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  • Real Estate Farming: A Powerful Strategy for Real Estate Brokers in the Philippines

    “Just as the farmer carefully selects a fertile tract capable of producing a good crop, so, too, do real estate agents carefully select their fields of endeavor.”

    – Joyce L. Caughman, Author of “Real Estate Prospecting: Strategies for Farming Your Markets”

    By Realttorney®

    Licensed real estate brokers and accredited real estate salespersons in the Philippines are constantly seeking effective strategies to secure real estate listings in a highly competitive market. One such strategy that is used in other countries is real estate farming, otherwise known as geographic farming or simply, “geo-farming“.

    According to author Joyce Caughman, “In the real estate industry the term farming means the cultivation of a specific terrain in the same way that one would work a plot of land: tilling, planting, fertilizing, weeding and finally reaping the harvest of listings and sales.” Ms. Caughman further states that farming is the ideal prospecting vehicle for real estate professionals.

    Geo-farming is a targeted marketing approach where real estate brokers focus their efforts on a specific geographic area to establish themselves as the go-to expert in that area, with the aim of generating leads, securing listings, and ultimately closing deals. In this article, we will explore the importance of geo-farming for real estate brokers in the Philippines, highlighting its benefits, challenges in adoption, and best practices for successful implementation.

    Successful real estate brokers and agents have been farming for years. However, some of them are unaware that they are farming. As far as these professionals are concerned, they are merely aiding or helping the people in their community – no matter how big or small that community is. But, when you think about it, that is the essence of what farming is all about.

    In today’s real estate environment, one cannot be passive and wait for opportunities to find you. The new breed of real estate professionals are social media specialists. They know that attracting prospective clients is key to making the sale. But are they making the correct and strategic moves that will make their real estate business efficient?

    If you want to be an effective and efficient real estate professional in the 2020s you must learn three important skills: (1) how to use content marketing to leverage your personal brand, lead generation, and customer retention; (2) how to become the real estate savant in your market area; and (3) how to simplify your business life using the latest technologies available today.

    Ken Reyhons, the author of the book, Recruiting Sales Associates, says, “It takes a great deal of self-discipline to be successful in real estate – to establish a plan of action, and then follow it to successful completion.” Real estate farming as a strategy to generate leads works because of the cumulative effects of persistence and consistency. It requires an investment of time before you can reap the benefits.

    Real estate farming or geo-farming is simply a systematic way of prospecting. Caughman says, “Prospecting is the key to success in any type of selling. When you farm, you concentrate on your efforts on a specific spot… The farming process ensures the confidence of all who come in contact with the farmer – confidence in their expertise and their concern for the welfare of others.”

    Geo-farming can be a game-changer for real estate brokers in the Philippines for several key reasons:

    1. Establishing Expertise and Building Credibility. By focusing on a specific geographic area, the real estate professional can position themselves as experts in that area. Consistent marketing efforts, including targeted advertising, community involvement, and market updates, can help establish credibility and trust among potential clients. As brokers and salespersons become known as local area experts, they can build a solid reputation and a strong referral network, which can be a significant source of business.

    2. Generating High-Quality Leads. Geo-farming allows real estate professionals to target their marketing efforts to a specific audience – the residents and property owners within the chosen geographic area. This targeted approach can yield higher-quality leads as the broker becomes familiar with the local market and its nuances. By focusing on a specific area, brokers can also tailor their marketing messages and content to resonate with the local community, leading to more meaningful engagement and better lead conversion rates.

    3. Maximizing Marketing Efforts and Budget. Rather than spreading marketing efforts thinly across a wide area, geo-farming enables real estate brokers to concentrate their resources in a smaller, well-defined geographic area. This focused approach can help brokers maximize their marketing efforts and budget, as they can optimize their strategies based on the specific needs and preferences of the local market. This can result in more cost-effective marketing campaigns and better return on investment (ROI).

    4. Building Long-Term Relationships. Geo-farming is not just about short-term gains; it is also about building long-term relationships with the local community. By consistently providing value to the residents and property owners in the targeted area, real estate brokers can foster lasting relationships that can lead to repeat business, referrals, and a solid client base. Building a strong presence in a specific area can also create a sense of loyalty in the community, leading to increased brand recognition and awareness.

    However, while geo-farming can be a highly effective strategy for securing real estate listings by real estate brokers in the Philippines, there are also challenges that need to be considered and addressed for successful adoption by many real estate professionals.

    First is Market Saturation and Competition. In highly competitive real estate markets, especially in urban areas, the chosen geographic area for geo-farming may already be saturated with established real estate brokers and agencies. This can make it challenging for new brokers to break into the market and establish their presence. Overcoming this challenge may require innovative marketing approaches, unique value propositions, and differentiation strategies to stand out from the competition.

