You are all invited to the next Think Rich Pinoy wealth seminar this Saturday, August 27, 2011, 8am to 6pm, at the L/G Skyland Plaza Bldg. Sen. Gil Puyat Avenue, Makati City. The venue is very near the Makati Post Office.

If you want to learn from Larry Gamboa and the Think Rich Pinoy Team who have been investing in foreclosed properties for years in the Philippines, then this seminar just might be what you’ve been looking for.

I attended the same seminar last August 18, 2007 (yes, that was more than 4 years ago!) and here’s your chance to attend what I often refer to as a “life changing” seminar.

What to expect

Here’s a preview of what’s in store for you in the Think Rich Pinoy Seminar on August 27, 2011…

If you have ever inspected a foreclosed property, you know that most of them need a lot of repairs...

Here’s more:

• Discover how Pinoy Investors are applying Robert Kiyosaki‘s Rich Dad Principles for Investing in Real Estate
• Find out how to become part of an exclusive Buyer’s List for hot real estate prospects
• Learn the best techniques for raising capital today
• Unlock the secret of how to analyze the numbers to ensure maximum returns w/ minimum risk
• Get In Touch With The Only Group In The Philippines Franchising People To Real Estate Success
• Learn how to overcome your biggest investing challenge in 2011

I will be one of the facilitators during the Cashflow 101 game in the afternoon. As someone who has actually invested in foreclosed properties, I would be more than happy to share my own experiences and answer your questions in relation to the Cashflow 101 game and how you can do it in real life.

Yes, it can really be done, and it really is possible to do it all in an ethical, morally upright, and legal way!

I hope to see you at the seminar!

