FTI Consulting Inc. has just announced their listing of bank foreclosed assets under Philippine Investment Two (SPV-AMC), Inc., herein referred to as PI Two. FTI Consulting, the largest business advisory firm in the Asia Pacific, was designated as the asset manager/servicer of PI Two.

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organisations protect and enhance enterprise value in an increasingly complex, legal, regulatory and economic environment.

With more than 3,700 employees located in 22 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring.

PI Two is a special purpose vehicle duly registered under Philippine laws. PI Two acquired various non-performing assets (NPAs) from various banks under the “The Special Purpose Vehicle (SPV) Act of 2002“. They are also listed in the SEC’s list of Registered Special Purpose Vehicles as of Sept 20, 2004.

Location of foreclosed assets

• CAR (CORDILLERA ADMINISTRATIVE REGION)
• NCR (NATIONAL CAPITAL REGION)
• Region I
• Region II
• Region III
• Region IV-A
• Region IV-B
• Region V
• Region VI
• ARMM (AUTONOMOUS REGION FOR MUSLIM MINDANAO)

Download the complete listing from FTI Consulting and PI Two

The complete listing of bank foreclosed assets for sale as announced by FTI Consulting under PI Two can be downloaded below:

• FTI Consulting PI Two bank foreclosed assets – consolidated list (XLS format)

FTI Consulting offers commissions to real estate brokers who would be able to sell the assets that belong to the listing. Furthermore, it offers payment terms on installment basis or via bank financing for prospective buyers.

For more details

Please  contact FTI consulting through phone:

• BETH: 8640991,  (63)9175820058
• CHRISTIAN: 09168505914

or through email:

• Beth: melizan(at)fhcsi(dot)com

Notice – Please read!

“SALE OF PROPERTIES  IS ON ” AS-IS- WHERE-IS ” BASIS.The Seller makes no warranty as to the boundaries, technical description of the properties  and  their legal condition such as, the existence of any claims, suits or actions involving the same.

Buyer shall be responsible to conduct  “due diligence” on the physical and legal condition of the properties after having visited the same and examining the documents evidencing  the Seller’s right thereto.

For properties without physical possession yet, it is understood that buyer  shall  take care of it.

Misprints in the list may occur, please verify the data by calling FTI Consulting.

FTI Consulting  has the right to withdraw  any of the properties in the list, and may CHANGE the LISTED PRICE without  prior notice.

The SELLER has the right to approve and disapprove all offers to buy.”

Thanks again to Christian for sending us this list!

