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4 reasons why we need to be financially literate real estate investors

Jay — Mon, 06 Sep 2010 06:45:51 +0000

In a recent post where I tackled the frequently asked question: “Are foreclosed properties good deals?”, I mentioned that financial literacy is a prerequisite to real estate investing, and with good reason. I believe that the lack of financial literacy will certainly lead to financial failure! Sometimes we need to fail but not like this!

Let me give you four reasons why I believe we need to be financially literate real estate investors.

Reason #1: You will eventually be able to save enough money to finance your own deals

As I have said in my series on managing finances, you need to learn how to manage your finances to get ready for your first real estate deal, and you do this by taking care of your finances by becoming your own Chief Financial Officer, who is always on top of one’s cashflow by properly tracking income and expenses and proper money management.

Still have nothing to invest? Buried in credit card debt? Living paycheck to paycheck?

As Rich Dad would say, “It’s not how much money you make, it’s how much you keep.”

Why not take a deep hard look at how you manage your money and take the next step?

Reason # 2: You will become trustworthy when it comes to money

Think about it, would you do business with someone who is not trustworthy?

This not only applies if you do decide to get other people’s money or OPM to finance your deals, you also need to be able to trust yourself. If you trust yourself, I’m assuming you really are trustworthy and you act in a trustworthy manner.

As they say, “If you want people to trust you, be trustworthy.”, and you start by being trustworthy with your own money, not with OPM.

If you can’t even trust yourself to handle your own money well, don’t even try to get into real estate investing.

Reason # 3: When you get your own deals, you will be on top of your finances with regard to your investment properties

So you got a deal, finally! But how do you know that you are doing good? You’re an investor and you need to know if you really are making money!

If you are financially literate and manage your finances the way you should, you will know at any given time if you are really making money or losing money, you will be on top of your cashflow.

What if you eventually got your very first real estate deal but never really learned how to manage your money? You might lose track of your expenses and then you end up wondering what’s happening to your cash, or even worse, you might even lose track of important payments like monthly amortizations or you simply have no money left to settle your obligations and end up facing foreclosure.

On the other end, you might lose track of your receivables and end up NOT getting the money that is rightfully yours, some if which are meant for mortgage payments, maintenance, etc.

Things get even more complicated once you acquire more and more deals, so without financial literacy, you might end up with nothing but a financial mess.

Reason # 4: When you do start earning money from your investments, you will certainly not end up like a lot of Lotto winners

In a recent talk during The Feast at the PICC, Bo Sanchez mentioned stories of Lotto winners who lost all of their money, get buried in debt, ended up with broken marriages, etc. (Actually Bo also wrote an article that mentioned this and you can read it here: How To Use Your Pain To Achieve Great Success). These are perfect examples of what can happen if one who is not yet financially literate gets a big amount of cash. Sad but true.

Earning money from real estate investing, though not as big as Lotto winnings(at least not at the start ), can still be considered as a big windfall of money, especially, if your real estate investing strategy is more focused on capital gains. If you are not financially literate, you might not be able to handle the sudden windfall, and you may end up just like those Lotto winners mentioned by Bo, where money became a curse.

On the other hand, imagine if you were financially literate, and you earned a lot from your real estate deals (or if you won the Lotto), you will be able to handle it well, you won’t go into a shopping spree, you won’t go for instant gratification, you won’t accumulate liabilities, you will focus on real income generating assets, you will be generous, you will spend wisely, you will be in control. You will be able to manage it well and put your new found wealth into good use, it will become a blessing.

There you have it folks…

You need to start by working on your financial literacy first, it cannot be just an afterthought.
To be someone who can be trusted, you need to become trustworthy, and that definitely applies to money and real estate investing.
Financial literacy will let you know if you are really making money with your deals, and help you run your business through proper cashflow management. Yes, real estate investing should be treated as a business. The importance of managing your finances well will get magnified as your business grows.
If you are financially literate, more money will be a blessing to you and the people around you, it won’t be a curse.

Remember we are just stewards of the wealth and abundance that come our way, and being financially literate helps ensure that we become worthy stewards.

“From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.” – Luke 12:48

What do you think?

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_castilloFind us in Facebook:Foreclosure Philippines facebook page

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Real estate brokers exam postponed… again?!

Jay — Thu, 19 Aug 2010 06:30:13 +0000

I received information from a very reliable source that the much anticipated real estate brokers exam and real estate appraisers exam which are to be under the PRC have been postponed. The real estate brokers exam schedule was apparently set for December 5, 2010, while the real estate appraisers exam follows on the next day, December 6, 2010. Please refer to a message below for more details.

Dear Rebap Team,

I just got confirmation from PRBRES Chairman EG Ong, that the Brokers and Appraisers Exams to be held on December 5 & 6 respectively, is hereby POSTPONED.

The new date of said examinations will be on FEBRUARY 5 & 6, 2011.

Pls inform your chapter members and committees concerned.

In the meantime, we wait for future announcements and guidelines from the board.

ONE with you,

EMILY QUEVEDO-DUTERTE
Certified Real Estate Broker
REBL No. 8836

NATIONAL PRESIDENT
Real Estate Brokers Association of the Philippines, Inc. (REBAP. Inc.)

Source: http://rebapmarikina.com

Although this message was posted in the official website of the Real Estate Brokers Association of the Philippines – Marikina River City Inc. (REBAP-MRCI) chapter, where I am a regular member, I also received a copy of the same message through e-mail as a member of REBAP. As I said, this came from a very reliable source, as it comes from CRB Emily Quevedo-Duterte, who is the National President of the Real Estate Brokers Association of the Philippines, Inc. (REBAP. Inc.).

Why was the real estate brokers exam postponed?

In 2009, the real estate brokers licensure exam scheduled for October 2009 was postponed when the RESA was signed into law. This time around, I can only assume that the brokers exam was postponed to give more time for those in charge of the exams (PRC in this case) to prepare, and also for those who plan to conduct Certified Real Estate Seminar and Review or CRESR’s to prepare and be able to fulfill the one hundred twenty (120) credit units of real estate subjects and training, which is one of the requirements for those who want to take the exams. I suppose this also helps give them ample time to become duly accredited service providers, and to actually have enough time to conduct the seminars.

Does 120 credit units translate to 120 hours?

During a recent regular meeting of REBAP-MRCI that I attended, a fellow member raised the concern that the 120 credit units might not necessarily translate to 120 hours. Actually, that was the first time that I thought about it that way, and his concern made sense. I remember back in college, 21 units is already considered as a full load for a whole semester. What if the 120 credit units of real estate subjects were treated the same? Imagine how many semesters in college it would take to finish 120 credit units? I just hope that those concerned can shed more light into this and help clarify the issue.

If in case it does translate to 120 hours, it would still require many months to complete such seminar. If a 24 unit CRESR normally took six weeks (at a rate of 1 meeting consisting of 4 hours per week) to complete prior to the RESA law, imagine how long it would take to finish 120 hours. Aside from the long amount of time it would take, imagine the cost for such seminars. Most people say that a 120 hour seminar would cost about Php20,000 pesos, and you still have to pass the exam to make sure your money does not go to waste.

More time for aspiring licensed real estate brokers

I suppose those who plan to take the real estate brokers exam would welcome this development as this would give them more time to attend the seminars prior to the exam, there would be more accredited service providers, and hopefully the competition would bring down their seminar fees, and lastly, aspiring brokers will have more time to review and actually pass the exam. I’m just glad I was able to take and pass the November 2007 Real Estate Brokers exam.

A reminder for real estate investors

If you are planning to take the real estate brokers exam because you plan to invest in real estate and think that being licensed is required, think again. In my opinion, being a licensed real estate broker is not required if you want to invest in real estate. As an investor, you are the owner, and you don’t need to be licensed to sell your own property. Let me quote Section 28-A of the RESA Law IRR:

“SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service

The provisions of this R.A. No. 9646 and the IRR shall not apply to the following:

(A) Any person, natural or judicial, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers who are regulated by and registered with the Housing ang Land Use Regulatory Board (HLURB) pursuant to law and other resolutions/regulations such as but not limited to Presidential Decree (PD) 957, as amended,and Batas Pambansa Blg. 220 and their Implementing Rules and Regulations;

xxx”

Need I say more?!

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

PS. Trace Trajano has created a coaching program for beginning real estate investors and I am part of the team that will help Trace with the coaching program. Click here to learn more! Hurry, only 9 slots left!

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Four tips for investors who plan to invest in tax delinquent real properties in Quezon City

Jay — Tue, 22 Jun 2010 11:08:49 +0000

The Quezon City Office of the City Treasurer has recently issued another notice of sale of delinquent real properties which shall be sold through public auction on July 8, 2010, 10:00am, at the main entrance of the Taxpayer’s Assessment and Payment Lounge, Quezon City Hall, Quezon City.

