Here are my top 5 no-nonsense tips for you if you’re thinking of investing in foreclosed properties. I was asked for these tips at the end of the show “Business Partner On Air” at DZRJ 810 AM, and here’s a video of my answers…
This was like an impromptu recording after a live guesting at DZRJ last August 10, 2018.
By the way, I was hoping I can share the whole interview but they are still searching for a recording, I’ll update this if they find one.
In the meantime, I hope you will learn something from the video above.
My top 5 tips in summary
- (00:21) You need to decide where you want to invest, so you can focus and understand that location’s market
- (00:49) Find out what problem(s) a property has, so you can decide if you can solve it or not
- (01:42 ) Always compare with other property sources, like pre-selling, for sale by owner, brand new, etc., to see which of these are really the best option
- (02:22) Check if your exit strategy is do-able, depending on what is allowed by the bank, the village/subdivision/condo, etc.
- (02:54) Budget and requirements – Check if you can afford the downpayment, monthly amortization (for most banks, it should be at most equal to 40% of your gross monthly income), and other expenses like taxes, cost for repairs, etc. You also need to check the requirements for the purchase.
About the show “Business Partner on Air”
The show is titled “Business Partner on Air” and it is hosted by Marl Gonzales.
“Business Partner on Air” airs live on DZRJ 810 AM, every Friday, 7pm to 8pm and is simultaneously broadcasted via live streaming on:
- Facebook page: http://www.facebook.com/dzrj810am
- USTREAM: http://www.ustream.tv/channel/dzrj-810-am
Grab a copy of the due diligence checklist I mentioned in the video
If you haven’t done so, you can grab the due diligence checklist I mentioned at the end of the video, on the page below:
==> https://www.foreclosurephilippines.com/subscribe/
Thanks again to Marl and the rest of his team for having me as their guest!
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Dear Sir Jay,
Thank you so muck for the knowledge that you provide us in regards with buying a foreclose properties. Me and my partner are looking for a vacant lot or agricultural lot that someday we can live for the rest of our lives. We are already 44 years old and we are now preparing for our golden years, we wanted to have a small place to live and a sari sari store that we can get some income aside from our pension. This is our first time to buy a foreclose properties and I always inquire banks foreclose however can you give me advice if its safe to get foreclose properties in provinces and how will I know if no one will use it while we are here at Manila?
Hello sir Jay,
I’ve been a long time subscriber to your site and also what inspred me to get into real estate and got my license as a broker 5 years ago! Now we’re planning on investing in forclosed properties, in partnership with my father. I’ve been checking bank listings the past week and stumbled in 4 potentially good ones in Makati and Pasig based on our budget. Still in the info gathering stage.
I saw that you also just acquired a unit recently so I thought this would be the perfect time to ask a couple of questions, if you don’t mind:
1. From the time we submit an offer to the bank, how long does it usually take for the transfer and turnover on a cash payment?
2. We plan on selling the unit. In your opinion, which would be ideal: a flip (restoration but bare unit), or a complete, semi/furnished renovation?
I know you’re very busy sir Jay. Sana po masagot niyo on your down time. Congrats on your purchase by the way!
Hi Omar, I’m happy to know you are getting into real estate investing!
Here are my answers to your questions:
1. As long as the property has no illegal occupants, property turnover can commence a week after contract signing. The transfer of ownership would be : 1 to 2 weeks for the release of the title to you after the cash payment has cleared, plus how long it would take for you to do the title transfer (this part is up to the buyer, the bank’s role is to release the title)
2. If in good condition, complete painting for brand new look, plus minimal repairs for portions that require it, then sell as bare unit lang para quick turnaround, and less cost/risk for you. I would avoid major renovations unless really needed. To be more appealing to buyers, you can go for second hand furnishings, don’t buy brand new, again para minimal cost/risk. Good luck!
Salamat! Medyo natagalan yung turnover samin ng condo unit (almost 9 months inabot) kasi walang possession ang bank/may arrears sa condo dues, pero sulit naman kasi lumalabas na brand new (never been occupied) yung nabili namin. 🙂