But getting into real estate can be a little tricky, especially if you’re starting out on your own. There’s always big money involved and a risk that the house or apartment you’re selling won’t fly. However, that doesn’t mean you don’t stand a chance or that you won’t ever succeed in the real estate industry. With the right attitude and formula, you can find success in any chosen field.
Real estate guru Eden April Alemanaia-Dayrit’s fail-safe plan for making a profit involves only four basic steps:
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Click on any one of the steps linked above to learn more about it, or you can simply scroll down and keep reading!
STEP 1: FIND
The first step, of course, is to find something to sell, whether it’s a townhouse or a single unit. If you have an eye for beauty, then you probably won’t have trouble spotting diamonds in the rough. Eden suggests choosing from the list of foreclosed properties online or from the banks themselves. These properties are generally easier to sell because they tend to come cheaper than many of the brand new properties being sold elsewhere.
Be sure to determine the market value of the property you’re looking at before making any sudden moves. Consider the location of the property. Is it near any schools, hospitals, or malls? Is it prone to flooding? Is the neighborhood friendly, or does it seem dangerous? The better the general area is, the higher the market value. Another way to determine a property’s market value is by checking www.bir.gov.ph for the area’s zonal value per square meter. That should give you more or less an idea of how much the property costs on the market.
(Photo source: sxc.hu)
STEP 2: FUND
If you have more than enough money to spare, then you can go ahead and use your own cash to buy the property. However, Eden herself asks the help of investors who are interested in doing business with her. These investors can be members of your family, friends, or what Eden calls centers of influence—people who have power and money and who are conveniently friends of friends. Once you find yourself a willing and trustworthy investor, it’s time for you to make your property purchase.
As much as possible, the acquisition price should be very, very low so you’ll have a wide range to work with. For example, if the property’s market value is pegged at P3 million, don’t pay for anything remotely close to that. Depending on how good your negotiation skills are or how the auction goes, you may very well acquire a P3-million property for only P980,000 (which is how much Eden actually paid for one of her projects). Depending on your agreement with your investor, you can choose to ask for an exact amount of P980,000 or ask for extra to shoulder additional costs like certain fees and repair expenses.
STEP 3: FIX
Some properties need fixing up, while others are fine just the way they are. More often than not, you still have to get the property in shape before putting it on the market. Wiring, water lines, chipped paint, termite-infested walls—these are just some of the things you need to deal with before you can sell your property. After all, who wants to buy a rundown place with no electricity and deteriorating walls? You don’t have to give the place an extreme makeover, but you do need to spruce it up a bit.
STEP 4: SELL
Now that your property is purchase-worthy, you can put it out on the market. Tell everyone you know about it. Put up ads on websites like Bahay.com, Sulit.ph, and so on. Use your Facebook account to spread the word or send e-mail blasts to everyone in your address book.
How much you want to price the property is up to you and your investor, but Eden’s strategy is to price properties lower than the projected market value—just enough that both she and the investor make a profit and enough for the property to be considered a good deal. The better the deal, the faster it’s going to get snapped up, and the faster the turnover, the happier you and your investor will be. Besides, a lower price point automatically gives the new owner the chance to re-sell the property at a reasonable price in the future.
If you play your cards right, you too can become a successful real estate investor. Just remember to choose properties you think will really sell, be smart with your money, and keep your investors and customers happy.
If you want to learn about the ins and outs of real estate investing from Eden herself, check out LearnFromTraceAndEden.com.
(Photo source: sxc.hu)
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