Why I quit my high paying job to invest in foreclosed properties (my first successful deal)
ฝัง
- เผยแพร่เมื่อ 26 ก.ค. 2024
- People often ask me “How can they get started with investing in real estate?” which I answered in this talk during the TGFI Financial Literacy Summit last April 2, 2017 at the SMX Mall of Asia.
I shared my journey and how I was finally able to start with investing in foreclosed properties (and why I started). I believe “a big why” is just as important as the “how” because, without the “why”, I probably would have given up on real estate investing and never got started.
I also explained what happened with my first foreclosed property purchase (along with some lessons learned), which I bought via auction.
Part 2 of this video where I explain why I decided to buy the property mentioned here (because I believe it was a good deal) is now available: • How to find foreclosed...
*English closed captions or subtitles are now available!
Timestamps
0:00 Intro
0:04 Too much stress at work
0:39 The book Rich Dad Poor Dad (2005)
0:57 Think Rich Pinoy book
1:22 Studied for the 2007 real estate brokers' exam (for the knowledge)
1:41 I learned a lot from Engineer Enrico Cruz
1:59 Raising capital for my first property
2:15 How I tracked my expenses
2:40 The book Simplify by Bo Sanchez
2:53 The "Money Jar" method
4:06 Why track your expenses?
4:27 My first completed real estate deal (2009)
5:32 What happened to my first purchase?
5:59 Rent-to-own converted to bank financing
6:32 My tenant-buyer's concerns
7:00 A Win-win-win deal
7:29 More deals
7:53 I finally quit my IT Manager job
8:12 My blog foreclosurephilippines.com
8:42 Up next: How was I able to identify a good deal?
Sorry if the footage is shaky and if a lady was blocking the view at times, my wife used her cellphone to record the video and she wasn't able to sit at the front.
This is just one of many videos where I was invited to talk and share our experiences and lessons learned about investing in real estate/foreclosed properties in the Philippines.
I'll continue sharing more videos like this (I am still unable to make new videos since I am at the hospital most of the time taking care of my mom).
Subscribe to get notified when I upload more videos about real estate/foreclosed properties. Click on the following link to subscribe: th-cam.com/users/JayCastillo...
View our latest compilation of foreclosed property listings:
BFS: bit.ly/bfsproperties
Bank of Commerce: bit.ly/bankcomforeclosed
Pagibig foreclosed properties - bit.ly/pagibig2020
RCBC: bit.ly/rsbforeclosed
BDO foreclosed properties - bit.ly/bdoforeclosed2020
China Bank Savings foreclosed properties - bit.ly/cbsforeclosed2020
Maybank foreclosed properties - bit.ly/maybankforeclosed
Search from over 20,000 foreclosed properties (Regularly updated): bit.ly/foreclosedproperties2020
Search by City / Province - bit.ly/foreclosedlocations
#foreclosedproperties
#realestateinvesting
#acquiredassets
Nice ito sir..,nakakainspire po kayo..,I've been watching mr Gamboa's on the money interview way way back..,more power and God Bless
Umaattend ako ng mga seminar ni Sir Jay dami mo talaga matutunan sakanya.. 👌
Thank you for the kind words Christian! Salamat din for attending seminars na kasama ako sa speakers. :-)
worth to watch! New subscriber!
Sir papanoorin ko lahat ng videos mo. Alam kong marami akong matututunan
Thank you for sharing po
Very informative video sir.
Think rich pinoy book like to check on that😃
Helllo Sir hindi na po ako nakak received ng mga emal foreclosed properries po.😊
Thanks sa info sir. New follower po. Godbless
Sir Jay, can you pls help explain rent to own scheme? What made you decide to do rent to own for your first purchase? Thank you
@@JayCastillo Sir Jay thank you for sharing your knowledge. Godbless you sir! Sir just want to ask if do you have a video explaining the details on rent to own? How many years would it take for the tenant to pay you and how much higher is the tenants rent compared to the monthly amortixation you are paying to the bank for your loaned property? Thank you sir.
Hi Sarah, basically long term installment ang rent-to-own scheme. I believe people call it rent-to-own because of the following:
1. It can first start as a rental and the landlord will give the tenant an option to buy later. (Although for my deal, the tenant chose to buy the property immediately)
2. The monthly payment is small enough to be comparable to paying rent, although it will be higher.
The main reason I chose to use a rent-to-own scheme for my first deal was to have positive cashflow. Since it's rent-to-own, I can set a higher monthly payment (for the right to purchase or own the property), which is more than enough for my monthly payment to the bank. :-)
Secondly, if rent-to-own, the tenant becomes the buyer/owner already and will take over the responsibility of maintaining the property, no need for property management anymore. :-)
Does comercial syndication practiceable here in the philippines?
Sir Jay thanks a lot for all the tips. One question po, do I need to be a licensed broker or any certifications to sell these properties from foreclosed?
Good day Sir Jay. Do we still need to secure a building permit for the repair of a foreclosed property?