Happy hunting!

~~~

To our success and financial freedom!

Jay Castillo

Real Estate Investor
PRC Real Estate Broker Registration No. 3194
Blog: http://www.foreclosurephilippines.com
Follow me in Twitter: http://twitter.com/jay_castillo
Find us in Facebook: Foreclosure Investing Philippines Facebook Page

Text by Jay Castillo and Cherry Castillo. Copyright © 2011 All rights reserved.

Full disclosure: Nothing to disclose.

FTI Consulting announces list of bank foreclosed assets for sale from PI Two is a post from: Foreclosure Investing Philippines

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In my previous posts about Maximum Allowable Offer (MAO), After Repair Value (ARV), and Cost Factor (CF), we determined these numbers for properties that we intended to flip for a profit. This time around let’s determine another number that is more applicable to income generating properties like multi-door apartments, which are obviously better kept for cashflow and passive income. This number is Net Operating Income or NOI. What exactly is NOI, and why is it important? Please read on to find out.

What is Net Operating Income or NOI?

NOI is basically what remains of the actual or projected annual income of a property, after all operating expenses have been deducted. Operating expenses include real property taxes, property insurance, property management, maintenance reserves, vacancy rates , collection losses, etc.

Costs related to debt servicing (in case a property was purchased through financing), are not yet deducted, when calculating for NOI. Furthermore, NOI can be before or after taxes. For this post, we will be computing for the NOI before income taxes are deducted.

Sample income generating property: A 10-door apartment

Example: You have found a promising 10-door apartment in Marikina City and the current rental income per unit is Php5,000. Determine the NOI. (Keep in mind that this is just a hypothetical property which shall be used to better illustrate how we to determine NOI)

Assumptions: Let’s assume that Real Property Taxes would amount to Php30,000 per year, property insurance would be around Php12,000/year, and property management would be Php5,000/month or Php60,000/year. The property also has a vacancy rate of 15%, and you also set aside Php5,000/mo for your maintenance reserves. Lastly, let us also make an assumption that there will be a collection loss of 5%, meaning you won’t be able to collect rents from your tenants 5% of the time (these are caused by your tenants from hell).

The NOI would then be as follows:

Why do we need to compute for NOI?

Let me give you 3 good reasons why you need NOI:

1. You need the NOI to determine if a property that is being offered to you as a “good investment” is really a good investment. Most people offer income generating properties without considering operating expenses. If you compute for the the NOI, you will surely know if a property will really be a worthy investment. If you know the NOI, and you are going to buy a property through bank financing, you can easily determine the cashflow it can generate. In our example above, if you bought it through bank financing and your monthly amortization is less than Php26,500/month, then you can already say that this is a self-liquidating property.
2. You need the NOI to determine a property’s cash-on-cash return. This gives you an objective way to compare your projected returns from an income generating property with other investments like stocks, bonds, mutual funds, etc. This will be tackled in my next post which should be ready by next week.
3. You need the NOI, along with the capitalization rate or cap rate to determine a property’s market value using the income method. For income generating properties, the income method is the recommended way to calculate for the property’s market value or After Repair Value. This will be tackled after my post on how to determine the cash-on-cash return. Please watch for it.

Things to remember about NOI

Obviously, the accuracy of the NOI greatly depends on the accuracy of the rental income and operating expenses that you will use. My advice is to use actual values as much as possible.

It would be easy to get actual rental rates by going around the immediate vicinity of the property you are evaluating.

Real property taxes can be checked by getting a copy of a property’s statement of account or SOA for real property taxes at the office of the City/Municipal Assessor’s office or Treasurer’s office.

For maintenance reserves, I have read a lot of books that say setting aside 10% of the gross rent would be good enough, but it still depends on you. Depending on the age of a property, maintenance reserves might need to be bigger, especially if repairs and maintenance needs to be done sooner.

