To all OFW’s: Need To Earn Passive Income And Come Back Home For Good? Try Foreclosed Property Investing!
“Are you always sending BALIK BAYAN boxes every month or every payday, year after year?
Are you working your head off having 2-3 jobs to just earn enough for you and be able to send money home?What if you can make your money work for you! Instead of getting 2-3 jobs, you teach how your relatives can earn money from rental properties? Wouldn’t this lighten the load.
Instead of BALIK BAYAN BOXES, why not a HOUSE and LOT, or an APARTMENT which you can rent out. It’s safe since your family can not sell it without your permission, not like a car, computer or any expensive appliances like TV.
You will be surprised to know that the amount you spend to fill up a BALIK BAYAN BOX can actually buy you a rental property that can earn you additional money.“
The quote above is the description for the now defunct “OFW earn Passive Income via Real Estate Rental Properties” Meetup group, which I was a member of.
Passive Income or doodads?
Although the Meetup group is gone for now, the message is still relevant. We often hear stories of OFW’s who send money and gifts(in balikbayan boxes) to their loved ones with the hope of coming back for good one day after amassing enough savings and/or so called “assets” like home theater systems, computers, PSP’s or other expensive gadgets/appliances, which are actually doodads since they don’t generate income and tend to depreciate quickly. After awhile they do come home and enjoy life but they then realize that their savings are already dwindling.
What’s worse is I also hear of stories of OFW’s who come home only to find out that all the money and gifts they have sent home are gone without a trace. With a heavy heart, they have no choice but to leave again to work abroad. The “rat-race” cycle continues. Of course there are those who are already enlightened and actually buy real “assets” that provide passive income but judging from the number of friends and friends of my friends who I know who are still working abroad, I would say these are quite few.
It’s really possible to be back home for good
Wouldn’t it be nice if there was a way for OFW’s to come back home for good, where they have a choice to stay with their loved ones or still go abroad in case they wanted to but not out of necessity?
In my opinion, buying foreclosed real estate fits the bill as it can provide the means to buy income generating properties that are real assets as described by Robert Kiyosaki in his book Rich Dad Poor Dad. If you haven’t read this book, I highly suggest you read it NOW!
Little downpayment needed for foreclosed property investing
Foreclosed property investing requires very little down payment which is comparable to the cost of the contents of balikbayan boxes that are sent home to loved ones. Imagine that, for the cost of a balik bayan box, one could have already acquired an investment property that can generate passive income for many years.
Passive Income and Positive Cashflow
If chosen correctly and managed well, foreclosed properties that are then rented out could generate enough income immediately that would cover the monthly amortizations along with an excess cashflow that would increase over time as the loan gets paid, and rents increase. This positive cashflow that would be coming in without depending on the amount of work put into it is passive income.
My Vision
Are you beginning to see my point? My vision would be to have OFW’s building enough passive income through rental properties which would then allow them to come back home and stay home for good, if they wanted to. While it’s true that OFW’s earn big money working abroad, I believe it would be better if they had the means to stay home and have the time to enjoy a meaningful life with family and loved ones here in the Philippines!
What to read next
The goal is financial freedom…
- Foreclosure Investing Is Not Really Just About The Money, It’s About Financial Freedom!
- Is It Really Possible To Gain Financial Freedom Through Real Estate Investing?
… But we also need financial literacy!
- Manage your finances to get ready for your first real estate deal!
- Manage your finances by becoming your own Chief Financial Officer
- How I track my expenses and manage my money
All About Foreclosed Real Estate Investing
- 9 Ways To Invest In Foreclosures And Earn Money
- 31 Questions You Need To Ask When Inquiring About A Foreclosed Property
- 4 Steps To Quickly Analyze And Short-list Foreclosed Properties
- How I Estimate Market Values Of Foreclosed Properties
- How To Easily Calculate The Return-On-Investment (ROI) For Rental Properties
- 4 Tips On How To Stop Foreclosure
- Real Estate Acronyms Every New Real Estate Investor Should Know
- What To Expect When Buying Foreclosed Properties
- Top 5 Things to Consider when Buying Foreclosures
- Why Is Investing In Real Estate So Much Better Than Investing In Stocks? (Part 1: Leverage)
- Why Is Investing In Real Estate So Much Better Than Investing In Stocks? (Part 2: Less Risks)
- Why Is Investing In Real Estate So Much Better Than Investing In Stocks? (Part 3: Control)
Lessons Learned
- Lessons learned from the Marikina Public Auction of Real Properties with Tax Delinquencies
- Pre-auction bids – Another Lesson Learned
- 9 Lessons Learned From The Real Property Tax Foreclosure Auction Sale In Quezon City
- I failed to grab my first real estate investment property… so what?!
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To our financial freedom!
Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Social Network: http://foreclosurephilippines.ning.com
Mobile: +639178843882
E-mail: ph.investor@gmail.com
Text by Jay Castillo. Copyright © 2009 All rights reserved.
P.S. – If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines. Don’t forget to subscribe to e-mail alerts to get notified of new listings of bank foreclosed properties, public auction schedules, and real estate investing tips. If your inbox is getting full, you may subscribe instead to my RSS Feed.
Related posts:
- My Dad is a broke OFW (An open letter to all OFW’s)
- Foreclosure investing is not really just about the money, it’s about financial freedom!
