Think Rich Quick

8/8/2019 Think Rich Quick

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With a Foreword by Bo Sanchez,Best-selling Author of 8 Secrets of the Truly Rich

T HI N

K RI C

H

Q UI C

K!

T r a c e T r a

j a n

o L a r r y

G a

m b o a ,P h D

ww.shepherdsvoice.com.ph

ISBN 978-971-93671-5-4

No business? No property? No money?You can be a Millionaire!

n his very frst book Tink Rich Quick! , U.S.-based Pinoy millionaire race rajano shares his expertise in the no money down,uick turn real estate business to help you achieve fnancial success.

et race teach you the ollowing million-building techniques he hasmastered:

Starting out in the real estate business with nothingWholesaling in real estateTe retailing ormula

ogether with Tink Rich, Pinoy! series author, Larry Gamboa, racembarks on a mission o creating one millionPinoy millionaires. Youan be one o them.

race invites you to ride his jeepney that will take you on an excitingourney to fnancial reedom.Sakay naand travel the road to a millionossibilities.


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Tink Rich Quick!

THINK RICH

QUICK! A THINK RICH PINOY BOOK

How to Become a PinoyReal Estate Millionaire

By Trace Trajano andLarry Gamboa, P.hD.

EDITED BY RISSA SINGSON-KAWPENG

With a Foreword by Bo Sanchez,Best-selling Author of 8 Secrets of the Truly Rich


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Think Rich QUick!How to Become Pinoy Re l Est te Million ire

ISBN 978-971-93671-5-4

Philippine Copyright 2007 by r ce r j no nd

L rry G mbo , P.hD.P blished by Shepherds Voice P blic tions, Inc.1st Re-printing, J n ry 2008

Req ests or in orm tion sho ld be ddressed to:SHEPHERDS VOICE PuBLICa IONS, INC.#60 Chic go St., C b o, Q ezon City, Philippines 1109

el. No. (632) 411-7874 to 77e-m il: s [email protected]

all rights reserved. No p rt o this p blic tion m y be

reprod ced, except or brie q ot tions, witho t the priorpermission o the p blisher.

Cover Design nd L yo t by Rey de G zm nIll str tions by Isr el N ev orl nd


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Tink Rich Quick!

Table of conTenTs

Foreword 1: are Yo Big? 5Foreword 2: Wh t Million ires are M de O 7

Preface Entreprene rs: Le rn to Sell (or Perish)

Introduction 7

Chapter 1: Re l Est te s Vehicle to Millions

Chapter 2: Te art o Wholes ling

Chapter 3: St rting O t with Nothing 4

Chapter 4: Te an tomy o another

Wholes le De l 47

Chapter 5: Te Story o First- ime Re l Est te

Entreprene r 6

Chapter 6: Ret iling 69

Chapter 7: Te Ret iling Form l 8

Chapter 8: Rent to Own 95Chapter 9: Glitches nd Stitches 07

Chapter 10: Priv te Lending

Chapter 11: Now Wh t? 5

abo t the a thors 4


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D d t

I dedic te this book to my lovely wi e who loved me even when I w s broke nd who h s rem ined loy l to methro gh the ye rs. T nk yo , b bes.

I lso dedic te this book to my son, N th n, who m zesme every d y. Yo re s sm rt s yo re ch rming ndloving. T nk yo , my son.

L stly, I dedic te this book to my ther. His li e s se m n w s h rd nd ll o s cri ces. T nk yo , D d.


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foRewoRD

Are You Big?By Bo S nchez

Friends,yo r se rch is over.

I yo re looking or ct l, re l-li e,Pinoy million ires who c n te ch yo how yo c n become one, then this is it.My terri c mentors in re l est te, L rry G mbo nd

r ce r j no, h ve te med p or this li e-ch nging book tochieve one h ge mission: o help cre te one millionPinoy

million ires.L rry cre tes his millions in the Philippines.

r ce cre tes his millions in the uS.Both se the s me cre tive re l est te str tegy, proving

th t it c n be done lmost nywhere in the world.B t million Pinoy million ires? Isnt th t h

impossible? I dmit, its one o those cl ssic big, h iry,d cio s dre ms. B t rom my experience,the bigger the

dream, the better. Why?Sm ll dre ms ttr ct sm ll people.Big dre ms ttr ct big people.

