| For those OFW's and foreigners wishing to start a | | | | someone willing to pay you more for it than you |
| business, but not wishing to involve themselves | | | | paid for it. |
| with the stress of a business involving day-to-day | | | | This is because with all the inventory on hand, |
| operations, employees, landlords, inventory, and | | | | there is a surplus of condos which have been into |
| so forth, there are several available opportunities | | | | hotel type rental pools, but not enough visitors to |
| for foreigners living in the Philippines. Buy fixer | | | | rent them all. |
| upper properties, improve them, then rent or sell | | | | Consequently, what an investor thought would be |
| them. | | | | a good positive cash cow, turns out to be a |
| 1. Buy Fixer Upper Properties, Improve Them, | | | | continuous negative cash flow - not what a new |
| Then Rent or Sell Them. This is a great business | | | | retiree to the Philippines is looking for to |
| for those of you who have experience in your | | | | supplement his pension or annuity! This type |
| home country in buying, fixing up and renting or | | | | investment will only drain you pension. |
| selling properties. Over the past 10 years, a lot of | | | | However, having written all this, I HAVE FOUND |
| people got involved in this kind of business in their | | | | the past several month two exceptional condotel |
| homeland. | | | | investments which DO meet my criteria of |
| With the overall economic problems in the world | | | | creating good ongoing rental income. |
| the past couple of years, the Philippines has not | | | | 4. Farming. The likely cessation of the Agrarian |
| been immune, and there are a lot of properties in | | | | Land Reform Program (CARP) will give the rural |
| a state of disrepair, as well as lot of distressed | | | | sector renewed confidence to invest in agricultural |
| and foreclosed properties. | | | | production capacity. CARP has held back |
| 2. Build An Apartelle. An Apartelle is an apartment | | | | investment in both production capacity as well as |
| building where all but one of the units are rented | | | | farm acquisition. An end to CARP will mean higher |
| out long term, and you are left to operate on a | | | | land prices since land will be valued for its higher |
| nightly or weekly basis, like a hotel - hence the | | | | income producing potential. |
| combined name of apartelle. These are common | | | | However, higher land prices are simply a |
| in the Philippines. | | | | "serendipity", an added value, to the type of |
| This business will require a heavier capital | | | | farming business I am writing about. I have found |
| investment, yet with the right property and by | | | | an extremely unique business opportunity, which |
| focusing in the more rural areas or smaller cities, | | | | will generate a great ROI (return on investment) |
| you can construct a small 4 unit apartment | | | | and is completely passive. It has been structured |
| building for Peso 3,000,000 - not counting cost of | | | | by the developers (all foreigners) to be a one |
| the land. | | | | turnkey investment price. The price includes cost |
| You would want to rent out 3 units on a long | | | | of the land, plus all |
| term rental basis, and keep one for short term | | | | Clearing, planting, cultivation and harvesting for the |
| rentals - for the many traveling salesmen that | | | | first 5 years. |
| frequent the countryside. They like booking into | | | | The business has been priced to fit the capital |
| such short term apartelle units rather than the | | | | investment budget of the average foreigner |
| much more expensive hotels in the area. | | | | retiree, and all landowners will be members of a |
| 3. Condotels. I have not given this business my | | | | cooperative which will share the farming |
| "thumbs up" in all instances. Condotels have been | | | | equipment (tractors, equipment shed, and others). |
| heavily touted and promoted the past several | | | | The farm will be "farmed" by the developer's |
| years and there have been many, many new | | | | management team |
| condominiums built in Manila, and now even in | | | | The hottest trend now is in organic farming, and |
| Cebu and starting in Davao. | | | | yet it is only in its infancy stage in the Philippines. |
| The problem is that although the developers offer | | | | There is one export product in particular which |
| great down payment terms (usually around 30% | | | | has caught my attention - the pili nut. The |
| down financed over 3 years) and in some cases | | | | Philippines is the ONLY country with which |
| carry back the mortgage and finance for perhaps | | | | produces and processes this nut in commercial |
| 10 years, the interest rates are incredibly high, | | | | quantity. |
| and the split of rentals with the management | | | | The current status of the pili is equivalent to that |
| team runs around 50%/50%. There is also | | | | of the macadamia some 30 years ago. It has |
| always a nominal monthly maintenance fee. | | | | huge potential to develop into a major industry. |
| What looks like "cheap" entry point and cash flow | | | | They are in demand not only in Hong Kong and |
| out each month, in many cases simply becomes a | | | | Taiwan but also in Singapore, Korea and Austria. |
| bet on long term property appreciation - finding | | | | |