I suppose estimates for vacancy rates, and collection losses, can come from landlords or property managers that operate in the same area. By the way, more than 2 years ago, I asked around and found out that during that time, property managers usually charge anywhere between 8% to 15% of gross rents. I’m not sure if these figures are still accurate so I will have to ask around again.

If you are evaluating a rental property, make sure you include NOI as one of the numbers you need to determine as part of due diligence. Remember, without NOI, you really won’t know for sure if you will have any positive cashflow/passive income, and it will help you stay away from properties that are really just money pits.

Happy investing!

To our success and financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Follow me in Twitter:http://twitter.com/jay_castillo
Find us in Facebook:Foreclosure Philippines facebook page

Text by Jay Castillo and Cherry Castillo. Copyright © 2010 All rights reserved.

PS. Here’s great news! Trace has a Mystery Speaker in his upcoming TRQ 2.0 seminar who will talk about property management. Click here http://bit.ly/attendtrq2 to sign up if you have not done so already. As of October 18, 2010, only 33 seats are left for TRQ 2.0! Click here NOW to register before seats run out!

PPS. Don’t be the last to know, subscribe to e-mail alerts and get notified of new listings of bank foreclosed properties, public auction schedules, and real estate investing tips. Inbox getting full? Subscribe through my RSS Feed instead!

How to compute for Net Operating Income or NOI and find good investment properties is a post from: Foreclosure Investing Philippines

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I recently answered an e-mailed question from a reader of Foreclosure Philippines who was also an attendee of the Think Rich Pinoy seminar held last November 21, 2009, where I was a guest speaker. Actually, our featured reader sent her e-mail last November 25, 2009, a few days after the Think Rich Pinoy seminar, but I was only able to answer her e-mail a few days ago… me bad!

Anyway, I noticed that I often receive very similar questions not only from other readers but also from people I meet who find out that I invest in foreclosed properties which is why I believe that it would be a good idea to feature it here, please continue reading below.

Questions and Actions

I intend to share my answers and some actionable items, as inspired by the book “The 4-Hour Work Week” by Tim Ferris, one of the books that inspired me to take a leap of faith (more about this in a future post). Tim’s book has a number of “Questions and Actions” at the end of each chapter.

Beginning with this post, I intend to feature questions from readers from time to time as a way of helping real estate investors in the Philippines.

Of course I will not disclose our reader’s name and e-mail address to protect her privacy and her questions are as follows:

“Hi Jay. I am currently looking for properties and try real estate. (I was an attendee from the Nov. 21, 2009 TRP seminar.) However, most banks have limits like income if you are an employee you must have 25k + salary. I only have 12K. Or must have a steady business. Or must be 2 years or more in a company. How can I start early with all these limitations? How can I apply for a loan and thus finance my first deal? Thank you very much…” – Miss MJ

Thank you for the excellent question Miss MJ. Let me try to answer your questions to the best of my knowledge and also share some of my thoughts as follows.

Your capacity to pay

Assuming that Php12,000 is your take home pay, let us first try to determine what is the maximum loan amount you can get based on your capacity to pay. I believe most banks and lending institutions look at a person’s net disposable income or NDI to determine a persons capacity to pay and the corresponding maximum housing loan they can get.

The rule of thumb is the monthly amortization should be no higher than 40% of the NDI. In your case, If you have no existing obligations like loans, etc, and assuming Php12,000 is already your take home pay after taxes and monthly contributions like SSS, etc., then 40% of your monthly salary of Php12, 000/mo would be the maximum monthly amortization that can be allowed for you, which is Php4,800.

Foreclosed properties you can afford

Using the payment terms from Unionbank as an example, Php4,800 would be more than enough as the monthly amortization for a foreclosed property priced at Php350,000 with a downpayment of 10% or 35K, and the balance financed with an interest of 15% per annum for 15 years. With these terms, the resulting monthly amortization would be Php4,408.69, well within your maximum of Php4,800/month.

Obviously, there are other banks and lending institutions that offer lower interest rates and longer terms so you can definitely still get your first deal through bank financing. That is assuming you can come up with the minimum downpayment required.