Are you big? Are you big enough to become one o those millionaires?

Sm ll dre ms dont excite people. Sm ll dre ms dontcre te eno gh p ssion necess ry to chieve them. Sm ll


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dre ms rem in sm ll. T s, the gr vey rds o sm ll dre msre m ny nd overcrowded.

as I write this p ge, L rry nd r ce re presently b ilding the Tink Rich Pinoy Network o Millionaires,ndtheyre ttr cting big-he rted people.

Big on p ssion.Big on h rd work.Big on sel essness.

Yes, L rry nd r ce w nt to ttr ctPinoys who w nt tobe million ires not or themselves. Like them, they w nt to

ttr ct Pinoys who w nt to be million ires so th t they c ncre te other million ires.

Tro gh my book, 8 Secrets o the ruly Rich,I correct yo rdistorted theology o we lth nd enl rge yo r psychology o money. B t once th ts done, where will yo get the pr ctic l,

h nds-on, step-by-step str tegies to cre te yo r we lth?T s, the book in yo r h nds.

Re d on, million ires!

Bo S nchez

FOREWORD: Are You Big?


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foRewoRD

What Millionaires Are Made Of

By Deb McMill n

Investing in re l est te is the w y most million ires werecre ted. H ving the co r ge nd m king the time to le rnhow to m ke money t investing while working ll-time

job, le rning new l ng ge nd d pting to new c lt re well th ts r ce! He h s ll the m kings o million ire.

Sometimes yo do it right the rst time. I yo re re lly

good, yo le rn rom yo r mist kes nd j st know yo regoing to m ke them. Te best dont give p, dont lose toom ch money, nd then they try something di erent the nexttime. Ten they s cceed. T ts the r ce I know.

r ce nd I met ew ye rs go while I w s president o the Ohio Re l Est te Investors associ tion. We hit it o bec se I h d j st q it Procter & G mble (P&G) ter beingthere or 20 ye rs, nd r ce w s j st st rting his c reer withthem in the uS. P&G is m lti-billion doll r worldwidecons mer prod cts comp ny.

Id been b ying nd selling residenti l properties while tP&G, most recently thro gh sing the short s le method o

cq iring properties sking the lender or disco nt rom wh t the seller ct lly owes. So my n nces were growing,too.


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We both knew th t even good job t P&G w snt goingto be the only thing wed need to provide n nci l st bility or

o r milies nd o rselves or the rest o o r lives. T ts how we met t the Cincinn ti Re l Est te Investment associ tion(Cincinn ti REIa).

Tere, we met co ple o times monthly nd sh redin orm tion on how to b y/sell/rent residenti l homes, m lti-

mily homes nd more. using in orm tion cq ired rom

the REIa gro p, r ce h d lre dy s ccess lly p rch sedtwo ho ses. Te rst ho se he sked me to help him b y w s j st ro nd the corner rom these two ho ses nd w s

pre- oreclos re or short s le. I w s m zed to see he h dccomplished so m ch in re l est te even tho gh he h d

ll-time job th t kept him o t o town lot. We worked this short s le together b t werent ble to

get the lender to disco nt eno gh to m ke it worthwhileto p rch se. r ce w s q ick st dy tho gh, nd w s sooncompleting short s les on his own.

S bseq ently, he bo ght sever l more ho ses, w smentoring other st dents who c me to the re l est te investor

ssoci tion nd still contin ed to work t P&G. He w s not w sting ny time to get his eet nd his he d rmly pl ntedin the re l est te m rket: Le se-optioning ho ses to ten nts,b ying ho ses on short s les nd wholes ling residenti l ndm lti- mily homes too.

Every s ccess l investor h s go ls written ones, not j st objectives bo ncing ro nd in his he d. r ces go ls

re written nd he works tow rd them every d y. With thisbook, he is on his w y to l lling nother one o his go ls:

FOREWORD : What Millionaires Are Made O


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o help cre te 1,000,000 million ires by 2020. Hes doingth t by sh ring his experience, knowledge nd his s ccesses

with yo , the re der, so yo c n bene t, too. Its m zing wh t we c n do when we j st s y we will do it.r ce is n extr ordin ry individ l nd with work, yo

c n be too!

Deb McMillan is called the Shortsale Queen and is also the past president o Ohio Real Estate Investor Association and Cincinnati Real Estate Investor Association.www.shortsalequeen.com


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FOREWORD : What Millionaires Are Made O


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Tink Rich Quick!

