Steps to investing in condo rental carl dy
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Transcript of Steps to investing in condo rental carl dy
L ET’S P LAY A Q U I C K GA M E
F I N D A PA RT N ER
Guess Who
Guess Who
Thank you for coming
How many here are property owners already ?
How many are looking to buy their first property ?
Into stocks now wanting to learn property?
Single ? Married ? With kids ?
Asset VsLiability
Build up Cash flow
WHAT DO YOU THINK IS THE “GREATEST SECRET” OF THE WEALTHY ?
PASSIVE INCOME !
WHICH WOULD YOU CHOOSE ?
WHICH WOULD YOU CHOOSE ?
WHICH WOULD YOU CHOOSE ?
WHO WANTS TO WORK FOREVER ?
ENJOY LIFE !- WORK BECAUSE YOU WANT & NOT BECAUSE YOU NEED TO !
MEANING OF INVESTMENT ?
is a monetary asset purchased with the idea that the asset will :- provide income in the future or
- appreciate and be sold at a higher price.
CAPITAL APPRECIATION
LEVERAGE
Cash Flow
“Miguel” 27 yr old
P700K downpayment
Condo = P2.5 MIL
P1.8M = 10 yrloan from bank
P20k / mo
“Miguel” 27 yr old
MONTHLY
p 20K
RENT
p 20K
AGE 27 TO 37 = ZERO INCOME
“Miguel” 27 yr old
N E V E R T O O YO U N G T O S TA R T
P R O P E R T Y I N V E S T I N G
L E A R N H O W T O U T I L I Z E
B A N K FA C I L I T I E S
I N S TA L L M E N T = F O R C E D S AV I N G S
REASON WHY YOU SHOULD INVEST IN PROPERTY
LEVERAGEThe use of various
financial instruments or borrowed
capital, such as margin, to
increase the potential return of an
investment.
CAPITAL APPRECIATION
LEVERAGE
Cash Flow
BET # 1 - 2009
UNDESIRABLE
TRIANGULAR SHAPED
STUDIO UNIT 20sqm
CONDITION: OLD AND SMELLY
FOR SALE FOR MORE THAN 1 YEAR
ASKING PRICE 2009 = P 1.4M
Very small 20sqm – Smelly, Triangle Shape
Vacant for a year and no buyers – no View
Dirty, Old , Outdated
Moldy, Dirty utility area
WILL YOU BUY THIS ?
Text Questions to 0917 531 6310
Built in cabinets
Niche for toiletries, glass enclosure, new tiles
Covered old windows, new aircon, built in tables
Cleaned up the service area, add bar type sink
Built in the bed and hid the post
Use triangular accents to match unit’s shape
Use the narrow entry to be work area
Change flooring also
UNIT PURCHASED AT P1.2M ( 2009 )+ RENOVATION 300K
TOTAL SPENT = p 1.5M
RENT = P 17,000/mo
RETURN on EQUITY = 13%
4th year of renewal by same tenantTenant Profile = Junior lawyer female working 2 bldgs away
LEARNINGS
One man’s trash is another man’s treasure
Be scientific in viewing your property
Don’t be too emotional
Big potential in giving value to the working class segment
JAN 1, 2012
VAT EXEMPT = From
P 2.5MTo
P 3.199M
#1 – IDENTIFY YOUR TARGET CLIENT
#2 – CHOOSE YOUR CONDO OF CHOICE
#3 – CASH FLOW ANALYSIS
#4 – EVALUATE YOUR RISK
#5 – KNOW YOUR EXPENSES
STEPS TO INVESTING IN CONDO RENTALS
EDUCATE YOURSELF
#2 – IDENTIFY YOUR TARGET CLIENT
Different market class has
different needs & budget
STUDENTSBLUE COLLAR
WORKERSMIDDLE MANAGERS
EXECUTIVEEXPATS
SINGLECOUPLES
FAMILY W KIDS
#2 – PINPOINT YOUR CONDO OF CHOICE
LOCATION IN RELATION TO YOUR MARKET’S
NEEDS
TRACK RECORD OR ETHICS OF THE
DEVELOPER
VALUE OF THE CONDO( Amenities, Land Size, Features )
AFFORDABILITY( available financing )
#3 – CASH FLOW ANALYSIS Condo =
P3Mil
P 30,000/ mo rent
= 10% / yearReturn !
