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drbubb

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About drbubb

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    Trading and investing in stocks and commodities. Writing articles on related subjects, while building this website. I am interested in creating ways for communities

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  1. FAKE BOOK covers for Liars again FACEBOOK Bans Articles Exposing Hoax...
  2. Report: Jussie Smollett and Two Nigerian Brothers ‘Rehearsed the Attack Days Prior to it Happening’
  3. At Least 50 Documented Democrat College Campus Hate-Hoaxes Since 2012 [Again, So Little Racism in America, Left Has to Manufacture It!]
  4. THis will not make weak candidates stronger (in the long run) The DNC Fake News Media Begins Preemptively Silencing Any Criticism Of Female Democrat Candidates
  5. President Trump on Andrew McCabe ’60 Minutes’ Interview, Deep State Coup: ‘This was the Illegal and Treasonous “Insurance Policy” in Full Action!’ MCCABE'S 60 MINUTES OF FAME: THE FULL INTERVIEW... Trump calls 'treason'...
  6. BOZO TRIUMPHANT (and AMZN is tax-freed) AMAZON PAYS NO FEDERAL TAXES... $11 BILLION IN PROFIT... $100 MILLION REBATE!
  7. Hate-filled HOAXER may escape - Because he is a member of TWO fashionable "Victim groups" THE WOLF WHO CRIED MAGA WANTED: Chicago police to re-question actor... GRAND JURY? COULD GET 3 YEARS IN PRISON FOR FILING FALSE REPORT... Rehearsed attack? FLASHBACK: Lashed Out at Hateful Doubters... MONTAGE: WATCH MEDIA UNCRITICALLY ACCEPT ANOTHER 'HATE CRIME'... 'This is America in 2019'... Don't hold breath waiting for mea culpas... Pelosi quietly deletes tweet...
  8. Let's look at 75%, 70% and 65%. with all the detail on 70% Loan "High Gearing" 70% Finance, P 2,660k, P1,140k Equity Yr 1, 6% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : Interest : 39.9 : 39.0 : 38.2 : 37.3 : Princ.6% : 57.0 : 57.0 : 57.0 : 57.0 : Debt Svc: P96.9: 96.0 : 95.2: 94.3: Montlhly : 32.3 : 32.0: 31.7 : 31.4 : ave. 31.9 k monthly Debt OS : 2603 : 2546: 2489 : 2432 : 64% of P3.8M cost Yr 2, 7% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : Interest : 42.6 : 41.4 : 40.2 : 39.1: Princ.7% : 66.5 : 66.5 : 66.5 : 66.5 : Debt Svc: 108.1: 107.9: 106.7: 105.6: Montlhly : 36.4 : 36.0 : 35.6 : 35.2 : ave. 35.8 k monthly Debt OS : 2366 : 2299: 2233 : 2166 : 57% of P3.8M cost Yr 3, 8% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : Interest : 43.3 : 41.8 : 40.3 : 38.8 : Princ.8% : 76.0 : 76.0 : 76.0 : 76.0 : Debt Svc: 119.3: 117.8: 116.3: 114.8 : Montlhly : 39.8 : 39.3 : 38.8 : 38.3 : ave. 39.1 k monthly Debt OS : 2090: 2014: 1938 : 1862 : 49% of P3.8M cost === === Highlights: 75% Finance ===== : Start : Year1 : Year2 : Year3 : Mo.Ave : ——-> Debt OS: 2850 : 2622 : 2356 : 2056 = 54% ===== 65% Finance ===== : Start : Year1 : Year2 : Year3 : Mo.Ave : ——-> Debt OS: 2470 : 2242 : 1976 : 1672 = 44% =====
  9. SELLER'S REACTION to the Figures above: "I would not be willing to do 80% or more finance based on these numbers and assumptions. What I want to AVOID, is leaving the Buyer/ borrower in a situation where the required debt service too far ABOVE Market Rents. The comments suggest market RENT is 26-30K, but the buyer needs like 40,000 or more. There is too much risk for the Seller finance at 80 and 90% finance. imho Would be interested to see what the numbers look like at 70 or 75% percentage of Seller finance. NOTE: I see that interest rates and principle payments are ramping up. Interest: 6% in year 1, then 7% and 8% Principle payments at: 6% in year 1, then 7% and 8% What is this based on, please?"