How can I come up with the downpayment?

Yes, you will still need to save for the downpayment. I suggest that you start managing your money NOW! I believe learning how to manage money is a prerequisite to starting to invest in foreclosed properties. I would like to reiterate my belief that anyone who wants to get out of the rat race really needs to learn how to manage money and finances and this remains true whether you intend to invest in foreclosed properties or other investments.

Moving forward, let’s assume you manage to consistently save 15% of your salary each month or Php1,800, you will be able to save enough for the downpayment in less than 20 months. If you think 20 months is long, remember the requirement you mentioned that you must be working for a company 2 years or more in order for you to be able to qualify for a housing loan?

Don’t bite off more than you can chew!

You might be asking why you should limit yourself to foreclosed properties worth Php350,000 and below? Well, I believe there is wisdom in starting small so that in case you do make mistakes (we all do!), you also make small mistakes and failures from which you can easily recover.

You still learn from the entire process but you start gaining knowledge and experience that would help you to get ready to take on bigger deals and bigger success.

What about Other People’s Money or OPM?

I know the subject of OPM is always in the mind in beginning real estate investors but I believe that if you are just starting with your real estate investing career, you should not even consider using other people’s money unless you are already able to prove your worth in managing your own.

How the heck would you be able to make good use of other people’s money if you cannot even manage your own?!

Your own money might be small but it should be good enough for one to start. As mentioned in Luke 16:10(NIV), “Whoever can be trusted with very little can also be trusted with much…”.  Makes sense right?!

Investing in foreclosed properties is a numbers game

Obviously, it may take some time for a lot of people to save enough money to start investing. I know I did as it took me 3 years before I was able to buy my first property. But that should never stop anyone from consistently analyzing properties to find deals worth pursuing.

You do not need any money to analyze deals as you are investing your time. So go ahead, start analyzing deals NOW, even if you still have no money to invest. Save money while  consistently analyzing properties and make the most of your precious time!

The more foreclosed properties you analyze, the sooner you will begin to see those deals worth pursuing. I’ve read a number of books about real estate investing that mention that on the average, you may have to analyze a hundred properties to end up buying one and I for one believe that these numbers are accurate. The key is to keep on analyzing as much foreclosed properties as you can.

Don’t listen to the little voice in your head that may say “These numbers just won’t work… foreclosed properties are too expensive… I will never find one that is worth investing in… ” after looking at just a few listings or just a few properties. Remember, that’s the voice of the loser inside of you.

Just keep it up and you will eventually begin to see those great deals that you were unable to see before. When that time comes, I have a feeling you will already have the money to invest.

Happy investing!

—

To our financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Click here to contact me via E-mail
Mobile phone (Call/SMS): +639178843882
Follow me in twitter:http://twitter.com/jay_castillo
Become a Fan in Facebook:Foreclosure Philippines fan page

Text by Jay Castillo. Copyright © 2009 All rights reserved.

PS. If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

PPS. If you feel that anyone else you know might benefit from this post, please do share this to them and don’t forget to subscribe to e-mail alerts and 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 through my RSS Feed instead.

Reader Q and A #1: How can I apply for a loan and thus finance my first deal? is a post from: Foreclosure Investing Philippines

Just wanted to share this list of repossessed cars for sale from Unionbank. The bidding period for the repossessed cars on the list is from January 11-19, 2010. Yes, bidding is ongoing and the deadline for submission of bids is on January 19, 2009. I thought the BMW on the list was the same one in a previous listing of repossessed cars but it turns out this was a different one.

Where to inspect the repossessed cars

If you are interested, you may inspect the repossessed cars at the Unionbank warehouse located at 185 Roosevelt Avenue, San Francisco Del Monte, Quezon City(In front of watch tower).

Ready to bid for a repossessed car?

