Controlled The Property For PhP 50K; Sold In 7 Days!

January 22, 2008

FINALLY, I have CLOSED this transaction just today!

This is my 8th property which is now under my control using Php 50K ONLY. The property's market value is Php 1.6M.

The property is foreclosed by a rural bank, but under redemption period. The total loan plus penalties has amounted to Php 800K but I negotiated it to be lowered down to Php 600K and the bank gave in. I had used leverage of investment debt to pay the rural bank.
After redeeming the property, we executed the Deed of Absolute Sale by a notarial act after paying Php 50K to the owner. We have also executed a COMPROMISE AGREEMENT by a notarial act also, stating that the former owner shall move-out from the house on or before February 13, 2008. I already got the TCT of the property.

To sell this fast, I will sell the property below market value. I will sell it for only Php 1.298M; Php 200K DP Lipat Agad! The After Repair Value (ARV) of the property is PhP 2M.

February 20, 2008

SOLD IN 7 DAYS!

February 13, 2008- Eviction of the Former Owner
February 17, 2008- Mobilization for Rectification/Repainting
February 20, 2008 (TODAY)- SOLD to a Hungry Tenant Buyer

She is a "Hungry Tenant Buyer" because she bought the property despite termite infestation. Unit's rectification is not net yet finished.

SOLD at PhP 1.298M, the price I dictated! No further negotiations.

Gross Profit = Total Selling Price - Acquisition Cost - Repair Cost
                     = PhP 1,298,000.00 - 650,000 - 70,000.00

                     = PhP 578,000 (Not bad for a 7-day deal!)

Seeking An Advice

Problem:

Hello everyone 
I'm hoping I can get help/advice here even though I'm just a new member...

I'm starting in real estate biz (buy-and-sell properties po). I just bought my first property (house and lot) this January. Now, a buyer is really interested in the property. Here's his proposal:
1) He will pay me 30% of the amount of the property.
2) Yung 70% ay iba-bank loan daw.
3) Pero ang maglo-loan is me, the seller  . All documents such as Income Statements are mine. In effect, I'd have a bank-loan against my property. I'm not even sure what type of loan should I apply for this.
4) He will issue checks for amortizations.

Here are my questions sana:
1) What could be the risks/sakit-ng-ulo in the said setup?
2) Should I already issue him a Deed of Absolute Sale upon payment of 30% downpayment?

The buyer is an OFW (seaman). The reason why he doesn't want to apply for the loan himself is that his requirements might not be complete.

Sana may magbigay ng opinions saken...somebody, anybody please...

Thanks very very much po 

Bigcheese

Advice:

Let's make a clear picture regarding the inquiry of bigsheese through this example:

Let's say bigcheese has acquired the property for only Php 1M and plans to resell it for Php 1.7M.

Php 700K is target gross income, let's say.

Here comes the buyer, a seaman, who is willing to pay the 30% of Php 1.7M which is equal to Php 510K.

Bigcheese should do her task carefully, studying the capacity to pay of the buyer and requiring all the needed income documents. She did the work like a strict loan officer of the bank. She found out that the buyer has a PASSING CREDIT SCORE.

Bigcheese agreed but the condition is that they will execute a Contract To Sell. The balance of Php 1.19M shall be payable in 10 years. Interest rate of this rent-to-own scheme shall be 18% per annum. Monthly amortization of the buyer will now be Php 21,442.04. Post-dated checks shall be issued to Bigcheese. There are provisions in the contract at her own advantage such as all payments made and all costs of improvement are not refundable. There shall be a 10% penalty per month for late payments. Contract shall be rescind after two consecutive non-payment of monthly amortizations. Bigcheese's lawyer has carefully drafted the contract.

Bigcheese has applied for a real estate mortgage to her favorite  bank and as a valued client, she got a loan approval of Php 1.19M for her property, payable in 10 years with fixed interest of 10% per annum. Her monthly amortization is equal to Php 15, 725.94.

