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Things to know when buying foreclosed properties in the Philippines

shiseido · 26 · 21243

shiseido

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ask ko lng po if mga things to know or need to check in buying foreclosed propersties in the philippines gaya ng foreclosed s subdivision.. kindly share it po! TIa
« Last Edit: Feb 06, 2014, 04:38 PM by FutureGizmo »


Burndvinyard

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ask ko lng po if mga things to know or need to check in buying foreclosed propersties in the philippines gaya ng foreclosed s subdivision.. kindly share it po! TIa

Investing in foreclosed properties is a good investment. But there are so many things that you should consider before buying foreclosed properties.

1) Alamin mo muna yung payment terms, kung magkano downpayment, interest, etc.
2) Baka naman may nakatira pa dyan? Check mo muna kung may formal na kasulatan na sila na payag silang umalis kung meron nang bibili ng bahay nila.
3) Baka kailangan pa ng bidding dyan, check mo muna sa bangko na nag-foreclose nyan.
4) Kuha ka ng kopya sa registry of deeds sa lugar ng bahay na interesado mong bilhin.
5) Alamin mo yung mga babayaran mong taxes at kung sino ang mag-shoulder ng alin.
6) Check mo yung condition ng structure ng bahay.
7) Kailangan ang location mo ay malapit sa schools, palengke, hospitals, simbahan, etc.
8) MAg-usisa ka sa paligid ng bahay baka meron namatay dyan, may ghost. :D Joke lang. Importante kase sa mga nangungupahan kahit yung ganyan isyu.

At madaming pang bagay na dapat mong pag-aralan bago ka mag-decide na mag-invest sa foreclosed properties.


jomor

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You need to check first the following:

1. title to the property - if there are no encumbrances
2. actual location of the property - your possible neighbors
3. terms and coditions of the sale - who pays what
4. documentation - who does the leg work in transferring title



shiseido

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thanks po  sa mga reply balak ko po bumili sana sa BFS bahay financial services ng foreclosed properties..  sana meron din po mag share na naka experienced na bumili sa BFS saka ask ko din po bakit pg binili mo ang h and lot tpos na fully paid na bkit po mtagal ibigay ang title i heard it takes 1 year daw?


intsik51

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Shiesedo, query mo bakit matagal irelease the title kahit fully Paid kana? kasi normally pag ganyan kahit na mga subdivision na malalaki, dahil na sanla ang lupa nyan sa banko. Tsek mo mabuti.


intsik51

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Ako nga yung binili kong lote sa Solar Developer sa Trece Martirez, binayaran ko ng CASH, more than 1 year bago ko nakuha ang TITLE...kung hindi pa tinakot ng sister ko na ipa memedia sila, duon lang sila kumilos para makuha ko yung Titulo ng lot na binili ko.


bauer

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thanks po  sa mga reply balak ko po bumili sana sa BFS bahay financial services ng foreclosed properties..  sana meron din po mag share na naka experienced na bumili sa BFS saka ask ko din po bakit pg binili mo ang h and lot tpos na fully paid na bkit po mtagal ibigay ang title i heard it takes 1 year daw?

ang BFS ay hindi developer. Ito ay isang venture capital company na bumili in bulk sa mga bangko ng unpaid loans ng mga developer at ginamit na collateral ay properties.  discounted ang pagbili nila ng mga defaulted property loans at sila ang nagbebenta nito sa market ng paunti-unti.  Just follow up regularly with them about the release of title after you paid the property.


n5110

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wala pong akong experience sa BFS. i heard about them sa friend ko na balak din bumili ng property sa kanila. i do have experience buying a foreclosed property sa bank mismo. nag aadvertise sila ng suction date and venue. before the auction date they will publish property listing. visit your prospective property, mas maganda kasi makita yung gusto mong bilhin. then auction date pray na wala kang kalaban sa bid else it will jack up the price more than the advertise minumum bid.

