Real estate in the Philippines and elsewhere provides good ways to invest money for OFWs and Filipino immigrants. You get higher return and your money is safe. Your money is tied up to a property which you will own in case the borrower defaults.
Is this the safest way to invest money? One of the safest, yes. An escrow company handles the deal. And the property is worth more than your money. But you have a very slim chance to own it. The real estate investor can sell it quickly because it is a bargain. Such properties never run out of hot buyers.
Do not ask where to invest now because you are in the right place. My partners and I are part of Trace’s Apprentice Challenge on real estate investing. We have access to great deals that need funding to complete. These deals are your passport to higher return on your money.
Trace Trajano is a US-based Filipino real estate investor and author of the best-selling book “Think Rich – Quick!” He acquired over $13 Million worth of properties in the past 6 years. He mentors real estate millionaires including Eden Alemania Dayrit.
Dom's update:My association with Trace ended after his Apprentice Challenge in 2010. The properties discussed below are no longer offered to investors.
Now let’s look at the...
1. Invest $425,000 (P19,125,000) or a part thereof in this house and earn 3% for one month. This is a foreclosed home in LA, California. Purchase price is $412,000 or P18,540,000. The $425,000 amount allows a buffer for unexpected costs. A buyer agreed to buy it at $715,000 (P32,175,000) with 30% down. The rest will come from a bank where he qualified for a loan. It will take 2 weeks to get financing. That’s where your money comes in – to purchase the house. Is this the safest way to invest money? The loan to value (LTV) ratio of 59% ($425,000 / $715,000) provides a margin of safety in case the market value drops due to unforeseen risks in the market. The short term lending will cushion the impact of Peso-Dollar exchange rates. This is a deal of Ms. Angie Galia, Trace’s student. Angie did a similar deal before. It is a seller’s market now in LA so Angie can easily get a buyer in case the first buyer defaults. Two months without a buyer is the worst case scenario. Where else can you find easy good ways to invest money in real estate?
2. Invest $210,000 (P9,450,000) or a part thereof in this home and earn 4% for one month. This is a foreclosed home in Sacramento, California. Purchase price is $210,000 (P9,450,000). Worth $300,000, a buyer will buy it at $275,000 (P12,375,000) with $50,000 down. The buyer is pre-qualified with a bank but it will take 4 weeks to get financing. The deal needs to close by April 30, 2010. Here your money comes in. This is one of the easy good ways to invest money in real estate with higher return. This is more or less the same as property 1 above so margins for safety apply. The real estate investor is also Trace’s student. An escrow - third party - will handle deals 1 and 2 to protect the buyer, seller and you the lender. The escrow company gives the title of the properties to the lender in case the borrower defaults.
3. Invest small amount of money on real estate in the Philippines and earn 1% a month for four months.
Property: Townhouse - 2level, 2bedroom, 1 toilet & bath
Location: Paranaque City
Market Value: P1.95 Million
Acquisition Price: P1.3Million
Return: P60,000 for 4 months Property: 3-level, 2BR, 2TB, with roof deck house
Location: Las Pinas City
Market Value: P2 Million
Acquisition Price: P1.3 Million
Return: P60,000 for 4 months Property: Townhouse - 2level, 2BR, 2T&B, 1CG*, terrace
Location: Paranaque City
Market Value: P2.15 Million
Acquisition Price: P1.6 Million
Return: P64,000 for 4 months
Eden did the numbers for these properties so you can be sure of the soundness of these deals. Read here how Eden invests in real estate in the Philippines.
There may be other smart ways to invest money for OFWs and Filipino immigrants. But first time investing must be secure, safe and simple. The options discussed above are backed by real estate - easy good ways to invest money.
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