After the loan release, bigcheese has now acquired her capital gains in full, which is Php 700K. (Php 510 DP of the seaman plus Php 1.19M loan release less the acquisition cost of Php 1M) Bank charges and processing fees shall be shouldered by the buyer.

Bigcheese, after earning Php 700K, still gains a passive income of Php 5,716.10 for ten years (Php 21,442.04 less Php 15,725.94). Real estate taxes and insurances shall be charged to the buyer.

In case the buyer has failed to pay two months rent (monthly amortization), bigcheese still owns the property. Transfer Certificate of Title (TCT) is still under her name.

Where is the risk? Bigcheese still owns the property. She can still resell it in case the Contract To Sell was rescind due to non-payment of the buyer.

As I always say, you cannot be a true real estate investor if you will not overcome FEAR.

F-alse
E-xpectations
A-ppearing
R-eal

Bigcheese, using her capital gains of Php 700k can buy another property, repeat the process like a cycle.

CONCLUSION: Proceed with the transaction (if it is like the given example above).

Rent-To-Own Scheme: A Risky Option?

In any business, there are risks. You just have to know how to manage the risks involved. You have to know how to go out of the door also.

I am also in a Lending Business and I found real estate investing through "rent-to-own scheme" more secure. It is almost the same as lending money being your property as a secured loan collateral.

As I always say, if you are strict in screening your tenant-buyers, the risks involved can easily be managed. "Rent-To-Own Scheme" is the same as the "In-House Financing" offered by real estate developers in selling their real estate inventories. This is the fastest way in selling properties because not everybody can afford to pay in full (spot cash payment). In case of non-payment of your tenant-buyers, the exit solution is just a rescission of the contract due to non-payment of monthly rent/ monthly amortization. I don't see any risks if proper procedure is being done.

I am also doing flipping of property. I also transferred some of my tenant-buyers from "rent-to-own" scheme to bank financing receiving all my capital gains in full. Where are the risks involved now? It is just a matter of strategy on how you will dispose your property fast.

I am not a real estate guru. I have learned all of these on the streets only. I have learned from failures also and I found those failures more valuable than my triumphs. I believe that the education you received in school is important but the the education you received on the street is even better.

My 1.2M deal in 8 days by Etten

Sharing my favorite real estate success story:

January 16, 2008

Monday:  a bank called me offering their property in Bulacan area. (Adjacent to our lot.) He said this property which he presented to me 2 years ago costing 1.2M went down already. the offer: 900K, 10% DP, 18+K a month for 5 years. My previous offer for this property: 500K. Well, you'll never know, they might give in. The bank said this offer is only good until January 15, 2008. I said I’ll call them when I’m ready.

Wednesday: my sister informed me that there’s a buyer interested in the property. My mind juggled at the idea. 

Thursday: I forgot about the whole thing!

Friday:  I got the buyers contact number and made a deal. Offered the property for 3M but they insisted 2M. I asked do they have available cash now. They said they have 1M. I required 50% DP, and to my amazement they agreed!  Friday night, to see if they’re serious buyers, I asked for earnest money while I prepare for the CTS, and they gave 20K, 

Saturday: We met, they gave the 1M DP. 50% balance payable on last week of February. I drafted the CTS which we both signed. The buyer is balikbayan, married to a foreigner.

Sunday: We ate out, 

Monday: morning I called the bank, but the officer is not yet in. I had to ask for his cell number just to make sure he reports to the office. When I talked to him, I asked if I am to buy the property, is the 900k still negotiable? He said no, that is the last price he can give me, but then I asked what if I pay in cash? Then he said “Let’s talk when I get to the office at 11 am.”