    The second is Limited Local Market Knowledge. Geo-farming requires in-depth knowledge of the local market, including property values, trends, demographics, and regulations. For brokers who are not familiar with the chosen geographic area, building this knowledge can be time-consuming and may require significant effort in research, networking, and relationship building. Real estate brokers need to invest in gaining local market intelligence and understanding the specific needs and preferences of the local community to effectively tailor their marketing efforts.

    Third is Consistency and Persistence. Geo-farming is a long-term strategy that requires consistent and persistent efforts over time. It may take months or even years of consistent marketing and engagement to establish a solid presence and build credibility in the chosen geographic area. Real estate brokers need to be patient and committed to their geo-farming efforts, as results may not be immediate. It requires consistent branding, messaging, and outreach to stay top of mind among potential clients in the area.

    Fourth is Resource Allocation. Geo-farming requires dedicated resources, including time, effort, and budget. Real estate brokers need to allocate their resources strategically to effectively implement their geo-farming strategy. This may include investment in targeted advertising, content creation, community involvement, and relationship-building activities. Real estate brokers need to carefully plan and allocate their resources to ensure they can sustain their geo-farming efforts over the long term.

    Finally, Compliance with Regulations. Real estate professionals need to be mindful of the regulatory environment or specific regulatory challenges on both the macro and micro levels when implementing a geo-farming strategy. These challenges can include the following:

    a) Real Estate Service Act (RESA) Compliance: Republic Act No. 9646, also known as RESA, regulates the practice of real estate service in the Philippines. Real estate brokers are required to be licensed and registered with the Professional Regulatory Board for Real Estate Service (PRBRES) under the Professional Regulation Commission (PRC) to legally practice real estate brokerage. Real estate professionals need to ensure that their geo-farming activities comply with the RESA provisions, including proper licensing, registration, and adherence to the Code of Ethics and Responsibilities for Real Estate Service Practitioners. Geo-farming activities need to adhere to these ethical standards, including honesty, integrity, professionalism, and fair dealing with clients and fellow real estate professionals.

    b) Zoning and Land Use Regulations: Local government units (LGUs) in the Philippines have their own zoning and land use regulations, which may affect the type of marketing and advertising activities that real estate brokers can conduct in a specific geographic area. For example, some areas may have restrictions on signage placement or size, which may impact the visibility of geo-farming efforts. Real estate professionals need to be aware of and comply with the zoning and land use regulations in their chosen geographic area to avoid potential legal and regulatory issues.

    3. Data Privacy Regulations: The Philippines has strict data privacy regulations under the Data Privacy Act (DPA) of 2012, which govern the collection, use, and disclosure of personal data. Real estate brokers need to ensure that their geo-farming activities comply with the DPA, especially when collecting and using the personal data of potential clients for marketing purposes. This includes obtaining consent for data collection and use, ensuring data security, and providing options for data subjects to opt out of marketing communications.

    4. Advertising Regulations: The Philippines has specific regulations on advertising for real estate development projects, including the requirement to indicate the real estate broker’s name, license number, and contact details in their marketing materials. Geo-farming activities, such as flyers, postcards, or online ads, need to comply with these advertising regulations to avoid potential penalties or legal issues.

    5. Compliance with Local and National Regulations on Real Estate Project Selling: In addition to the above regulatory challenges, real estate brokers need to comply with other local laws and the rules and regulations of the Department of Human Settlements and Urban Development (DHSUD) that may impact their geo-farming activities. These can include local business permits, taxation, project selling regulations, and other relevant laws and regulations at the local and national levels.

    It’s essential for real estate brokers in the Philippines to be aware of and comply with these regulatory challenges when implementing a geo-farming strategy. Failure to comply with these regulations can result in penalties, legal issues, and reputational damage. Real estate brokers should seek professional legal advice and stay updated with the latest regulatory developments to ensure their geo-farming activities are compliant with the applicable laws and regulations.

    Finally, to overcome the challenges and ensure a successful implementation of a geo-farming strategy, real estate brokers can follow these best practices of real estate professionals in other countries:

    1. Choose the Right Geographic Area. The success of a geo-farming strategy depends on choosing the right geographic area. Real estate professionals need to conduct thorough research and analysis to identify areas with growth potential, high demand, and limited competition. Factors such as property values, trends, demographics, and accessibility should be considered while selecting the target area.

    2. Invest in Local Market Knowledge. Real estate professionals need to invest time and effort in gaining in-depth knowledge of the local market. This may include researching property values, analyzing market trends, understanding the demographics, and networking with local stakeholders. This knowledge will help real estate professionals tailor their marketing efforts, messaging, and services to resonate with the local community.

    3. Develop a Unique Value Proposition. To stand out from the competition, real estate professionals need to develop a unique value proposition for their geo-farming efforts. This may include offering specialized services, unique marketing approaches, or exclusive insights about the local market. A compelling value proposition will differentiate brokers from other competitors and position them as the go-to experts in the chosen geographic area.