Click here learn more about the Think Rich Pinoy seminar on August 27, 2011

Happy learning!

~~~

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: I am an affiliate of the Think Rich Pinoy Seminar on August 27, 2011 and may earn affiliate commissions.

You are invited to the Think Rich Pinoy Seminar this Saturday, August 27, 2011! is a post from: Foreclosure Investing Philippines

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I was supposed to write a post about the Think Rich Pinoy Seminar which I helped facilitate last December 4, 2010 but it turns out that someone already did. I received an e-mail about what happened during the seminar from Larry Gamboa himself, and I would like to share it with all of you here. Anyway, let me spice it up a bit with some of the pictures I took during the event.

Think Rich Pinoy rocks Manila!

December 4, 2010 MANILA, Philippines – People from all over Metro Manila and some even flew in from different parts of the country to join the Think Rich Pinoy Wealth Seminar at Philamlife  Center UN Avenue Manila.

The seminar started with Larry Cleto who spoke about wealth management tackling the Filipino’s inherent trait of not being comfortable in talking about money even with family. He shared that it causes needless rift when you keep mum about finances.

Alvin Barcelona, the “rocker preacher”, wowed the crowd on a different take on the theology of money by overcoming the giants – like nagging thoughts that it is hard to earn money and the absurd thought of losing our friends when we get rich -  that hinder us from being wealthy.

Many people think money is the root of all evil...

... actually, the love of money is the root of all evil, as emphasized by brother Alvin Barcelona

Larry Gamboa was in his form when he discussed about the technology of money and what financial literacy is all about. Larry also shared with attendees his 13 secret lessons for success using the experience and journey of Manny “Pacman” Pacquiao as an example.

With Larry Gamboa and TRP seminar attendees

Aside from these foundation speakers, the attendees had the privilege of hearing Vic Gamboa discuss his expertise on property management and Victoria Lucker, the staging handy woman, who spoke about her passion for designing and renovation.

Also, real estate investors  Eden April Alemania-Dayrit and Randy Manaloto gave true to life examples of deals that the participants can aspire for in the future.

Eden Dayrit during her talk

Of course, the cashflow game was the runaway winner with the crowd. The attendees felt the joy of acquiring real estate deals and the frustration of getting downsized – at least in the game.

Just one of the tables playing cashflow101...

The facilitators

More pictures of people playing cashflow 101:

(All pictures shown here and more were uploaded to FIP’s facebook page, feel free to tag yourselves and those you know who attended the seminar. You need to “like” the FIP page in order for tagging to be available.)

All in all, people were satisfied to the brim and walked away inspired. With eyes and mind open, they are ready to take the next steps to secure their financial freedom.

I suppose this should give an idea of what to expect if you were to attend the Think Rich Pinoy Wealth Seminar. If you are interested in attending the next one, it will be on February 26, 2011. You may visit the following link for more details: http://www.foreclosurephilippines.com/events/think-rich-pinoy-seminar

Happy learning!

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 Investing Philippines facebook page

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

PS. Change your mindset and start thinking like a real estate investor! Attend the Think Rich Pinoy Seminar on February 26, 2011. Click here to learn more!

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. Mailbox getting full? Subscribe through my RSS Feed instead!

Think Rich Pinoy rocks Manila! is a post from: Foreclosure Investing Philippines

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“If only it were this easy in real life!” , a Think Rich Pinoy Seminar attendee exclaimed after buying his fifth property while playing Robert Kiyosaki‘s Cashflow 101 game.

I heard him say this as I helped facilitate the Cashflow 101 game at their table during the afternoon session of the Think Rich Pinoy seminar last February 27, 2010.

If you have played Cashflow 101, you would know that finding opportunities is as easy as picking an opportunity card when you land on an opportunity space during your turn. (Haven’t played Cashflow 101 yet? Learn more about the Cashflow 101 game by reading this article: Top 7 lessons learned from playing Rich Dad’s Cashflow 101 game)

In real life however, how do you find those “opportunities”?

It’s obvious that I get my opportunities from listings of foreclosed properties.

But how does one convert listings of foreclosed properties like this:

Into opportunities like these:

Let us first dissect an opportunity card.

If you will look closely at the opportunity cards above, aside from a brief description of the property, the projected ROI, Cost, Mortgage, Downpayment, and Cash flow are already given.

In real life, the only numbers you will often find on listings of foreclosed properties are the Cost (or the selling price or minimum bid price), Downpayment, Interest Rates, and the maximum loan term. The mortgage amount is usually the Cost less the Downpayment.  You will have to come up with estimates or calculate for the projected ROI, and Cash flow. Without these numbers, you will have no objective way of telling if a foreclosed property has a good potential to be an income generating asset.

Return On Investment or ROI

According to the Cashflow 101 game rules, The ROI or Return On Investment on the opportunity cards can be calculated as follows

monthly cashflow x 12 months

ROI = ——————————————————

Downpayment

In real life, we can also get the ROI using the same formula above but we must first determine the projected monthly cashflow.

Determining Cash flow