participated twice sa bidding, 1st attempt 4 kami nag bid, nag add up ng 300K sa price binigay ko na. 2nd attempt wala akong kalaban ayos.  :D

magandang experience ang bidding, nakakakaba na exciting.


eugene

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For additional information you may visit http://www.foreclosurephilippines.com/


research_solutions

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@ n5110, how did you get started? I want to try that out. do you need to have cold hard cash in huge amounts? about how much should i have ready if i plan to go into that do you suggest? mga tipong 2-room houses lang naman ang gusto ko. thank you


hanson15

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kami naman gsis ang nagpautang samin. After 20 years nabayaran na namin yung house namin. Ang problema hindi pa rin kami nakaktanggap ng title ng house. TApos kami na ang nagbabayad ng real estate tax since nung nag fully paid. 2 years na rin mahigit.

Saan kami magrereklamo kung sakali eh gsis mismo kausap namin?


intsik51

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 :D Hope this will help....

Top 5 Things to Consider when Buying Foreclosures
Here are my top 5 things to consider when evaluating foreclosed properties are as follows:
1. Location
I guess everyone has heard the saying that there are only 3 things to consider when buying real estate — location, location, and location! Well, location really is a major criterion one should consider when buying a property, whether foreclosed or not. In most cases, location dictates the profitability of your property since it directly affects a) the selling price that you may get if you decide to sell the property and b) the rental rates if your strategy is buy-and-hold. When considering a property, one should check if the location is in a high growth area or will soon be in a high growth area (for example, an SM mall will be built in the area in a few years) as this indicates a high potential for appreciation. Other factors like accessibility, security, and availability of utilities like electricity and water are standard things to look for. It is also essential that the location is close to convenience stores, schools, churches, hospitals, malls, grocery stores, wet and dry markets, or even business districts. Locations that are in flood-prone areas, areas with high incidence of crime, squatters, piggeries, slaughter houses, garbage dumps, and the like will fetch lower selling prices and rental rates.
2. Selling price plus other costs
Quoting Robert Kiyosaki in his book Rich Dad Poor Dad, “You should make money when you buy, not when you sell”. I often asked myself before how the heck can I make money when I’m buying a property and obviously letting go of money? The answer is really simple. One makes money when buying a property if it is bought at a price below market value. If this approach is used, you help ensure that you will make money without depending on appreciation. Relying on projected property appreciation where you hope a property would appreciate in value so you can sell it later for a profit is purely speculation and is no different from gambling.
Other than the selling price, one should also consider the major taxes like Capital Gains Tax (CGT) and Documentary Stamps Tax (DST), just in case the seller decides to pass these on to the buyer. Other taxes such as transfer tax, real property tax, and VAT (if applicable), should be factored in as well. When all of these taxes are factored in, they can turn what had initially looked like a bargain into a deal not worth pursuing.
Other expenses such as association dues (in case a property is a condo unit), homeowners’ association dues (in case a property is in a subdivision), property maintenance costs, property management costs (if you are an investor who wants a truly passive real estate investment), etc. should also be factored in to see if the property is really a good buy for the long term.
I also set a maximum limit of 2.0M for my investment properties but I can increase this as I get more experienced.