Bid forms are available at Unionbank ARG, 20th floor, Unionbank Plaza, Meralco Avenue corner Onyx Street, Ortigas Center, Pasig City. Just make sure your bids are submitted with Php5,000.00 Manager’s Check at the above address no later than January 19, 2009. For more details, please call Babes through telephone number 6380113 or 6676388 local 8370.

Is bank financing available for these repossessed cars?

I already called them up and was told that bank financing is available for the repossessed vehicles through Unionbank’s Auto Finance group. The maximum loan term and add-on interest rates depend on the age of the repossessed car you are interested in. For more details, just call up Unionbank’s trunkline 6676388 and  ask to be transferred to Auto Financing.

Click on the image below to download a PDF version of the list of repossessed cars from Unionbank.

Source: Manila Bulletin, Classified ads section, January 10, 2009 issue.

Happy hunting!

—

To our financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Click here to contact me via E-mail
Mobile phone (Call/SMS): +639178843882
Follow me in twitter:http://twitter.com/jay_castillo
Become a Fan in Facebook:Foreclosure Philippines fan page

Text by Jay Castillo. Copyright © 2009 All rights reserved.

PS. If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

PPS. If you feel that anyone else you know might benefit from this post, please do share this to them and don’t forget to subscribe to e-mail alerts and 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 through my RSS Feed instead.

Repossessed cars for sale from Unionbank is a post from: Foreclosure Investing Philippines

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CBRE will hold its Property “Pac-yawan” Bazaar Christmas Public Auction of bank acquired properties this coming December 10, 2009, Thursday, 3:00PM, at the Brasserie, 21st Floor, Security Bank Bldg., Ayala Avenue, Makati City, Philippines. Show Money is only Php25,000. Bank financing is available but if not approved, in-house financing can be considered, subject to management’s approval.

Thinking about investments?
This will be a great opportunity both for people who would like to invest in real estate and for those who would want to grab the chance to purchase their new homes at a very friendly price. Properties will be auctioned at very low prices, making it an opportunity everyone wouldn’t want to miss.

Worried about unconsolidated TCT’s? Encumbrances that goes with cheap properties?
Worry no more as all titles are consolidated under the Name of the Seller and all are clean titles. Of course it wouldn’t hurt to do your due diligence just to be sure as all properties are for sale on an “as is, where is” basis. Properties, rates, and prices are subject to change without prior notice.

Location of properties
The Areas covered are Manila, Paranaque, Valenzuela, Baguio, Batangas, Cavite, Laguna and Rizal.

Click here to download CBRE’s property “Pac-yawan” Bazaar Christmas Public Auction listing of bank acquired assets. or just click on the image above.

For inquiries, you may call CBRE at (02) 752-2592 / 759-2335 / 409-2225 / 752-2580 or you may also text them through the following numbers and they will call you!

• Mark 0932.2404546
• Calvin 0917.5743058
• Early 0917.5743057
• Gina 0917.8606612
• Jane 0917.5743044

I would like to thank Vanessa Joy Tan for sending me a copy of the listing. Sorry Vanessa if it took sometime before I was able to post this as my wife and have been very busy with looking for a new house lately. Same goes to Mark Del Rosario of CBRE who also sent me a copy of the listing.

Happy hunting!

—

My vision – financial freedom for all!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Click here to contact me via E-mail
Mobile phone (Call/SMS): +639178843882
Follow me in twitter: http://twitter.com/jay_castillo
Become a Fan in Facebook: Foreclosure Philippines fan page

Text by Jay Castillo. Copyright © 2009 All rights reserved.

PS. If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

PPS. If you feel that anyone else you know might benefit from this post, please do share this to them and don’t forget to subscribe to e-mail alerts and 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 through my RSS Feed instead.

CBRE to hold Property "Pac-yawan" Bazaar Christmas Public Auction of bank acquired properties is a post from: Foreclosure Investing Philippines

RCBC Savings Bank is having another pre-owned Car Sale through their latest Great Deals on Used Wheels promo. The pre-owned car sale runs from November 9 to 13, 2009. Bank financing is available for the bank repossessed cars and they can be purchased for as little as 20% down payment, and at low interest rates. For financing inquiries, please call Rico: 09189051911 / Allan: 634-5173 / Daniel: 09189903805.

