Agro-Industrial Investments and Build and Sell — July 8, 2017

Another week, another Manila REI Investors Meetup! This week might just have the highest turnout over the last few months, and it was exciting all around. We’re quickly outgrowing our locations. But that’s a good thing. Everyone was happy and we had great conversations about a lot of things.
Due to the number of investors attending, we had a lot of ideas and topics thrown around. More importantly, attendees got the big value of meeting new people and perhaps working together in the future.
That’s what we value here, and in all the Meetups we organize. Networking and bringing REAL value to everyone who attends.
Anyway, enough about that. Here’s some of the topics you missed:
1. Agro-Industrial Real Estate Investments could be a 20% p.a investment for your idle provincial lands
All developments should be businesses. Sometimes the best use for your property is to convert it into an agro-industrial lot, especially when you could get assured buyers for it. Returns may vary, but for certain large lots in the provinces, this may be the best way to get a sizable return on investment.
With the right financing and the right project, lands with sizes of five hectares or more could experience returns of 20% or more in a year. There are limitations here and not every land is suitable for it. But with enough study, it could be workable enough.
2. Getting started with Build and Sell
Interesting conversations also revolved around about build and sell investments. This is an area that interests a lot of the members, mostly because it feels like this could be where some serious money could be made. So a few tips were shared during the event:
a. Php10 Million Budget — If you’re serious about this, you’ll need more Php10 Million to get started. Now that could be in equity or a credit line, but either way, you have to have some money prepared. That’s where the art of using other people’s money comes in.
b. Once started, you must be in the area where your build and sell houses are being built — This business typically starts as a sole operation. You won’t have a lot of people you could trust yet to run the business in your absence, and you would have to check the buildings twice a day to monitor progress.
c. Contractors that are trustworthy are key to the operations — Most of the work in building is done by contractors. Selecting the right one who won’t cheat you on labor and prices. Finding the right one takes time, but that’s why you have networks and meetups like this.
CONCLUSION
Meetups are a fun way to both learn and actually do projects with other people. While we don’t really filter those who come in to the group, spend enough time with them and you’ll get to know the real character of people.
It would be interesting to see how all these plays out as we introduce new formats and platforms for our those who attend.
Anyway, we have the next one coming up this Saturday, so hope to see you there!
ABOUT THE AUTHOR
Ian Mallari is the founder of Manila REI Meetup group. It is composed of various types of investors, professionals, and specialists involved in Real Estate Investing. Manila REI Meetup meets every Saturday in Makati. Join us by signing up here.
He is also the lead consultant of a financial consultancy firm. He works with medium and large sized corporations/businesses in securing funding for their businesses. Right now, he works mostly with AA and AAA contractors for private sector projects.
