The way of flipping or reversing a transaction from a buyer to a real estate seller is quite a trend among the general public. Flipper, this real estate flip business activist is the general public or traders in the property who get a loan from a bank. With these loans, they are looking for real estate at low prices. Maybe because the owner needs quick money or wants to quickly sell his house because he will move out of town. Because the price is sloping, the flipper has a large difference between the purchase price and the market price.
The basic reason is that the condition of the property is currently stagnant or has stopped. So, it is quite risky to get money quickly. Keep in mind, capital comes from banks, so it will also be related to inflation and interest. Flipper is required to balance property agents who are much more competent in terms of market share analysis. If you want to be a successful flipper, you must be smarter than real estate agents, especially the target market. At a minimum, you need to be able to map 5-10 agents in different territories and start mapping to conclude a price bid. Usually, real estate agents offer more than one potential buyer from different categories, either investor, end-users, or even the flipper itself.
When viewed from the way of doing business, the flip is at first glance similar to real estate investors. However, there are some differences. Most flippers are business people who have limited capital. So it relies heavily on loans from banks. The limited capital is expected to provide great benefits. Property sales time is also fairly short, around 2 months to 4 months. Meanwhile, investors run a different business pattern. Most investors buy property for a longer period, which is a minimum of 3 years. Usually, they don’t mind buying according to the market price because what they see is not the difference between the purchase price and the current market price, but the prospect of an increase in housing prices in the next few years. From here, an investor not only needs more capital, but also in-depth location analysis skills.