- There is a better way to make a living!
- Manage your finances by becoming your own Chief Financial Officer
- To All Rich Dads And Soon-To-Be Rich Dads, Happy Fathers’ Day!
- Happy New Year and more successful investing in foreclosures for 2009!
- Manage your finances to get ready for your first real estate deal!
- No more excuses – Be a successful real estate investor!
- Is It Really Possible To Gain Financial Freedom Through Real Estate Investing?
Tagged with: balik bayan boxes • doodads • Financial Freedom • foreclosed property investing • investment property • money • OFW • OFW Investor • passive income • positive cashflow • Real Estate Investing • rental properties • rich dad poor dad • robert kiyosaki
Filed under: Financial Freedom • Managing Finances
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Hi there,
I am your typical OFW working here in the UK. For the past 3 years I have been spending on things that I thought was worth something such as fancy cars and gadgets. Somehow when your working abroad its really easy for us Filipinos to be overwhelemd by our salary and how much luxury items we are now able to buy. Eversince I read Kiyosaki’s book I learned that for a number of years my money was being wasted away with doodads. At the moment I am building a 2 door apartment on our idle land in Pasig hoping I can get good passive income of that. Foreclosed properties will be a bit challenging for me because I need to be constanly present in the Philippines to scout for good buys. This blog is really a big help for me because it gives me an idea of what to expect in this line of investment.
Thank You
Hi Dan, thanks for your comment and for visiting my blog! Your comment reminded me of my ninang who is also working in UK. During her last visit here in the Philippines, I also tried to explain to her all about investing in real estate, and how one can earn passive income, basically Rich Dad principles by Robert Kiyosaki. Somehow I think I was able to at least open her eyes on the subject. I’m glad that you however are more advanced than my ninang as you are already building a 2 door apartment, congratulations! I suppose you can have your relatives back home help you with the scouting for good properties and the property management afterwards. I wish you the best of luck and don’t hesitate to post any questions that you may have about investing in foreclosures!
Hi! I am based here in Riyadh together with my husband and 2 adorable kids and I must say God has been good. I recently stumbled upon Robert Kiyosaki’s book and also Dave Ramsey’s Total Money Makeover, which I found absolutely inspiring. Though we already have our own property (and have been mortgage-free for years), we’re now looking to acquire more properties that will yield passive income and will build wealth over time. We are now aware of the “real” assets and have learned to live frugally..earning two incomes but living on one and sticking to our spending plan.
More power to your blog. I’ve learned a lot from reading your posts. And I’ve been sharing it with my friends here, too, who share similar goals of becoming OFW millionaires (through God’s help and wisdom). God bless you more!
Hi Ross, thanks for sharing your thoughts, very inspiring and I look forward to more good news from you. Thank you also for taking time to read my posts and for sharing with your friends, really appreciate it. I also wish you and your family more blessings!
i’m really interested in buying foreclosed property .but how OFW can buy while we are working a board. pls.give me some info on what to do coz i have some property which i’m interested but that was lot only ,just want to asked is it a bad idea if i buy lot only coz i have a 4 lot that i buy and just leave it as it is for more than 10 years now coz i always read in your mail that u buy n rent it.
Hi Thelma, I believe Ross said it well in his reply below, it would be better to buy properties with improvements already. I will have to create a new post on what options you can take if you are an OFW who wants to start investing in real estate while continuing to work abroad. Thanks for visiting!
Hi! I think it’s not such a good idea to buy lots only since it would not immediately be a source of what we call passive income. I recently inquired a friend contractor on how much would it cost to build 2-storey apartments that would fit the size of our lot. We have acquired this lot for more than 5 years and is just sitting idle thus, the reason we got interested in the construction of apartments. Turns out however that 1 unit would cost 840k already! So if we were to build 3 units it would cost us more or less 2.5million! A good alternative therefore is to buy foreclosed properties which already have structures built on it…there are many posts here offering tips on how to spot a great deal. And unless you have someone back home you could really trust and who has a lot of free time, the only other option we OFW’s have is to do the scouting ourselves during our vacation. As Jay would put it, happy hunting!
Hi Ross, thanks for answering Thelma’s question! Aside from scouting around while on vacation, I’ll also think of other ways and share it through a new post…
Thanks Jay for the sharing your valuable entrepreneurial mindset and experience specially to our kababayan in RP and abroad. As one of many OFW, my wife and I are planning to go back to the Philippines once our kids (twins) starts high school. Lots of our friends are asking WHY? well, I should say it’s more of effective way teaching our kids real-life experience living outside of their comfort zone, teach them how pinoy family support system works, learn the language (speaking & writing), let them learn more about their roots, to volunteer and experience what’s life really is in the Philippines. Watching PinoyTV and TFC can do just that much.. nothing can compare to the real-life experience.
We’ve invested in few properties in RP (near laguna technopark), mostly lots (none generating) but our future plan is moving into property dev;t and, that’s why your blog is valuable specially for me who have 0 knowledge and background in real estate investing.
More power to You!
http://www.condo.ph
Hi Elmer, I admire you for your initiative to come home with your kids, I agree with what you said, thanks for sharing!
It’s good to know you already have investments! I also have plans to go into property development but not in the near future as I would need time to raise capital. Thanks for dropping by and God bless.
Thanks for sharing valuable information.