If you plan to invest in tax delinquent real properties in Quezon City, I have here four tips for you. But before that, let me share a brief overview on tax delinquent real properties.

What are tax delinquent real properties?

Tax delinquent real properties are properties that have been certified by the City Treasurer to be delinquent in the payment of real property taxes, penalties, and cost due thereon as of the date of publication of the notice of sale. These shall be sold through a public auction by virtue of the provisions of Section 260 and 263 of RA 7160, otherwise known as the Local Government Code of 1991. This can also be referred to as a tax foreclosure auction.

: Image via Wikipedia

The notice of sale for this particular tax foreclosure auction in Quezon City was published last June 14, 2010 in the Philippine Star, pages B-12 to B-15. Due to the large listing of tax delinquent properties, I have split them into four parts which can be downloaded below.

Four tips for real estate investors

Here are my four tips for real estate investors who plan to participate in the Quezon City Tax foreclosure auction on July 8, 2010:

Tip #1

Disregard the address that you will find on the list under the column “Declared Owner”. This is the address of the declared owner, NOT the address of the tax delinquent property that will be auctioned. To determine the address of the property, proceed to Tip #2.

Tip #2

To get the actual address of the property for visual inspection as part of due diligence, refer to the Transfer Certificate of Title(TCT) or Condominium Certificate of Title(CCT) number on the list of tax delinquent properties, just get a copy at the registry of deeds. “What if a property has no TCT/CCT number on the list?” Just get the tax declaration number and the name of the registered owner and bring this to the tax mapping section so that they can give you property details like the exact address, location, and the TCT/CCT number.

Tip #3

The actual list of tax delinquent properties will surely become smaller as the auction draws nearer because most of the owners of the real properties will pay the delinquent tax, interest due thereon, and the expenses of sale. Because of this, be sure to get the most updated list of tax delinquent properties for auction at the Quezon City Treasurer’s Office and have a list of backup properties during the auction.

Tip #4

If after doing your due diligence you decide to bid for a property and win, have the Certificate of Sale (COS) registered with the registry of deeds as soon as possible as the one year period of redemption shall begin to run once the COS has been registered. Winning bidders shall be issued a COS by the City Treasurer upon full payment of the winning bid price. For more details, please refer to the auction guidelines which can be found here.

Got more tips? Please share them here by leaving a comment. Thanks!

Happy hunting!

Jay Castillo

Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Mobile phone (Call/SMS): +639178843882
Follow me in Twitter:http://twitter.com/jay_castillo
Find us in Facebook:Foreclosure Philippines facebook page

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How to get portfolio income through real estate investing

Jay — Mon, 24 May 2010 05:09:21 +0000

This is part one of a 3-part series on the types of income one can get through real estate investing. Rather than write another 3000+ word nosebleed article, I’ll break it down into three parts which should be more manageable and easier to digest.

Through this series, I hope to help beginning real estate investors by sharing my thoughts and ideas for each type of income, based mostly on actual experiences as a real estate investor. Part one tackles portfolio income through real estate investing. Here goes…

Obviously, real estate investors get into real estate investing because of the income that real estate investing can generate. But what types of income can one get from real estate investing? What are the advantages/disadvantages for each type of income?

There are basically three types of income that one can get from real estate. These are:

Portfolio income
Earned income
Passive income

Let me first try to explain portfolio income.

What is Portfolio Income

Portfolio income in a nutshell is the income or the gain you get in the form of an increase in equity.

What is equity?

Equity is basically the difference between a property’s current appraised value/market value and the loan principal balance as of a particular point in time.

For example, I bought a foreclosed property for Php1Million by putting down 20% downpayment or Php200,000, with a remaining loan principal balance of 80% or Php800,000. Assuming the property’s current market value at this point in time is really Php1 Million, then my equity can be calculated as follows:

Equity=Php1 Million – Php800,000 = Php200,000

In this example, my equity is equal to my downpayment because I bought the property at market value.

For the example above, there really is still no portfolio income as I still have no gain in equity.

Portfolio Income from properties bought below market value

What if for the same foreclosed property above, which I bought for Php1Million pesos by putting 20% downpayment or Php200,000, with a remaining loan principal balance of 80% or Php800,000, I had it repainted and got it ready for occupancy. I then had it appraised afterwards and the new appraisal is Php1.5 Million. My new equity can be computed as follows:

Equity = Php1.5 Million – Php800,000 = Php700,000

From an original equity of Php200,000, it increased to Php700,000. In effect, I now have a portfolio income of Php500,000 in the form of equity that I have gained.

By the way, sometimes the equity can increase even without the introduction of improvements like painting or fixing up the property. This happens when the property was simply sold below market value because the appraised value or market value used by the seller was outdated.

The problem with portfolio income

There is only one problem with portfolio income. The income is just on paper! One still needs to do something to get the income out. In other words, I still need to turn my portfolio income into cash or realized income. Otherwise, it is just on paper and I cannot make use of it.

I also believe that portfolio income is still just an assumption and can be looked at as a form of speculation until the portfolio income is actually turned into cash.

How to turn portfolio income into cash

In order for one to turn the portfolio income into real cash, one would have to either sell the property at a price equal to the appraised value/market value or have the property refinanced at the new appraised value/market value.

1. Sell the property to get cash

For example, I decided to sell the sample property above and it got sold for Php1.5 Million cash. I would then have to pay off the loan principal balance of Php800,000 with the bank. That would leave me with Php700,000 cash on hand. I have already recouped my downpayment of Php200,000 and made an additional Php500,000 in the process, which was the equity I gained or portfolio income.

Of course one should also consider the taxes(Capital gains tax, etc.) and other closing costs when a property is sold.

By the way, if one just keeps on selling properties, one is really just investing for capital gains. He/she would lose the cashflow the properties would generate, if any.

2. Refinance the property to get some cash out

On the other hand, if I had the property refinanced at the new appraised value/market value, I would be able to get a big chunk of my portfolio income if the new loan is approved.

Let’s say I went to a second bank, applied for a new loan to refinance my existing loan, and they had the property appraised. The new appraised value turned out to be Php1.5 Million as expected and the bank granted me a new loan based on this new appraised value, and they are willing to loan me 80% of the appraised value which is Php1.2 Million. The second bank would then pay off my loan with the first bank, which is Php800,000 and that would leave me with Php400K. This means I pocketed Php400,000 in cash by refinancing the loan.

Sure it was smaller than what I would have gotten if I had just sold the property, but that’s okay for 2 simple reasons:

(1) I didn’t have to sell the property which means I don’t have to pay taxes related to properties getting sold like capital gains tax, documentary stamps tax, etc., and

(2) The property remains to be mine and I get to continue enjoying the cashflow it generates(if any if it is tenanted) and any appreciation in its value, just in case I do decide to sell it down the road.

Of course, with refinancing, the new loan amount will translate to an increase in monthly amortization payments, etc. which should always be considered to determine the cashflow a property generates. At least I have taken out some of the cash which used to be portfolio income and I can use this to buy another income generating property, etc.

My thoughts on portfolio income

From my examples above, you will see that one cannot make use of portfolio income unless one takes steps to get the cash out. It looks good but the income is still just on paper.

However, portfolio income gives a good indication as to the potential of a property in terms of capital gains. It can help one see if you are really following the well known advice from Robert Kiyosaki and his Rich Dad which is

“You should make money when you buy, not when you sell…”

because the portfolio income is basically the money you can potentially make the moment you bought a property at a price below market value.

As stated earlier in this article, until you can turn portfolio income into cash by actually selling the property at a price equal to the market value or refinancing it at an appraised value higher than your purchase price, you are just speculating. Remember, we are supposed to be real estate investors, not speculators.

Since portfolio income is only on paper, having a large portfolio of properties that look good on paper is useless if you can’t get any cash out. Instead of being real assets, they are just liabilities that take money out of your pocket, unless these properties are generating passive income through rental or rent-to-own income.

In hindsight, I also believe that by selling a property, one is converting portfolio income into earned income. Earned income will be tackled in the next part of this series on the types of income one can get through real estate investing.

What do you think?

Coming Up Next: Earned income through real estate investing

Coming up in the next part of this series, I’m going to tackle how one gets earned income through real estate investing, how it can make you feel like you are back in the rat race (this should be interesting), and what can be done about it.

If you want to know more about earned income, head on over to part two of this series – Earned income through real estate investing

To our success and financial freedom!