PReface

Entrepreneurs: Learn toSell (or Perish)

By L rry G mbo

Do yo remember times in yo r li e when yo got it?For ex mple, when Brother Benedict, my lgebr te cher,

wo ld expl in polynomi ls, I j st co ld not get it.Di koma-gets. No m tter how I try.

B t o r ye rs go, when Robert Kiyos ki wrote theollowing on ip ch rt t his two- nd- -h l d y B siness

School in Sing pore, I got it!

SaLES = INCOME

When I s w Robert Kiyos ki o Rich Dad, Poor Dad write th t on the e sel p d nd expl in it in his bl nt w y,it seemed like c rt in opened nd light b lb shed,ill min ting my mind nd he rt. Getting Doctor te inB siness administ tion rom the university o Michig ndidnt do it. Being pro essor t the asi n Instit te o M n gement didnt do it. B t Roberts ip ch rt nd the

words he wrote did. Tere m st be some tr th to the s yingth t when the st dent is re dy, the te cher will ppe r.


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Pre ace

Yes, Sales=Income. Pare, naintindihan ko ito(Tis Inderst nd), I told mysel . T t d y, nwittingly,Tink

Rich, Pinoy w s born.No s les. No income. a nd it does not m tter who, b t ny s ccess l

entreprene r p st, presentand t re h s to le rn how to sell. Henry Sy. John Gokongwei. Don ld r mp. BillG tes No s les, no s ccess.

Bill G tes, s ys Bl ir Singer o Sales Dogs,m st h vebeen q king t his boots when he ced gi nt IBM nd soldthem the DOS oper ting system (which he l ter tr ns ormedinto Windows). Why? Bec se Mr. G tes did not even ownDOS t th t time! Dont yo think he m st h ve been teeny-weeny sc red?

Mr. G tes ct lly sold IBM the prod ct DOS nd terw rds

went o t to nd nd b y the system. Now th ts selling! and yonow know the INCOME th t ollowed rom th t s le. Tey wereeno gh to m ke Bill G tes the richest m n in the world tod y.SaLES = INCOME. Its power l eq tion.

Now gr nted there re other things th t m ke or s ccess lb siness, like n efcient system, leg l nd decent prod ct

or service, not to mention binding mission, n inspiringle dership nd good te m, b t nless yo h ve s les bringingin income, the b siness will coll pse.Nada. Bokya. Zero.

Pro t, s ys Mr. Sixto Rox s, my rst b siness boss ndmentor, is condition o vi bility. In short, no money, nohoney. and where does pro t come rom? SaLES! So here is

wh t I le rned rom the asi n Instit te o M n gement ndthe university o Michig n:


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Tink Rich Quick!

Tis is wh t is t ght in every b siness school: TeIncome St tement. Yo w nt to improve pro t? Either c tdown expense or incre se yo r income. B t wh t i yo do noth ve income? Yo get the dot-com sco where comp nies

th t were being v l ed wildly h d no re l income or reven estre m. and wh t ollows is the dot-com coll pse. So be oreny income st tement comes the b sic insight.

and th t is not le rned in b siness school. It is le rned inthe school o h rd knocks. Te school o the mily. Street-Sm rt university they c ll it.

Te go l is simply to gener te c sh ow by le rning thert nd discipline o selling. Only when prod ct or service is

sold does b siness begin. S les bre the li e into b siness.

Nothing h ppens ntil something moves, s ys albertEinstein. How do yo move with the eq tion s les=income?By becoming n entreprene r. S ccess l entreprene rs h vem stered the rt th t SaLES=INCOME. Te re lity o thisis injected into their DNa.

Tro gh the ct o entreprene rship, b siness isconceived. B t only when SaLES=INCOME does theb siness grow strong, s rvive nd thrive.

SaLES = INCOME SaLES = INCOME

INCOME ( rom S les)-EXPENSEPROFI (S vings)

INCOME ( rom S les)-EXPENSEPROFI (S vings)


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T ts why I est blished my b siness: Te Tink RichPinoy Million ire Network (Tink Rich Network). Te

Tink Rich Network is r nchise system th t cre tes re lest te million ires who, in t rn re committed to cre tingother re l est te million ires, e ch cting nd knowing intheir g t th t SaLES=INCOME.