    4. Create Consistent Branding and Messaging. Consistent branding and messaging are crucial for successful geo-farming. Brokers need to create a consistent brand identity, including logos, colors, and taglines, that resonates with the local community. They should also develop consistent messaging that highlights their expertise, unique value proposition, and commitment to the local area.

    5. Build Relationships and Engage with the Local Community. Building relationships and engaging with the local community are key to successful geo-farming. Real estate professionals should participate in local events, sponsor community initiatives, and engage in local networking groups to build relationships with residents, property owners, and other stakeholders. This will help brokers establish credibility, gain trust, and foster long-term relationships with potential clients in the area.

    6. Implement Multi-Channel Marketing Campaigns. Real estate professionals should implement multi-channel marketing campaigns to effectively reach potential clients in the chosen geographic area. This may include a combination of digital marketing, such as social media, email marketing, and online advertising, as well as traditional marketing, such as direct mail, print ads, and local publications. A multi-channel approach will ensure maximum visibility and reach among the local audience.

    7. Be Consistent and Persistent. Geo-farming is a long-term strategy that requires consistency and persistence. Real estate professionals need to be committed to their efforts and consistently implement their marketing strategies over time. This may require consistent branding, messaging, and outreach to stay top of mind among potential clients in the chosen geographic area. Real estate professionals should regularly evaluate their marketing efforts, track their results, and make necessary adjustments to optimize their geo-farming strategy.

    In conclusion, geo-farming is a powerful marketing strategy for real estate brokers in the Philippines to secure real estate listings and build a strong presence in a specific geographic area. By targeting a specific neighborhood or community, real estate brokers can establish themselves as local experts, build trust, and gain credibility among potential clients. However, geo-farming also comes with its challenges, including competition, consistency, resource allocation, compliance with regulations, and the need for a unique value proposition.

    Despite these challenges, real estate professionals can overcome them by following best practices such as choosing the right geographic area, investing in local market knowledge, developing a unique value proposition, creating consistent branding and messaging, building relationships and engaging with the local community, implementing multi-channel marketing campaigns, and being consistent and persistent in their efforts.

    In today’s highly competitive real estate market, having a strategic and effective marketing plan is essential for success. Geo-farming offers a targeted and focused approach for real estate brokers in the Philippines to establish their presence, increased visibility, higher brand awareness, a strong referral network, gain trust, and generate more real estate listings and closed transactions in a specific geographic area.

    Yet, it’s important to note that geo-farming is a long-term strategy that requires patience, consistency, and dedication. Real estate brokers need to invest time, effort, and resources to establish their presence and build relationships with potential clients in their chosen geographic area to grow their business in the ever-changing and dynamic real estate industry in the Philippines.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is a Chartered Trust and Estate Planning (CTEP®) professional who is committed to educating Filipinos about the value and importance of having an estate plan in their lives.

  • From Goals to Growth: The Ultimate Real Estate Prosperity Plan

    “Your income and comfort zone are connected. If you want to earn more, you can’t just do the easy stuff.”

    – Tom Ferry, #1 Real Estate Coach, NY Times Bestselling Author & Speaker

    By Realttorney®

    If you are a new real estate broker who recently passed the 2023 Real Estate Licensure Examination last April 16, 2023, you may want to read and bookmark this article. This is an important resource for you. But, before we continue, let me congratulate all 581 Board Passers. God bless you in your journey as a licensed real estate broker in the Philippines.

    Real estate is one of the most lucrative industries in the world and for good reason. It truly offers a plethora of opportunities for licensed real estate brokers and accredited salespersons to earn massive amounts of wealth, but only if they have a solid plan in place.

    If you are a real estate broker or a salesperson, you know definitely know how challenging and rewarding this profession can be. You have the opportunity to help people find their dream homes, negotiate the best deals, and earn a substantial income. However, you also face a lot of competition, market fluctuations, and client expectations.

    As real estate service practitioners, brokers, and salespersons are always looking for ways to improve their business and achieve long-term success. So, how can you stand out from the crowd and achieve lasting success in this industry?

    The answer is simple: you need a plan. A plan that will guide you from setting your goals to growing your business. A plan that will help you overcome obstacles, leverage opportunities, and create value for your clients. A plan that will inspire you and motivate you to reach your full potential.

    In this article, we will share with you the ultimate real estate prosperity plan that will transform your career and your life. This plan is based on four key pillars: mindset, strategy, action, and results. Each pillar represents a crucial aspect of your journey from goals to growth.

    We will explore each of these pillars in more detail and how they can contribute to creating the ultimate real estate prosperity plan that can help real estate brokers and salespersons young and old alike achieve prosperity in the real estate industry.

