a cash on cash return of 576 percent
now so this is real estate invest
in 500 000 make sure you earn a million
pesos now if you
invested a million pesos make sure you
earn 2 million pesos from that property
and that's what you would call
a successful flip
[Music]
hi real pros welcome back to my youtube
channel this is richard c
your real property expert and welcome to
the last
and final part of this real estate
millionaire series
where i'll talk about how i made
millions through real estate
this is the story of me turning a 200
000 pesos into a million pesos
in just two months so this is not a
clickbait so if you are new here
this is the real estate millionaire
series where in the first episode i
discuss how i made millions through my
real estate career and in the second
episode i
discuss how i made millions through real
estate investing
and now third episode most awaited how i
made millions in two months by property
flipping
so for some of you you might be familiar
about this story because in a because
during one of the interviews i did with
morgan vermont where it i was able to
flip
property within two months and earned
millions out of it but i never really
talked about it in detail
if panama noah where did i find the
property
how did i get a buyer for that property
how did i
choose what was my game plan with
regards to that property and
what was the investing strategies i took
into consideration
and of course will this still work in
2021 where in property
prices are really high so this time i'll
talk about it in detail and
finally share it with you guys so i have
flipped many properties before but this
one
has always been my favorite story
because it was
just two months now and it was the
property with the less
cash out and less investment so in terms
of cash on cash between italian biggest
returns a lot of property investment
which i'll tell you how much later
on finding about the pro or how it
started i was talking with my call
broker
and she was sharing the story about her
wanting to buy
this property of her client it was her
client who bought this property but then
she was having second thoughts about
buying it as a
pasado property she asked me because
she's not an aggressive investor
and at that time she told me about the
property so the
so the seller was actually selling the
property for
two million five hundred sixty four
thousand ninety three which is the exact
price on how much she was able to
acquire the property a year earlier
and upon talking to the broker samuel i
only have to pay
around 200 000 pesos for everything so
that's really
cheap for a personal property because
personal property would usually cost
around one million pesos cash out
one to two million pesos you're lucky if
you can get a puzzle property now
half a million pesos per lanyon cash out
so the breakdown of the cash out was 110
243 pesos paid to the seller that's for
his eight months amortization
of 12 892 pesos each there was an
array of thirty thousand six hundred
seventy five so three months
the property is gone so another thirty
eight thousand six hundred seventy five
payment to dlca as advanced payment when
you're
doing a transfer of ownership you need
to pay three months in advance and then
there is just
1933 pesos for
late payments or penalty payments for
for
payment of the last three months and 25
000 pesos
per fee i do remember taking a bill
company transfer fee because a week
after making 50 000 transfer fee so with
all that cash out the total cash out is
around
214 528 pesos
all right so that was the total
investment
now for sure it is 214 528 pesos
it won't earn you millions in the bank i
cannot make it into a millions in the
bank so in that case
[Music]
so what was my game plan and
consideration
with regards to buying this property so
at that time the property was already
valued at four million five hundred
thousand pesos
so that was the first consideration so
it was
almost doubled than the initial value
and it has only
been a year now i do think the price is
not speculative because
thinking to other factors i
consideration that's really the average
price in the area and second was no one
was really
selling the property because it was
newly launched
so it was too early to sell it was
almost less than a year it was
launched 11 months ago no one would
really want
to sell at that point because the
property do have a potential yeah
now one bedroom units were sold out
there was no more one
bedroom property and then my game plan
was to sell it at least 15
below the market value during that time
i know now
that the current developer price is four
million five hundred thousand
but of course i won't be able to sell it
at that price it needs to have
that discount so in my mind i was
planning to sell it at three million
eight hundred fifty pero i was able to
close it
at 3.8 million today the developers
price of the property
is 6.7 million but you can actually sell
the property at around
5 million pesos so it's still a win-win
situation
both for me and to my buyer so how much
was my
earning so it didn't really cost the
acquisition price was 2564 0.93
the cash out was 214
528 and i was able to sell it
at three million eight hundred thousand
so my income is one million two hundred
thirty five thousand nine hundred
seven or a on cash return of 576 percent
now so this is real estate 576
in just two months
now where do you find goodies you can
find good deals with your brokers
bookers would have a lot of connections
and would have
property for sales you can do online
searches
there's a lot of groups for these types
of property or there's a multiple
listing system where
in there is a data of all the properties
that's currently in the market
the question is can you still do this in
2021 because
as far as i could remember this was 2019
where in the prices are different the
game is different
because of the pandemic the promos are
different the answer is yes
yes as long as the property price is not
speculated
or it's really the market value
it's really what the market would want
to pay for
for that property second is not many are
selling
or not many wants to let go of their
property so
with regards to people who wants to sell
their property prior to turnover this is
common for
smdc but not very common for the mci
since dmc are usually
end users there is potential for strong
growth
so meropashan pays for capital
appreciation
whether you buy it at the current price
there will still be a market
demand for it and there is an equal
market when we say equal market so
some condominium new mix rendering
equaling end users and equal
investors if not investors
then you would have a problem with that
property so there would be many options
so again you can still do this in 2021
as long as you take into consideration
this factors now to prove to you that
it's still possible to flip
properties in 2021 what is a sample
good deal or what is a sample property
that would be good
for flipping and you can earn the same
just like i did
let's call this property x this property
x this unit was purchased in
2018 for around five million nine
hundred thousand so it's a one bedroom
unit with one parking slot
for five million nine hundred 000 so
currently
the owner wants to sell the unit for
6.6 million and the current developers
price
is at 10 million 960 000.