Jay Castillo

Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Mobile phone (Call/SMS): +639178843882
Follow me in twitter:http://twitter.com/jay_castillo
Find us in Facebook:Foreclosure Philippines facebook page

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

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Time to outsource my title transfer

Jay — Fri, 14 May 2010 02:57:29 +0000

I have been so busy lately with the title transfer of a foreclosed property that I purchased and I realized that it would be better if I just outsourced the title transfer to someone else. The amount of time that I have already allocated for this could have been put to better use finding more income generating properties, among a number of other activities that are more worthwhile doing, which is why I don’t intend to spend more time with the title transfer.

Don’t get me wrong, handling the title transfer is very important for me and my tenant/buyer, and I also want to learn how this is done, which is why I tried to do this myself. However, with the amount of time and effort needed to complete this, it makes better sense to just let someone else do it for me.

Just yesterday, I spent the whole afternoon following up on some documents I needed and I drove more than a hundred kilometers in the process going back and forth from Makati to Antipolo.

Highest and best use of my time

Outsourcing the title transfer to a title company would free up my time and allow me to use it for its highest and best use. As real estate investors, the highest and best use of our time is to find more deals that would generate passive income and positive cashflow. I should always keep this in mind and focus!

Why do I need the title transferred to me?

I have already paid in full for this particular property of mine and my objective is to transfer the title of the said property from the bank to myself, in the shortest amount of time possible, so that my tenant/buyer can apply for a housing loan for it. You will notice that this is a double closing. This was the only option I had with the bank where I bought the foreclosed property from. Yes, this would mean double taxation but it is okay, I factored-in the taxes I am going to shoulder into my expenses and the numbers still made sense for this deal.

Transferring the title of the property

Just to give you an idea, transferring the title of the property to my name would require the following:

Payment of Creditable withholding Tax – already done by the bank
Payment of Documentary Stamps Tax – already done by me
Payment of Transfer Tax
Filing of Certificate Authorizing Registration or CAR at the BIR
Registration/Transfer of Title
Registration/Transfer of Tax Declaration

Looks easy but in reality, these tasks are very tedious and time consuming but if you are into real estate investing, you will have to do these sooner or later, unless you outsource it. The tasks above will be done for me by the title company I hired, except for those that have already been done. I’ll update you all of the status of the title transfer in a month or two. Wish me luck!

To our success and financial freedom!

Jay Castillo

Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Mobile phone (Call/SMS): +639178843882
Follow me in twitter:http://twitter.com/jay_castillo
Like this in Facebook:Foreclosure Philippines facebook page

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

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How to get portfolio income through real estate investing

Star Properties Inc.’s “The Star Auction 2010!” slated on May 15

Jay — Thu, 06 May 2010 03:51:21 +0000

Get ready for the coolest price-offs this summer as Star Properties Inc, conducts another auction of foreclosed properties in the May 15, 2010 edition of The Star Auction 2010! The venue for this auction will be Max’s Star Mall in Mandaluyong City, Philippines. Registration starts at 9:00AM and the auction proper starts at 10:00AM. More details after the jump…

Show money

Show money of Php 10,000.00 cash or Manager’s Check per property payable to STAR ASSET MANAGEMENT ROPOAS, INC. is required to participate in the auction.

Payment terms

Only 10% Downpayment is required with the balance payable up to 5 years at 15% fixed interest rate per annum. I wish they made the payment term up to 10 years to pay to attract real estate investors who intend to go for financing and have positive cashflow. With such a short payment term, it would be hard to find such deals unless investors looked at other means to finance their deals.

Knock out option

Knock out option is available where one only has to add 5% on top of the list price to reserve a property before the auction. This would avoid what usually happens where prices get higher and higher as bidders try to outbid each other. I’m sure however that a lot of people might find the additional 5% quite high as the knockout option for other auctions like some of those from Property Forum Philippines only require an additional one Peso (Php 1.00) on top of the list price.

Locations of foreclosed properties

The locations of the foreclosed properties for sale include the Greater Manila Area, Luzon, Visayas, and Mindanao, and these include a mix of residential, commercial, agricultural, industrial, and mixed-use types of foreclosed properties .

They even have memorial lots but the payment terms for these are 10% Downpayment with the balance payable up to 6 months at 0% interest.

Just download the complete listing of foreclosed properties below for more details.

Click here to download the listing of foreclosed properties included in The Star Auction on May 15, 2010

Source: Manila Bulletin, May 2, 2010 edition, Page 4 of main section

If you are interested on any of the foreclosed properties on the list, please contact Star Properties Inc. directly using the contact details on the listing which you can download by clicking on the link/thumbnail above.

Disclosure: I am not accredited with Star Properties Inc. and I am just posting this listing as a public service to readers and subscribers of foreclosurephilippines.com. Do take note that if I do get accredited in the future, I may no longer be able to share listings of Star Properties like this, depending on the terms and conditions of accreditation, which I am evaluating at the moment.

The fine print

All properties are offered on an “As-is, Where-is” basis. Titles of properties are either under seller’s name or under various stages of consolidation in the seller’s name. Interested parties are therefore advised to check the title, the physical and legal condition of the property prior to the scheduled auction. Property details, prices, and terms are subject to change without prior notice. The seller reserves the right to pull-out any property anytime. Changes in prices are subject to the sole discretion of the seller.

Happy hunting!

To our success and financial freedom!

Jay Castillo

Real Estate Investor
Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Mobile phone (Call/SMS): +639178843882
Follow me in twitter:http://twitter.com/jay_castillo
Like this in Facebook:Foreclosure Philippines facebook page

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

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Recent BIR Issuances on Property Valuation may affect real estate investors

Jay — Tue, 27 Apr 2010 07:01:29 +0000

A post by Cherry Castillo

I can see that the BIR is dead serious in collecting revenues for the government and is exploring all avenues where tax collection can be improved. In fact, the BIR has a string of recent issuances all concentrating on real property valuation, specifically on updating zonal values to be at par with current market values.

Just to refresh your memory, the basis for the power of the Commissioner of Internal Revenue (CIR) to determine the fair market value (FMV) of properties is Section 6(E) of the Tax Code, which provides:

“(E) Authority of the Commissioner to Prescribe Real Property Values. — The Commissioner is hereby authorized to divide the Philippines into different zones or areas and shall, upon consultation with competent appraisers both from the private and public sectors, determine the fair market value of real properties located in each zone or area. For purposes of computing any internal revenue tax, the value of the property shall be, whichever is the higher of:

(1) the fair market value as determined by the Commissioner; or

(2) the fair market value as shown in the schedule of values of the Provincial and City Assessors.”

The zonal values can be accessed at http://www.bir.gov.ph/zonalvalues/zonalvalues.htm

It is common knowledge, however, that zonal values are not regularly updated and are usually below market value. And since taxes such as the capital gains tax (CGT) are based on the higher amount between the selling price and the actual market value, which is defined as the zonal value, parties sometimes indicate the selling price as just the same or within the vicinity of the zonal value, resulting in a lower CGT. For more information on CGT, please refer to this article about capital gains tax.

Let me give you a run-down of the latest BIR issuances so that you have an idea of things to come:

1. Revenue Memorandum Circular (RMC) No. 071-09 dated December 16, 2009

The officials of the BIR, the Bureau of Local Government Finance (BLGF), and the Philippine Association of Local Treasurers and Assessors, Inc. (PHALTRA) signed a Memorandum of Agreement (MOA) which was circularized in RMC No. 071-09 which states in part that they will share information with each other. Notably, the PHALTRA will improve its cooperation and coordination with the BIR in updating zonal values of real properties. Click here for a copy of RMC No. 071-09.

2. RMC No. 27-2010 dated March 17, 2010

This RMC circularizes the full text of Department Order No. 6-2010 dated March 12, 2010 which was issued by the Department of Finance. In essence, it creates committees on real property valuation that would determine the zonal values of real properties for purposes of computing internal revenue taxes. Real property appraisers in the Philippines have thus become even more valuable. Click here for a copy of RMC No. 27-2010.

3. RMC No. 34-2010 dated April 22, 2010

This RMC publishes the full text of the MOA between the BIR and Creba Land Services and Title Warranty Corporation (Creba Land). Creba Land has a Geographic Information System (GIS) which the BIR will use in relation to its land valuation duties. The BIR will be testing the system first and is required to purchase a license within sixty days from first use. The BIR will initially get a copy of Creba Land’s spatial database for Quezon City, Pasig City, and Taguig City. Click here for a copy of RMC No. 34-2010.

The first Whereas clause in the MOA is most interesting: “xxx the BIR aims to complete the revision of zonal values nationwide by 30 June 2010 xxx”. Personally, I think this is a very tight schedule. Those who have properties in Quezon City, Pasig City, and Taguig City should brace themselves for an increase in taxes (particularly CGT). Please note that real property taxes (RPT) are not paid to the BIR but to the local government unit (LGU). However, as earlier discussed, the BIR has a MOA with the BLGF and PHALTRA so the zonal values project will have an effect on RPT as well. [I can imagine my husband bugging me about my RPT article which has been pending for so long.]