    Mindset: The Foundation of Your Success

    The first pillar of your real estate prosperity plan is mindset. Your mindset is the way you think about yourself, your business, and your environment. It determines how you perceive challenges, opportunities, and feedback. It influences how you feel, act, and communicate. It shapes your reality.

    A positive mindset is truly essential for achieving success in any field, but especially in real estate. As a real estate broker, you will encounter many situations that will test your confidence, resilience, and optimism. You will face rejection, criticism, and failure. You will deal with difficult clients, demanding markets, and changing regulations. You will have to balance the challenges and circumstances in your personal and professional life.

    And often that can be overwhelming. Yet, you must prevail, be persistent and not easily give up. Because successful service providers are those who are able to effectively cope with the challenges life throws at them. They get knocked down by life’s hardships. But, they get up, dust themselves and continue their journey to better themselves every single day.

    Also, the great ones are those who turn the hardships in life into learning experiences so that in the future they are able to cope better and faster when confronted with similar situations. They ask “How will I use these lessons to help me grow and improve myself?” The answer lies in your mindset.

    A positive mindset will help you: (1) See challenges as opportunities to learn and grow; (2) Focus on solutions rather than problems; (3) Embrace feedback as a way to improve your skills and services; (4) Celebrate your achievements and appreciate your progress; (5) Maintain a high level of motivation and enthusiasm; and (6) Attract positive people and situations into your life.

    Here are some tips on how you can develop a positive mindset.

    Set clear goals. If you have known this already, we’ll say it once again. Start by setting clear, realistic, and achievable goals for yourself and your business. For real estate brokers, this means determining how much income they want to generate and how many properties they want to sell in a month, quarter, or year.

    These goals should be specific, measurable, and time-bound. It is important to be specific when setting these goals because it will help you stay focused and motivated, and will provide a roadmap for success.

    Is it really that easy to attain success in real estate? Write down specific, measurable, and time-bound goals? Not at all. After writing down your goals (or typing them in an app or Word document) you need to review them daily. Read them and if you need to re-write or re-calibrate your goals then do so.

    The next thing to do is to visualize yourself achieving your goals and feeling happy. This is the fun part. And it involves you being silly and having fun with this process. It is recommended that you visualize your goals using all five of your senses.

    Apart from this daily or weekly visualization exercise, it is crucial that you surround yourself with supportive and inspiring people. People who will push you to be the best in your field. But what if my family members are negative and totally against me being a licensed real estate broker. What will I do? If this is the case then we would recommend that you fill your consciousness with positivity by reading books, listening to podcasts, and watching videos that uplift, inspire and educate you to be a better and more productive member of society.

    What else can you do to keep your mindset positive despite the negative people around you? Do this. Practice gratitude for what you have and what you have accomplished. Smile. Show humility always. Then, reward yourself for your efforts and achievements.

    Strategy: The Blueprint of Your Success

    The second pillar of your real estate prosperity plan is strategy. Your strategy is the way you plan and organize your business activities. It determines how you allocate your resources, prioritize your tasks, and measure your performance. It influences how you market yourself, serve your clients, and generate referrals. It shapes your results for you to review on a regular basis.

    A smart strategy is vital for achieving success in any field, but especially in real estate. As a broker, you need to have a clear vision of what you want to accomplish, how you want to accomplish it, and why you want to accomplish it. You need to have a roadmap that will guide you from where you are to where you want to be. You need to have a system that will help you optimize your time, money, and energy.

    A smart strategy will help you: (1) Define your target market and niche; (2) Identify your unique value proposition and competitive advantage; (3) Develop your personal brand and online presence; (4) Create a marketing plan that attracts and converts leads; (5) Build a loyal client base that trusts and recommends you; (6) Establish a referral network that generates repeat and referral business; (7) Implement a tracking system that monitors your progress and performance; and (8) Adjust your plan as needed based on feedback and results

    As a bonus, here is a great tip. Experts said that the most effective marketing strategies for real estate brokers include social media marketing, email marketing, and networking. When you develop your marketing plan it should be focused on generating leads and attracting potential buyers.

    Now, hand in hand with a great marketing plan is building a strong network. This is another crucial step for success in the real estate service. Why? Because our industry is built on giving the best service we possibly can to our clients, fellow real estate service practitioner, the government, and the general public.

    If you have begun to build your network, here is a pro tip that will help you enhance your efforts even more. Aside from building a network among your peers include other real estate brokers from other service organizations, government officers and employees, and industry professionals such as lawyers, bankers, insurance agents, and financial planners. Having a robust network will make it easier to generate leads, close deals, and access valuable resources.

    We end the discussion on the second pillar by answering the question: How can you create a smart strategy? In the grand scheme of things, here are some tips to consider.

    First, conduct a SWOT analysis of yourself and your business. If you still don’t know it SWOT means – Strengths, Weaknesses, Opportunities, and Threats. Identify and list for each letter what you have within you and your chosen segment of the market.