  10. DRAFT CALCULATIONS, for a Seller Finance scheme Property has an estimated Rental value of P26-30,000 monthly Property SOLD at P 3.8 Million "Very Aggressive", 90% Finance Buyer pays Capital GT: (6%) : P228 K Buyer pays Transfer, etc. : P 50 K, est.? Total Purchase price ———> P4,078K Buyer Equity, about 10%. : P 380 K Finance amount @ 90%—-> P3,420 K Interest rates: Year1: 6%, Year2: 7%, Year3: 8% Assume Principal payments: 6%,7%, 8% per annum, rising "Very Aggressive" 90% Finance, P 3,240k, P380k Equity Yr 1, 6% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : (detail) Interest : 51.3 : 50.4 : 49.6 : 48.7 : Princ.6% : 57.0 : 57.0 : 57.0 : 57.0 : Debt Svc: 108.3: 107.4: 106.6: 105.7: Montlhly : 36.1 : 35.8 : 35.5 : 35.2 : ave. 39.2 k monthly Debt OS : 3363 : 33 06 : 3249 : 3192 = 84% of P3.8M cost Yr 2, 7% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : (summary) Montlhly : 40.8 : 40.4 : 40.0 : 39.6 : ave. 40.2 k monthly Debt OS : 3126: 3059: 2993 : 2926 = 77% of P3.8M cost Yr 3, 8% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : (summary) Montlhly : 44.8 : 44.3 : 43.8 : 43.3 : ave. 44.1 k monthly Debt OS : 2850: 2774 : 2698 : 2622 = 69% of P3.8M cost === === "Aggressive" 80% Finance, P 3,040k, P760k Equity Yr 1, 6% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : Interest : 45.6 : 44.7 : 43.9 : 43.0 : Princ.6% : 57.0 : 57.0 : 57.0 : 57.0 : Debt Svc: 102.6: 101.7: 100.9: 100.0: Montlhly : 34.2 : 33.9 : 33.6 : 33.3 : ave. 33.8 k monthly Debt OS : 2983 : 2926 : 2869 : 2812 = 74% of P3.8M cost Yr 2, 7% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : Interest : 49.2 : 48.1 : 46.9 : 45.7 : Princ.7% : 66.5 : 66.5 : 66.5 : 66.5 : Debt Svc: 115.7 : 114.6: 113.4: 112.2: Montlhly : 38.6 : 38.2 : 37.8 : 37.4 : ave. 38.0 k monthly Debt OS : 2746: 2679: 2613 : 2546 = 67% of P3.8M cost Yr 3, 8% : Qtr.1 : Qtr.2 : Qtr.3 : Qtr.4 : Interest : 50.9 : 49.4 : 47.9 : 46.4 : Princ.8% : 76.0 : 76.0 : 76.0 : 76.0 : Debt Svc: 126.9: 125.4: 123.9: 122.4 : Montlhly : 42.3 : 41.8 : 41.3 : 40.8 : ave. 41.6 k monthly Debt OS : 2470: 2394: 2318 : 2242 = 59% of P3.8M cost === === I also want to show below, the calculations for: "High Gearing" 70% Finance, P 2,660k, P1,140k Equity
  11. Makati's LEGASPI VILLAGE at Dawn. 180 degrees from high floor at Kroma #1 starts from Shang Grand #2: #3: That is Grand Midori, standing in front of Kroma Tower, on Legaspi St. #4: #5: At the right is... Exportbank Plaza, in the area I call "Little China"
  12. Social Dems... And the LACK OF CRITICAL THINKING Why nOcortex is a logical result of... "the entitlement culture" & "everyone gets a trophy" 'Why Is She So Dumb??' - Tucker Carlson Analyzes Alexandria Ocasio Cortez' Character
