From ₱0 to Your First Deal: The Beginner’s Playbook
“From ₱0 to Your First Deal: The Beginner’s Playbook”
By: Realtor Samuel Ortega Lao
Want to start in real estate but feel stuck because of capital, confidence, or confusion? Here’s a simple, no-jargon path you can follow to land your first cash-flowing deal—without getting overwhelmed.
Why real estate (still) works
Cash flow today, appreciation tomorrow. Rentals can pay you monthly while the land/building value grows over time.
Leverage. Banks and developers can fund most of the price if the numbers make sense.
Control. You can improve, re-tenant, or refinance to unlock more value.
Set a simple target (and backsolve)
Pick a small, clear goal: “₱10,000–₱20,000 net cash flow per month.”
Backsolve: What rent, interest rate, and expenses get you there? If it doesn’t pencil out on paper, don’t buy it.
Three beginner-friendly paths (even with limited cash)
1. House Hack / Micro-Multi
Live in one unit/room, rent out the rest. Your tenants help pay the mortgage, letting you learn property management safely.
2. Partner Up (Skill-for-Capital)
If you’re good at finding deals or managing repairs/tenants, trade your skill for equity. A partner funds the down payment; you operate and share profits.
3. Co-Broker / Referral → Build Your War Chest
Earn commission by matching buyers and sellers through a licensed broker network (PHMLS, developer channels, co-broker agreements). Use that income as seed capital for your first buy.
The 5-step, 30-day launch plan
1. Know your numbers. List income, debts, and realistic down payment.
2. Define your “deal box.” Location, price range, property type, minimum cash-on-cash return.
3. Pre-qualify or line up capital. Talk to a lender/investor early; understand what you can comfortably afford.
4. Walk five properties. Inspect surroundings, access roads, flood risk, and nearby rents.
5. Make one smart offer. Use comparable sales/rents, include due-diligence timelines, and be ready to walk away if numbers don’t work.
Quick math you can do on your phone
Cash Flow = Rent – (Mortgage + Taxes + Association Dues + Insurance + Utilities you cover + Maintenance + Vacancy)
Cash-on-Cash Return = Yearly Cash Flow ÷ (Total Cash In: down payment + closing + basic rehab)
If your cash-on-cash doesn’t meet your target (say 8–12%+ for starters), renegotiate or pass.
Common mistakes to avoid
Buying for “feelings,” not numbers. Always underwrite first.
Skipping due diligence. Title issues, right-of-way, zoning, or hidden repairs can erase profit.
Underestimating expenses. Include vacancy and maintenance; small leaks sink big ships.
No exit plan. Know when you’ll refi, sell, or hold long term.
How we can help (free consult available)
Deal screening and quick “does it cash flow?” review
Loan/pre-qualification guidance and introductions
Title & due-diligence checklist tailored to your target area
Offer strategy and negotiation support
Property management setup to protect your cash flow
For guidance or free coaching, call/Viber/WhatsApp: 09173236123
Samuel O. Lao & Associates — REBL No. 1368 | #LetsTalkBusiness
Disclaimer
This blog is for education only and is not financial, legal, or tax advice. Market conditions, interest rates, developer terms, and regulations change. All figures are illustrative and may vary. Always conduct independent due diligence, consult qualified professionals, and confirm costs, taxes, and permits before making any investment decisions.
