All Forum Posts by: Ronsted Yuag

I apologize Andy this took so long. It was for subdividing the property. 

To subdivide the lot. Might be worth talking to your bank. 

I just wanted to share what my mortgage bank told me as I have the same plan. They said they can work with the city/township to facilitate the process. Hope that helps. 

Following this post.

Quote from @Khris Atienza:

Quote from @Ronsted Yuag:

Quote from @Khris Atienza:

Good day!

I am a real estate agent and I have tried using BRRRR strategy to analyse investment in my area here in the Philippines.

Here is what I found. 

The 3 factors that I believe affect the effectiveness of BRRRR strategy in this country ( or at least in my area) greatly, which makes it nearly impossible to find a good deal.

1. High interest rate - PHL - Minimum 1 yr fixed rate is 5+% / US - 3+% for 30 yrs fixed !!! Big Difference !!!

      > MORTGAGE PAYMENT MUST INCREASE THE NEXT MONTH FROM 5+ TO 7% just to have tiny positive cash flow. It is hard to find paying tenants here. So, you are risking losing tenants to get a measly increase in Cashflow. 

2. RENT must increase with the Mortgage accordingly. 1% rule rent does not apply here in the Philippines because you will have negative cash flow.

3. the length of the Loan. -  it will greatly depend on the age of the Loanee.

These are the problems I have encountered analyzing properties using this Strategy. Sadly, the brokers I know who invest in Real Estate here in my area do not recommend this method. they recommend Buy build Sell due to fast ROI. However, this 2nd strategy is much riskier because you need to find buyers in this kind of market.

but for those who used the BRRRR strategy here in the Philippines and became successful. I hope you can share your stories.

thank you

thank you 

Hi Khris - your assessment is right and more. The real estate market in the Philippines is very interesting and I believe there is a lot of potential. I currently own a ground up 8 unit studio apt in Dumaguete using Private Money for construction. I own the lot and had used my own savings and retirement money for it (yes that's right !) 
I am working on Refinancing the apartment but the process is long and it is compounded by the fact that there is an issue with the "road right of way" with neighbors being difficult making it hard for banks to accept the property as collateral. A small credit union and a major bank so far won't even accept an apartment as collateral but they are okay with a single family. Crazy! The banking sector is almost as slow as the government which makes me think of getting into the lending business :) 

I think I found a way to make this BRRR work. It might take longer, about 5 years. But the risk and loan interest may be reduced significantly.

That's good to hear! Would you mind sharing it here ?  Thanks!

Quote from @Khris Atienza:

Good day!

I am a real estate agent and I have tried using BRRRR strategy to analyse investment in my area here in the Philippines.

Here is what I found. 

The 3 factors that I believe affect the effectiveness of BRRRR strategy in this country ( or at least in my area) greatly, which makes it nearly impossible to find a good deal.

1. High interest rate - PHL - Minimum 1 yr fixed rate is 5+% / US - 3+% for 30 yrs fixed !!! Big Difference !!!

      > MORTGAGE PAYMENT MUST INCREASE THE NEXT MONTH FROM 5+ TO 7% just to have tiny positive cash flow. It is hard to find paying tenants here. So, you are risking losing tenants to get a measly increase in Cashflow. 

2. RENT must increase with the Mortgage accordingly. 1% rule rent does not apply here in the Philippines because you will have negative cash flow.

3. the length of the Loan. -  it will greatly depend on the age of the Loanee.

These are the problems I have encountered analyzing properties using this Strategy. Sadly, the brokers I know who invest in Real Estate here in my area do not recommend this method. they recommend Buy build Sell due to fast ROI. However, this 2nd strategy is much riskier because you need to find buyers in this kind of market.

but for those who used the BRRRR strategy here in the Philippines and became successful. I hope you can share your stories.

thank you

thank you 

Hi Khris - your assessment is right and more. The real estate market in the Philippines is very interesting and I believe there is a lot of potential. I currently own a ground up 8 unit studio apt in Dumaguete using Private Money for construction. I own the lot and had used my own savings and retirement money for it (yes that's right !) 
I am working on Refinancing the apartment but the process is long and it is compounded by the fact that there is an issue with the "road right of way" with neighbors being difficult making it hard for banks to accept the property as collateral. A small credit union and a major bank so far won't even accept an apartment as collateral but they are okay with a single family. Crazy! The banking sector is almost as slow as the government which makes me think of getting into the lending business :) 

I am investing in the Philippines and currently owns an 8 unit studio style apartment in Dumaguete City and a campground in Siquijor. Looking to connect and network here! Mabuhay! 

@Crystal Shepherd  - following this thread and excited about your plan! I built a campground with 10 hobbit huts and 3 hobbit houses. (This is without a bank loan as the location is in the Philippines). Getting started was difficult and costly - clearing and bulldozing access road to water sourcing and electricity hook-ups, etc. We tried lamp in huts and no internet but people wanted modern amenities. 

Regarding the use of the word "hobbit" - this would not be the first time that it's being used. I even emailed them (NZ people) to connect and celebrate with them the International Hobbit Day but never heard from them. Maybe because my operation is just so small that they didn't even bother. :)  Hope you will share with us your progress. Thank you.  

Go for it! It's totally worth it. 

Hi Carlo - I don't think there is one but you can search online on for banks in the Philippines and you can see what they are offering. Pag-ibig Program might be worth looking into. So far my experience in getting loans via banks in the Philippines was not positive. I do however believe that creative financing will most likely work. Banks ask a ton of requirements that it is almost impossible for an ordinary investor to get qualified. I ended up getting a private loan from a friend to finance my project. Good luck! 

I developed and built a campground in central visayas and used AirBnB for my treehouse and hobbit houses. Good income pre-pandemic but lately "nada". AirBnB is great but I also used Booking  alternately every other week. I read somewhere that different platforms have different marketing styles. Booking is easier to manage than AirBnb as the latter has pre-approval and reviews (just my point of view).