Real Estate Business Plan

Mission Statement

I believe that people have the means to free themselves from the 9-to-5 grind with the right attitude
and access to the right resources. I want to be a living embodiment of the Financially Independent Retire
Early in the Philippines by using real estate as a means to improve my financially well-being and
accelerate my path to freedom while also helping others have quality rental properties.

I believe people should have a place to call their own. One own home is a stake of one’s freedom in this
world. In the process, I am building up my assets so I can have my own home and be able to build and
rent out homes for other people.

Goals

To be financially independent for me is to be able to live the life I want without having the need to work.
I believe having at least a monthly passive income of 150,000 PHP at 2019 money value is a good goal to
achieve financial independence.

I hope to retire within 10 years (2029). From 2019-2022, I want to have my first rental property. By 2025
I hope I would be able to at least have enough passive income to fund my own lifestyle as a single
person. By 2034, I hope to have at least 30 rental properties that will allow me to reach my FIRE goals
and still expand to grow. I hope to be able to build and expand our real estate holdings as a family and
build a future base of real estate assets so generations of the Victorino family will be financially
independent.

Period Number of Rentals Estimated Monthly Positive

Cashflow in PHP
2019-2022 1 20,000
2025 3 60,000
2034 30 150,000

Strategy
I want to be able to buy and hold earning properties and accelerate the growth through time. I will use
the proceeds from the rent to fund my lifestyle and grow my holdings while owning the equity over time
to increase its value. This two pronged approach with an anti-fragile management of risk can help me
achieve my goals faster and safer.

I think the strategy to start is to have a high savings rate then use those savings to gradually invest and
develop the properties already owned by my family.

Market

I believe I would start first with residential units preferably in the Marikina/ Antipolo area for
accessibility and understanding of my market. I think doing this will allow me to eventually be more
prepared for handling our future rental properties.

As of writing what appeals to me are small townhouses and apartments. Maybe I can house-hack one of
them to help in my FIRE journey.

Criteria
Loan-to-value: Max at 25%

Cash-flow-requirements: Should adhere to 1% rule, at least 1% of total property value

Max Purchase Price: I will buy with a 30% discount. I will use the 70% rule. Buy things below market or
assessed value inclusive of all repair expenses. The will not buy anything I cannot buy in cash at 75% of
the total value.

Max Rehab costs: Assuming a property rehab fits the 70% rule, I will not exceed 20% of that 70% in
rehab costs. E.g. If a property I bought is worth 70,000 USD and true market value is 100,000 USD, I will
not rehab it for more than 20,000 USD.