All Forum Posts by: Nickson Rio

Hey @Eric Petaja, I'm from Philippines and I invest here locally. When it comes to investing here in Philippines as a foreigner, as far as I know you should be aware about the percentage of ownership which is only 49% while for the local partner would be 51%. 

What kind of investing strategy are you looking for and what are the products? I highly recommend that you avoid condominiums if you don't have a lot of connection in regards of marketing your property for tenants or else the math is not good. If you go for apartments, that's a way to make cash flow here.

You basically need to find someone that is familiar with the booming markets and cities here, find someone that you can trust your investment.

Nick

Investing in marketing is really a good strategy. We need to be aggressive on that. I suggest you seek a partner that will help you in implementing your plan while minimizing cost. One way is through virtual assistant which will do copywriting and good photos if needed. 

Let me know if you need one.

Hi, I'm Nickson Rio from Philippines. I'm 27 years old real estate investor, currently have 6 rental units already.

I would like an advice regarding my current opportunity. 

I just got a partnership opportunity for an Inn business. Here's the scenario:

The owner of the building wanted to partner with me and let me manage the business. We will co-invest in the renovation of the building. The building is a 5 year old  4 story building in commercial high way. It was not managed properly resulting to no profit. 

Since, I was not the owner of the building. What would best advice you can give in terms of profit sharing between me and owner? 

My plan for the building is to make it an INN since it does not have enough parking area for an office type o business. Also the location of the building is near to central business area, airport, etc.

This is my first post here, I hope you guys can help me before I go into this project. 

Well, that;s good @Brian Johnson, I'm not really from Cebu yet I know that Cebu is a good market. If the land is outside cebu and not one of the major cities in the philippines then what you can only do with that land is agricultural business only.

 I'm not a lawyer, but that's the way I interpret it.

@Brian Johnson, are you planning to invest in Philippine market? You can only buy a portion only of the land by 49%. 

In terms of condo, foreigners can buy a unit since it's only a parcel of the overall project. Though, you better check the numbers and really find a good partner you can trust.

@Brian Johnson , it depends on the City and the property type bri, In my City, Davao. Based from my market analysis the average rent the local people can mostly afford and willing to rent is $100-200 per month, for foreigners, you can find $400-$600. In Cebu, you can find mix and middle of that.. In Manila, you can find more than that even double. I'm not sure in Manila and Cebu cause they are not my markets. These are just assumptions and maybe wrong.

Manila - High Rates

Cebu - Middle Rates

Davao - Low Rates

@Ava G. though I'm from a different city, In Manila, where TRAFFIC is really a problem, more people that can afford would prefer condo living since most of the developments were in the Central District Area/Business Are. While these type of properties will attract Foreigners with the right marketing, staging, and management. 

As an investor perspective, you should look first at your numbers if it's okay. Since you said you already made the 1% rule which equate to $1K/month. Ask some question first, can you easily find a person earning as much as $3k per month or more? Most of the time when considering a tenant, it's earning capacity should three times the rental rates to minimize vacancy rate. 

Based your investment with your numbers and market analysis. We don't know that $1k-$1700k were losing money. 

Hi @Ava G., Have you try to talk to a rental manager usually RE agents of that condo. Most of the condos had their property management team and they cater marketing and finding tenants. In your case, you're market will be high income earner individual and foreigners. For High Income Earner local, you might need to offer a LEASE with OPTION to buy or RENT-TO-OWN so he/she might not think of getting a housing loan. For the Foreigners/Expat, they can't actually own a property in Philippines for 100% so chances of them buying a property is low.

@Gio Mascardo

Have you tried using Private Money? I'm from Philippines, Davao. I advice you study first your area, find the best locations, compare prices.