I want to share an experience I’m currently dealing with as an international real estate investor. If you’re looking at pre-construction deals overseas—especially in the Philippines—this is something you need to understand before committing capital.

A few years ago, I entered into a purchase with SM Development Corporation (SMDC) for a pre-construction unit. Like many investors, I relied on the reputation of the brand and followed the process exactly as required—contracts signed, documents submitted, and payments made over time.

By the time everything was said and done, I had paid a substantial amount toward the unit.

Then came the point where I needed to move forward with the property itself.

When I requested a walkthrough or inspection—something I consider standard before completing a purchase—I was told that I needed to pay 100% of the remaining balance first. No inspection, no verification of the unit’s condition or readiness. Full payment first.

That was the turning point for me.

At that stage, you’re being asked to fully commit financially without the ability to verify what you’re actually receiving. For me, that’s not a risk I’m willing to take.

So I initiated cancellation.

The developer approved a partial refund. On paper, that should have been the end of it.

Instead, that’s where the process became significantly more difficult.

After approval, the refund process turned into a cycle:

- Repeated requests for documents that had already been submitted

- Being told certain records were missing that had previously been provided

- New issues raised over details like name formatting, account structure, and signatures

- Delays with no clear timeline, even after requirements were addressed

At one point, even banking details that had previously been reviewed and accepted became part of the delay.

Nothing materially changed—but the requirements kept shifting.

Eventually, despite continued compliance, I received notice that my request was being closed due to “non-compliance,” and the account was being treated as active again—with penalties being introduced.

That’s when it became clear this wasn’t just a slow process—it was a breakdown in how the situation was being handled.

At this point, I’ve escalated the matter to legal counsel and filed through regulatory channels in the Philippines.

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What stands out from this experience

This isn’t about a single issue. It’s about how the process operates when things don’t go perfectly:

- A requirement to fully pay before being allowed to verify the asset

- A refund that is approved, but not executed in a straightforward manner

- Repeated administrative hurdles introduced after prior compliance

- A shift from resolution back to enforcement (including penalties)

As investors, those are the moments that matter most—not the sales process, but what happens when you need clarity, control, or exit.

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My takeaway

If you’re considering SMDC—or any international pre-construction deal—do your due diligence beyond the marketing.

Look at:

- How inspections and turnover are handled

- How cancellations are processed in practice, not just on paper

- How consistent their requirements are throughout the lifecycle of the transaction

And importantly, take the time to review independent investor experiences. You’ll find that not all outcomes are the same, and that matters when you’re deploying capital in a market where enforcement works differently than what many of us are used to.

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I’m still an active investor, and I still believe in international opportunities. But this experience changed how I evaluate developers—especially when it comes to process, not just product.

If anyone here has gone through something similar—whether with SMDC or another developer—I’d be interested in how you handled it and what safeguards you now put in place.

Because sometimes the biggest risk isn’t the deal itself.

It’s how the process works when you need it to.

#RealEstateInvesting
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