Inspection of the second hand cars for sale can be done at their Pasig warehouse which is located at #8516 A. Sandoval Avenue, Pinagbuhatan, Pasig City, Philippines. For inquiries, you may call Rene Lopez through cell phone # 0918-9903626 or 687-0839 / 687-1365 / 638-5032 / 687-5430 loc 4382 during office hours and look for Bobby, Cris, or Raul.

Source: Manila Bulletin, November 8, 2009 issue, classified ads section

Happy hunting!

—

To our financial freedom!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Click here to contact me via E-mail
Mobile phone (Call/SMS): +639178843882
Twitter: http://twitter.com/jay_castillo
Facebook: Foreclosure Philippines fan page

Text by Jay Castillo. Copyright © 2009 All rights reserved.

PS. If you are a new visitor, please start here to learn more about foreclosure investing in the Philippines.

PS2. Larry Gamboa and Bo Sanchez will give the Think Rich Pinoy Seminar this November 21 at the Philamlife Building in UN avenue in Manila. Larry will discuss his unique Real Estate methods, buying foreclosed properties and turning them around for passive income. You’ll also get to play Robert Kiyosaki’s CashFlow Game and learn! To attend, click here now!

PS3. If you feel that anyone else you know might benefit from this post, please do share this to them and don’t forget to subscribe to e-mail alerts and 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 through my RSS Feed instead.

RCBC Savings Bank Great Deals on Used Wheels Pre-owned car sale on November 9 to 13, 2009 is a post from: Foreclosure Investing Philippines

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Finally, Buena Mano Property Sales and Leases has released their Q3-2009 catalogues of bank foreclosed homes. However, we were only able to get a copy of the Yellow Tag listing of bank foreclosed homes for Metro Manila. My wife and I already visited a number of branches of BPI in Makati and Libis but we only found the Yellow Tag listings available in their main office in Makati. Either they only printed a few copies of the catalogues or there was a high demand for the Green Tag and Red Tag listings and they ran out of copies.

The Yellow Tag listing we got already includes both  Super Value and Prime bank foreclosed properties for sale. Foreclosed properties are classified as Super Value properties if they are priced below Php10M and those priced Php10M and above are classified as Prime foreclosed properties. All of these properties are for negotiated sale.

Just what are “Yellow Tag” Properties?

Yellow Tag properties are foreclosed real estate properties with any of the following “special concerns”:

1. Titles are already under the name of the bank which foreclosed the property or properties but they are still occupied by the former owners, tenants, or by illegal occupants;
2. There are property documents (ex. Tax Declaration) that still need to be updated

Personally I would rather avoid properties that still have occupants, I suggest you do the same. However, I would consider those that only need updating of property documents as these often just need a few more months to get completed. provided that the numbers make sense.

The Buena Mano Yellow Tag listings of bank foreclosed homes for Q3-2009 includes foreclosed properties in the following locations:

• Bulacan
• Caloocan
• Cavite
• Laguna
• Las Pinas
• Makati
• Malabon
• Mandaluyong
• Manila
• Marikina
• Navotas
• Palawan
• Paranaque
• Pasay
• Quezon City
• Rizal
• Valenzuela

For more details and other inquiries, you may visit their main office in Makati:

• Ground floor, The Enterprise Center Tower 2, Paseo De Roxas cor. Dela Rosa St., Makati City, Philippines

Or you may contact Property Sales and Leases through the following:

• Telephone  number: 8455800
• E-mail: askpms@gmail.com
• Fax Numbers: 8169967 / 8169964
• Web: http://www.e-buenamano.com

For  specific areas, you may call the sales officer in charge of that area:

• Bulacan / Calocan / Makati / Malabon / Manila / Navotas / Palawan / Valenzuela
  • Lester “Teng” Apolonio: 8455229
• Mandaluyong / Marikina / Pasig Quezon City/ Rizal / San Juan
  • Alfredo “Bu” C. Carlos: 8455805
• Batangas / Cavite / Laguna / Las Pinas / Muntinlupa / Paranaque / Pasay / Pateros / Taguig
  • Agapito “Pete F. Marasigan: 8455815

The fine print:

• All properties for sale are on an “as-is, where-is” and “first-come, first-served” basis
• Properties maybe withdrawn without prior notice
• Prices are subject to change without prior notice
• All offers are subject to management’s approval
• Please confirm entries by calling their hotlines or send an email to askpms@gmail.com

As you can see on the fine print above, it states that all offers are subject to management’s approval. This means that prices are negotiable.

Interested in any of the foreclosed properties?