With regard to Creba Land, I have seen several newspaper articles featuring it and its mapping services. If you want to learn more about it, please see https://www.mapsys.ph. I have not inquired with Creba Land but my guess is that it’s very expensive (if they would be willing to let us checkout the system, that would be great!). I read about it and I thought that the investment is too big to be undertaken by a private company. Of course the site owner is intelligent so he got the government to buy his services (nothing bad about that). The idea is good but I think if there is a government agency who will purchase Creba Land’s services it should be the Registry of Deeds and not the BIR. If my understanding is correct, the main purpose of mapsys is to detect title fraud, so I don’t think this is up the BIR’s alley.

On another note, I wonder how much the BIR is going to pay Creba Land for this? Also, if the fees are high, how will this affect the fees that the BIR will charge for the issuance of the Certificate Authorizing Registration (CAR) and Tax Clearance? If there will be no additional fees, will the BIR require that the taxpayer make use of the services of Creba Land? Someone has to pay for this. I hope the BIR can shed more light on this contract.

4. RMC No. 40-2010 dated April 22, 2010

This RMC is about the policies and guidelines in the recruitment and designation of private appraiser members to the Regional Executive and Technical Committees on real property valuation. Click here for a copy of RMC No. 40-2010.

To summarize, the BIR is taking steps to update the Schedule of Zonal Values and we should all be prepared for their eventual increase. Be on the lookout for the schedule of hearings on the proposed revised schedule so you can give your inputs. If you have bought real property and have not yet executed a Deed of Absolute Sale (DOAS), there is a possibility that by the time you execute it, the zonal values have already increased, possibly resulting in increased tax payable. This may potentially impact your projected profits and turn them into losses (ouch!) so it’s good to be prepared, and this goes out to all real estate investors out there!

Cherry Castillo

Cherry is my wife. She is a certified public accountant (CPA) and lawyer.

—

To our success and financial freedom!

Jay Castillo

Real Estate Investor

Real Estate Broker License #: 20056
Blog: http://www.foreclosurephilippines.com
Mobile phone (Call/SMS): +639178843882
Follow me in twitter:http://twitter.com/jay_castillo
Like this in Facebook:Foreclosure Philippines facebook page

PS. Are you a new visitor? Click here NOW to start learning more about foreclosure investing in the Philippines 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. Inbox getting full? Subscribe through my RSS Feed instead!

PPS.Do you know anyone who is either an investor or a home buyer looking for a property? Please refer them to our Buy a property form to enter their property requirements. If you need to sell a property fast, please use our Sell a property form to enter details of the property you are selling. If it fits our needs, we just might buy it. Lastly, if know anyone who wants to make 10-15% return on their money, refer them through our Investors’ form. Thanks a million!

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Real Estate Investment Trusts (REITs) – The next big thing in real estate

Jay — Thu, 22 Apr 2010 04:40:08 +0000

A post by Cherry Castillo

I have come across many comments from OFW’s who want to invest in real estate in the Philippines but have no one to rely on to do the legwork in the country – choosing a property, collecting rents, etc. While my husband and his teammates from RYP Realty are starting to help real estate investors, there is still much work involved as well as a significant investment is needed. There are also those who want to invest in real estate but are more conservative or risk-averse, or those who only have a small amount set aside for investment.

For the beginning real estate investor or the OFW investor, one solution is to invest in a Real Estate Investment Trust (REIT). Please continue reading about REITs below…

What is a REIT?

A “Real Estate Investment Trust” or “REIT” is a stock corporation established principally for the purpose of owning income-generating real estate assets. A corporation becomes a REIT and qualified to avail of the incentives and privileges of the REIT Act when its REIT Plan is rendered effective by the Commission and its listing as a REIT is approved by the stock exchange.

REIT Law and Regulations

Republic Act (R.A.) No. 9856 “An Act Providing the Legal Framework for Real Estate Investment Trust and For Other Purposes” lapsed into law on December 17, 2009. It was published in two newspapers of general circulation on January 25, 2010. Thus, its effectivity is on February 9, 2010 or fifteen (15) days from such publication. Please click on this link for a copy of the full text of R.A. No. 9856.

Many investors were excited with the passage of R.A. No. 9856 but everybody had to wait first for its Implementing Rules and Regulations (IRR). Definitely, the release will be very soon as the Securities and Exchange Commission (SEC) released just last Monday, April 19, 2010, the draft (IRR) for comments until April 26, 2010 (a copy of the draft REIT IRR is now available here: Draft REIT Act of 2009 Implementing rules and regulations (IRR) released by the SEC ). A summary of the salient features of the RA 9856 IRR was prepared by Businessworld, in its article entitled “Draft REIT rules issued by regulator” which can be accessed at http://www.bworldonline.com/main/content.php?id=9485.

Philippine REITs

SM Prime Holdings, Inc., the country’s largest mall operator, and property giant Ayala Land, Inc. (ALI) are looking at raising $300 million each through a REIT. [See http://www.smprime.com/smprime/index.php?p=587&type=2&sec=49&aid=5466 and http://www.ayalaland.com.ph/article/ayala_land_to_raise for more information on the plans of SM Prime and ALI.] This early, the country’s real estate giants have already set their sights on the REIT and have engaged financial advisers to guide them with their plans. This is a clear sign that the REIT is bound to be a gold mine.

Why invest in a REIT?

A REIT is entitled to several tax incentives, so much so that the Department of Finance has warned that the government stands to lose billions of pesos due to the passing of the REIT Act and IRR. Of course, as investors, we want to pay the least tax as legally possible. Based on the draft IRR, the following are some of the incentives of REITs:

A REIT shall be subject to regular corporate income tax but not minimum corporate income tax (MCIT);
Any sale or transfer of real property to a REIT, including the sale or transfer of any and all security interest thereto shall be subject to fifty (50%) percent of the applicable DST;
All applicable registration and annotation fees relative or incidental thereto shall be fifty (50%) of the applicable registration and annotation fees;
Any sale, barter, exchange or other disposition of listed investor securities through the Exchange, including cross or block sales with prior approval from the Exchange shall be exempt from DST;
Any initial public and secondary offering of investor securities shall be exempt from the IPO tax imposed under the NIRC;

The gross sales from any disposal of real property or gross receipts from the rental of such real property shall be subject to VAT;
A REIT shall not be considered as a dealer of securities and shall not be subject to VAT on its sale, exchange or transfer of securities forming part of its real estate-related assets.

Also, a REIT shall be required to distribute at least ninety (90%) percent of its distributable income every year so investors get regular dividends. In addition – this is good news for OFWs – overseas Filipino investors are exempt from the dividends tax for seven (7) years from the effectivity of the tax regulations implementing the Act. If a domestic corporation is the REIT investor, the dividends will be exempt from tax.

Aside from dividends of course, you also stand to gain if the shares appreciate. I think that REIT is a marriage of real estate and stocks – two of the best investment vehicles that would produce the most wealth. If you look at the world’s or the country’s wealthiest persons, you will see that many grew their wealth from real estate (think Henry Sy, the Ayala family) or stocks (think Warren Buffet). So, no need to think which one between real estate and stocks is better!

How do we invest in a REIT?

You may invest in a REIT by subscribing to or purchasing shares of stock of the REIT. The investment amount may be affordable to most people, and you can purchase a blue chip REIT in the Philippines like that of Ayala Land, Inc. or SM Prime Holdings, Inc. You may even choose to put your monthly savings in a REIT instead of banks which earn very little interest.

Comments about REIT?

If you have any comments on the draft IRR, please send them to the SEC. On my part, I’m planning to invest my monthly savings in Ayala and SM prime REITs (after I finish paying off my debts to my husband, tsk tsk). I wish to buy REIT stocks on the first day and watch them skyrocket later! *crosses fingers* I also hope to be part of the team advising REITs as I think it’s really the next wave, so to speak. REITs are also all the rage in other countries.

So… I’ll let you know once the IRR is finalized. Till then, let’s chew on the draft and envision the endless possibilities… like a Foreclosure Philippines or RYP Realty REIT right up there with Ayala and SM Prime! That would be awesome! The P300 million minimum capitalization is doable if you break it up into small amounts – just around P100k for each subscriber of Foreclosure Philippines!

Cherry Castillo

Cherry is my wife. She is a certified public accountant (CPA) and lawyer.

