19 Feb 2021, 13:00 — 6 min read
Real estate is a type of asset which you can buy now, and later it can help you in growing your net worth and in accumulating wealth.
And I can’t stress enough its lifetime of opportunity.
Most of the people in the Philippines own property/ies already. It may come in different forms: From inheritance, owned and held for a long time, mortgaged or bought in cash
Noli Manuele Alleje is one of the renowned speakers, real estate investors, and foreclosure experts when it comes to developing and buying foreclosed properties. It hit me when he made this striking point: There are no fixed formulas when it comes to what you want to do to your property.
You can develop it, and eventually flip it. If it's a raw land, you can develop, then get the proceeds along the way while you're developing it. It may sound simple, but believe me, securing all of those permits and talking to contractors would give you a headache.
But there are ways to maximize real estate, here are some ideas:
Invest in rentals
This is the most satisfying part when it comes to real estate. You can always activate the term called passive income when we talk about this strategy. You can acquire a piece of land in a strategic area. Most of the time, commercial businesses are looking out on locations along highways that potentially has a lot of foot traffic. You can buy land through cash, mortgage loan, etc. The inflow strategy are as follows:
Remember, all of the above-mentioned strategies require Lessor's permit (business permit for Lessor) so your tenant/tenants can secure their respective business permits as well. I'll be talking more of that in my next article.
Fix & flip homes
If you're a subscriber of Noli Alleje, the El Subastajero, has stressed this in his foreclosure business.
Crowdfunded real estate
You can set-up an investment vehicle or a pool of investment for you to acquire some properties that you think can help you generate income. It may be a commercial or residential property. You will need a lawyer and a money guy to consolidate the paperwork and the pool of funds when the security that you've made would generate a return already.
Represent buyer or seller
This pretty much gives you an idea of how negotiation works in this industry -Representing or being a broker on the buyer side then negotiating price with the broker on the seller side. Being a trustee, you can also gain a piece of the commission.
Whether you own the complex or not, you can represent the owner in dealing on his behalf pertaining to his property. Some industry players conduct exclusivity clause that they are the exclusive sellers/brokers of the said property.
All of the mentioned sides of real estate gigs are subject to your preference of course. You can have all the services mentioned above to maximize the potential of the industry. You just have to remember to strike a balance between the business side and the technical side.
Remember, assets always generate cashflow whether it would be personal or corporate.
Image source: Shutterstock
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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker
Posted byCarlos Payumo Garcia
I'm Carlos P. Garcia. A Landlord and Business Development and Leasing Administrator of a Mercantile Leasing (Private Market) Business. I am offering stalls for lease to...
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