The book Rich Dad Poor Dad by Robert Kiyosaki was the book that started it all for me, it made me decide to become a real estate investor and it also inspired me to take action and start my journey to financial freedom. If you haven’t read the book yet, I would like to share this video just to give you an idea of what you can learn from it.
I found this video in youtube where Robert Kiyosaki himself and his friend Dolf De Roos introduce their Six-Steps on how to invest in properties and real estate. I believe this is just an introduction but I personally have found a lot of valuable insights in such a short video and I hope you would too.
After watching the video, you might find yourself asking “Sounds great but how do I do these in the Philippine setting?”. Well, if you haven’t noticed yet, this is exactly what this blog is all about and more. Do stick around as we apply Robert Kiyosaki’s teachings right here in the Philippines.
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Jay,
Your such a big help to me, I have been reading Bo Sanchez books, and Robert Kiyosaki’s, and now as I browsed for foreclosed properties web sites, I found your website, on which I read about Trace Trajano and his mission of 1 million Filipino millionaires. I am an OFW who is literally, paycheck to paycheck, no savings yet after 8 years of working abroad. Also As I watched the program in Bio Channel, “Flip this House”, I learned about how they earn a lot of money in just short time period, by buying,renovationg and selling foreclosed properties. I need to learn all of these so I could have financial freedom and not go back as an OFW and leave my family. May the good Lord bless you.
Lito Panis
OFW from Tondo
Hi Lito, thank you so much for sharing here your journey and your goal of achieving financial freedom. This is very similar to how I got started and I’m quite sure you can do the same! Just let me know if you have any questions/concerns and i would be more than glad to help as much as I can.
By the way, you might also want to try watching “Property ladder”. Haven’t watched “Flip this house” yet but I intend to do so. Thanks and God Bless!
Jay,
Thanks for your immediate reply, I bought the two books of Larry Gamboa,and I’m learning a lot.
I am going back to Kuwait to be an employee again 🙁 this month but I want to be an investor in real estate. My case: we have a family property, a 950 sq. mtr lot in Amparo Subdivision,still in my father’s name, both my parents are deceased, the property now belongs to 6 siblings, How can I afford to acquire this asset, assuming my bro and sis waived their right for the property, in exchange for specific amt of cash ,of course, please advise me on this matter.Can I apply this for a loan in Pagibig? I plan to make this my first real estate investment and begin my journey. Thanks a lot.
Lito Panis
Hi Jay,
Thanks for your very informative blog!
I have few questions:
1) I rich dad poor dad, Robert talked about other source/means of financing vehicles to buy a property aside from bank. Are these also available in the Philippines?
2) Is it generally cheaper to buy in foreclosures?
3) In the Philippine real estate foreclosure market, how much discount can you get if you buy a property in cash?
Thanks a lot again. More power to you
Hi Reggie, thanks for the compliment!
Let me try to answer your questions as follows:
1. If you are referring to OPM or other people’s money, yes, I believe they are available in the form of money from private lenders or passive investors. However, my take on this is that this requires a very sound contract that offers adequate protection for all parties involved. Actually I’m looking for a sample contract that can be used for this purpose but I haven’t found any yet.
2. Foreclosed properties are definitely cheaper but you will have to choose wisely. Some are cheap because they really need lots of money to repair and would leave little room for profits for investors. Others however are real “gems” because they are priced way below market value yet the repairs are not too costly, and the property’s after repair value is very high w/c means substantial profits. I guess for every 100 foreclosed properties out there, you will find at least one of these “gems”.
3. For bank foreclosures, I believe that paying in cash is not really a big “bargaining chip” because prices for properties for negotiated sale are really negotiable regardless of whether one pays in cash or through installment. Personally, I go for properties that are discounted at by at least 40% compared to market value, whether they be for negotiated sale or through public auction(which are not negotiable).