3. Property Condition
When investing in real property, one should look for a structurally sound investment that is preferably made of concrete and other durable materials that would last for years. When dealing with foreclosed properties, however, it is not unusual to see quite a number that are not well maintained and would need repairs. Put in mind that the repairs should bring significant value to the property which would cover the related cost. A property which would need extensive repairs that are too costly should be avoided. For example, a property that has horizontal or diagonal cracks could have a major structural flaw that may prove to be too costly to repair. Vertical cracks might only need superficial patching. Many properties only need a new paint job.
Other things to things to watch out for include termite infestations, rotting wood, water stains, flood lines and water damage, etc. It is also a must to check the condition of the electrical, water, and sewage systems of a property to see if major repairs are needed or if they even exist. It would be best to let professional contractors evaluate a property’s physical condition, just to be sure, before actually purchasing a property.
When a property needs repairs, it can actually be good for real estate investors as it can be the basis for low-ball offers. In case these low-ball offers do get accepted, having a contractor that can do quality repairs cheaply can lead to bigger savings and margins. I envy those investors that have friends or relatives that are contractors. If anyone who happens to read this would like to refer anyone, please send an e-mail to ph.investor@gmail.com.
4. Financing
Aside from a favorable selling price, availability of financing that offers very flexible payment terms and low mortgage rates are also a big consideration. Imagine finding what seems to be a bargain property but then you find out that you need to pay in cash and you only have until the end of the week to come up with the money. Compare that to another property that may have a higher selling price but with very flexible terms that could include a low down payment, low interest rates that are fixed for at least five years (always remember to negotiate for this – this protects you from soaring interest rates and gives you time to refinance your mortgages if needed), and long payment terms that result in lower monthly amortizations. I’m sure a lot of you would choose the property with the flexible terms, unless you have a lot of partners or investors that are ready and waiting to finance your deals.
When the monthly amortization is lower than the rentals, you will have a property that can generate positive cashflow, a true “asset” using Robert Kiyosaki’s definition that “an asset puts money in your pocket”.
By the way, you should also check if financing is through a mortgage loan or through a contract-to-sell. Mortgage loans requires the buyer to submit financial documents and not everyone can get approved, while financing through a contract-to-sell is easily approved by banks. I’ll discuss these further in another article.





5. Seller Motivation
A motivated seller is a seller that badly needs to sell his or her property at the soonest possible time. Banks are a good example as their inventory of Real and Other Properties Owned or Acquired (ROPOA) or Real Estate Owned (REO) are non-performing assets that they need to dispose quickly. Some may find it too good to be true but some banks really sell properties way below market values and others also accept offers that are also way below the original asking price indicated on their foreclosure listings. This is because when a seller is highly motivated, they tend to be willing to sell a property at a huge discount, with little or no money down, and at very favorable terms. For example, I once submitted an offer for a 9-door apartment complex in Pasig for only 1.9M while the original price was
3.4M. To my surprise, they accepted it! Turns out that the loan amount that they needed to recover was about 1.8M (I actually offered too much for this real estate investment property) and they just wanted to remove that particular property from their inventory of non-performing assets.
For each of the criteria above (which you can also modify for your own use), I can give a property a score of 1 to 3, with 3 being the highest. I then get the total of all of the criteria. If a property gets a score of 11 and below, I move on to the next property. A score of 12 or above warrants further evaluation of a property.
I am then supposed to apply the 100-10-3-1 rule which I got from the audiobook entitled “6 Steps to Becoming A Successful Real Estate Investor” by Robert Kiyosaki and Dolf De Roos. The same ratios were also mentioned in Larry Gamboa‘s book, “Think Rich Pinoy!”. Once I get to analyze 100 properties that scored 12 or above, I can further trim down by calculating the return-on-investment (ROI), the monthly cashflow, and the cash-on-cash returns, which I will be discussing in greater detail in another post. I then get the resulting top 10 properties and do further due diligence like checking the legal documents of a property, checking with the bank if it is still occupied by the previous owner or a stubborn renter, etc. I then make written offers on the top 3 that appear to be free of any problems. From the offers accepted, I proceed to buy one property.


hanson15

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Hi guys i need your opinyon on this. Kung may kinabukasan ba tong plan ko :D

I have been eyeing for commercial lot lately. My plan is kahit 100 sqm lang tapos gawin kong 2 stores na magkadikit.
Tapos iaabang ko yung rooftop for 2nd floor. Either gawin commercial or bahay na para tirahan. 2 store para sa parents ko magbusiness sila at sa parents side ng hubby ko. Kung tamad sila magtrabaho pwede nila iparent at sila nalang maningil

Here is my dilemma:

I saw a lot in san pedro commercial siya in village square foreclosed property lot tapos 120 sqm siya worth 1.5m

Since limited lang ang budget ko to be honest magpull ako ng 25% savings sa stocks ko kahit ayaw ko. Plus yung iba kong cash on hand.
Bale papatak worst case scenario is 13k per month for 20 years tapos repricing ako sa bank at 7.5% per 5 years.

