L ET’S P LAY A Q U I C K GA M E

F I N D A PA RT N ER

Guess Who

Guess Who

Thank you for coming

How many here are property owners already ?

How many are looking to buy their first property ?

Into stocks now wanting to learn property?

Single ? Married ? With kids ?

Asset VsLiability

Build up Cash flow

WHAT DO YOU THINK IS THE “GREATEST SECRET” OF THE WEALTHY ?

PASSIVE INCOME !

WHICH WOULD YOU CHOOSE ?

WHICH WOULD YOU CHOOSE ?

WHICH WOULD YOU CHOOSE ?

WHO WANTS TO WORK FOREVER ?

ENJOY LIFE !- WORK BECAUSE YOU WANT & NOT BECAUSE YOU NEED TO !

MEANING OF INVESTMENT ?

is a monetary asset purchased with the idea that the asset will :- provide income in the future or

- appreciate and be sold at a higher price.

CAPITAL APPRECIATION

LEVERAGE

Cash Flow

“Miguel” 27 yr old

P700K downpayment

Condo = P2.5 MIL

P1.8M = 10 yrloan from bank

P20k / mo

“Miguel” 27 yr old

MONTHLY

p 20K

RENT

p 20K

AGE 27 TO 37 = ZERO INCOME

“Miguel” 27 yr old

N E V E R T O O YO U N G T O S TA R T

P R O P E R T Y I N V E S T I N G

L E A R N H O W T O U T I L I Z E

B A N K FA C I L I T I E S

I N S TA L L M E N T = F O R C E D S AV I N G S

REASON WHY YOU SHOULD INVEST IN PROPERTY

LEVERAGEThe use of various

financial instruments or borrowed

capital, such as margin, to

increase the potential return of an

investment.

CAPITAL APPRECIATION

LEVERAGE

Cash Flow

BET # 1 - 2009

UNDESIRABLE

TRIANGULAR SHAPED

STUDIO UNIT 20sqm

CONDITION: OLD AND SMELLY

FOR SALE FOR MORE THAN 1 YEAR

ASKING PRICE 2009 = P 1.4M

Very small 20sqm – Smelly, Triangle Shape

Vacant for a year and no buyers – no View

Dirty, Old , Outdated

Moldy, Dirty utility area

WILL YOU BUY THIS ?

Text Questions to 0917 531 6310

Built in cabinets

Niche for toiletries, glass enclosure, new tiles

Covered old windows, new aircon, built in tables

Cleaned up the service area, add bar type sink

Built in the bed and hid the post

Use triangular accents to match unit’s shape

Use the narrow entry to be work area

Change flooring also

UNIT PURCHASED AT P1.2M ( 2009 )+ RENOVATION 300K

TOTAL SPENT = p 1.5M

RENT = P 17,000/mo

RETURN on EQUITY = 13%

4th year of renewal by same tenantTenant Profile = Junior lawyer female working 2 bldgs away

LEARNINGS

One man’s trash is another man’s treasure

Be scientific in viewing your property

Don’t be too emotional

Big potential in giving value to the working class segment

JAN 1, 2012

VAT EXEMPT = From

P 2.5MTo

P 3.199M

#1 – IDENTIFY YOUR TARGET CLIENT

#2 – CHOOSE YOUR CONDO OF CHOICE

#3 – CASH FLOW ANALYSIS

#4 – EVALUATE YOUR RISK

#5 – KNOW YOUR EXPENSES

STEPS TO INVESTING IN CONDO RENTALS

EDUCATE YOURSELF

#2 – IDENTIFY YOUR TARGET CLIENT

Different market class has

different needs & budget

STUDENTSBLUE COLLAR

WORKERSMIDDLE MANAGERS

EXECUTIVEEXPATS

SINGLECOUPLES

FAMILY W KIDS

#2 – PINPOINT YOUR CONDO OF CHOICE

LOCATION IN RELATION TO YOUR MARKET’S

NEEDS

TRACK RECORD OR ETHICS OF THE

DEVELOPER

VALUE OF THE CONDO( Amenities, Land Size, Features )

AFFORDABILITY( available financing )

#3 – CASH FLOW ANALYSIS Condo =

P3Mil

P 30,000/ mo rent

= 10% / yearReturn !