With the money in my bag, I asked my mom (a very good negotiator) to come with me. We went to the bank at 11 am. The Manager is there, together with the President/CEO. We shook hands, and sat down at the conference room. Discussed a little, then I asked the 1 million peso question, “What is your final offer?” they showed me the flyer for the last November auction, the property I was about to buy was listed there, but no taker. PRICE: P857K and they said that is their last offer.
My mind was working again, (with the cold cash in my hand, I have the upper hand. )
So I said, if the property was auctioned and there’s no taker, it means we can make an offer lower than the bid price. The officers looked at each other, probably caught off guard. Then they said, yeah but probably very little would be discounted only.
Their last offer: P850K. I said let’s discount the 3% commission of the auction managers, since the property was offered in the auction. Again, the President smiled and said that’s about 24.5K, they said ok. Then my mom suddenly insisted on closing it to P800K saying the money we are about to give is hard earned money. Well, we still haggled for another hour, and then the President said, “Let’s prepare the Deed of Sale.” The deal is closed at P800K! That same day, I got the Title.

Tuesday: I went to the buyer, let her sign the Deed of Sale because the next morning she’s about to leave the country again. She’ll have the balance wired to her son.


Unbelievable story huh? I thought so too, but I so I looooooooovvveee the feeling, and it is true,

Question and Answer: Before and After Auction

Excerpts from the answers of the blogger a.k.a. Kuskos-Balungos and Etten of Entrepreneur.com.ph Forum:

Before going to the auction:
1. Site Visit is allowed? Will they tour you around (the bank)?

yes, site visits are allowed. this will let you assess the property yourself if it's worth the price quoted. other banks provide agents to tour you around, others do not

2. Other things to consider
you have to make a survey either through internet or the vicinity, if the property is saleable or not. if it has good potential or a future headache.

3. How do you appraise the property yourself for structural damages etc. Will the bank give you a building survey report/valuations? What structural/other damages of the property should we turn our back on? leaks, cracks etc...

based on my experience, we were able to assess the property thru occular inspection only which is not really reliable. if this is the only way, better to assume that leaks and cracks are existing among other worst things to consider. example clogged drainage? or termite infestation. for structural damages,better if you hire an experienced engineer who you can trust.

bank will not provide valuations, but sometimes agents give you tips.

5. What other property related issues should we avoid - occupied by squatters etc...
occupants is one major factor that you will have to consider. this will definitely cost you. also i veer away from former owners who are occupants for humanitarian reason.   

6. It seems that cheaper properties would be the best range to market particularly they are in most need of rent to own/lipat agad scheme. What would be the best selling price range?

i remember KB saying middle income earners are the best target market. best selling price is 1.5 to 3M.



During and after the Auction:

1. Can you really negotiate with the other bidders to avoid any bid war? is this legal?

yes, this can be done. unless it is stipulated in the pre-bid contract that it's not allowed. though i heard rumors that bank themselves get dummy bidders to increase bid value, this you also have to take note of.

2. I gather it's 20%DP to allow you to take over the property for development. What are the other expenses/bank charges to consider either in value or in percentage of the property.

some banks charge real estate tax and attorney's fees for the notary of contract other banks don't.

3. What documents are needed from me, the seller and the bank that needed to be presented, signed and handed over to each parties.

during the auction: bank will ask you to bring 25k for deposit if you win the auction. award certificate will be given to you by the bank if you win the auction.

after the auction: bank will give you contract to sell, after you have completed the 20% DP, among other requirements.

4. How long before you can acquire the property, market it and start the refurbishment.

depends on the bank, how long they finalize documents. though once you've completed the 20% DP, you can already start refurbishing. you just ask certification from the bank allowing you to occupy property.

5. I gather that both of you are in the construction business as well. How do we deal with this when getting the purchased property refurbished? Surely it would cost a lot to hire a builder. How should we deal with this?

our company is into construction business particularly management meaning  we provide consultation and we give advices. yes, it will cost you a lot to hire a builder, so better if everything (contracts) is in order to avoid unnecessary mistakes.

On selling the property:

1. How do you market it?

You can put a tarpoulin: "FORECLOSURE BARGAIN, CALL: XXX" OR "HOUSE AND LOT AT BARGAIN PRICE, CALL: XXX"

Increase commission rate up to 10% to entice more agents to market your property. Just sit down, relax, sip a coffee and wait for a successful transaction. Let the agents do their work.