    Second, research your market and competitors. We would encourage you to learn about the market and your competition by researching their social media presence – websites, and the business model they may have, or to be specific, what type of sales funnel they have set up.

    Third, define your ideal client profile and buyer persona. In the words of online marketers, create an avatar of your ultimate client – OFWs, Tsinoy, millennials, Generation Z, etc. Then you can identify different segments of each of the ones mentioned above.

    Fourth, create a value proposition statement that summarizes what you do, or how you do it, and/or why you do it better than others. The tagline of Realttorney.com is “Solutions to estate and problem ownerships.” That is what we do.

    Fifth, develop a personal website that showcases your skills, services, testimonials, listings, etc. Moreover, use social media platforms such as Facebook, Instagram, LinkedIn, YouTube, and others to promote yourself and engage with prospective clients. And lastly, create valuable content such as blogs, videos, and podcasts and let everybody know that you are a social media Rockstar.

    And, it goes without saying that if you use these online applications, then you have embraced technology as a means to your real estate goals. Technology has revolutionized the real estate industry, and real estate brokers who embrace it are more likely to succeed. This includes using virtual tours, digital marketing strategies, and other tools to streamline the buying and selling process. Embracing technology (such as Artificial Intelligence) can also help real estate brokers reach a wider audience and generate more leads.

    Action: The Fuel to Your Fire

    The third pillar of the prosperity plan for real estate brokers is action. Without action, even the best-laid plans will come to nothing. To achieve long-term success in the real estate industry, it is essential to take consistent action toward your goals.

    One effective way to take action is to focus on building professional relationships with your clients. By building trust and providing value to your clients, you can establish yourself as a trusted advisor in the real estate industry. And, how do you build trust? Provide exceptional customer service.

    Providing exceptional customer service is another key factor in achieving success in the real estate industry. This means being responsive to client’s needs, providing timely updates, and going above and beyond to ensure their satisfaction. Happy clients are more likely to refer their friends and family to the real estate broker, which can lead to even more business.

    Results: Measuring Your Metrics

    The fourth and final pillar of the prosperity plan for real estate brokers is results. Results are the ultimate measure of success in the real estate industry. To achieve long-term success, it is important to track your progress and measure your results against your goals. Do this on a quarterly basis at the minimum.

    One effective way to track your progress is to focus on your metrics – number of monthly or quarterly sales, gross commission income, number of listing secured, number of satisfied clients, etc. If progress becomes stagnant then calibrate your goals or focus on achieving new goals for your business and professional self. This will help you stay focused and motivated as you work towards your objectives.

    You should also be willing to take risks and try new things, as this can help you stay ahead of the competition. By regularly reviewing your progress, you can identify areas where you need to improve and make adjustments to your strategy and improve yourself even.

    How do you improve yourself often? Invest in your self-education.

    The real estate industry is constantly evolving, which means that real estate brokers must stay up-to-date on the latest trends, laws, and regulations. Investing in continuing education through courses, workshops, and seminars can help real estate brokers stay ahead of the curve and provide the best possible service to their clients.

    Finally, in combination with measuring your results, it is equally important for real estate brokers to focus on growth. This means continually expanding your network and investing in new technologies and marketing strategies. By focusing on growth as well, real estate brokers can achieve long-term success in the industry and reach their full potential sooner, rather than later.

    As an ending, the prosperity plan is a framework that can help real estate brokers achieve long-term success in the real estate industry. By cultivating a positive mindset, developing a well-thought-out strategy, taking consistent action, and measuring your results, you can achieve your goals and build a thriving real estate business.

    And, remember, the ultimate real estate prosperity plan involves setting clear goals, developing a marketing plan, building a strong network, providing exceptional customer service, investing in continuing education, embracing technology, and focusing on growth, among others. By following these strategies, real estate brokers young and old alike can achieve their financial goals and achieve long-term success in the industry.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is a Chartered Trust and Estate Planning (CTEP®) professional who is committed to educating Filipinos about the value and importance of having an estate plan in their lives.

  • The Evolving Real Estate Industry in the Philippines: 5 Ways for Brokers and Sales Agents to Stay Ahead

    “Your income and comfort zone are connected. If you want to earn more, you can’t just do the easy stuff.”

    – Tom Ferry, #1 Real Estate Coach, NY Times Bestselling Author & Speaker

    By Realttorney®

    If you are a licensed real estate broker or an accredited real estate salesperson, you know definitely know how challenging and rewarding this profession can be. You have the opportunity to help people find their dream homes, negotiate the best deals, and earn a substantial income. However, you also face a lot of competition, market fluctuations, and client expectations.

    While traditional roles in the industry such as real estate sales and leasing continue to be important, there are many other opportunities for real estate brokers and salespersons to explore. As real estate service practitioners, brokers, and salespersons should always be on the lookout for ways to improve their business and achieve long-term success. So, how can you stand out from the crowd and achieve lasting success in this industry?