1. For Yellow Tag properties, special handling is required. Before you visit your chosen property, kindly call the sales officer in charge of the area as listed above and inside the catalogue. You may visit your chosen property any day of the week, any time of the day. Most properties have caretakers who can assist you during your visit (except for condos and vacant subdivision lots which are under the watch of the respective condo/subdivision homeowners association). For condos, you have to coordinate with the sales officers on where to get the keys.

Just a word of advice… Since the properties sell fast, you are advised to call first before your scheduled visit, just to check if the property you are interested in is still available. (Remember my post about how I failed to grab my first investment property? That property was also from a Buena Mano listing!) By calling, you also get to verify the best way to get to the property.

2. If you like the property(and it passed your due diligence), you may submit a Letter Of Intent by accomplishing an Offer To Purchase form which should contain the following information:

a. Address/Description of the property you are planning to buy
b. How much you are offering to buy the property for (Yes, prices are negotiable!)
c. How you intend to pay the purchase price (Cash? Loan from your bank? Others?)
d. Your name and address, contact numbers, and signature
e. Other pertinent information required

3. You will be informed if your offer has been accepted. A Letter Advice containing the terms and conditions of the sale (with the following information) shall be sent to you:

a. Selling Price
b. Property Address/Description
c. Schedule of payment/s to complete the purchase price

4. After you sign the Letter Advice which signifies that you agree to the terms and conditions of the sale, you must send back a copy for their file and serve as their basis to reserve the property for you until you pay the minimum 10% earnest money on or before the date stated therein. If the earnest money is not paid on the due date, the property will be offered to other interested buyers.

What are the related taxes and fees that go with a real estate transaction?

For the account of the Seller:

• Capital Gains Tax (CGT) which is 6% of Selling Price(SP) or Zonal Value (ZV) or Fair Market Value (FMV) whichever is higher
• Business Tax – if applicable

For the account of the Buyer Documentary Stamp Tax which is 1.5% of SP or ZV whichever is higher

• Transfer Tax – rate depends on the location of the property (ranging from 0.25% to 0.75% of SP or ZV whichever is higher)
• Registration Fee – graduated rate based on SP (ex. Php 5,646 for SP of Php1M)
• Realty Taxes – for the remaining months of the year based on date of full payment

*Note: The Government may impose other taxes and fees that are not covered by the above schedule

What are the payment modes available for the purchase of a foreclosed property?

• Cash
• Deferred Payment Plan (Case-to-Case)
• Bank Financing
  • Through BPI, BPI Family Savings Bank or any other major domestic banks
  • Terms are subject to separate credit approval by the lending bank
  • If you get a loan from BPI Family Savings Bank, the following are its current loan parameters (subject to change without prior notice)
    • Loanable amount is up to 75% of the appraised value of the property
    • Payment term up to a maximum of 12 years
    • Interest at lower than current market rates
    • The chart below shows how affordable the monthly amortization is:

SAMPLE COMPUTATION:

* Amortization factor for 9.5% p.a. interest rate fixed for the first year with a loan term of 12 years

** Good for the first 12 months of your loan; succeeding month’s amortization to be computed based on prevailing rate at the end of the 12th month.

Buyers may opt to set with the Bank a longer rate-fixing period to avoid yearly re-pricing and abrupt rate fluctuations cause by changes in economic conditions. (I highly recommend this!)

Click here to download the Buena Mano Super Value Yellow Tag GMMA Catalogue of bank foreclosed homes Q3-2009

Click here to download the Buena Mano Prime Yellow Tag GMMA Catalogue of bank foreclosed homes Q3-2009

Click here to download the Offer To Purchase form

Full Disclosure: How I wish interested buyers can already put my name as the referrer in the Offer To Purchase form but I have not yet received confirmation that my accreditation as a licensed broker has been approved. Once I am accredited I may or may not be able to post properties from the Buena Mano listings here depending on the guidelines that are to be issued to accredited licensed brokers.

—–

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.

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Buena Mano Yellow Tag catalogue of bank foreclosed homes in Metro Manila for Q3-2009 is a post from: Foreclosure Investing Philippines

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