Si hubby ang gagastos ng pampagawa ng commercial since engineer siya estimate is 500k yun.

Not sure ako kung itutuloy namin tong plan namin since hindi ko alam kung the future is bright. Ayoko kasi matrap kami na sinasabi namin investment tapos baka maging burden kami sa pagbabayad ng loan.  Which will end up being a liability.

Gusto kasi namin para sa both parents namin kumita sila para hindi na rin nakasandal samin...

Anyway kung hindi magmaterialize we still have the lot and pwede namin iparent sa iba tapos pag may pera patayuan ng 2nd floor para house namin soon or ipaupa.

Pano ba mag assess ng financials? Or need namin maghanap ng financial advisor? Saan ba makakahanap nun kasi usually puro sunlife lang nakikilala ko eh.




« Last Edit: May 02, 2013, 04:13 PM by hanson15 »


allanmm13

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Hi guys i need your opinyon on this. Kung may kinabukasan ba tong plan ko

I have been eyeing for commercial lot lately. My plan is kahit 100 sqm lang tapos gawin kong 2 stores na magkadikit.
Tapos iaabang ko yung rooftop for 2nd floor. Either gawin commercial or bahay na para tirahan. 2 store para sa parents ko magbusiness sila at sa parents side ng hubby ko. Kung tamad sila magtrabaho pwede nila iparent at sila nalang maningil

Here is my dilemma:

I saw a lot in san pedro commercial siya in village square foreclosed property lot tapos 120 sqm siya worth 1.5m

Since limited lang ang budget ko to be honest magpull ako ng 25% savings sa stocks ko kahit ayaw ko. Plus yung iba kong cash on hand.
Bale papatak worst case scenario is 13k per month for 20 years tapos repricing ako sa bank at 7.5% per 5 years.

Heto lang talaga option nyo... Buy, Build and Loan?
 
Why dont try other real estate opportunity muna before you do this ... Brokering, Agency, Buy & Sell... Ok lang sana kung excellent ang cashflow source nyo to finance this property .

I get your idea that your parents should have a source of income , this is a great one for children like you.. Pero wag naman yung i-tie up yung finances nyo on long term debt with ONE PROPERTY , wala yatang diversification yun...


hanson15

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Heto lang talaga option nyo... Buy, Build and Loan?
 
Why dont try other real estate opportunity muna before you do this ... Brokering, Agency, Buy & Sell... Ok lang sana kung excellent ang cashflow source nyo to finance this property .

I get your idea that your parents should have a source of income , this is a great one for children like you.. Pero wag naman yung i-tie up yung finances nyo on long term debt with ONE PROPERTY , wala yatang diversification yun...


sis ano po yung sinasabi niyong brokering, agency, buy and sell? Mahirap po ata to kasi need ko pa atang maging licensed real estate diba? In terms of selling wala akong skill sa pagbebenta. We have cakes business naka 20 tao nakong inalok na kesyo may 1year bday, kasal etc pero lahat sila tumanggi. Kaya ayoko na rin tulungan parents ko.

Original plan sana is mas malaking lot para divided by 4 stores. Para 2 stores rent tapos 2 stores parents. Kaso nililimit ko lang yung 88% ng savings ko.

heto computation ko:
Salary -tax  -for my parents  -expense= savings

Pano mag magplan ng investment? Yung proper positioning? ang hirap po kasi. Pero whatever happens mababayaran namin yung investment yun lang mawawalan kami ng investment sa iba.

Medyo risky pero kung makahanap kami ng magandang work makakaluwag siguro for other investment. Ewan ko ang hirap maging mahirap!

wAlang pampamanipulate ng pera.


 


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