31/08/2016
Hello everyone!
One big regret I have is when I bought a house more than 10 years ago...
It's actually one of my biggest regrets in life... and I'll tell you what happened...
But before I tell you my story, I just want you to know that everything that I have shared in the past 3 videos, can be used to analyze and conduct due diligence for ANY property out there (not just foreclosed properties).
So if someone approaches you and says any of the following:
'Hey, I have found a nice property, you should buy it...'
'Hey, I just invested on a property with someone, you should join us...'
'Hey, I am selling my property, you should buy it...'
'Hey, I found a good investment property for you...'
You now have a way of checking if you really should buy it, and an easy way to say no...hehe!
Okay, let me tell you my story:
I remember in 2004 (back when I knew nothing about real estate), my wife and I just got married. We were renting a nice apartment, and life was good.
All of a sudden, someone approached us and said 'Hey, I found a nice house and you should buy it...'
We said, 'No thanks, we have no plans of buying a house right now.'
That should have been the end of it, but she was a very persistent person... she kept bugging us to buy that property...
To put it nicely, she was able to convince my wife that we needed to buy that house.
Looking back, It felt like that house was shoved up my ass (pardon the language, but that's exactly how I felt).
We actually ended up buying that house through a Pag-IBIG loan.
To cut a long story short, here's a summary of what happened with that house:
When I tried to sell the house later, I found out that I can only sell it at a price lower than what I purchased it for. In other words, it was overpriced, because we bought at a price higher than market value.
If I try to get a tenant to rent the house, it would generate negative cashflow because the most I can get for a comparable house in the same village was only Php10K/month, but my monthly amortization with Pag-IBIG was almost Php15,200/month
Later on, that bungalow house was totally submerged in a flood that was 16-feet deep (courtesy of Typhoon Ondoy). Upon further investigation, it turns out that historically, that village experienced serious flooding every 10 years. The broker that sold the property to us knew about this, but she didn't tell me. (actually there were more 'not so good' things that happened, but I'll share those another time).
Simply put, that house was a BAD DEAL!
Looking back, If only I had known what I shared in the last 3 videos, I NEVER would have bought that house!
It was like we blindly purchased a house back then. (We didn't even bother looking at other houses during that time... pretty dumb right!)
Sigh...
Anyway, you guys are lucky, because now you know what most people out there don't.
I turned my regret into lessons learned, which I have shared with you in the videos... So please don't go blindly buying a property... okay?!
This is the story of Jay Castillo of Foreclosure Philippines.
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How to do due diligence before buying foreclosed propertiesAugust 26, 2016 By Jay Castillo Leave a CommentOkay, so you found a foreclosed property you can afford, you inspected it, and the repairs seem manageable. Do you go ahead and buy it? Not yet, you still have to do your due diligence. ... Read...