—

To our success and 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

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Larry Gamboa invites you to the Think Rich Pinoy Seminar on February 27, 2010

Jay — Tue, 16 Feb 2010 22:45:44 +0000

Larry Gamboa, bestselling author of the book “Think Rich Pinoy“, is someone who I consider to be a great mentor and inspiration. I remember it was already more than a year after I read the book “Rich Dad Poor Dad” by Robert Kiyosaki when I began to feel that the real estate investing concepts described by Robert Kiyosaki were hard to apply in the Philippine setting.

I realized I was wrong when I stumbled upon the book “Think Rich Pinoy” by chance.

Thanks to Larry’s book, I realized that it really is possible to apply Rich Dad’s real estate investing principles in the Philippines, which is exactly what I am doing right now.

Recently, Larry sent an invitation to his mailing list for the upcoming Think Rich Pinoy Seminar which happens on February 27, 2010, Saturday, 8AM to 5PM, at the PhilAm Life Building, UN Avenue, Manila, Philippines. I would like to share his invitation to all of you below…

Hi Jay,

A few days ago, I asked you to give me your two burning questions in real estate investing. The response I got was phenomenal, 186 questions from 93 people. I could spend the whole year just answering your questions.

But I noticed that most of the questions were all about “How do I Start in Real Estate Investing?”

That brought me back to how I started myself.

I knew nothing about real estate. I couldn’t identify a good deal even if it was staring me in the face. I didn’t know how to buy much less sell properties. I did not know how to compute ROI.

But as I started doing it, things became clearer, bit by bit, one deal after another. As I learned from people and from experience, I started to develop my own system of buying and selling real estate ‘rent-to-own’.

Through the years, I refined the system until I could write a book about it. I enjoyed it so much, I wrote 2 more books about it. But apparently the books were not enough because I would get question after question on how do I do it.

Finally, I called up Bo Sanchez (or he called me) and we decided to do a seminar on Financial Literacy and Real Estate Investing. Thus the Think Rich Pinoy Wealth Seminar was born.

Click here to enroll for the Think Rich Pinoy Seminar!

This is where the journey of a lot Pinoy Real Estate Investors started. You’ve heard the story of Eden and how she started with reading books and attending this seminar.(If you haven’t, just watch the video below)

She’s not the only one who started through the seminar. There’s Jessie who’s a seafarer and his wife Apple who used to work in a multinational bank. There’s also Kristine a former HR practitioner. And so many others. . .

If you’ve been wanting to ask me PERSONALLY about your burning questions on Real Estate Investing, here’s your chance. On February 27, 2010, I will be holding the next Think Rich Pinoy Wealth Seminar. This is my personal invitation to meet you.

Let’s talk about how you can start, how you can raise capital and how you can identify good deals. Let’s talk about what’s stopping you from starting. Or if you’ve already started, like Eden, let’s talk about your challenges.

The great thing about this is, it won’t be just me. We have a number of speakers lined up. Bo Sanchez, my life mentor, a preacher, entrepreneur and investor himself will be speaking. Our sponsor, Philamlife, will be sending a speaker on wealth management. A good friend of mine, who’s much bigger than I am in real estate and owns apartment buildings in Makati, will be speaking and sharing (mystery speaker).

Plus, you have young Think Rich Pinoy Franchisees who despite their youth and lack of capital, started to invest and make money in real estate.

So if you’ve been wanting to personally ask me a question, let’s meet at the Seminar. Meet me on February 27, 2010 at the Philamlife Training Pavilion, UN Avenue, Manila. Click here to reserve a seat. We have limited seats (120 at the most). So we will have to close down reservations Feb. 22, 2010.

Warmest Regards,

Larry Gamboa

P.S. I’m serious about meeting you and answering your questions personally. Every seminar is unique in that way because each batch brings out questions unique to their situation. If you want a definite answer to your burning question, click here and reserve your seat now!

P.P.S. Seat reservation/orders ENDS Feb. 22, 2010. After Feb. 22, 2010 you will be put in a priority list for the next Think Rich Pinoy Wealth Seminar.

By the way, If you are not yet part of Larry’s mailing list, what are you waiting for?! Click here to join and claim your free Silver membership NOW! Remember, Silver membership is absolutely free!

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

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.

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Reader Q and A #1: How can I apply for a loan and thus finance my first deal?

Jay — Tue, 19 Jan 2010 04:57:02 +0000

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!

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

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Our journey to our new house – Finding a new home like true real estate investors

Jay — Fri, 20 Nov 2009 01:07:43 +0000

My wife who has become so obsessed with finding a new house we can call our home shares updates on what we are thinking of doing with our old house that was devastated by Ondoy, what things to consider, our target locations, finding not just a house but also a sound real estate investment by searching foreclosed property listings, and applicable tax exemptions and pending articles about this and other taxes that apply to real estate, which I hope she finishes soon…

I’m just glad that I was able to convince her to buy a property the way true real estate investors looks for a good deal. Knowing how stubborn she is, I was surprised how easy it was for me to convince her that this is a perfect opportunity for us (as a team) to find a really sound real estate investment that will produce a good positive cashflow if we decide to have it rented out, or sell it for a significant profit down the road. This can only happen if we buy a house well below market value and apply Rich Dad’s principle “… You make money when you buy, not when you sell” as often mentioned by Robert Kiyosaki, best selling author of “Rich Dad Poor Dad”.

Our journey to our new house

By Cherry Castillo

As most of you may already know, we are looking for a new house, as our old house was totally devastated by Ondoy. I am sure many of you are in the same boat as ours. Of course, our decision to move entails more decisions with regard to the next steps, such as:

1. What do we do with our old house? Right now, we have a payment holiday until January 15 with Pag-Ibig. But after that date, we have to continue paying the monthly amortizations. Admittedly, the market value of the house is in question, and it’s not practical to continue paying the amortizations which was based on the market value of Provident Village prior to Ondoy. The next question is, do we sell it now, do we let Pag-Ibig foreclose it, or do we surrender it through a dacion en pago (a.k.a. payment in kind – that is, we give the house as payment for the loan)? If we sell it now, we will be selling it at a loss, but we will be cutting our losses since we will stop paying the high monthly amortization. If we let Pag-Ibig foreclose it (or if we surrender it through dacion en pago), how do we go about it? While it is clear that my husband will no longer be able to take out another housing loan from Pag-Ibig, would it also affect my husband’s credit rating and prevent him from taking out a loan from banks?

2. Granted that we will be moving, where do we go? We can go anywhere! Anywhere where there’s no flood of course. And since we are now so paranoid of natural (and man-made) calamities, if we are to move, we have to make sure that the area is one that was not reached by floods and that there is at least a second floor. I don’t want to be in the mountainside too for fear of landslides. We are now open to condominiums (unlike before, when I really could not imagine living in one), but not those that are too high, as I am also concerned about earthquakes. You may have noticed that there have been a lot of news about earthquakes in the Asian region and in the Philippines in particular. I have been telling my officemates that the best place to be is in a low-rise condominium, somewhere in the 3^rd or 4^th floor, since it will not be reached by floods, the structure will be strong enough to withstand earthquakes, and if there’s a fire I can jump out of the window and just have broken bones, or, if there’s a swimming pool nearby, I can just go straight to it. I know it’s a bit on the psycho side but you really get to think a lot about these things if you’ve gone through the great flood brought about by Ondoy. Oh, I forgot, I don’t know how to swim. I better join my son in his swimming lessons this summer! And time to turn into reality the Ondoy-related ideas I have thought about.

3. Where are our target locations? I have narrowed down our choices to the elevated portions of Kapitolyo, Pasig, San Juan, and Quezon City near UP. Aside from the earlier-mentioned considerations, it is very important for us to be near to a good co-ed school for our son as he will be turning five in January 2010 already and it won’t be long before he enters elementary school. I have sort-of developed loyalty to Mother Goose Playskool and Grade School (This is my son’s school in Provident Village, Marikina which was also devastated by Ondoy. Because they have several branches, they allowed my son to finish the rest of the school year in their Makati branch. Mabuhay ang Mother Goose!) so I want to find a house near a Mother Goose branch. As for my work, I am currently working in Makati but I am open to moving to Ortigas or QC, or maybe if my husband’s business picks up, I might just help him in the business. One of the best lessons I learned in the past years is that TIME is the most precious commodity. There are only 24 hours in a day and spending it on the road is totally useless. So the house should be near the place of work and study. In the course of my research, I have learned that prices are really so steep in the good areas.