    We have to level up. For accredited real estate salespersons, the level up is to become licensed real estate brokers. For the latter, but not exclusive for them, here are some ways to level up and take advantage of the many opportunities in the Philippines real estate industry beyond sales and leasing:

    1. Property management: Real estate brokers and salespersons can expand their services to include property management. Property management involves the day-to-day operations of a property, including maintenance, rent collection, and tenant relations. With the increasing number of properties in the Philippines, there is a growing demand for property management services.

    2. Be a licensed Real Estate Consultant: Of course, if you have the relevant experience as a real estate broker, you can review and take the licensure examination to become a licensed real estate consultant so provide you can provide a full range of consulting services to clients. Consulting services may include market analysis, feasibility studies, and financial analysis. These services are especially valuable to clients who are up-and-coming, as well as, seasoned real estate investors and developers.

    3. Real estate development: Real estate brokers and salespersons can also become involved in real estate development. Real estate development involves the planning and construction of new properties. Real estate brokers and salespersons can use their knowledge of the market to identify opportunities for development and connect investors with developers. Better still if real estate brokers and/or salespersons can themselves be real estate developers… so long as they know all the pertinent regulatory laws and their rules and regulations.

    4. Real estate finance: Real estate brokers and salespersons can also become involved in real estate finance. Real estate finance involves the financing of real estate projects, including mortgages, loans, and other forms of financing. Real estate brokers and salespersons can use their knowledge of the market to connect investors with lenders and other sources of financing. Better still if real estate brokers and/or salespersons can themselves be “hard money” lenders for real estate developers and/or real estate investors.

    5. Real estate education: Real estate brokers and salespersons can also become involved in real estate education. Real estate education entails the training and development of real estate professionals. Real estate brokers and salespersons can share their knowledge and expertise with others by teaching courses or providing mentorship. It is up to the practitioner if they want to apply for accreditation as a “Speaker/Lecturer for Real Estate Training and Seminars, Continuing Professional Development (CPD) and Career Progression and Specialization (CPS) Programs” with the PRC-PRBRES.

    To conclude, real estate brokers and salespersons in the Philippines have many opportunities to expand their services beyond traditional roles in the industry such as real estate sales and leasing. By exploring opportunities in property management, real estate consulting, real estate development, real estate finance, and real estate education, real estate brokers and sales agents can level up and take advantage of the many opportunities in the Philippines’ real estate industry.

    Of course, it takes a lot of planning, and saving up financial resources in order to take the next step and level up to a more profitable career for those real estate service practitioners who are willing to brave it and step out of their comfort zone.

    Image source: https://www.leveluprealtors.com/ [I love this website and it is a source of inspiration for me as a licensed real estate broker.]

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is a Chartered Trust and Estate Planning (CTEP®) professional who is committed to educating Filipinos about the value and importance of having an estate plan in their lives.

  • REMINDERS AS 2022 ROLLS IN

    “By the taxes he pays, a citizen has every right to demand for a good and honest government.”

    – Franklin D. Roosevelt

    By Realttorney

    Portions of the contents of this article were first published 4 days before its 10th year anniversary – January 12, 2012. It is updated to share the same message to all new and old real estate service practitioners (RESPs) – salespersons, brokers, appraisers, government assessors and consultants of their obligations as professionals.

    I wish all licensed RESPs a prosperous and abundant 2022. If we are to believe the “experts” and analysts the real estate industry looks brighter for this year due to the continued vaccination program of government, as the Philippine economy slowly rises up from the pandemic-induced negative growth in 2020.

    The boom in the demand for luxury and mid-income residential projects, both in the vertical and horizontal project, means more opportunities for RESPs earn more income in 2022. So, how do we prepare for a better and prosperous 2022?

    As the New Year is upon us already, I wish to outline some reminders that need to be performed by all old and new licensed RESPs pursuant to Republic Act No 9646 and its Implementing Rules and Regulations (IRR).

    First, in Section 38, Rule IV of the IRR “Real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, Privilege Tax Receipt (PTR) number, AIPO membership and/or receipt number.”

    Therefore, all licensed RESPs should get a PTR. It cost around P300.00 and you can get this at your Office of the Treasurer of your LGU. Just say that you will get a PTR when you stand in front of the transaction window of the Treasurer’s Office of the.

    What must you bring with you when you apply for a PTR? For veteran RESPs, a photocopy or the original of the PTR of the previous year will suffice. For the new salespersons and brokers, you need bring a photocopy of your Certificate of Registration and the PRC ID Card with you.

    It should be noted that the Privilege Tax Receipt mentioned in the IRR is the same as the Professional Tax Receipt mentioned in the Local Government Code. For real estate salespersons, if the PTR is unavailable in your LGU please ask for the Occupational Tax Receipt (OTR).