Tro gh this b siness, yo become million ire-m kerin the Philippines while linked t the s me time to Filipinomentor in the united St tes. Enter r ce r j no, Pinoy million ire rom Cincinn ti. His story spe ks lo der th n

words. Its simil r to mine lived o t in the united St tes. When yo listen to r ce, yo listen to L rry. Tro ghsynchronicity nd the L w o attr ction triggered by my book, Tink Rich, Pinoy, yo now h ve this book in yo rh nds.

Tere is s ying, When the st dent is re dy, the mentorppe rs.

Know th t becoming Pinoy Re l Est te million ire is te m sport. Tere is no s ch thing s sel -m de million ire.Even Lone R nger h d onto. B tm n h d Robin. Dolphy h d P nchito. Tink Rich Pinoy Million ires re te m-

m de, individ lly cr ted thro gh the Tink Rich Pinoy Million ire Network ( or det ils on the r nchise, em il [email protected]).

B t most o ll, eel the energy nd the p ssion o Pinoy committed to giving b ck to hiskababayans.a nd, in theprocess, llow yo rsel to be in ected by the vir s o re lest te entreprene rship in Tink Rich Pinoy style.

So be w rned. E ch p ge is in ectio s nd highly cont gio s. Re d t yo r own peril.

Pre ace


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Tink Rich Quick!

Once yo get it, yo r li e will be ch nged orever. Bec senot only is becoming we lthy OK; it c n be done by Pinoys

who h ve the love, p ssion nd dedic tion to s cceed.It h ppened to me. It h ppened to r ce. It c n h ppento yo : be yo n employee, n OFW, ho sewi e, sm llb siness owner, doctor, n rse, te cher, cco nt nt orl wyer.

Jim Rohm s ys it so well: Te gre test v l e in li e is not wh t yo get. Te gre test v l e in li e is wh t yobecome. Yo c n become Pinoy million ire. Let r ce show yohow. and yo too will get it.


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Pre ace


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Tink Rich Quick!

inTRoDUcTion

I w s wide w ke even tho gh it w s 1 .m. I knew I h dto w ke p e rly the next d y or work b t I co ldnt p t thebook down. I ipped thro gh the p ges q ickly nd I co ldhe r my he rt po nding in the silence o the night.

Te book I w s re ding w s no thriller or mystery novel.It w s book written by Filipino thor n med L rry G mbo entitledTink Rich, Pinoy.

It w s book I w s destined to re d. Why? Bec se L rry

h d converted into re lity wh t I h ve envisioned. He h ddone wh t I w s s ying ll long.I m Pinoy working ll-time in Fort ne 500 comp ny

in the united St tes. On the side, I invest in re l est te. My eld o expertise is no money down, q ick t rn re l est te.

Its investing th t c n be done with no money, virt lly norisks nd yo get yo r pro t in ew weeks, sometimes in

ew d ys. Hence the n me q ick t rn.Ive been telling my rel tives nd riends b ck in the

Philippines th t this co ld be done there. B t no one believedme. Inste d, everyone h d exc ses s to why it co ldnt bedone.

Walang pera sa Pilipinas. Masyadong corrupt dito. Iba dito, bawal yan.


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B t L rry G mbo h s proven them ll wrong.I nished the book t 3 .m. To ghts kept swirling in

my he d nd I w s torn between sending the thor n em ilor sleeping nd w iting or the next d y. Logic event lly

won over my excitement s I l y down nd ell st sleep.Te next morning, I s t in ront o my l ptop nd

st rted po nding w y t the keys. I co ld b rely cont inmy excitement s I wrote him long em il.

Send. Wo ld L rry respond to me? Maybe not. Hes probably too

busy, I tho ght. a week p ssed nd I w s ple s ntly s rprisedto receive reply rom him. He w s excited bo t my em il

Introduction


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nd greed to meet me ve months l ter d ring my two- week v c tion in the Philippines in a g st 2006.

A MILLION PINOY MILLIONAIRESO r meeting pl ce w s t the lobby o 6750 on ay l

aven e, M k ti. I rrived ve min tes he d o o r sched ledmeeting, h ving shed the Filipino time ter living in theuS or six ye rs. I s w m n w lk in nd didnt think it w sL rry. oo yo ng, I told mysel , s I w ited some more.B t the m n, we ring ne tly pressed shirt nd gl sses

ppro ched me with energetic strides to greet me.Im L rry G mbo , he s id s he shook my h nds,

dding, Yo re very p nct l. Be ore I co ld s y nother word, he told me to get into his c r bec se he needed todrop by the b nk.

