Question:

I just would like to clarify as to who would hold the mortgage for your in-house financing for your various listings?


Eden says:

It depends on the property status.

- There are properties that I already paid cash and offer in-house financing
- For properties bought terms (either mortgage/CTS), contract is still in my name while buyer pays in-house financing. We sign a CTS for this case.
- Some buyers opt to pay through bank financing/pag-ibig where property will be taken out from the bank (or institution where property was bought) and transferred to their name under an approved loan by bank/pag-ibig and the loan is annotated to the title




Question:

I am asking because you offer in-house financing for as long as 15 years. How will we be protected as buyers in case something happens to the mortgagor?


Eden says:

I have a property exactly like this case. There is a clause in the contract that in case something happens to me (mortgagor), the contract is still valid and taken over by a successor (immediate family member or another person assigned.) This protects the buyer in the eventuality you mentioned above.

Question:

I am interested on participating in a Bank auction. I saw the property and it was good, however, the catch is that the title is still in the previous owner's name and is currently in the BIR office for consolidation process.

The account officer told me that the process would take 2-3 months before the title is finally consolidated into the bank's name.
I also asked the account officer if they have receipts like CWT, DST and Real estate tax; he said "Yes" and they can show it to me on the day of the auction.

They also gave me the Certificate of sale between the bank and the former owner, I haven't verified this yet at BIR. They will also shoulder all expenses for the consolidation process.

Do you think it is still worth pursuing? I could wait til the title is consolidated but there is a chance that this property will be bought because of its attractive price.


Eden says:

As a general rule, for starters, veer away from properties without a clean title.
It will cause more headache than the profits it may generate. =)

Question:

If I buy a property through bank loan 15 years monthly amortization then I want to wholesale the property to a buyer.

What are the things I need to process?

Should I pay the bank the whole price for me to get the title and transfer the title to the wholesale buyer?

Eden says:

First, get to know the rules of the bank.
Every bank has its own personality. Each one has its own requirements.

Assuming you have already passed the stringent loan requirements (or automatically qualify for the loan in case of winning auctions), you may ask the bank the following:

1. Can I assign the property to another person? Some banks doesn't allow this and will require double transfer - meaning, you have to pay for the taxes first before the title is transferred to the buyer. If so, what is the process of assigning the property? Another trick is putting your name AND AN ASSIGNEE during the contract signing. Again, some banks doesn't allow this.

2. In case your buyer wants to pay cash. Ask the bank, what are the expenses/charges that I have to pay in pre-terminating a loan?

3. In case the bank allows transfers, what do I have to pay for the transfer?


LESSON: Never be afraid to ask questions to the bank. It is their job to keep you informed. You'd also be surprised how helpful they are :-)

Question:

I have a problem to share if you allow me, when i did my offline and online ads. Madami po masyadong mga sellers of houses (opportunities)and i can not handle them. I do not have solid list of buyers ( rehabbers and landlords ) since i am focusing in wholesaling kasi im starting pa and i read from TRP books its the best way to start.

Eden says:

First things first, you have to assess the property and the property sellers.
You need quality leads. You can answer the ff questions:

1. Is the property clean of any mortgage/loans? (For starters, I suggest you go for properties without problems)
2. Is the property saleable? (You can try marketing it first) The fact that you got info on sellers means that you can get buyers too
3. Is the asking price below the market value (check MAO in the Think Rich Quick book).
4. Is the property seller motivated?

Question:

Just a quick question. In buying/selling condos or apartments, do you take into consideration the energy efficiency of the building or the sustainability of the location? I am asking this with Climate Change as a reference.

Eden says:

You may consider that.

But I believe that worldwide, these factors weren't on top of the builder's priority. It is only now that these factors are considered and used more as a good angle of a marketing ploy.

The fact that there are other residents in the same building/ neighborhood makes it a viable residential place.
As investors, we prioritize things that are on top of the priority list of our buyers such as availability of water (surprisingly this is still a problem in some areas), electricity, accessibility, price etc.

Worrying too much leads to analysis paralysis