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I need an advice or so.
Last month I've quite become interested on real estate and I've heard about wholesaling houses and it sound quite good when it comes to making a profit without putting that much money or nothing at all. I've done quite some research about it, but almost every article I've read and videos that I've watched (because I couldn't afford to get into any online course to study real estate) are based in the United states.
How does wholesaling work?
You look for houses and find motivational sellers to sell their home to you regardless of any condition. The price of the said property should be less than the market value. Then you look for a buyer usually another investor and sell it on a higher price. You sign a purchase agreement contract between you and the seller with and containing the option to assign- sell this paper/ contract to anothe buyer. (I had a signed purchase agreement between myself and the seller which gave an equitable interest in the property. This contract was like a paper asset which I could sell to a third party)
For example the selling price of the house is 1.2 Million then you sell it to the buyer for 1,400,000. (Market Value for example is around 1.6-1.7M when the property is fixed etc. leaving enough profit for the buyer/investor to make.) My assignment Fee would be PHP 200,000 because price of the property/house is 1.2M, (taxes including capital gain tax 6%, 1.5% documentary stamp, 0.5% transfer tax, registration fee 0.25% total of 8.25% of the selling price) 99,000 leaving me a 101,000 profit.
However my problem is that I know that the law in the united stares are not the same with our country. Is wholesaling possible in the Philippines? If it is possible what kind of contracts should I use?
(Deed of sale, Deed of assignemnt.... etc?
Hoping that my questions would be answered. I badly need an advice. Any help would do! I will appreciate all the answers and opinions thank you very much!
Last month I've quite become interested on real estate and I've heard about wholesaling houses and it sound quite good when it comes to making a profit without putting that much money or nothing at all. I've done quite some research about it, but almost every article I've read and videos that I've watched (because I couldn't afford to get into any online course to study real estate) are based in the United states.
How does wholesaling work?
You look for houses and find motivational sellers to sell their home to you regardless of any condition. The price of the said property should be less than the market value. Then you look for a buyer usually another investor and sell it on a higher price. You sign a purchase agreement contract between you and the seller with and containing the option to assign- sell this paper/ contract to anothe buyer. (I had a signed purchase agreement between myself and the seller which gave an equitable interest in the property. This contract was like a paper asset which I could sell to a third party)
For example the selling price of the house is 1.2 Million then you sell it to the buyer for 1,400,000. (Market Value for example is around 1.6-1.7M when the property is fixed etc. leaving enough profit for the buyer/investor to make.) My assignment Fee would be PHP 200,000 because price of the property/house is 1.2M, (taxes including capital gain tax 6%, 1.5% documentary stamp, 0.5% transfer tax, registration fee 0.25% total of 8.25% of the selling price) 99,000 leaving me a 101,000 profit.
However my problem is that I know that the law in the united stares are not the same with our country. Is wholesaling possible in the Philippines? If it is possible what kind of contracts should I use?
(Deed of sale, Deed of assignemnt.... etc?
Hoping that my questions would be answered. I badly need an advice. Any help would do! I will appreciate all the answers and opinions thank you very much!