@@JayCastillo Thank you Sir Jay. Your answers are really helpful. God bless you always Sir so you can help more people who are learning about real estate investing.
Hi Rodel, for minor repairs like painting and repairs mostly inside the house, no need for a building permit. You should check with the Home Owners Association for any required work permit etc. and construction bond (if needed). For condos, you need to check with the Project Management Office or building admin.
By the way, If the foreclosed property is outside a village/subdivision, I would highly suggest to check with the city hall, just to be sure (they might conduct a surprise inspection so better double-check).
Sir Jay, pa-explain naman po ng rent-to-own scheme, paano po yung process ng pag transfer ng titulo, at anong documents ang pwede hawakan ni tenant while paying? Thanks.
hi sir jay! thank you for sharing this video. may i ask how did you handle the transfer of title after na bili yung property ng buyer. salamat po
Jay Castillo maraming salamat po sir jay.. clarify ko lang po hindi pala pwde magbenta ng bahay kung nka mortgage pa ito dapat pa pala i fully paid po.. tapos yung conveyance po magkano po bayad nila sa service sir.. maraming salamat sir dami ko natutunan sa inyong blog at ngayon youtube naman .. nka bili ako bahay galing sa listings na sinisend nyo po
maraming salamat po sir jay.
You're welcome and thank you also! Bale after namin i-convert from rent-to-own to bank financing, dun lang kami nag proceed as paglipat ng title. Una, kinailangan ko i-full pay sa bank para i-release yung title sakin, and then nilipat ko sa pangalan ko, isa kasi yon sa requirements ng bank para ma-approve yung loan ng buyer ko. After ma-approve yung loan, nilipat naman namin yung title sa name ng buyer ko. Bale dalawang sets of transfers/payment of taxes. May taga-lakad kami para sa paglipat ng title kaya hindi na masyadong hassle, pinagawa namin sa OMI (now named Conveyance).
@@Y0lk3 Depende po sa bank kung saan kayo nag loan, yung iba kasi open sa mga loan-takeout, basta may Letter Of Guarantee from the other bank. Yung iba naman, mas gusto na fully paid sila agad kasi ayaw nila ng loan-takeout kasi matagal yung process (eto yung nangyari sakin). Yung rate ng Conveyance last time I checked was Php15K for the title transfer service if within Metro Manila. Ewan ko lang ngayon kung nagbago dahil sa pandemic.
Sir Jay paano nmn proseso nung foreclosed property na negotiable prize,,
Thank you so much for sharing these videos sir Jay..God bless you 🙏😊
You're welcome and thank you also, God bless you too!
Sir jay may i kindly ask a question we have a newly acquired house and lot sa loob po ng gated subdivision ganoon po ba talaga sa likod ng titulo may nakalagay na memorandum of encumbrances -subject to restrictions mention in the deed of sale dated july 2008 kahit nalipat na po sa amin ang title? So in the future pag ibebenta din po namin hindi pa din mawawala yung deed of restrictions? Forever na po nandoon iyon? Hehe. Salamat po sa lahat ng video ninyo dami ko pong natutunan.
Hi Nix, yes, laging andun ang deed of restrictions, yan kasi yung nilalagay ng subdivision/village developer para hindi basta-basta na lang may magbago dun sa subdivision/village. For example, hindi pwedeng baguhin itsura or design ng mga bahay, dapat sumunod sa guidelines, etc. Para po yon maprotektahan ang market values dun, so okay lang po yon.
Hi Sir, Would you be open if ill ask for a recommendation?
Hello po gusto ko po sana bumili ng foreclosed property sa Bank then ibebenta ko din po same ng ginawa nyo. Iniisip ko po kasi kailangan ba maging real estate broker pa bago ko ibenta yung property na nabili ko sa bank?
Hi Jeline, no need na maging broker para ibenta ang property na ikaw ang owner. :-)
How did you transfer the title po from bank to you to buyer? while working full-time? siya po challenge ko now, nag hire po ba kayo ng taga lakad ng papers?
Sir , base sa experience nyo updated ba ang REAL Estate Tax ng mga forclosed properties nabili nyo sa mga bank ?
All I know is unahan sa foreclosed, ilang beses na na redeem Yung nakuha ko. Yes you buy then sell it after. Pero until now wala pa ako nabili na foreclosed. Wala ako swerte Jan pero maghihintay pa din ako.
Sir possible ba na makabili ako ng foreclosed property kahit walang collateral? Pwede ba ako magloan ako sa ibang bank para mabili ko ung isa property sa other bank. Thanks!
Hi Robin, pwede na yung ipu-purchase mo ang collateral sa loan.
Pwede din mag loan sa ibang bank, pero kailangan ma-approve/mag start ka muna mag monthly dun sa bank kung saan mo binili yung property.
Tanong ko lang po yong inuupahan namin bahay di na inaupdate ng may ari 4yrs na . naghiwalay kasi sila..pwede ko pa kaya ipareserve sa pag ito ito inuupahan namin incase nag forclosed kami priority..gusto po kasi namin kunin ito inuupahan namin .