On the ro d, I told L rry bo t my b rning mission.I w nt to help Pinoys s cceed n nci lly nd yo r book isright in line with this mission, I s id. I w s st ttering s my lips tried to c tch p with the tho ghts r shing thro gh my mind. I took deep bre th nd told L rry to br ce himsel

or long convers tion.

Dont worry, L rry s id, we h ve time.I orgot I w s in M nil nd the tr fc gives yo time.So wh ts yo r b ckgro nd, L rry sked s we w ited

t the b nk.Im chemic l engineer t Procter & G mble, I

replied.Re lly? I sed to work there, too, he s id with

enth si sm. We t lked bo t how gre t the comp ny w s,how he liked the w y we were tr ined to write one-p ge


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memos nd convincing, logic-b sed recommend tions.B ck in the c r, we t lked bo t re l est te g in nd the

mission o te ching others to become n nci lly ree.Tis is big mission, I enth sed. I w nt to helpcre te or tr in directly or indirectly one millionPinoy million ires.

I went on to en mer te the enormo s bene ts millionmillion ires wo ld h ve on o r society. Te n mber o jobsthese rich people wo ld cre te wo ld be tremendo s. I they

wo ld don te j st one percent o their income to help thepoor, th ts P10 billion ye r! T t wo ld be lot o schools,hospit ls, ood nd medicine or the destit te. Tese onemillion Pinoy million ires wo ld ndo the d m ge th t o rpolitici ns h ve c sed. In one ye r, they co ld contrib temore to the Philippines th n ll the presidents o the co ntry

combined thro gho t o r 100 ye rs o independence.I p sed to c tch my bre th nd tho ght to mysel , L rry

might think I m ke. One millionPinoy million ires? Who m I kidding?

B t, I w s wrong.Lets do it! L rry replied, m tching my excitement.

WHAT GIVES ME THE RIGHT?Now, yo might s y, Who re yo , r ce, to propose

s ch n mbitio s dre m?Lets j st s y th t, like L rry, I like to dr w rom my

experience nd te ch people bo t re l est te.I h ve bo ght over $3 million (ro ghly P150 million) o

re l est te in the united St tes, mostly with no money down.

Introduction


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In ct, the l test de l th t I did w s 36- nit p rtmentb ilding with only $1 down. T ts j st P50!

I know this is h rd to believe b t or now, hold yo rbre th, s spend yo r disbelie nd open yo r minds.By the time yo ve nished re ding this book, I ss re

yo , yo will s y,Ganun lang kasimple yun? and it is!B t Im getting he d o the story.For now, s fce it to s y th t its possible to b y properties

in ny co ntry even when yo h ve no money. L rry h sproven it s I did nd this book will te ch yo no-money-down b siness in re l est te th t Ive sed s vehicle in my

jo rney tow rds n nci l reedom. Tis is my jeep nd L rry helped convert it into jeepney para sa Pinoy.

Sakay na nd lets go on this jo rney together!


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Introduction


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chaPTeR

Real Estate as a Vehicleto Millions

Moms te rs glistened in her

eyes even s she tried to hide it.It w s lw ys like this whenever we were t the irport to dropo D d, se m n who w s o to nother trip.

How long will yo begone this time, D d? I sked.I m st h ve been only eight ornine b t even t th t yo ng ge,I h d lost co nt o how m ny

times Id s id goodbye to him.aro nd 10 months, he replied.and ll th t time yo re j st on the bo t? I sked.

Dont yo get bored?No, hijo, we h ve big ship nd there re lot o

things going on there, he s id. My d d h d prob bly doneeverything on ship. He told me he w s cook, orem n

nd he w s even close to becoming c pt in b t he didnth ve the right ed c tion.

Where will yo go this time? I sked. He s id they were o to J p n to h l c rs nd ship them to the uS.


