How To Make Money From Condotel Investing? (Part 1)
By Marvin Germo
December 12, 2020
I love investing.
It’s not just for what I could get after making a series of correct decisions, but the rush I feel when I see what I have planted grow and work massively hard for me. After all, that’s what investing is. It gives you the option and the ability to live the life that you want, when you want. Investing is never about the money for me, but it is about having the chance to live life on your own terms. Investing will allow you to have assets work hard for you so that you have the option to retire and live comfortably when you want.
My style for investing is divided between two genres:
I love capital appreciation for my growth investments, because they give me the ability to see long term growth.
I love cash flow for my other investments because they give me the ability to predict and forecast my income repeatedly.
However, the greatest sweet spot is if you could have an asset that could give you both capital appreciation for long term growth, and cash flow for immediate needs.
For those who are new to the world of investing: basically, capital appreciation means that you buy an asset relatively low and see its value go up over a stretched period of time. You make money when you sell your asset at a higher price. Buy low, wait, and sell high. The only way for you to benefit though from this later on is when you decide to sell it at a higher price. Otherwise, you are just gaining money on paper or what we call a “paper gain.”
Cash flow on the other hand, is when you do not have to wait for a long period of time to get a return on your investment. A cash flow investment is something that will give you income right away, and it is something that you can receive as long as you are holding the asset.
In this article, I plan to share two assets that could give you that investing sweet spot.
Dividend Paying Stocks
For those who have been following me for quite some time, you do know I have been a fan of buying dividend paying stocks because these types of stocks can give you a return through cash dividends. As long as the company remains fundamentally sound and you hold on to the stocks long enough, you get to see the stock price grow over time and earn from capital appreciation.
What I want to introduce to you in this post is the ability to get both capital appreciation and cash flow via condotel investing.
I love dividend stocks because instead of starting my own fast-food chain, which includes the hustle and bustle of leading people, marketing, customer service, sales, logistics and so much more, I could just buy a stock of a fast-food chain that gives dividends and hold on to it for a long period of time and earn. It allows me to ride the growth of the investment without the stress of running a business.
Condotel investing is similar to dividend stocks. I get to skip all the hassle that comes with traditional condominium ownership: such as buying a unit and setting it up, marketing it so I get a tenant, and taking care of concerns such as complaints and repairs.
With condotel investing, the property comes with a condominium certificate of title and is professionally managed and run like a hotel, so I get a share of the revenue along the way.
One of the newest condotels that is sweeping the country by storm is Hotel 101. For those who have not heard about Hotel 101, it is developed by Hotel of Asia Inc., a subsidiary of listed company DoubleDragon Properties Corp., founded by one of the best entrepreneurs in this era, Injap Sia.
The Power Of Passive Condotel Investing For Overseas Filipinos
I have seen firsthand how overseas Filipinos have taken advantage of this and have bought Hotel 101 units in the Bay Area over the past few years. This has worked wonders for them as prices in the Bay Area have gone up massively throughout the years, but that’s not all. Since Hotel 101 is operated as a hotel, they get to have 30% of the gross room revenues that the hotel gets, split among all the unit owners equally. This gives them passive income while they are abroad without the need to manage the day to day concerns of their units. Hotel 101 condotel investing gives them the ability to focus on their jobs while developing a new asset class that will be working hard for them.
Original article: https://marvingermo.com/how-to-make-money-from-condotel-investing/