4. This of course led me to search our site for foreclosed property listings (In the right side of the this page, you can use the “search” function to look for listings in this site.) I have also called several banks so I have updated listings with me, which my husband will be posting soon. I have also revisited my husband’s post on the Ultimate List of Bank Websites and I have found some updated listings there too. I have found a lot of promising properties and I must admit that it’s really exciting looking for good buys. I have been a bit depressed since last week, after I visited our old house and saw its sorry state. I determined that the only way for me to get out of depression is to finally have a new house! I have been joking that leaving our house is like breaking up with a boyfriend of 5 years – the only way to have closure is to have a new house/boyfriend! The process of looking for and deciding on the perfect place to grow our roots is both tiring and exciting. I do hope we find the house meant for us soon. We have visited a foreclosed property in Mandaluyong last week, full of excitement, only to have our bubble burst because of the really bad neighborhood, one of the worst as my husband put it (And he grew up in Mandaluyong! I really don’t understand why the Mandaluyong local government spends so much money fixing the islands when they have so many squatters!). My husband reminded me that it should be the other way around – we should find the worst looking house in a good neighborhood. I have also selected several properties and when I called up the bank, I discovered that they either have pending cases or encumbrances, or the bank does not have possession. Hay! I guess we have to look at more foreclosed properties (Around 100 more according to my husband – that’s a lot!). In God’s time, I know we will find the one for us.

5. Applicable taxes and tax exemptions? Being the tax person that I am, I really have to consider taking advantage of the capital gains tax (CGT) exemption from the sale of principal residence. I also need to create a post about this and all the other taxes – real property tax (RPT), percentage taxes, VAT, etc. (Okay, I’m really delinquent I admit!).

So basically, we will be going through the entire process of choosing a property that will also be a good investment. We are also looking at other properties, though not foreclosed but are rather houses for sale by owner (FSBO), but which look like good deals. We will do our best to document each step of the way so that it can be a handy and useful guide for everybody, much like a walk-through of the process. Wish us luck!

Cherry is my wife. She is a certified public accountant (CPA) and lawyer.

—

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
Twitter: http://twitter.com/jay_castillo
Facebook: Foreclosure Philippines fan page

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 101 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.

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Think Rich Pinoy Wealth Seminar on November 21, 2009: Your Passive Income Mentoring Starts Here!

Jay — Fri, 06 Nov 2009 09:15:26 +0000

Learn from the Think Rich Pinoy TEAM who’s been buying and selling foreclosed real estate for four years now in the Philippines! Yes it can be done. You don’t need to wait for a “recession” to buy property. Get into passive income now!

Buy your seminar ticket here!

What to expect in the Think Rich Pinoy Seminars…

Aside from hearing how several young people purchased their first (or 2nd, 3rd, 4th ) properties from the bank at foreclosed rates, complete with pictures, you can expect:

1. Talk 1 – Are you Financially Ready for the Future?
2. The Theology of Money: Talk 2 – Are God and Money really enemies?
3. The Technology of Money: Talk 3 – Pinoy Real Estate Riches Today and Updates
4. The Game of Money: – Cashflow 101 and 202, play the game for 3 hours with like-minded people, guided by seasoned experts
5. Talks 4,5,6 – Real experiences in buying and selling Pinoy Properties from the actual (young) people who did them.
6. Talk 7 – The Think Rich Pinoy Clubs and Pinoy Millionaire Vision 2020

OFWs-teach your family the value of money-in a fun way-via this seminar and the board game. Buy your family a couple of seats to this November 21, Saturday,2009 event.
As you will see, the seminar/workshop is not the same as the book. It adds many dimensions of practicality to it. Come and join us as you continue on your journey towards passive income.
How? It all starts at the Think Rich Pinoy Seminars + Cashflow 101 /202 Game on November 21, 2009

Buy your seminar ticket here!

Free Bonuses:

1. The Breathlessly valuable: *Jay Abraham’s “Master of Passive Income” transcript. “How to Create Multiple Streams of Revenue That Work 24/7 For you”. This 60+ page ebook is going to change the way you think–and earn!
Who is Jay Abraham? Perhaps the world’s #1 expert on Passive Income and #1 Guru of Gurus when it comes to marketing. This ebook’s value alone is more than enough to pay for the seminar price.
2. Special Report compiled for Think Rich Pinoy only (not available anywhere else): The top mistakes pinoy real estate buyers commit.
3. We’re be raffling off a mentoring session: 1 Hour with Larry Gamboa. Ask him anything you want!
4. Enjoy a MARKETING TABLE, where you can leave your calling cards, brochures for people to pickup.

Attend the Think Rich Pinoy Seminar with Cashflow 101/202

Join Larry & The TRP Team

What : Think Rich Pinoy Workshop

When : November 21, 2009, Saturday

Where: PhilamLife Building, Manila

Text : 0915-499-1999 to get your slot or

Email: thinkrichpinoyseminar@gmail.com

Fee:
P1975/ US $ 43 – Early Bird Fee until November 3, 2009
P 2450/ US $ 53 – Regular Fee from November 4 to November 21, 2009

You can pay through Paypal or BPI bank deposit.
See payment details and additional discounts below

Buy your seminar ticket here!

P.S. Yes, bring a friend with you and learn together. It’s better that way!
P.S. Do you have any relatives who work abroad? Tell them about this so they can sponsor you. They will be glad to, just tell them to read this website! You’ll see.

FAQs Think Rich Pinoy! Seminar

1. Who are the speakers & topics?
Mystery Speaker – Your finances
Mystery Speaker – God vs Money, Is there really a conflict?
Larry Gamboa – Think Rich Pinoy Millionaire Network, Think Rich Pinoy Vision, Think Rich Pinoy Clubs
Ronald Cagape – Cashflow Game Facilitation
Guests – Your Personal Experiences with the game
Think Rich Pinoy Franchise members- Actual Real Estate deals (around 2-3 short talks)
Autograph Signing / Q&A Session

2, What is the difference from previous Think Rich Pinoy seminars?
a. Some attendees can get to play Cashflow 202. This is a more advanced GAME w/c contains stock options (puts and calls), network marketing, easier to bankrupt and harder to leave the rat race. Don’t
know what I mean? That’s okay, play Cashflow 101 instead. 202 is designed for the “veteran player” and those who believe they have what it takes to become wealthy in a short short time.

b. To enhance enjoyment, there will be a contest among tables to see w/c one group gets out of the rat race more. If your group wins, congratulations, you have learned more!

c. People who wish to leave brochures, calling cards, samples to market to the seminar attendees may do so using a promotion/marketing table.

d. One of the attendees (you?!) can get to win a one hour mentoring/Q&A session with Larry Gamboa. It’s a raffle.

e. All attendees get to receive (after the event) access to special ebooks:
- Master of Passive Income – by Jay Abraham
- 10 Mistakes Most Real Estate Investors Make

f. What’s an ebook?
It’s an electronic book, you read it from your computer. The format is normally Adobe Acrobat. To read it you’ll need the free Adobe Acrobat Reader from Adobe.com

3. How to register for the Think Rich Pinoy Events so I can participate?
You can pay the seminar fee via:

Bank Deposit: BPI Account Name: ESTI-TRP(Think Rich Pinoy); Account# 8291-0083-57. (Checking)
Paypal/Credit Card: Buy your seminar ticket by clicking this link.

Early Bird Fee is P1975 (until November 3, 2009) Regular fee is P 2450

4. How to confirm my registration?
Just email thinkrichpinoyseminar@gmail.com with the scanned deposit slip or paypal acknowledgment receipt with following data: Name, Address, Email Address, Cell # and Landline # AFTER you have paid via paypal or bank deposit.

5. Can we get a group discount?
If there are five of you, you can avail of the early bird discount (P1975.-) even until the last day of payment (November 3).

6. Other discounts?
If you want to attend AGAIN, you can pay 50% of the fee (P 2450 * 50% = P 1225.00) – just P 1225.00 to attend again and play cashflow 202 or 101, perhaps to challenge yourself. But you must hurry because there are very limited slots for these.

7. Maximum number of participants?
We can only accommodate 120 participants per session.

8. Is this a scam?
No. This is a financial education seminar and Cashflow game. The game uses play money. However, if your mindset is “scam” – unfortunately this is not the place to go – you won’t find any.

The goal of Think Rich Pinoy is to create wealth –using whatever legal means-though primarily through real estate – because that’s the safest way to go. You will not be required to buy property from Think Rich Pinoy people (at any given time we actually have only a handful available properties and we don’t get investors just because they have
the money) -you go buy them from sellers out there in the world. We just enable you to start building your wealth.
Real Estate Investing Wisdom is not taught in schools. That’s why we’re doing this. But the Think Rich Pinoy is NOT an end of learning,it’s a beginning -so please do not make the mistake of thinking you’ll become wealthy because of this one seminar.