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D d h d tr veled the world bec se o his job. I think the only pl ce he h dnt been to

is ant rctic . and ll those months nd ye rshe w s w y rom his mily w s rew rded with sever l million pesos in the co rse o his 30-ye r c reer. It wo ld h ve been niceending i he lived the good li e in retirement.B t, s dly, he did not. In ct, he c n b rely

m ke ends meet. a ter working so h rd ordec des, he h s nothing to show or it.Little did I know th t I w s ollowing in

his ootsteps.

A FINANCIAL LOSER When I rst worked s m n gement tr inee in big

m ltin tion l comp ny, I w s ecst tic. I m de lot o money.My rst p ycheck w s P10,000 month lot or

college gr d te b ck in 1994. I elt rich. I m de moremoney th n I ever dre med o nd the work w s exciting.I got promoted one level ter the other nd I got r ises big ones nd they bec me bigger nd bigger s the ye rsprogressed. My s l ry do bled every other ye r.

B t yo know wh t?Despite m king lot o money, I w s n nci l loser.

I spent more th n I e rned. I te o t lot with riends nddr nk lot, too. I pl yed bowling lmost every d y nd theonly p r phern li I didnt own w s bowling lley.

My credit c rd bills piled one on top o the other.Be ore long, I co ld b rely keep p with the minim m

Real Estate as a Vehicle to Millions


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Tink Rich Quick!

p yments. I w s slowly drowning in debt. I w s living thes me progr m th t r n the li e o my d d. Te progr m

re d, WORK HaRD EaRN-SPEND-WORK HaRD-EaRN-SPEND. REPEa .T t progr m ch nged when I re d the book Rich Dad,

Poor Dad by Robert Kiyos ki. Like L rrys book, I co ldntp t it down. I devo red it nd I re d it cover to cover inone sitting bec se it w s s i Kiyos ki w s writing bo t

me. Poor D d w s like my d d he m de lot o money b t he never s ved nor invested on nything.It m de me re lize th t I, too, h d Rich D d. It w s

my nt, my d ds sister. She worked s b nk clerk b tst rted p rt-time b siness with no money down. Shebo ght chickens on consignment then she b tchered nd re-sold them. She then p id o her s pplier, kept the pro t ndreinvested it to b y more chickens. E ch time people skedher how li e w s, shed j st s y, Its h rd to e rn money.She lived simple li e nd none o s s spected th t she w sb ilding n empire.

F st- orw rd to 30 ye rs l ter.My nt now owns two p rtment b ildings, resort,

sari-sari store nd big rice rm ll in B t n. and tothink she w s j st b nk clerk!

How did she cq ire ll th t we lth when she didnt e rnm ch? Te nswer: a no money down b siness.Laway lang ang puhunan.

Te di erence between my ther nd his sister w s s

wide s the oce n th t D d s iled on.


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THE BENEFITS OF REAL ESTATEI believe th t lot o the l ck o we lth o Pinoys is d e to

l ck o the right ttit de nd ptit de bo t money.Notice th t the Chinoys bec me rich in this s me poorco ntry s the poorPinoys . Yet, the Pinoys h ve to y ors il o tside the co ntry to bring b ck doll rs so th t their

milies co ld live better li e.T ts why Im writing this book bo t re l est te s

vehicle to millions. Why re l est te?First, its commodity th t people everywhere need. It

will lw ys h ve m rket. In the united St tes, everybody w nts to own piece o l nd th ts why its c lled the americ n Dre m.

In the Philippines, the need is low-cost ho sing.Since l nd c nnot be m n ct red nless its

recl imed like the site where the SM M ll o asi now st nds pl s the ct th t prices o b ilding m teri ls like cement

nd wood tend to go p over time, prices o re l est te goesp over time. T ts why yo he r o people who s id they,

too bo ght piece o l nd or P500 per sq re meter ndthey sold it 10 ye rs l ter or P4,000 per sq re meter.

as med re l est te g r Robert allen s id, Dont w itto b y re l est te. B y re l est te nd w it. Tis secondbene t o re l est te is c lledappreciation, nd i yo h vedeep pockets like Henry Sy, yo c n ord to spec l te ndp rk yo r billions in 4,000-hect re l nd in C vite hoping

somed y it will ppreci te.Tird, re l est te gener tes c sh ow. Tis is the di erence



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Tink Rich Quick!

between the rent yo re getting rom the ten nt nd theexpenses yo inc r like mortg ge p yments, re l est te t xes

(amilyar),ins r nce, etc.LOLO VICTORS STORY

My l te gr nd ther,LoloVictor, w s conserv tive m nby n t re. He rented n p rtment in M nil or 35 ye rsbec se he wo ld r ther s ve the money he w s e rning rom

the B re o Intern l Reven e in the b nk. He did own ho se in B t n, which he visited d ring v c tions, b t henever owned the ho se where he lived, together with my lola,my mom nd my nts.