  13. Only 29% Favor Democratic Probe of Trump If Mueller Finds Nothing -- NOW, go after a REAL Witch... that's Hillary.
  14. FOUR ways to Document Seller Finance transactions: 1. Deed of sale with mortgage 2. Contract to Sell. 3. Rent with option to buy incorporated inside the Rent / Optional sales contract 4. Rental agreement with a separate option contract Expected taxation method & timing: + The first 2 is taxed up front by the BIR + Number 3s taxation is at risk of being similar (ie taxed upfront) + Number 4 is taxed as income tax on the rents. The deferred sale could be documented as number 4 Mr A: Your documentation makes sense. But this will force the buyer to report Rental income, and pay tax on it, right? B: Right! Otherwise you get taxed upfront. (on the sales proceeds) A: I thought you only get taxed after you hand over the Title > then you will need to pay CapGains tax B: Remember that tax applied is not proportionate to the payment, but instead a function of the contract price (Ie the AMOUNT of Sales proceeds matters more than the TIMING of the actual payments) B: ... A CTS is taxed as well, with the presumption that a significant portion of the contract price is already paid (In usual transactions, there is NOT a long delay in the Buyer getting paid. so BIR assumes that happens.) A: So what if Buyer defaults, and you have to unwind the Cap Gains Tax Payment? (ie the Seller has paid CGT, assuming that the transaction would actually go through. But the buyer defaulted.) B: Claiming tax credits is so far a headache. But this could be possible (in theory) A: hmm. That is getting really complicated, from a Tax standpoint B: Which is normally why documentation 1 and 2 pricing/agreements separate the payment of the cap gain tax to be for the account of the buyer A: I see. Have you seen the actual documentation, and cases where it went thru the BIR? Second question: Are there specialized brokers handling the sales transactions involving Seller Finance? Obviously, the reason to do this is to get the Seller a higher price, so the agent needs to find those Buyers who actually need the seller finance (this may be MANY FILIPINOS), and are willing to pay a somewhat higher purchase price to get it. Probably prospective target Buyers might be those who thought about buying New properties, and hesitated when realized New Properties are over-priced, and offer poor, LOW YIELDS. Here the price would be maybe closer to Primary market, but above price of a CASH purchase B: I do not know anyone (specializing in transactions like this) in Makati. But i can ask my contacts in QC if they know anyone A: My own unit that I consider to sell is in Makati. T's unit(s) are near BGC. As you may know, I am a big supporter of local knowledge and business dealings with people who truly understand and know the properties they sell. I am not sure I would be comfortable involving a QC-based broker in a transaction in Makati or BGC, where the broker does not know the neighborhood B: I haven't yet done a deal like this, but I have done some work with a lawyer who has done such transactions. QC based people might know folks who do deals like this in Makati A: i Maybe ask if the Lawyer has selling channels. But remember we need a get a good price to make the extra work, risk and hassle worthwhile. A: I suppose another approach might be to just pay something for sample documentation. And then try to find the Buyers ourselves. (But that might turn out to be mere charity to the lawyers, if nothing happens. haha.) So perhaps not.
  15. SELLER FINANCE DISCUSSION (from a Viber chat) Can Sellers finance their own secondary market Sales? ... How that Viber chat was introduced ... We have two members of our group (perhaps more), who are considering selling their properties at decent (high?) yields and with seller finance. I want to talk about what the Seller finance might look like, and the best way to market these properties. There are also some other related issues, such as WHEN will the Capital Gain tax be paid, and WHEN will the Title be turned over?. The proposed transactions will also have to be documented. What will the documentation look like? The basic concept might be something like the 10-10-10 financing arrangement that our good member N. has mentioned before. But N. and I wonder if the Buyers be willing to wait 10 years for a Title transfer, when the Seller is not a well known Bank. I worry, the BIR may want to invalidate these transactions if they are too slow to close. SELLER FINANCE - a discussion, with: Mr.A and Mr.B A: My examples: + I have a unit that I am considering to sell. I think the buyer can expect to earn a Gross Yield of 8%, and perhaps more. I may be prepared to offer 75-90% “seller” finance for that + Another friend. T, has tried to sell units with a yield in excess of 10%, perhaps as high as 11-12%. Many buyers were interested, but they mostly wanted finance to buy, and they had trouble finding it. So is pondering where it would be easier if the finance, or a portion of it, might come from the Seller. B: Here is my take: Normally a trusted broker is needed for the 10-10-10 arrangement. Especially someone who is known to broker these deals. However this may only be a function of the right marketing In terms of documentation A: WAIT a second, are Buyers willing to wait 10 years for a Title? I: Yes. (Some are.) If they can actually afford to make all the payments There are at least 4 ways to document a transaction like this… (continues)
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