Learn how to invest in real estate in the Philippines even with no money down. Join the growing list of real estate investors. Make profits from buying foreclosed condos, apartments and houses. This may be among the best business opportunities in the Philippines for OFWs and other Filipinos.
People need housing or shelter. It is one of the basic human needs. In most places, including the Philippines, this measures one’s standard of living.
This is true even in a crisis. You do not have to look for other good ways to invest money because its value goes up over time.
How? Trace Trajano teaches four quick turn real estate techniques. Trace is a US-based Filipino real estate investor and best-selling author of Think Rich Quick. I attended his FIRST Think Rich Quick Seminar in Manila where he shared his four techniques.
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Think Rich Quick 2.0
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AREM is selling another person’s property. You get quick cash with no risks. This is good for beginning real esate investor. Even if you do not sell the house, you get to build a buyers’ list. You will know what buyers are looking for.
How to do this with no money and no banks? Sign a non-exclusive option to purchase contract with the seller, no agents involved. You have the option to purchase the property at an agreed price when you find a buyer.
Eden, a student of Trace, sold a house through AREM and made P100,000. She also builds a passive through real estate in the Philippines.
Downsides: AREM makes small money, as small as wholesaling or sometimes even smaller. Seller or buyer can go around you since you do not control or own the property. But with no risks and a buyers’ list, it’s worth the efforts.
Wholesaling is finding a buyer who will close the deal for you or take over your position. You do this before a purchase contract expires. Signing the purchase contract gives you control of the property. You get quick cask with little risk.
How to do this with no money and no banks? Partner with your buyer by letting them put up the earnest money deposit. They are going to buy the property anyway. Another way is to assign or sell the contract, or double close it.
The process for buying foreclosed homes is crucial. Edrick Esguerra, a teammate in Trace’s Apprentice Challenge on real estate investing, sold a house and made P250,000 in six days after winning a foreclosure auction. His buyer would take over the payments with the bank.
Downsides: You can earn from wholesaling even with no money down. But it gives you one time income. Once the deal completes, you have to find other deals to make money. You can lose your earnest money deposit if you can’t find a buyer quickly.
Retailing is selling a house to an end buyer after fixing the repairs. You get a big chunk of cash when the deal completes. You earn more when you buy low and avoid too much repairs. The key is finding your maximum offer with proper cost of repairs.
How to do this with no money and no banks? Trace teaches how to borrow private money from lenders or partners. His students learn how to approach people to be real esate investors. Trace gives pointers on how to answer whether this is the safest way to invest money.
Does this work? Trace once retailed a house for $83,500. He bought the house for $47,000! One of his students in the Philippines, Gia Garcia, made a profit of P1.65 Million or $25,000 from retailing a house.
Downsides: Learning how to raise money to fund your deals is another key. You also need to manage contractors doing the repairs. And you need to sell the house fast. Mistakes could be costly.
Do you have the money but do not want to handle the nitty-gritty of a deal? Fund other real estate investors' deals instead.
Rent to own offers three streams of income: down payment, monthly cash flow and back end. You profit when a tenant or buyer makes down payment. Monthly rent from tenant gives you cash flow. And you earn big when tenant buys the house.
The house can be a foreclosed asset of a bank. This requires money for down or full payment to the bank and repairs. Finding real estate investors to fund the deal does not need your own money. It is like getting real estate investor loans. You give lenders higher return on their money as incentive.
How to do this with no money and no banks? Trace said through owner financing or vendor financing. You take over the mortgage payments. Ask the seller to put up 3 months of mortgage payments to give you enough time to find a tenant/buyer.
Read the full article here on how Eden makes money through rent to own houses. She earns from the down payment of tenant buyers and their monthly payments.
Downsides: You have to deal with tenants, toilets and termites. Or you can avoid dealing with them by hiring someone do the job. And the big profit or back end does not come after a few years.
That covers the four quick turn techniques on how to invest in real estate. You as an OFW or Filipino immigrant abroad can use these techniques to build wealth or earn passive income.
Click on the links below to see other visitors' questions or comments.
Think Rich Quick Pinoy Seminar
Can I ask if when is the next Think Rich Quick/Pinoy Seminar? Thanks. Dom's Reply: Think Rich Quick 2.0 will be held on October 23-24, 2010. Exact …
Philippine Real Estate Seminar
I'd like to attend a real estate seminar in the Philippines. Please let me know if you have one upcoming. Dom's Reply: Becoming a real estate investor …
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