Lolop id his rent like clockwork. His l ndlord w s q iteh ppy bec se o the consistent c sh ow th t my gr nd thergener ted or him ll those ye rs. Once in while, the

p rtment needed some rep irs, b t his l ndlord wo ld sendhis m inten nce m n. He didnth ve to do nything person lly.

Except collect Lolos checks.T ts why Kiyos ki c lls

c sh ow rom re l est te p ssiveincome. It comes in every singlemonth nd ll th tLolos l ndlordh d to do w s open the m il ndc sh in the checks!

Te other thing th t Lolodidnknowingly w s th t he p id or

his l ndlords lo n on the p rtment he w s renting. Tisis c lled eq ity. Eq ity is the di erence between wh t the


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property is worth nd the lo n b l nce. In 35 ye rs, thel ndlords lo n went down to zero nd now the p rtment is

ree and clear o ny lo ns.

THE POWER OF LEVERAGETe l st bene t o re l est te is c lledleverage. T t is,

yo c n b y re l est te with only 20 to 30% down p ymentnd sometimes 10 or even 5% down. Even i stocks gener lly

ppreci te ster th n re l est te over the long h l, lever gem ltiplies the e ect o ppreci tion o re l est te.Let me show yo wh t I me n.Lets s y yo h ve P100,000 c sh nd there re two

investment opport nities. Yo r riend tells yo th t bl echip stock, s y Jollibee, norm lly ppreci tes by 10% ye r.B t theres lso one-bedroom ho se ne r niversity th tsbeing o ered to yo or P1,000,000 with down o only 10%. Yo c n rent o t this ho se with bre k-even c sh ow.Te ho se ppreci tes by mere 5% ye r.

Which one is better investment? Lets see. Yo r stocks next ye r wo ld h ve grown to P110,000

with its 10% ppreci tion. Broken down it looks like this:

Stock origin l v l e P100,000

appreci tion x 10%__Stock ppreci tion P10,000

+

Stock origin l v l e P100,000New stock v l e P110,000


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Tink Rich Quick!

Now lets look t the one-bedroom ho se. a ter ye r, with 5% ppreci tion, its worth P1,050,000. B t since

yo only invested P100,000 in it nd the one-bedroomho se ppreci ted by P50,000, yo h ve whopping ret rno 50%!

Broken down it looks like this:

Ho se, origin l v l e P1,000,000

appreci tion x 5%___Ho se ppreci tion P50,000 Investment P100,000Ret rn on investment 50%

Tis is the power o lever ge. It m kes yo become we lthy in very short sp n o time.

Now think: Wh t i yo h venothing invested in theproperty by doing no-money de ls? Ten yo r ret rn isinfnity! Its in nity bec se i yo divide yo r c sh ow by yo r investment which is zero, m them tic lly, th ts in nity.Tis is my type o re l est te investing.

MY TYPE OF REAL ESTATE INVESTING Yes, it is possible to b y ho ses nd b ildings with no

money down. Don ld r mp, prob bly one o the mosts ccess l re l est te investors o ll time, bo ght his rst

three de ls with no money down. He bo ght n p rtmentcomplex with 1,200 nits with no c sh o his own. No


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wonder he is m lti-billion ire tod y. aside rom no money down, the type o re l est te

investing L rry nd I will reve l in this book does not involvem ch risk. Yo dont even need to get b nk lo n nd yoget yo r pro t in weeks, sometimes d ys.

Te stest time it took me to sell ho se is nine ho rs.I sent n em il to my b yers t 12 midnight. By 9 .m. the

ollowing morning, I h d p rch se contr ct rom one o my e ger b yers. I m de $8,000 on th t de l! It w s e sy nd

nyone c n do it.Now yo sk, B t does this work in the Philippines?

Yes it does!Believe me its not only good, its tr e. I ss re yo , ter

yo ve re d this book yo will be even more excited bec seyo will see how do ble these techniq es re.

Re d on nd be the j dge.


Think Rich Quick

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