2. How do you approach an agent/broker to assist you in selling your property?

You don't have to approach them. By word of mouth through competitive commission rate, a very willing agent will surely approach you.

3. Fees involved - is it only when its sold or do they have a listing fee? what percentage is their commission? is the % from profit or from the actual sale?

We give a minimum of 5% of the Total NET Contract Price (Straight-NO TAXES). Net- Meaning, we will deduct the other charges and marketing expenses from the Total Contract Price.

4. How do you assess interested buyers capacity to pay? Other points to consider.

If you can, you can require them to submit bank statement of account. We have devised a form, "Buyer's Information Sheet" indicating questions regarding their sources of income, assets and liabilities and their current Net Worth.


5. It's a bit silly if you don't earn anything. What would be considered a good profit/sale in this market (200,000/sale etc...)? And for what period should we aim to sell the property? I know  it should be as quick as possible but in reality it doesn't happen like this.

Php 200,000.00 is the MINIMUM Net Income per transaction for the properties below Php 1.5M. Php 500,000.00 is the MINIMUM Net Income per transaction for properties below Php 2M. That should be the target.

6. What's the current payment terms available for new housing developments? Just so we know the competitors on the market particularly pag-ibig housing program and similar...

It's 10% Down Payment to Move-In. But DO the MATH first. This is not always viable.

Issues/Action Plan

1. Failure of buyer to pay - bounced cheques

Post-Dated Checks are very essential for this business. Bounced checks are proof of NON-PAYMENT and shall be the reason to exercise your right to RESCIND the Contract To Sell. So, require your Tenant-Buyer to submit post-dated checks for monthly payments or amortization.


How do you tackle this? what's the boundaries. What's your trigger - failed to pay for 3, 6 or 12 months

3 Months of Non-Payment shall be the ground to RESCIND the Contract.

2. Inconsistent - delayed payments/those in arrears, then will try to catch up for a few months and then repeats itself.

Maximum delay of payment shall be 2 months only.

3. What's your penalty charged for delayed payments.

We charge 3-10% penalty for late payments.

4. If the decision had been made to acquire the property from the buyer, how long will this take. I've heard news where properties had been loaned to banks, with the owner in arrears for a year or so but the bank still failed/has yet to acquire the property from the homeowner. Wouldn't this happened to us being a small time without all the resources/connections banks have.

There is a one (1) year redemption period for a foreclosed property. The bank gives opportunity to former owner to redeem the property prior sonsolidating the Title under bank's name.

In case of eviction of your tenant-buyer, remember that your case is different from the bank. The TCT is under your name and NOT your tenant-buyer, thus, eviction process is easier compared to a mortgaged property of a bank.

5. Legal procedures to follow and fees involved.

Study MACEDA Law. I am blessed to have lawyer-friends who give FREE advice. But they are NOT always free.  I have to bring them at Saisaki/Dad's/Kamayan for free dinner.  For the legal fees in case of eviction, set aside a buffer budget of Php 50,000.00 per property.

My First NO MONEY DOWN DEAL!

I will share to you my "NO MONEY DOWN" Deal from a motivated seller.

October 11, 2007

Market Value of the Property: Php 1.4 M
Acquisition Cost: Php 700K (That's 50% OFF the price!) - NOTHING DOWN
Motivated Seller's Reason For Selling: The property will be foreclosed by a private creditor for Php 100K Only.

My Conditions:
1. The seller shall transfer the Title under my name at her own expense. She will shoulder the capital gains, transfer tax and miscellaneous expenses.
2. The seller shall shoulder the agent's commission.
3. When the title is now under my name, I will mortgage the property for Php 700k for a term of 10 years at 10% interest per annum.
4. The seller shall pay for the appraisal fee and bank charges for my loan.
5. The seller shall wait for the release of my loan as my FULL PAYMENT.
6. We will execute RENT-TO-OWN Agreement., being the owner's sister as my new tenant-buyer.
7. MY NEW CONTRACT PRICE: Php 850K, 10 years to pay at 18% interest per annum.
8. The tenant-buyer shall shoulder all the insurances and taxes for 10 years.
9. After completion of payment, the tenant-buyer shall shoulder the capital gains, transfer taxes and other miscellaneous expenses after execution of Deed of Absolute Sale on her favor.
10. NO Repair Cost.