DEDUCT expenses1. Property Tax –

P5,0002. Assoc Dues –

P 25,0003. Brokers Service

Fee – P 30,000

P 360,000/ yr rent

P 300,000/ yr rent

Yearly rentDivided by

Purchase PriceX 10

P 360,000divided by

P 3Mil

= 12%

P 300,000divided by

P 3Mil

#4 – EVALUATE YOUR RISKS

RISK OF NO TENANT

RISK OF BAD TENANT

RISK OF NON COMPLETION / DELAY

ECONOMIC SLOW DOWN

TENANT / PROPERTY MANAGEMENT

EXIT PLAN

#5 – KNOW YOUR EXPENSES

FIXED EXPENSE

VARIABLE EXPENSE

REAL PROPERTY TAXASSOCIATION DUES

MAINTENANCE COSTSINSURANCE

WHO WANTS TO

LEARN MORE ?

#1 – IDENTIFY YOUR MARKET

#2 – FURNISHING YOUR UNIT

#3 – ATTRACTING RENTERS

#4 – STAGING YOUR UNIT

#5 – PROTECT YOURSELF ( LEASE CONTRACT )

#6 – LAST STEP - TAKING CARE OF YOUR TENANT

#2 – FURNISHING YOUR UNIT

#1DO – Have a single

theme

#2 DON’T – Be ordinary

#3 DO – Create lots of storage

#4 DO – Think about your tenant’s comforts

#5 Don’t – buy cheap and flimsy furnitures

#3 – ATTRACTING RENTERS

#1DO – Take beautiful photos

#2DO – Create a

sales pitch

#3 DON’T – Forget traditional media

#4 DO – Use social media

#5 DO – Send out direct mailers

#6 DO – Make an open house

#4 – STAGING YOUR UNIT

#1DO – Clean up the entry

#2DON’T – Leave broken things

unfixed#3

DO – Clean up clutter

#4DO – Let the light in

#5DON’T – have a

bad smelling unit

#6 DO – Pay attention to the toilet

#7DO – Night viewing

#5 – PROTECT YOURSELF ( LEASE CONTRACT )

#1 Details of Unit

-Price-Term of lease-Amount of lease-Advance Rent-Security Deposit-Conditions on monthly payment

#2 More Conditions

-Utility payment-Violations and penalty-Use of unit-Improvements and alterations-Insurance-Aircon maintenance-Repairs-Building maintenance-Escalation of rent-Violations

#3 More Details-Inspection of premises-Sublease or transfer of rights-Maximum allowable persons-Selling of property-Hazardous / prohibitive materials-Rules of condo-Pets-Abandoned property-Default payment-Attorney and court fees

#6 – LAST STEP - TAKING CARE OF YOUR TENANT

#1DO – Treat your tenant like your best customer

#2DO – Start our on the right foot

#3 DON’T – Short change your tenants

#4 DON’T – Be hard to reach

#5 DO – Be open for upgrade

options

#6 DO – Have a

personal connection

#7 DON’T take shortcuts

#6Steps !

#6Steps !

#6Steps !

#6Steps !

#6Steps !#6Steps !

#6Steps !

WHO WANTS TO

LEARN MORE ?

March 28, 2015 (Saturday)

SM AURA CONVENTION CTRTAGUIG, BGC

MARCH 28, 2015Saturday –2-6 pm

2-6 pm

Smx aura convention ctr.

P 5,000

Commonly Asked Questions

What Big thing happened last Feb 2, 2015

Will this hotel do a lot of marketing to bring in people ?

The Biggest Convention Center in the PH

BIGGEST & BEST STADIUM IN PH

Where big international events and concerts are held

The Biggest Mall in the Phils

What ongoing infrastructure will

be ready by 2016

NAIA EXPRESSWAY – Airport to Manila Bay

TOURISM IS GROWING - Be Part of it !

Do you want a

Property where

you don’t have to manage your

tenant ? Don’t pay dues ?

And just collect profits ?

From business point of view – Is hotel good ?

30 !!nights free

Stay in your own hotel for free when there is a concert ?

VAT FREE !!

P 3.188M

Gives a 8-12% return on your capital

Ready for use in

1 year !

No need to wait 3-5 yrs

Flexible Pay Scheme

P2MIL loan= P25k / mo

10yrs

Developed & Managed by a Billionaire

One disadvantage !

Do you want to know what this

exciting property is called ?

Thank you for being a great audience !

“Property investment, just like business is not an automatic money generating product. One must have a passion for it, create then execute a strategy, and give time plus effort for the investment to flourish”

Thank you - Carl Dy

THANK YOU !

Who wants to know more ?

P350,000House & Lot

in QC

LOLA THERESA - 1976

P350,000Bank Deposit

45 yr. old

P350k to

P15Mil 35 years

What do you think

happened to the P350k

in the bank ?