DEDUCT expenses1. Property Tax –
P5,0002. Assoc Dues –
P 25,0003. Brokers Service
Fee – P 30,000
P 360,000/ yr rent
P 300,000/ yr rent
Yearly rentDivided by
Purchase PriceX 10
P 360,000divided by
P 3Mil
= 12%
P 300,000divided by
P 3Mil
#4 – EVALUATE YOUR RISKS
RISK OF NO TENANT
RISK OF BAD TENANT
RISK OF NON COMPLETION / DELAY
ECONOMIC SLOW DOWN
TENANT / PROPERTY MANAGEMENT
EXIT PLAN
#5 – KNOW YOUR EXPENSES
FIXED EXPENSE
VARIABLE EXPENSE
REAL PROPERTY TAXASSOCIATION DUES
MAINTENANCE COSTSINSURANCE
WHO WANTS TO
LEARN MORE ?
#1 – IDENTIFY YOUR MARKET
#2 – FURNISHING YOUR UNIT
#3 – ATTRACTING RENTERS
#4 – STAGING YOUR UNIT
#5 – PROTECT YOURSELF ( LEASE CONTRACT )
#6 – LAST STEP - TAKING CARE OF YOUR TENANT
#2 – FURNISHING YOUR UNIT
#1DO – Have a single
theme
#2 DON’T – Be ordinary
#3 DO – Create lots of storage
#4 DO – Think about your tenant’s comforts
#5 Don’t – buy cheap and flimsy furnitures
#3 – ATTRACTING RENTERS
#1DO – Take beautiful photos
#2DO – Create a
sales pitch
#3 DON’T – Forget traditional media
#4 DO – Use social media
#5 DO – Send out direct mailers
#6 DO – Make an open house
#4 – STAGING YOUR UNIT
#1DO – Clean up the entry
#2DON’T – Leave broken things
unfixed#3
DO – Clean up clutter
#4DO – Let the light in
#5DON’T – have a
bad smelling unit
#6 DO – Pay attention to the toilet
#7DO – Night viewing
#5 – PROTECT YOURSELF ( LEASE CONTRACT )
#1 Details of Unit
-Price-Term of lease-Amount of lease-Advance Rent-Security Deposit-Conditions on monthly payment
#2 More Conditions
-Utility payment-Violations and penalty-Use of unit-Improvements and alterations-Insurance-Aircon maintenance-Repairs-Building maintenance-Escalation of rent-Violations
#3 More Details-Inspection of premises-Sublease or transfer of rights-Maximum allowable persons-Selling of property-Hazardous / prohibitive materials-Rules of condo-Pets-Abandoned property-Default payment-Attorney and court fees
#6 – LAST STEP - TAKING CARE OF YOUR TENANT
#1DO – Treat your tenant like your best customer
#2DO – Start our on the right foot
#3 DON’T – Short change your tenants
#4 DON’T – Be hard to reach
#5 DO – Be open for upgrade
options
#6 DO – Have a
personal connection
#7 DON’T take shortcuts
#6Steps !
#6Steps !
#6Steps !
#6Steps !
#6Steps !#6Steps !
#6Steps !
WHO WANTS TO
LEARN MORE ?
March 28, 2015 (Saturday)
SM AURA CONVENTION CTRTAGUIG, BGC
MARCH 28, 2015Saturday –2-6 pm
2-6 pm
Smx aura convention ctr.
P 5,000
Commonly Asked Questions
What Big thing happened last Feb 2, 2015
Will this hotel do a lot of marketing to bring in people ?
The Biggest Convention Center in the PH
BIGGEST & BEST STADIUM IN PH
Where big international events and concerts are held
The Biggest Mall in the Phils
What ongoing infrastructure will
be ready by 2016
NAIA EXPRESSWAY – Airport to Manila Bay
TOURISM IS GROWING - Be Part of it !
Do you want a
Property where
you don’t have to manage your
tenant ? Don’t pay dues ?
And just collect profits ?
From business point of view – Is hotel good ?
30 !!nights free
Stay in your own hotel for free when there is a concert ?
VAT FREE !!
P 3.188M
Gives a 8-12% return on your capital
Ready for use in
1 year !
No need to wait 3-5 yrs
Flexible Pay Scheme
P2MIL loan= P25k / mo
10yrs
Developed & Managed by a Billionaire
One disadvantage !
Do you want to know what this
exciting property is called ?
Thank you for being a great audience !
“Property investment, just like business is not an automatic money generating product. One must have a passion for it, create then execute a strategy, and give time plus effort for the investment to flourish”
Thank you - Carl Dy
THANK YOU !
Who wants to know more ?
P350,000House & Lot
in QC
LOLA THERESA - 1976
P350,000Bank Deposit
45 yr. old
P350k to
P15Mil 35 years
What do you think
happened to the P350k
in the bank ?