    Second, if you are already registered with the Bureau of Internal Revenue (BIR) then you should pay your annual registration fee of P500.00 using the BIR Form 0605. You can remit the payment at the BIR Revenue District Office (RDO) that you registered in or at the Authorized Agent Banks of the concerned RDO.

    Now, if you are still not registered with the BIR then you must do so in order to be compliant with the National Internal Revenue Code of 1998, as amended. It is also our obligation to follow the laws of the Philippines as mandated by the Code of Ethics and Responsibilities promulgated in PRBRES Resolution No. 39, Series of 2019. Hence, BIR registration is a must for all licensed RESPs.

    I will quickly outline below, the steps to register with BIR as a self-employed individual (professional):

    STEP 1: Secure and fill up BIR Form 1901 – Application for Registration for Self-Employed and Mixed Income Individuals, Estates/Trusts.

    STEP 2: Submit the same with the following documentary requirements to the RDO having jurisdiction over the place where you hold office – it could be a home office or a commercial office space.

    Documentary Requirements:

    1. Birth certificate (Original and photocopy);
    2. Marriage certificate (Original and photocopy); and
    3. Birth certificate of children (Original and photocopy);

    Other documents for submission, if requested:

    1. Mayor’s Permit (Original and photocopy);
    2. Contract of Lease (if renting);
    3. Title/Tax Declaration & SPA/Affidavit of Consent if the location is not owned by applicant (if not renting); and
    4. Sketch of location.

    STEP 3: Pay the Annual Registration Fee (P500.00) at the Authorized Agent Banks of the concerned RDO.

    STEP 4: Pay Documentary Stamp Tax (DST) [loose DST / BIR Form 2000 for DST on Contract of Lease, etc.). Present proofs of payment upon submission of the documentary requirements.

    STEP 5: Submit requirements for Authority to Print (ATP) and registration of books of accounts.

    Documentary Requirements:

    1. Accomplished BIR Form 1906;
    2. Job order from the printer;
    3. Final and clear sample of receipt and invoices (machine printed);
    4. Photocopy of Taxpayer Identification Number Card; and
    5. Photocopy of BIR Form 0605 (payment of registration fee).

    Book of Accounts:

    1. Cash Receipts;
    2. Cash Disbursement;
    3. Ledger;
    4. Journal;
    5. Subsidiary Sales Journal; and
    6. Subsidiary Purchase Journal [last 2 are additional books for VAT Taxpayer].

    STEP 6: Attend the taxpayer’s initial briefing to be conducted by the RDO concerned for new registrants in order to apprise them of their rights and duties/responsibilities as taxpayers.

    STEP 7: Wait for the RDO to issue the Certificate of Registration (BIR Form 2303) together with the “Ask for Receipt” notice, Authority to Print and Books of Accounts.

    For a more comprehensive discussion on the steps enumerated above including the related revenue issuances promulgated by the BIR and codal references in the National Internal Revenue Code can be found in the BIR website (www.bir.gov.ph).

    A final reminder to all new salespersons and brokers reading this article. The tax code states that “all individuals engaged in trade or business shall accomplish and file the application on or before the commencement of business operation or from the day the first (1st) transaction occurred or within thirty (30) days from the application with the LGU for issuance of Mayor’s Permit/Professional Tax Receipt (PTR), which ever comes earlier.”

    I encourage newly accredited salespersons and newly licensed real estate brokers to register with the BIR. Furthermore, the Code of Ethics and Responsibility mandates all RESP to register with the BIR. In 2005, Atty. Alexander L. Lacson published his book “12 Little Things Every Filipino Can Do To Help Our Country.” You can buy a copy of his book at his website at www.alexlacson.net.

    “PAY YOUR TAXES” is the 10th Little Thing he listed. I quote some portions of what he wrote in pages 75 – 80, which resonates the same message today as if it was written 17 years ago:

    “Of the many duties of a citizen under our Constitution, paying taxes is one of the most crucial. Because taxes are the lifeblood of our government, of our nation.

    “It is what we use to buy the basic textbooks for our millions of children in the country, or to build additional classrooms in public schools nationwide…

    “Taxes are what we use to buy the most basic of medicines, often generic and cheap, that our Department of Health officials distribute to 34 million Filipinos nationwide who live below the poverty line.

    “It is what we use to pay all our government employees nationwide – our soldiers, our policemen, our public school teachers, among many others.

    x     x     x

    “Viewed in this light, the taxes that you and I pay are actually not lost or wasted completely. A substantial portion of the taxes we pay is still put to good use. Because there are many public servants – not only a few or some – who still do their jobs properly. There are many of them, these honest and faithful ones, but maybe many of them are just in the rank and file, like you and me.

    “But they are there. Among the silent many who hold the center and keep our government from falling apart. They are the ones who keep our public institutions intact through storms and scandals, notwithstanding the misguided ambitions and corruption of some of their leaders.