Check out Part 2 where I share how to identify foreclosed properties that can be good deals: th-cam.com/video/ZL1zCtCShWY/w-d-xo.html
By the way, sorry all my comments replies have disappeared after I changed my youtube channel from personal to brand channel (so I can assign people to help manage my channel). Anyway, I prepared for this by making a backup of all comments and I am manually restoring all comments for all videos. Please disregard new notifications for replies to your comments when I restore them. Thanks.
Hi sir Jay, are you affiliated to IMG(international marketing group)?
Thank you, sir.
Hi Koolah, yes, I'm an IMG member, although I'm not really active (I just use the membership to get the lowest premiums when we get car insurance). In the past, I was also invited as one of several speakers to give a talk/seminar about online marketing, social media, email list building, etc, during one of IMG's events.
Helloay papano nyu sir ..naipasok nang buyer nyu po sa bank financing samantalang .. di nyu pa po na ifufull cash sa . Bank na nag benta nang foreclosed.... sorry po newbie palang po regarding po dyan sa real estate
Hi Jerson, lahat naman ng property, kahit hindi pa fully paid, pwedeng ibenta. Yun nga lang, depende sa policy ng banks (kung saan ako may balance, at kung saan maglo-loan yung buyer) kung gaano ka complikado. Bale ang ni-require sakin ng bank ng buyer ko ay dapat nakapangalan sa seller yung property. Ang problem, contract-to-sell ang contrata ko nung binili ko yung foreclosed property, so hindi pa nakapangalan sakin. Para mapabilis, nag full payment ako para makuha titulo at malipat sa pangalan ko, kaya na approve yung loan ng buyer ko. Mas madali sana kung naka mortgage loan ako nung bilili ko yung foreclosed property kasi nalipat na sana sa pangalan ko agad, hindi ko na kailangan mag full payment.
Yung 1.19M, cash niyo po ba iyon?
Sir like ko po sa manila place
Ang mahirap sa foreclosed ay Yung mga nakatira ayaw umalis tas ang ending malalaman mo hinde pla talaga sila Yung legit na barrower.
Hi sir Jay, I just want to know if I understand how to earn in flipping.
1. YOU buy foreclosed Property (bank or pagibig) lower than the market value
2. Pay 20-30% DP for the property, then monthly amortization.
3. Renovate a little bit
4. Sell it at a little less than market value
5. PAY THE BANK OR PAGIBIG IN FULL? so you can transfer the property to YOUR BUYER?
Is that right?
Usually hanggang #4 lang kasi ang nasasabi sa mga vlogs na napapanuod ko. Kaya iniisip ko how about sa monthly amortization? What will happen?
Thank You once again. New subscriber here
Sir naanswer na po ba ang question niyo?. Ganito rin po comcern ko
Hello, I have the same concern. Kamusta, sir?
@@gaysagang6412 nahanap ko na sagot nito haha.
"Hi Jerson, lahat naman ng property, kahit hindi pa fully paid, pwedeng ibenta. Yun nga lang, depende sa policy ng banks (kung saan ako may balance, at kung saan maglo-loan yung buyer) kung gaano ka complikado. Bale ang ni-require sakin ng bank ng buyer ko ay dapat nakapangalan sa seller yung property. Ang problem, contract-to-sell ang contrata ko nung binili ko yung foreclosed property, so hindi pa nakapangalan sakin. Para mapabilis, nag full payment ako para makuha titulo at malipat sa pangalan ko, kaya na approve yung loan ng buyer ko. Mas madali sana kung naka mortgage loan ako nung bilili ko yung foreclosed property kasi nalipat na sana sa pangalan ko agad, hindi ko na kailangan mag full payment." - Sir Jay Castillo
Up
Reposting: 84nomas
left this comment in my original comment but got deleted: Thanks for this Sir Jay. sa panahon po ngaun na ang mga majority ng tao eh very fearful, and napaka uncertain ng panahon, is it still wise to invest in foreclosed assets?
Here's my reply:
@84nomas You're welcome! During these challenging times, we need to be extra cautious, especially for locations which we are not familiar with. I'm still very optimistic with properties within projects from the big developers (Ayala, DMCI, SMDC, etc) because I'm confident these projects can make it through. As long as the properties are properly managed (including safeguards related to the pandemic), I think it will be okay and these projects will not suffer any major drop in market values. For locations we are very familiar with (where we actually live), I would still be in the lookouut for any good deals that are worth the risk.
Of course, we need to consider market preferences due to the pandemic (people might prefer single detached houses over condos and townhouses), I guess we need to wait and see. Although, people might want to defer buying houses, everyone still needs a roof over their heads, so rentals should still be in demand.
For commercial properties, with most businesses going towards online (except for those that provide essentials and are not affected that much), I believe everyone expects a dip in demand and market values/rental rates.
Sorry for the long reply. :-)
Hello, I've been replying to your EDM campaign about foreclosed properties yet no one is responding. Are you responding also via email reply?
Do you have facebook sir jay?