An overly simplified way of determining  the monthly cash flow would be to subtract the monthly amortizations from the monthly rental income. We therefore need to determine these two numbers first.

How to determine the monthly rentals

You can get the monthly rental income by asking around the same location of the target property and get rental rates for comparable or very similar properties. This would even be easier for condo units as you just have to check for the rental rates for units in the same building. This can also be done online by checking advertisements of rental properties in the same building or area.

For more information on how to check for rental rates, read this article: How I estimate market values of foreclosed properties

How to determine monthly amortizations

Monthly amortizations can be easily calculated using amortization calculators since we know the loan amount, interest rate, and loan term. You can use our very own amortization calculator which can be found here.

Putting it all together

Let’s use the following foreclosed property from the sample listing above and see if we can turn it into a real “opportunity”.

Let us also use the following assumptions*:

• Minimum downpayment required is 20%
• Balance is payable up to 15 years
• Interest rate is 12% interest p.a.

*Remember that these are just assumptions and are for illustrative purposes only. One should get the actual values by calling the bank.

Step 1: Determine rental rates

For the location of sample property above, I saw an ad for a smaller sized condo in the same building with an advertised rent at Php25,000 per month. I’m not entirely sure if the rental rate on the ad I saw was  not overpriced  but it will have to do for now. It  would really be a big help if you focused in a particular area and became very familiar with rental rates, etc.

Step 2: Determine the monthly amortization

Using our mortgage calculator, the monthly amortization for a property with a minimum bid price of Php2,208,800.00 with a downpayment of 20% or Php441,760.00, and with the balance payable in 15 years at 12% interest p.a would be Php21,207.44 per month, as seen below.

Step 3: Determine the monthly cash flow

The monthly cash flow would be equal to the monthly rent less the monthly amortization.

Monthly Cash flow = Php25,000 – Php21,207.44

= Php3,792.56/month

Step 4: Determine the ROI

Let us use the formula above for ROI:

Monthly Cashflow x 12 months

ROI = ——————————————————-

Downpayment

Php3,792.56/month x 12 months

=  ——————————————————-

Php441,760.00

= 0.10302   or  10.302%

An investment “opportunity” for real

Based on the resulting numbers above, our opportunity card for our sample foreclosed property should look something like this:

You found a bank foreclosed condominium unit in Makati!

10.30% ROI, may sell for ????

Cost: Php2,208,800   Mortgage: Php1,767,040

Downpayment: 20%     Cash flow: Php3,792.56

Points to remember

It really is possible to get opportunities in real life, just like the opportunity cards in Cashflow 101. All you need is just a little know-how in “doing the numbers“.

The “opportunity” we got above is an overly simplified example as we also need to consider property management, maintenance reserves, real property taxes, and other expenses when calculating for cashflow.

As to whether the “opportunity” we got above is a good deal or not still depends on each individual real estate investor’s preference or target ROI. Is 10% a good enough ROI for you?

The ROI can still drastically change when some numbers change and this can turn a mediocre deal into a great deal or  it can also transform a good deal into a bad one.

What if the exit strategy was changed to  rent-to-own  instead of rental and  the monthly  rent-to-own income was Php28,000/month? Or what if the monthly dues plus other incidental expenses turned out to be Php5,000 per month and may thus result in a negative cash flow? I suggest you run the numbers and check the results.

Remember, the numbers don’t lie.

So the next time you come across a listing of foreclosed properties, just do the numbers! The more  consistent you are with doing the numbers, the greater the chances that you may just find that “opportunity” you have been looking for!

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
Follow me in twitter:http://twitter.com/jay_castillo
Become a Fan in Facebook:Foreclosure Philippines fan page

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

PS. Are you a new visitor? Click here NOW to start learning more about foreclosure investing in the Philippines.

How to turn listings of foreclosed properties into opportunities is a post from: Foreclosure Investing Philippines

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I first played Rich Dad’s Cashflow 101 game way back in 2007, after I found Think Rich Pinoy Seminar attendees who organized their own cashflow 101 game sessions.

I was hooked ever since. I play cashflow 101 whenever I get a chance to do so as part of “sharpening the saw”.

I believe that the cashflow 101 game effectively simulates one’s  journey out of the rat race and I would like to share here what I have learned from playing what I consider to be a “life changing game” and its practical applications in real life.

Here goes my Top 7 lessons learned from playing Rich Dad‘s cashflow 101 game…

A photo of the cashflow 101 board game courtesy of Earth del Mundo

1. Simplify and get out of the rat race faster

I noticed that whenever I played the cashflow 101 game and was able to choose a “simple” profession like a truck driver for example, I was able to get out of the rat race faster. This happened during the Think Rich Pinoy Seminar I attended last August 2007. As a truck driver, although my salary was low, my monthly expenses were also very low.

Because I had  low monthly expenses, I already had a positive cashflow and all I needed to do was just get those passive income generating deals. After each payday, I had more money to invest, and with just a few passive income generating deals, I had enough passive income that exceeded my monthly expenses, and I was able to get out of the rat race faster.