You might get one idea that can propel you to become a millionaire, it happens quite a lot. You might get it from the people, the game, the seminar, who knows? The important thing is -you’re ready to accept that idea and run with it. That’s where Think Rich Pinoy comes in-we make you ready or at least we set you off to the path of becoming
truly wealthy.

9. Can i pay on the site (UN Avenue Venue)?
You may but there’s no guarantee of being able to play cashflow as the slots are very limited. Better to secure your seat via credit card (using paypal.com Buy your seminar ticket here!) or deposit to the bank. If you’re abroad, the best way is to open a free paypal.com account, connect your credit card to it–following it’s directions –so you can buy a ticket online. Connecting your credit card to a paypal account is not a quick thing to do-so I suggest you do so now-even if you’re planning to pay later.

10. Schedule?
November 21, Saturday, 2009, 8am (we start promptly) to 6pm.

11. Venue?
Training Pavilion of Philam Life, UN Avenue, Manila

12. How to get there?

Commuting:
Go down at the UN Avenue LRT station, walk towards the Manila Bay with Manila Doctor’s Hospital on your right.
The Philamlife Building is in front of the Manila Pavilion/Casino Filipino.
Yes, it’s ironic but that’s where the Think Rich Pinoy event is held. Enter Philamlife entrance (not the casino).
Just tell the guard “Think Rich Pinoy” and you’ll be pointed to a training room just beside the nice outdoor chapel in a garden is located – so it isn’t really ironic. Just fitting.

Toilets would be opposite the direction of the training room.

Car
If you have a car, the parking is on the back of the building. You’ll have to take the other street parallel to UN Avenue, that’s Padre Faura (from Taft in the direction going to Robinson’s Place Mall Faura
Wing) and turn right at M Orosa, so you can reach the Philam Parking (w/c would be to your right.)

Map
A google earth/maps copy of the area is found in
http://fireurl.com/cggb

13. Lunch/Snack included?
Yes, we will serve a morning snack and lunch.

14. What should I bring?
If you want an autographed copy of your Think Rich Pinoy books, bring them.Bring a camera and get a photo shoot with Larry Gamboa. Why? Because it works. Most successful people do that, why shouldn’t you?
Your choice.

15. When do you plan to do a seminar here in (Country,City)?
We’re coming up with a manual on how someone in your city can host a Think Rich Pinoy event. If you’re really serious about this, please contact thinkrichpinoyseminar@gmail.com and say “I want to HOST Think Rich Pinoy” and we’ll take it from there.

Right now TRP events are all held in Manila. You can “count the cost” and fly in- like some people do or simply wait it out. The most important thing is to DO SOMETHING.

Buy your seminar ticket here!

Related posts:

No more excuses – Be a successful real estate investor!

Jay — Fri, 30 Oct 2009 06:00:32 +0000

Robert Kiyosaki, bestselling author of “Rich Dad Poor Dad” often said that “Excuses are the words coming from the loser in you.”. I remember hearing this from one of his audio books some time ago but this has been running through my head often because there have been a lot moments lately where I notice I am making excuses when I am unable to do things which I know are essential in order for me to realize my goal of getting out of the rat race and achieve financial freedom.

What are the common excuses?

I don’t have enough time to…
I don’t have enough money for…
I’m going to start but I just have to…
I would rather stay within my comfort zone than…

It’s time to face reality and stop the loser in you

All of us have this silly excuse that we are too busy and don’t have the time to do this and that. In real estate investing for example, we don’t consistently analyze properties. We lose sight that real estate investing is a numbers game and the more properties we analyze, the more chances we have of getting that one deal out of a hundred that’s worth investing in. You can hear that voice inside of you say “But I don’t have time to analyze a bunch of properties, I’m just too busy…”. Do you really lack the time or maybe you are just not willing to make time?

How about the money for down payment, repairs, etc. That loser inside of you says “You don’t have enough money!” but have you really tried to manage your money and see where all your money is going? Have you really taken steps to ensure that you are consistently building your financial freedom account (FFA) along with the other “money jars” needed to effectively manage your money?

You want to start to do something worthwhile but then again, that loser inside of you says “Stop… let’s wait until the timing is just right” and all that crap. It’s just like waiting for all the stop lights on the road to turn green before starting to move. Good luck!

That voice of the loser inside may also say “Why should you even bother doing something that’s way out of your comfort zone…” and instead convinces you to just endure a comfortable life which is often synonymous to a tolerable but often meaningless existence. Maybe it’s time you realized that no one became ultra successful by living a comfortable life. If that was true then those millions of people who do nothing but watch TV all day would have become rich and successful by now. Ouch!

Focus on the winner inside of you!

Maybe we should all stop listening to the loser inside of us that never runs out of excuses and holds us back from becoming successful real estate investors! Don’t you think it’s about time that we focused on listening to the voice inside of us who actually says how we can we make things work, the winner inside of us?

It’s that winner inside of us that would realize that one needs to make time instead of complaining that we don’t have enough time for real estate investing. The winner inside of us discerns what things are truly important and worth doing and helps us find the time we need no matter how “busy” we are and then this allows us to consistently look at properties and analyze them as it would really take about a hundred properties before finding that one gem of a deal.

It’s also that winner inside of us that somehow finds creative ways of financing those great real estate deals that we may find even if the loser inside us says we don’t have enough money.

Lastly, that same winner inside of us will also coax us out of our comfort zones and make things happen to achieve financial freedom in spite of a little discomfort that we may experience along the way.

No more excuses please!

—–

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 [at] gmail [dot] com

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

P.P.S – 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.

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How NOT to invest in foreclosures

Jay — Fri, 16 Oct 2009 23:21:30 +0000

One of my mentors, bestselling author Trace Trajano, recently posted a story about Anna, who bought a property in a foreclosure auction in the US. Take note that some of the things in the story might not be applicable here in the Philippines. Nevertheless, there are lessons here that are applicable to real estate investors no matter where our locations may be. Before that, here’s the story of Anna…

The Story of Anna
Posted by Trace Trajano on October 15, 2009 at 8:31am

Let me tell you the story of Anna…

Anna excitedly attended a foreclosure auction because she read a book saying that you can get a good deal at auctions.

She bid at the auction and won – wow. “Now I am going to be rich”, she told herself.

She needed 10% down – so she withdrew her life savings and use that as downpayment. Her credit is very good so she was able to qualify for a loan. She pulled it off.

Now it’s time to rent out the property.

BUT, there is a problem. In FORECLOSURE auction, there is very limited time to inspect the property. In fact, she bought it because the outside looks good and she figured the inside should be in good condition also.

There is termite damage at the joints and it’s an additional $5,000 repairs that she couldn’t afford. She pulled out her credit card and got a cash advance – payable with 24% interest. She figured she can rent the property for $1,000 a month so that will more than cover it, right?

She got a tenant. She did not pre-screen her properly. She got a bad tenant. A tenant from hell in fact. Her tenant only paid the first month’s rent and now does not return her phone calls. She optimistically said, “No problem – I’ll get her evicted”. Her tenant from hell is a professional tenant. He (the tenant from hell) accused Anna of being a slumlord. The eviction was delayed.

Two months of no income…then three months. Now Anna had to skip paying her credit card because she cannot even afford the minimum payments. Anna had to fire her eviction attorney because he couldn’t handle the eviction against the professional tenant.

Wan’t to know the rest of the story? Read the rest here: http://buyfirstdeal.ning.com/forum/topics/the-story-of-anna

Real estate investing lessons learned

Let me try to dissect Anna’s story and share lessons learned with regard to real estate investing.

1. Invest for the right reasons
After Anna won the auction, one of her immediate thoughts was “Now I am going to be rich”. There really is nothing wrong with wanting to get rich, who doesn’t! However, I can’t help but feel that money was her biggest motivating factor. Besides, once you win your first auction, becoming rich is usually the last thing on one’s mind, at least that’s how I often feel when I win on my bids during auctions. I usually have thoughts like “Oh no, I won… what did I get myself into?”, “Now you’ve got a lot of work ahead of you Jay…”, and “I did my due diligence right, so this deal should work!”. That’s why I can’t help but feel there’s something lacking here based on the story because her focus was on the money.

Just remember that if you are going into real estate investing just for the money, something is definitely missing! Personally, I always try to keep in mind that my decision to go into foreclosure investing is not really just about the money, it’s about financial freedom!

2. Don’t risk everything when investing!
Anna withdrew her life savings and used that as down payment. Don’t ever do this, it is not a good idea to risk it all for one deal! You should at least have an emergency fund intact somewhere safe. I don’t believe in putting everything on the line like my entire life savings as I would rather set aside money for the specific purpose of investing and only use that. I refer to this as my “Financial Freedom Account” or FFA which is just one of my “money jars” which I learned from T. Harv Eker and you can read more about it here: Manage your finances by becoming your own Chief Financial Officer.