    “It is for this reason that we should continue paying our taxes. The good ones in the government are still good reason for us to continue paying our taxes properly. The challenge for us is just how to increase the number of these good ones in government.

    x     x     x

    “In 2003, P83 Billion was collected from individual income taxes. But 91% of this amount came from salaried workers from the government and private sector, people who have no choice since their income taxes are withheld mandatorily. Only P7 Billion of P83 Billion (or 9%) came from businessmen and professionals like doctors, lawyers, accountants, architects, and dentists, among others.

    x     x     x

    “Can you imagine if our businessmen and professionals pay more income taxes? Or if our government is able to collect 21% this year instead of the 14.1% last year, because we all decided to pay 50% more of taxes this year? This means that our government will have more funds to perform its duties and obligations to the public.

    x     x     x

    “But we have to pay our taxes properly. Because we all live in the same country. Because this government, whether we like it or not, is our government. Its cost is a burden we must all share. The task of building this nation is a task that we all must share. We all must contribute to build this kind of nation we dream for ourselves. Each one of us has a role in it. Each one of us has a responsibility to it.”

    Third, and final reminder, concerns real estate salespersons and brokers who engage in project selling. If it is your cup of tea to sell subdivision and condominium projects then you are mandated by Presidential Decree No. 957 to register with the Department of Human Settlements and Urban Development (DHSUD), pursuant to existing rules and regulations.

    Similar to securing a PTR, the Certificate of Registration must be renewed annually. You can apply at the Main office of DHSUD in Quezon City or at its Regional Offices nearest you place of residence. For licensed real estate brokers wanting to do project selling for the first time or those who are renewing their certificate of registration, kindly prepare for submission the following: (1) photocopy of your PRC ID Card, Certificate of Registration from PRC; (2) previous year’s Official Receipt; (3) recent 2 X 2 ID picture; and (4) surety/cash bond. If you are lucky to have been issued an ID Card by DHSUD then a copy of it can also be submitted. The registration fee is P720.00 if renewed prior to expiration.

    Meanwhile, for newly accredited salespersons or those wanting to renew, you need to submit the following: (1) duly accomplished application form – which can be downloaded from the DHSUD website; (2) recent 2 X 2 ID picture; (3) copy of the PRC-issued accreditation card, or PRC-issued O.R. or the claim stub; (4) cash/surety bond; and (5) the Letter of Engagement/Employer for the Broker with these attachments – copies of the PRC ID card of the broker, the DHSUD ID card and the listing of accredited salespersons from PRC under the broker’s name. The registration fee is P288.00 if renewed prior to expiration.

    I hope this is useful to you all as we welcome 2022. Happy New Year once again.

  • THE FINAL STEP: PREPARE A BUSINESS PLAN

    “Plan carefully and you will have plenty; if you act too quickly, you will never have enough.”

     – Proverbs 21:5, Good News Bible [Today’s English Version]

    By Ernesto C. Perez II

    You would think that having a creative and distinguished business name as well as an appropriate business vehicle chosen will bring us one step closer to registering our business with DTI and BIR.

    Unfortunately, we still have one more step to go. It is a long process but a necessary step to take. The next step is writing a business plan.

    You may think that preparing a business plan doesn’t apply to you because of the experience you have in the brokerage business. But for those who are still new and inexperienced or those who are engaged full-time because this is the only source of income they have then preparing and having a business plan is essential.

    I am not experienced in preparing business plans. In fact, I have several ventures that have failed mainly because of the lack of such a plan.

    There are numerous websites that guide you through the preparation of a business plan. You can hire a professional to assist you in preparing one. No matter what method you choose the important thing is to make a plan that is thoroughly researched.

    A final note if you will permit me. In the book of Donald Trump and Robert Kiyosaki entitled “Mida’s Touch: Why Some Entrepreneurs Get Rich And Why Most Don’t” they discussed their failures and how they learned from their numerous failures that made them succeed.

    In preparing your business plan, I would suggest that you plan to fail. This is not to say that you have to set small goals for yourself.

    By all means, think big! Plan for your outright success. But temper it with the knowledge that the best laid-out plan does not usually go according to what is written.

    There will be numerous bumps on the road. I am still on the bumpy part. Therefore, plan to make adjustments so that you will not be heavily frustrated when things do not happen as planned.

    Facing disappointments and experiencing failures when you thought you have covered all bases is the worst feeling of all. I am well acquainted with such failures and disappointments.

    You need a business plan that is flexible to give you room to adjust your goals accordingly and know what to do when faced with adversities. Once you have made your business plan you are now ready to register your business.

    I have outlined what requirements are needed when you are ready to register your business with the various agencies of the local and national government. You can read it in my previous post.

    Best of luck to everyone. Kung Hei Fat Choi!!