LOLA THERESA - 1976
LOLA THERESA - 1976
Your home is your best property investment
You are able to use, enjoy, create memories
At 45 yrs. old, it is still not late
If you are renting
consider purchasing your primary home
1ST REASON WHY YOU SHOULD INVEST
IN PROPERTY
CAPITAL APPRECIATION
A rise in value of an asset
Based on a rise in market price
1962P55/m
P27,500
When is a good time to buy ?
1982P1375/m
P650,000
2002P20,428/m
P10.2M
2014P100,000/m
P50M
HOUSEWIFE
5 kids ( AGES 3,5,7,8,10 )
Auntie Lucy- 1984
35 yr. old
5 +4 Door Apartment
Auntie Lucy- 1984
1984
6k / unit Total = P 24k
2014
P 20k / moTotal = P 160k
Cash Flow is the ultimate goal
Auntie Lucy- 1984
Unlike business, property is easier to manage
Profit is simple to compute
2nd REASON WHY YOU SHOULD INVEST IN PROPERTY
Cash Flow
If you are given automatically every 1st of the month P30,000
- What would you do on the first month ?
If you are given automatically every 1st of the month P300,000
- What would you do on the first month ?
PANG MAYAMAN LANG BA ANG REAL ESTATE ?How our driver “ROY” invested in property
#3Capital Appreciation
#2Cash Flow
#1Leverage
Real estate with minimal cash
#1 Extra Room in your house
#2share purchase with your
siblings
#3Rent your garage
or front yard
#4Book a room, then
sublease it
Questions Break
Questions Break
Questions Break
Questions Break
Quick Exam
Questions Break
Commonly Asked Questions
Questions Break
QUESTION
2 types of investment
Tangible investments
- Bank products- Equities- Real estate- Jewelry- Profitable Business
Intangible investments
- Education- Reputation- Time with family- Relationships- Personal Growth
WHERE CAN I GROW MY MONEY ?
BANK SAVINGS
INSURANCE PRODUCTS – BONDS
FOREX
STOCK MARKETBUSINESS
PROPERTY
WHY DO YOU NEED TO SET ASIDE ?
Loss of life
Loss of income – Old Age
Health Concerns
Business / Economic slowdown
We don’t want to work forever
How Many Nights
free ?
Stay in your own hotel for free when you visit Manila ?
ACTIVE vs PASSIVE INCOME
ACTIVE INCOME –income for service performed-Paycheck-Doctor seeing patient- Chef cooking- Sales person- Corporate Executive- Lawyer- Architect
PASSIVE INCOME – not actively involved- Bank products- Royalties- Business System- Dividends- Real Estate- Business Parntership
CREATING WEALTH USING REAL ESTATE
MODULE 1: CHOOSING THE RIGHT PROPERTY
Different types of properties
Pros and Cons of each property type
Which property is best for you
The greatest secret of the wealthy
Active vs Passive Investing
How will I know if I can afford to buy property
Advantage of investing in properties
Disadvantage of properties over other vehicles
Factors in choosing your properties
CASE STUDY
Old condo renovated now getting 10% returns
Pre Selling Condo purchased using instalment making 10% returns
Capital appreciation of an actual landed property purchased using long
term bank loan
MODULE 2: MARKETING & MANAGING YOUR PROPERTIES
Tips on renovating your property
Tips on marketing your property
Furnishing your property
Protect yourself with a solid lease contract
Taking care of your tenant
Lessons learned about rental properties
P 3,000Real Estate
Wealth Manila
Carl Dy is a property investor and property portfolio consultant. He has more than a decade of
experience in the real estate industry. He has worked with property giant Ayala Land Inc. for 11
years with his last post being Director for Sales for the Ayala Land Premier brand. He also has
past experiences of being President of high end Ayala condominiums and residential villages.
Carl Dy is currently the President of Spectrum Investments, a company that is into consulting
and managing property portfolio of investors. Currently, the company manages properties in
high value areas like Rockwell, Makati, Ayala Center , Bonifacio Global City & Nuvali.
Carl Dy is a graduate from UST and an architect by education. He believes that property
investment, just like business is not an automatic money generating product. One must have a
passion for it, create and execute a strategy and give time and effort for the investment to
flourish.
Carl Dy will share with you how he is continually building up his property portfolio with an
ultimate goal of living on passive income from property. He has given talks, written articles on
property investing and has been featured in MoneySense magazine, Entrepreneur Magazine,
various broadsheets, and in several radio and tv programs including Chinoy TV & ANC’s on
the money.