LOLA THERESA - 1976

LOLA THERESA - 1976

Your home is your best property investment

You are able to use, enjoy, create memories

At 45 yrs. old, it is still not late

If you are renting

consider purchasing your primary home

1ST REASON WHY YOU SHOULD INVEST

IN PROPERTY

CAPITAL APPRECIATION

A rise in value of an asset

Based on a rise in market price

1962P55/m

P27,500

When is a good time to buy ?

1982P1375/m

P650,000

2002P20,428/m

P10.2M

2014P100,000/m

P50M

HOUSEWIFE

5 kids ( AGES 3,5,7,8,10 )

Auntie Lucy- 1984

35 yr. old

5 +4 Door Apartment

Auntie Lucy- 1984

1984

6k / unit Total = P 24k

2014

P 20k / moTotal = P 160k

Cash Flow is the ultimate goal

Auntie Lucy- 1984

Unlike business, property is easier to manage

Profit is simple to compute

2nd REASON WHY YOU SHOULD INVEST IN PROPERTY

Cash Flow

If you are given automatically every 1st of the month P30,000

- What would you do on the first month ?

If you are given automatically every 1st of the month P300,000

- What would you do on the first month ?

PANG MAYAMAN LANG BA ANG REAL ESTATE ?How our driver “ROY” invested in property

#3Capital Appreciation

#2Cash Flow

#1Leverage

Real estate with minimal cash

#1 Extra Room in your house

#2share purchase with your

siblings

#3Rent your garage

or front yard

#4Book a room, then

sublease it

Questions Break

Questions Break

Questions Break

Questions Break

Quick Exam

Questions Break

Commonly Asked Questions

Questions Break

QUESTION

2 types of investment

Tangible investments

- Bank products- Equities- Real estate- Jewelry- Profitable Business

Intangible investments

- Education- Reputation- Time with family- Relationships- Personal Growth

WHERE CAN I GROW MY MONEY ?

BANK SAVINGS

INSURANCE PRODUCTS – BONDS

FOREX

STOCK MARKETBUSINESS

PROPERTY

WHY DO YOU NEED TO SET ASIDE ?

Loss of life

Loss of income – Old Age

Health Concerns

Business / Economic slowdown

We don’t want to work forever

How Many Nights

free ?

Stay in your own hotel for free when you visit Manila ?

ACTIVE vs PASSIVE INCOME

ACTIVE INCOME –income for service performed-Paycheck-Doctor seeing patient- Chef cooking- Sales person- Corporate Executive- Lawyer- Architect

PASSIVE INCOME – not actively involved- Bank products- Royalties- Business System- Dividends- Real Estate- Business Parntership

CREATING WEALTH USING REAL ESTATE

MODULE 1: CHOOSING THE RIGHT PROPERTY

Different types of properties

Pros and Cons of each property type

Which property is best for you

The greatest secret of the wealthy

Active vs Passive Investing

How will I know if I can afford to buy property

Advantage of investing in properties

Disadvantage of properties over other vehicles

Factors in choosing your properties

CASE STUDY

Old condo renovated now getting 10% returns

Pre Selling Condo purchased using instalment making 10% returns

Capital appreciation of an actual landed property purchased using long

term bank loan

MODULE 2: MARKETING & MANAGING YOUR PROPERTIES

Tips on renovating your property

Tips on marketing your property

Furnishing your property

Protect yourself with a solid lease contract

Taking care of your tenant

Lessons learned about rental properties

P 3,000Real Estate

Wealth Manila

Carl Dy is a property investor and property portfolio consultant. He has more than a decade of

experience in the real estate industry. He has worked with property giant Ayala Land Inc. for 11

years with his last post being Director for Sales for the Ayala Land Premier brand. He also has

past experiences of being President of high end Ayala condominiums and residential villages.

Carl Dy is currently the President of Spectrum Investments, a company that is into consulting

and managing property portfolio of investors. Currently, the company manages properties in

high value areas like Rockwell, Makati, Ayala Center , Bonifacio Global City & Nuvali.

Carl Dy is a graduate from UST and an architect by education. He believes that property

investment, just like business is not an automatic money generating product. One must have a

passion for it, create and execute a strategy and give time and effort for the investment to

flourish.

Carl Dy will share with you how he is continually building up his property portfolio with an

ultimate goal of living on passive income from property. He has given talks, written articles on

property investing and has been featured in MoneySense magazine, Entrepreneur Magazine,

various broadsheets, and in several radio and tv programs including Chinoy TV & ANC’s on

the money.