and lead to ending of flip. This procedure tends to be found in condo reservation slip speculation that must hurry sell before making the reservation contract date. So, if you sell successfully, you will get profits. You will found this in land speculation in the economic upturn as well.
2.Real Estate Flipping Buy in low price and sell it in high price. In other word, Buy in the economic downturn period that house price is decreasing and sell it in economic upturn period that house can be sold in good price. 3. Fix and Flipis to find the old house that people don’t interested, cheap, owner has problem and hurry sell in the price lower than market, but still has good structure and located in good area. This type of house is the house that “can be fixed to make profit”. It has procedures as follow.
  • Find house to flipSurvey the house in many location, many houses. Its old or ruined exterior isn't problem but its structure must be still strong. When appraise the house value plus repair cost, it must be lower than market about 20% or over so that make it worthy.
  • Repair appraise the repair cost correctly, use the shortest time in repair and pay other expenses in maintenance least.
When completed repair, then you sell it in market price. You will get profits at least 20% or you don’t have to wait until repair is finished if you can find buyer before. Flip doer will gain the capital from buyer to go on with repair and keep your own capital to flip other houses. Flip has less risk because it doesn’t depend on economic condition but it depends on management ability of investor. The time to make profit by this investment is the time that repair is finished. Whether short or long time, it depends on the way of management.

ความสำเร็จของการฟลิป

Succession of Flip evaluated from purchase in lower market price > less repair cost > sell in high price

First two types of Flip are within the scope of speculation that uses economic opportunity and time. So, they are more risk than type 3 that is considered as short term investment because it is selling in market price at that time. You don’t have to appraise economic cycle like first two types and able to gain returns more. Making profit from Flip caused from knowing the actual price of real estate in market at that time and expert in capital management combined with ability of selling and market planning appropriately.

Article by : TerraBKK.com

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