Some of you may be thinking “But maybe Anna did not have enough money so she needed to use her life savings?”. Just a word of advice, if one cannot manage his/her money in order to set aside enough money to put down for a real estate investment, then one is not yet ready to start investing. There should really be no need to use one’s entire life savings if one is able to manage their finances well. I believe that this is a prerequisite to real estate investing.

3. Always do your home inspections as part of due diligence
Anna bought the property because the outside looks good and she figured the inside should be in good condition also. Argh! Never buy a property without first doing a thorough inspection and getting estimates from reliable contractors. I made this mistake once but I was lucky that property’s after repair value (ARV) was more than enough to cover the actual repair cost that I underestimated by Php100,000.

In Anna’s case, had she done her inspections well, she could have discovered the termite damage and avoided buying the property since she could not afford the termite damage repair. Actually it would be okay to buy properties that have similar problems as long as they are discovered before purchasing the property, the costs are considered and justified after analysis, and the additional cost is reasonable and affordable.

With regard to the very limited time to inspect properties being sold in foreclosure auctions, this is very true, even here in the Philippines. This is the reason why I would rather buy bank foreclosed properties or bank acquired assets, which are also often referred to as ROPOA or ROPA. In the Philippines, properties being sold in foreclosure auctions are those that have just been foreclosed and they are often for sale on cash basis only and they still have a 1-year redemption period, just like tax foreclosures.

4. Always Pre-qualify tenants
Anna did not screen her tenants well. Without pre-qualifying tenants, one is inviting trouble. By Pre-qualifying tenants, you basically want to ensure that your tenants not only have the capacity to pay but are also good payers. A simple interview or a questionnaire and some background checks would have helped her avoid that tenant from hell.

Anna’s problems snowballed into something she could no longer handle but the sad thing about it is all of these could have been avoided had she done her homework. This is really one story which outlines how one should NOT invest in foreclosures and all real estate investors should learn from it as it contains perfect examples of what NOT to do.

Did I miss anything? Any reactions? Please share your comments below. Thanks!

—–

To our financial freedom!

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

Related posts:

Quezon City Tax Delinquent Properties public auction sale on October 8, 2009

Jay — Mon, 05 Oct 2009 03:49:05 +0000

Here’s a heads-up for both Quezon City taxpayers who might be delinquent in paying their real property taxes and for real estate investors who may want to help. I accidentally found this notice on the same issue of the Philippine Star where I got the complete listing of tax delinquent properties from the Province of Rizal which was recently auctioned in Antipolo City.

Anyway, before I explain how real estate investors can help those delinquent in paying their real property taxes, let me share more details about the tax foreclosure auction sale to be held in Quezon City. The Quezon City Treasurer shall be holding the auction sale of real properties with delinquent tax payments on land, building, and machineries on October 8, 2009, 10:00 A.M., at the 2nd floor of the Taxpayer’s Lounge, Quezon City Hall. Furthermore, all Quezon City taxpayers who may be delinquent in paying their real property taxes are advised to settle/update their realty tax arrearages before the date of the auction sale (October 8, 2009) to avoid inclusion of their properties.

(Source: Philippine Star, September 7, 2009 issue, page B13)

Time for Due Diligence

As usual, all prospective bidders are also requested to do their due diligence and verify the properties they may want to bid on at the Quezon City assessor’s office and the Register of Deeds of Quezon City. In summary, you can do this by:

Get the updated list of tax delinquent properties for auction at the Quezon City Treasurer’s Office
Get the tax declaration number and other important details that you will bring to the tax mapping section
Give the property details you got in step 2 above to the tax mapping section so that they can give you property details like the exact address, location, Transfer Certificate of Title (TCT) number, etc. You can also ask for more details that they may know about the property (ex. if it will be affected by a road widening project in the future, etc.)
From the information you got from step 3 above, you can then proceed to Quezon City register of deeds which is located in East Avenue to get a certified true copy of the TCT.
You can then inspect the property if you want along with other due diligence tasks.

How can real estate investors help?

As I have mentioned in the beginning of this post, real estate investors can help those Quezon City taxpayers who might be delinquent in paying their real property taxes. This can be done by paying the arrears in real property taxes, penalties and other costs (all of which are equal to the minimum bid price) for the property owner through a winning bid. This basically buys some time for the property owner (12 months to be exact and is referred to as the redemption period) to settle his/her arrears.

As an incentive, the winning bidder earns an interest of 2% per month and he/she will receive this once the property owner is able to settle his tax arrears within the 12 month redemption period.

Click here to download a complete copy of the Quezon City Rules, Regulations, and Conduct of the Real Property Tax Auction sale.

As I have often said in the past, it would be better to invest in real property tax foreclosures without the intention of actually getting the property. I believe this is a win-win solution for everyone – the owner gets another 12 months to come up with enough funds to settle his arrears, the local government gets to collect the taxes they need to fund their operations and local projects, and the real estate investor gets to earn 2% per month or up to 24% for 12 months by buying some time for the property owner and also for helping the local government collect taxes. By the way, I stumbled upon the comments section of an article I found in philfaqs.com which explains this very well, please do check it out here: http://philfaqs.com/phils-business/make-money-at-home-free-education-know-what-donald-trump-knows/#comment-14895

Sorry if I am unable to post an updated list of the Quezon City delinquent properties for public auction. Ever since our house was devastated by the floods last week, we have been very busy picking up the pieces and relocating to a place we can temporarily live-in while our house is being repaired and becomes livable again. A big thank you goes out to all of those who gave words of encouragement and prayers. Let’s continue praying for and helping those that were affected by the recent typhoons.

By the way, it’s nice to be back!

—–

To our financial freedom!

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

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Happy New Year and more successful investing in foreclosures for 2009!

Jay — Tue, 30 Dec 2008 18:38:00 +0000

As 2008 comes to an end, first and foremost, I would like to say thank you to all of you my dear readers and visitors. I created this blog only recently, last October 31, 2008 to be exact, and I am still dumbfounded by the number of visitors of this blog.

Each time CJ, my three year old son says “Look at those dots, pindot na (click on them now) daddy!” while pointing to my Clustermaps image(at the right side bar near the bottom), it makes me feel good with the notion that you do find this blog helpful.

Well, I really hope that you really do find value in Foreclosure Philippines and if there’s anything that I can do to improve it, comments and suggestions are always welcome.

Why did I start Foreclosure Philippines?

Looking back, why did I write this blog in the first place? Initially, this was supposed to be just an experiment as I was looking for a way to have all my foreclosed property listings accessible from anywhere from my PDA, eliminating the need to bring the actual classified ads with me.

I remember that during that time, I have just finished helping facilitate an internet marketing workshop of Jomar Hilario, courtesy of an invitation from Thea Santos, and I said to myself I might as well create a blog for this purpose.

I also remember that I was also trying to convince some of my friends and officemates to start investing in foreclosures using our 13th month pay and Christmas Bonus and I found it very tedious to keep on bringing copies of the classified ads along with website addresses of HGC, Pag-IBIG, SSS, etc. so I just posted these in my blog and continued posting new listings.

More inspiration…

What inspired me more was when my wife and I decided to share our experiences in the tax foreclosure auction in Marikina and I was overwhelmed with the response from visitors and readers. This became a fuel for the passion inside of me. As they say, the rest is history.

I am a real estate investor…

By the way, I just want to make it clear that I am not a real estate guru; I certainly would not want anyone to think that I am. I am simply just like any other real estate investor who just happens to focus on foreclosed real estate, and wants to share experiences, insights, and lessons learned along the way through his journey to financial freedom.

There are more than enough great real estate deals for everyone

Now some would probably say that by sharing these, along with the property listings I get, I might be losing deals to competition or other real estate investors. In my point of view, there’s simply more than enough great deals for everyone. We should all have an abundance mentality.

Besides, most of the information I learned which got me interested in investing in real estate came from mentors and fellow real estate investors who did not hesitate to share these with me. Now if I started becoming selfish and self-centered, that wouldn’t be right would it?

Helping fellow real estate investors

As we welcome 2009, I hope I can continue to help fellow pinoy real estate investors like me through this blog. In addition to foreclosed property listings, let’s share experiences, challenges, success stories, and virtually anything that can help each other make 2009 another successful year for foreclosed real estate investing.

If you have any questions, concerns, comments, or suggestions, just let me know and I’ll see what I can do about it, and please don’t forget to subscribe to my mailing list so you won’t miss a thing.

I wish you all a Happy New Year, and more successful investing in foreclosures for 2009!

To our financial freedom!

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

PPS. If you know anyone else who 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 also subscribe through my RSS Feed.

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