Hi Richard, thanks for your comment! Have you read Think Rich Pinoy! by Larry Gamboa? I think they shall also be having seminar on May 2, 2009. You can get more details here: http://richteamevents.blogspot.com/2009/04/think-rich-pinoy-wealth-seminar-on-may.html
I shall be covering the actual process in this blog as I go through the process myself, based on actual experience. With regards to forms, please check this post: https://www.foreclosurephilippines.com/2009/04/19-free-legal-forms-and-contracts-from.html
Hi! aside from learning from this very informative site, can you recommend or do you know a book i can read offliine or even a seminar on this subject or the actual process and actual tips, or with the necessary documents or forms used in the process?, sorry for the long description, but for planning doing this part time it can be a big help, thanks
Hi Jonats, thanks for the feedback. As I have been telling my friends, this blog will eventually become an e-book once I have documented a complete cycle of a real estate investment from looking for a property, buying it, fixing it up, and the exit strategy that I will use. Come to think of it, 4 months have passed and I have barely scratched the surface. As much as possible I base my content on actual experience. Maybe for now, I’ll setup a table of contents that serves as an outline so that one can read articles in proper order. I will also post content in the proper order for the beginning investor while ensuring I fulfill topic requests. Would this be okay?
Hi Jay,
Does your blog have some sort of an ebook that summarizes the basics of investing in foreclosed properties? Or at least a set of page series about it. Thanks. I find it a bit hard to just check each and every post I think is related to basics. 🙂
been hearing and reading about Rich Dad Poor Dad especially from aforum topic in PMT. I hope to read it later and be enlightened as well. thanks for sharing
Hi Jay, thanks for the input. She was obviously speaking as any ordinary pessimist would, choosing to cite the negative side first, that’s why I just put it off. Yeah you’re right, I won’t speak about it again. Probably not yet anyway. I don’t know of any venture that doesn’t have its down sides. But this has clearly more opportunities for those who don’t have much to begin with.
Thanks for dropping by the blog. Great to hear from you there. Buzz me when you’re ready to ride. You’ll find a new passion / addiction waiting for you 🙂
Well, the issues she mentioned are not issues for foreclosed properties, they are issues commonly faced by rental properties in general that are not managed well. Aside from proper screening of tenants, there are a lot of other factors she should consider. Do they have a lease contract that stipulate the obligations of the tenant and the consequences if they do not comply? Do they enforce penalties for delayed payments and discounts for early payments? Does she know the basis for eviction of delinquent tenants and how the process goes? If ever the tenant really does not want to pay, it first has to go through the Baranggay. We have had some cases like this in our Caloocan properties, in 3 months or less the cases were resolved. She might have ejectment of buyers that are not paying and eviction of tenants of rental properties mixed up. I know some people in build and sell and they are very successful and did not end up in a situation like your boss is in right now.
It’s quite obvious your boss does not know what she’s talking about and has things all mixed up. I suppose the best thing to do would be to avoid talking with her about this for now. When your checks come in, you can just show them to her and then maybe you can enlighten her. =)
Oh, I just found your e-mail and answered it already. Sorry it got buried in my inbox, been receiving a lot of e-mails lately.
Incidentally I sent you an inquiry in your gmail. Hope you got to read it.
Regards 🙂
My boss is also engaged in real estate, but not in foreclosures. She was offering me a 100sq.m land for 600K. I asked how much is the actual value of the land, and she says its around 700K. I believe reading about what a good deal is, that the purchase value should be at the most 75% of the actual market value for it to be a good investment. I humbly declined and sure enough she tried persuading me. Then I told her I plan to go into foreclosures, mainly apartments, and she says “mahirap ang foreclosed. Pag may tenant ka na delinquent di mo basta basta mapapaalis, mauuwi lang sa kaso.” (There are many issues with foreclosed, like if you have a tenant that couldnt pay rent you cant just evict them and it would end up in a case.)
I asked “so whats the protection of the investor against such?” She said, “not much”. They were formerly into build and sell, own a 10 door commercial area, which I believe Mercury Drug is negotiating for, and also a 6 door apartment they had built from earnings. 3 they had to sell to pay up loans, and 3 more earning rent.
I don’t really know what or how these issues go, but I guess proper screening of would be tenants would more or less protect you beforehand.
Lastly, it would probably matter if she herself is into foreclosures. But since she’s speaking about something she doesn’t know about firsthand I refuse to get discouraged. I’m waiting to strike anytime soon.
Thanks Jay for painting a tangible picture of what’s possible.