In real life, I am applying the same strategy by reducing my monthly expenses by leading a simple life. This was also described by Bo Sanchez in his book “Simplify and Live the Good Life” and T. Harv Eker in his book “Secrets of the Millionaire Mind“. My family and I lead simple lives, which explains my very low target monthly passive income which is why I know I am going to get out of the rat race in real life very soon!

2. Start with small deals first, and the big deals will follow

In the beginning of the game, I always chose small deals even if they produced little cashflow. Later on, when the market presents good opportunities, I was able to sell or “flip” these small deals and then I used the profit to buy the bigger deals that produced greater cashflow, allowing me to get out of the rat race.

My four “green houses” which I’ll exchange for a “red hotel” during a recent game I played with Earth. I was not able to get out of the rat race during this game but we only played for an hour due to time constraints.

In real life, I am also following the same path. I focus on single family homes or properties which may produce little cashflow at  the very least, but can actually generate significant profits if “flipped” or sold through “rent-to-own”. I can then use the profit later when they are enough to get bigger deals that can produce bigger positive cashflow.

3. Over-leverage often leads to bankruptcy

During the game, we often encounter great deals that produce a lot of positive cashflow but require a big downpayment and it is tempting to borrow money from the bank just to be able to buy those great deals. However, there is such a thing as becoming over-leveraged which can produce negative cashflow situations because of the high monthly payments for those loans.

Even if one’s passive income is enough to cover the monthly payments for those loans, imagine if something happened and the monthly income of one’s investment properties were affected, suddenly the monthly payments for the loans cause a negative cashflow and can lead to bankruptcy. The same can also happen when one is downsized. This is the reason why one should avoid deals that lead to too much exposure or over-leverage.

Applying this is real life is a no brainer. I would not dare buy those multi-unit apartments unless they were in the same price range as the single family homes I focus on. As mentioned in lesson number 2 above, I can go for those bigger deals later when profits from my small deals are enough.

4. It is better to wait for a good opportunity than settle for those not so good deals

In the game, good opportunities come in the form of deals that have big ROI potential, and can be bought with little or no downpayment, while producing positive cashflow. If any of these elements are missing, I consider a deal as “not so good” and I pass them up and just wait for the good deals.

In real life, I do the same and patiently wait for good opportunities. If a not so good deal comes my way, I can either look for ways to make it into a good deal, or I just pass it up and wait for another more worthwhile deal to pursue.

5. Learn how to spot a good deal and grab it

One of the biggest challenges one faces in the game is how to spot those good deals so that you can grab them. Sometimes a good deal is right under your nose and it slips away because you didn’t realize soon enough that it was a good deal.

I believe spotting good deals is a skill and you can only learn this skill by continuously analyzing deals. Once you get the hang of it, you will start seeing those good deals more often. Normally those deals would have slipped away without you knowing it. If you see good deals often, it’s just logical that you will eventually grab one of those deals right?!

6. Learn how to protect your investments

I distinctly remember games where apartment buildings getting toppled by mud and all the cashflow generated by these properties are gone, unless I am covered by insurance.

Does Ondoy and Pepeng ring a bell? Who would have thought that a game like cashflow 101 actually teaches us to protect our investments from such disasters and calamities. Better get your investments insured with “Acts of God nature” coverage pronto!

7. Net worth is worth less, cashflow is king

Once you play cashflow 101, you will notice its emphasis on the importance of cashflow over one’s net worth. You will see that it really is more important to have positive cashflow from passive income. What is the use of having a big net worth if you don’t have any positive cashflow?

In real life, we should apply this by focusing on building our positive cashflow with income generating assets. Even if we have to use leverage to buy these assets, it really is okay. We call this good debt. Don’t be afraid to have good debts that buy real assets that produce the cashflow we need to get out of the rat race for real!

Get out of the rat race in the game, and in real life!

So you got out of the rat race when you played cashflow 101. So what?! That’s useless if you don’t take action and apply the lessons you have learned from the game in real life. But playing a game is one thing, doing it in real life is an entirely different thing… or is it?

I can truly say that Robert Kiyosaki‘s Cashflow 101 game is a “life changing” game because my life has really changed ever since I decided to apply in real life the lessons I have learned from it. Take note that I only listed the top 7 lessons I have learned and I can assure all of you that there are more lessons one can learn from this game.

People may find it hard to believe that one can learn so much from a game and can have such a huge impact in life. I guess you just have to play the game and experience it for yourselves.

How about you, have you played Rich Dad’s cashflow 101 game? What did you learn? Are you applying them in real life?

—

My vision – financial freedom for all!

Jay Castillo
Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
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.

Top 7 lessons I learned from playing Rich Dad's Cashflow 101 game is a post from: Foreclosure Investing Philippines

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