REAL ESTATE INVESTING AT ANY SALARY

Transcription

1 PINOY EMPLOYEE S GUIDE TO REAL ESTATE INVESTING AT ANY SALARY 6 WAYS TO BUY REAL ESTATE WITH LITTLE MONEY

2 Would you like to be able to buy real estate without spending a lot of cash? I m Ronald, author of No Money Down Formula in Real Estate, How To Buy & Sell Properties With Little or No Cash. I know it takes an awful lot of money to buy real estate. The more valuable the property, the higher the cost. The way things are going now, the prices will only keep going higher and higher. And that s unfortunate because people will find it more difficult to buy real estate. But if you could just buy now, then you can enjoy all that nice appreciation and passive income later. Well, you can. You don t have to remain a spectator in the real estate market. You too can start building your portfolio for as low as Php12,000 or even no money at all using the techniques introduced in this ebook. Enjoy these 6 ways to get started in real estate investing without putting out a lot of cash. May Your Deals Push Through, Ronald Cagape

3 #1. BUY PRE-SELLING Buy Super Early At Its Lowest Price In 2008, you could buy a 48 square meter two-bedroom condominium in Acacia Estates, Taguig for only Php2,200,000. To buy the same-sized condo now, you have to shell out Php4,961,000. So buying early in a community is worth it. That s not even the best part. You only needed to pay Php12,000+ per month while the project was being built. That s it. No big downpayments. No balloon payments. Just make the payments for the next 3 or 4 years until the project is turned over. Upon turnover, you can get a bank loan to pay the balance or avail of in-house financing. Low Cost of Entry - depending on the payment plan. Find a project that has an affordable payment plan. High probability of launch discounts and price increases during payment period. Use it yourself or flip the contract before turnover to profit from the price increase. Some developers are delayed. Some projects have disappointing bad quality. Cannot use property during pre-selling stage

4 #2. LOW-DOWN PROMOS Avail of Low-Down / Rent-To-Own RFO units In 2015, you could buy a ready-for-occupancy 2-bedroom townhouse in Novaliches with a downpayment of only Php50,000 and a monthly payment of only Php16,000. It was one of the most affordable rent-to-own schemes in the market. The project only had 9 units so they we re sold out quickly. Look for these opportunities in your area especially if you re renting. Instead of paying your landlord, pay yourself first. Relatively Low Cost of Entry (depending on the payment plan) Use the property right away. Live in it or rent it out. You may end up paying higher total price over entire payment period May not be self-liquidating

5 #3. FORECLOSURES Make Money With Foreclosures Banks have billions in pesos in foreclosures. Every month, new foreclosed properties gets added to the inventory. Different banks have different policies but you can buy below market value properties from banks when they need to dispose their non-performing assets quickly. Most banks though require 20-30% downpayment although there are a few that only ask for 10% downpayment. There are actually lots in the provinces that you can buy for as low as Php50,000. Title is usually clean or banks are more likely to disclose legal issues. Price and terms can be negotiated. No VAT Most properties are not in good condition. Expect to make repairs. Do your due diligence. Not all foreclosed properties are cheap.

6 #4. Tax Delinquent Sale Own a Cheap Property or Make 24% ROI Buying a tax delinquent property is often a win-win situation. You can own a property by just paying the arrears. If the previous owner redeems it, you make 2% per month on the amount you paid. Win-win. Check your city or municipal treasurer s office for auctions of tax-delinquent properties. Local governments don t auction delinquent properties every year so take advantage when they do. Low Cost. Only need to pay the tax arrears not the full price. If owner redeems it, you make 2% per month on your investment paid by the government. The property is usually occupied by the owner who needs to be evicted. Could have other problems like unpaid mortgages. Need to wait for the one-year redemption period to expire.

7 #5. Crowd-Funding Buy a Big Project by Partnering with Others You don t have to buy property just by yourself. You can invest on a project with other people through crowd-funding. In crowd-funding, the main partner develops a project, partners with a cooperative and gets coop members to fund it. One company used crowd-sourcing to build dormitories out of container vans. They now have three locations and are actively expanding to more locations. Low Cost of Entry Leverage expertise of main partner Get passive income without the headache No control over management of property. May not be easy to resell share of the property The main partner should be trustworthy

8 #6. No Money Down Formula Buy from a Motivated Seller using OPM You can buy a property from a seller who is willing to lower the price below market value. You can then pay the seller in cash or using Other People s Money (OPM). That s the strategy I used to buy a property worth Php2.2M paying the seller an earnest money of Php15,000 and the rest through bank financing. I wrote the book No Money Down Formula that details the step-by-step process to implement this strategy. Huge discount from market value Flip the property now for instant profits or keep it for passive income. Few motivated sellers depending on the local market. Takes time and you do all the work (but keep all the profit!)

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