1. Subleasing, Hotel Investing & Other Rental Opportunities
Hi I’m Nica Masilang. Thank you TGFI for hosting this webinar. Ok lang ba magkwento muna ako para mawala ang kaba ko?
When Floi asked me to share in a webinar – he asked me for any of my life’s masterpieces – wow life masterpiece – big words – hehehe. Sabi ko sa kanya I can talk about Personal Finance for Families, I recently got married and I learned that marami palang changes in dynamics ang single at ang married. Sabi ko pa I can talk about nerdy stuff like Mathematics of Investment, mahilig naman ako sa Math kaya carry ko yun. Sagot ni Floi, maganda raw mga topics ko pero kung Math daw ang ituturo ko baka walang pumunta, haha. Ok fair enough  Kaya I stick to a real estate topic.
For those of you who have not heard my story yet, I used to be an OFW just like you. I worked in Singapore as an IT Professional in a European Investment Bank. In 2008, I almost lost my job to the global recession – yung US Subprime crisis – and that jolted me to do something and create another source of income. Kasi iniisip ko nun, if anything bad happens to me or I lose my job, paano na ang pamilya ko sa Pilipinas? So after paying off the huge debt that my family incurred nung nagsara negosyo ng parents ko, I invested in some real estate properties habang nasa Singapore ako for 4 years. The rental income became the primary source of income for my family back home. At hindi na umasa ang family ko sa akin for their daily needs.
I decided to come home to the Philippines for good to jump into full-time entrepreneurship. When finally back home, another challenge came up, my parents are ageing na and they need funds for their maintenance medicines. The dilemma was I wanted to preserve any savings I have for my future family… Pero I felt it would give me peace of mind to see my parents in good condition before having a family of my own. And when I got married, I want to spend more time with my husband and future kids.
The answers came, as you know, in the form of Real Estate. For my ageing parents, subleasing was my solution. For family of my own, hotel investing became my answer.
Friends, I won’t claim that I know everything there is about the property rental business. What I will share to you are what I learned in my limited experience. Also, I’m grateful that this year, I passed the Licensure Exam for Real Estate Brokers and not only did I pass, I became a top-notcher in the Licensure Exam for Real Estate Appraisers so trust that I’m also going to share you to what I learned from there.
Shall we start, are you ready to learn?
What You Need To Know
By Nica Masilang TGFI July 29, 2016

2. Real Estate Rental Opportunities
Ground Lease
Property Lease
Subleasing
Retail Leasing
(Hotel)
Real Estate Rental Opportunities

3. Subleasing

4. Original Tenant = Leases to Another Tenant = Sublessor
What is Subleasing?
Property
Owner = Lessor
Original Tenant = Leases to Another Tenant = Sublessor
New Tenant =
Sublessee

5. Which option is better for rental?
Buying the property
Subleasing the property
Which option is better for rental?

6. Buy a property for rental if you want a portfolio of passive income-generating assets

7. Buying a property for rental
Pros
Hedge from inflation
Lessor owns all additions to the property
Capital appreciation when property is sold
Cons
High capital to start
Pay interest if property is bought thru loan
Property maintenance cost

8. Sublease a property for rental if you have property management skill and want to earn from this

9. Subleasing a property for rental
Pros
Low capital to start
The longer the rental contract, the more you can haggle for lower monthly rent
Cons
Limited control over property
Lessor owns all additions to the property
Zero value when rental contract ends

10. sublease a property for rental?
Have you decided to
buy a property or
sublease a property for rental?

11. How To Be A
Lessor
To A Sublessor

12. Original Tenant = Leases to Another Tenant = Sublessor
Subleasing
Property
Owner = Lessor
Original Tenant = Leases to Another Tenant = Sublessor
New Tenant =
Sublessee

13. Lessor

14. How To Be A Lessor To A Sublessor
1. List down terms & conditions to tenant
limits of use
duration of rental contract
what property repairs/maintenance should be shouldered by whom

15. How To Be A Lessor To A Sublessor
2. Understand that you are leasing the property as wholesale
5 years or more = stable rental income = NO headache
Fixed Lease vs Percentage Lease

16. In Percentage Lease,
Lessor gets higher rent as Sublessor’s business picks up

17. How To Be A Lessor To A Sublessor
3. Invest in good relationship with sublessor
The Sublessor is your business partner
Good business for the sublessor means good business for you

18. How To Be A
Sublessor

19. Original Tenant = Leases to Another Tenant = Sublessor
Subleasing
Property
Owner = Lessor
Original Tenant = Leases to Another Tenant = Sublessor
New Tenant =
Sublessee

20. Sublessor

21. How To Be A Sublessor Adopt an entrepreneurial mindset
Think of ways how to squeeze more earnings and reduce expenses
Compute for how many units to lease to new tenants to breakeven

22. How To Be A Sublessor
2. Be open to the joys and challenges of property management
Decorate a space and see the new tenants enjoy the space you created
Property management is a 24- hour job

23. How To Be A Sublessor
3. Invest in good relationship with Lessor and New Tenant
With the Lessor
Be upfront with purpose of renting
Ask permission to renovate if you need to
Regularly meet with lessor to know about future plans for the property

24. How To Be A Sublessor
3. Invest in good relationship with Lessor and New Tenant
With the New Tenant/s
Happy tenants means good business to you

25. Being A Lessor To A Sublessor
Being A Sublessor
Is Subleasing for you?

26. Being A Lessor To A Sublessor
Stable Income
Earns Passive Income
No Headache
Being A Sublessor
Income depends on performance of business
Earns Active Income
Enjoys the challenges of running a business
A plain old bulleted list can get boring, so use graphics to liven it up. An image that conveys what you’re saying in visual format (like this diagram) can reinforce your ideas in the audience’s mind.

27. Hotel Investing

28. What is Hotel Investing?
Condo+Hotel Unit
Owner
Hotel Management
Hotel Guest

29. Hotel Investing Pros Cons Tangible & solid asset Prime location
Recurring Passive income
Worry-free investment
Free stay in the hotel
Capital appreciation when condo+hotel unit is sold
Cons
Hotel management cost
Long-term contract with hotel management

30. What You Need To Ask A Hotel Management
Track record
Hotel furnishings included in unit
How income is split between unit owners
Expenses deducted before income is distributed to unit owners
Buy-back option

31. Nica Masilang