so if you buy this property you let the
owner earn a little and because the
current developers price is 10 million
and 160
000 so sell this property for 7.5
million to 8 million so they can be able
to flip
this property the property is far from
turnover i think two to three years back
there's a lot of room for potential and
a lot of room for
growth so environment benefit as well
from the capital appreciation
[Applause]
so where did i find my buyer in terms of
flipping this property so you have to
remember that it must be a win-win
situation for all sides so
the seller the first buyer or your
current seller
if she wants to let go maybe the
property is doing a burden to her or
she just wants to get her money back or
she wants to
earn a little but it should be a win-win
for her
in my case the owner would just want to
get
her money back in that case as long as
she losses that's already win-win for
her but for some
sellers say that you earn a little
because
a bit longer it depends on how much your
seller needs the money and you as a
flipper
in sleeping it needs to be at least one
hundred percent cash on cash return
so it means if you invest in five
hundred thousand make sure you earn a
million pesos
now if you invested a million pesos make
sure you earn two million pesos from
that property and that's what you would
call a successful flip and if you are a
buyer you must still
earn and generate capital appreciation
because probably if you're the third
buyer it's for long term hold
because it's near turn over now so
you're planning to rent it out for a
while before
you would want to sell it again but the
important thing is you still
earn from the capital appreciation don't
get a property in a maximum price
it won't grow anymore but if you're the
buyer and you would just
want to have it rented out for a while
i'm sure five years after turning over
the price would be
different it's at its peak five years
after the third round
so where do you find your buyer in order
to flip the property so
one always research on how much the work
market is willing to buy
even before buying the property you're
looking to buy a honda casa
property it's important to know who
you're gonna sell it to
in order to liquidate that property
sometimes it's just good to look around
online portals and just
look at how much is the current selling
price versus how much
is this basalo unit selling it to you
and and then from there
in monaco
property and then of course if you buy
properties from broker is your broker
confident
in flipping the properties does he have
the right network
in order to flip your property have the
license of course to do
reselling or just legal to do in-house
and
or project selling you have to take that
into consideration as well if you're
working with the broker every time
people are asking if possible to flip
a certain property because it does not
guarantee you anything whether the
property is good for
sleeping or not but rather the agent
would have the capacity to flip it
better
and again as in a big nato before i'm
really sorry for those who are messaging
me and want me to flip your property but
of course the company's priority
is your client number four so should
keep your property but of course we're
happy to list your properties and help
you
as much as we could
then of course you have to keep in your
mind as well
what would you do if you are not able to
flip the property
there are certain techniques that we use
here let's say for example matter turn
over the property you're not able to
flip
it prior to turn over and the developer
would now want you to go
into a bank load sometimes in your head
okay one year long i'll go to i can
still stretch my payment for one year
because there's no title title could go
around two years or three years before
you're able to sell the property
so in these cases i suggest to do
in-house financing muna for a year i
know the interest is very very high
it will go as much as 15 to 18 but the
important thing
is you're buying time to be able to flip
the property and again in reality it's
easier to flip a property in another
overnight it's easier to liquidate a
property but
engineering tangible assets because for
a secondary market
it's better to buy a property fund than
jannah or
because securing investment or second
they could use it
especially if they are end users okay
real pro so
that's it for property flipping that's
not
everything you need to know about
property bleeping and of course once
you're
able to successfully flip the property
do it
all over again as in amiga into the last
vlog and
you'll really make a lot of millions
by just flipping properties finally real
pros were done
with this three-part series the real
estate millionaire series
i do hope you are able to learn a lot
and if you did please comment it down
below again
and i hope and i hope it boosted your
confidence
in real estate investing and of course
so thank you real pros for watching if
um
you were there with me during the part
one the part
two and until now program thank you and
i appreciate it
worth and i would continue to create
contents like this despite having a
small number of
followers but please do subscribe if you
can and connect with me
on social media accounts again this is
richard c
your real property expert and i'll see
you next time
see ya real pros