From the above conditions, I owned my 6th real estate property with NO MONEY DOWN earning a passive income of Php 6K per month for 10 years. TRANSACTION CLOSED.

______________________________

After 3 months of good payment record, my tenant failed to pay the monthly amortization on the succeeding 6 consecutive months. The result: My tenant was evicted with NO Refund of payments made. Yes, I had a negative cash flow for 6 months due to non-payment of rent, but I sold the property again to another hungry tenant buyer through rent-to-own at a higher selling price of PhP 1.098M, earning a spot cash gain of Php 109,800 (New Tenant's Down Payment) and earning a higher passive income* of PhP 9K per month for 10 years.


*Monthly Passive Income = Monthly Tenant's Rent - Monthly Payment of Investment Debt

Question: Pag earnest money ba, otomatikong non-refundable?

Answer:

It depends on the reservation and down payment agreement. Mostly, it is non-refundable if the sale will not push through on the agreed set deadline of payment.

Question: Saan po i base ang payment ng capital gains tax kung rent to own? Sa Contract Price (CP) lang ba or sa CP plus yong interes na ipinatong mo sa buyer during his entire years of paying the MA?

Answer:

From the TAX CODE:

Tax Base/Rate for Capital Gains:

There shall be imposed a final tax rate of six percent (6%) based on whichever is higher of the following:

1. The fair market value as determined by the Commissioner (zonal value)
2. The fair market value as shown in the Schedule of Values of the Provincial and City Assessors; or
3. The selling price of the property or the fair market value of the property received in an exchange transaction.

______________________

Since the payment scheme is rent-to-own, capital gains shall be based on the fair market value at the time the Deed of Absolute Sale was executed.

What I am trying to explain here is that the current fair market value of the property at the time the Contract To Sell was executed would not be the same as the fair market value 10 years from now at the time the Deed of Absolute Sale would be executed. It is ofcourse higher.

How true that the tax-capital gains after selling your properties will be waived if the payment will be use also to buy another properties?

True. But, this can only  be done ONCE in a lifetime and the purpose is acquisition. If you have two or more properties, this is NOT applicable.

This is the exerpt from the National Internal Revenue Code (NIRC):

16) Who are conditionally exempt from the payment of Final Capital Gains Tax?

Natural persons who dispose their principal residence, provided that the following criteria are met:


The proceeds of the sale of the principal residence have been fully utilized in acquiring or constructing new principal residence within eighteen (18) calendar months from the date of sale or disposition;

The historical cost or adjusted basis of the real property sold or disposed will be carried over to the new principal residence built or acquired;

The Commissioner has been duly notified, through a prescribed return, within thirty (30) days from the date of sale or disposition of the person’s intention to avail of the tax exemption;

Exemption was availed only once every ten (10) years; and

There is no full utilization of the proceeds of sale or disposition. The portion of the gain presumed to have been realized from the sale or disposition will be subject to Capital Gains Tax.

In case of sale/transfer of principal residence, the Buyer/Transferee shall withhold from the seller and shall deduct from the agreed selling price/consideration the 6% capital gains tax which shall be deposited in cash or manager’s check in interest-bearing account with an Authorized Agent Bank (AAB) under an Escrow Agreement between the concerned Revenue District Officer, the Seller and the Transferee, and the AAB to the effect that the amount so deposited, including its interest yield, shall only be released to such Transferor upon certification by the said RDO that the proceeds of the sale/disposition thereof has, in fact, been utilized in the acquisition or construction of the Seller/Transferor’s new principal residence within eighteen (18) calendar months from date of the said sale or disposition. The date of sale or disposition of a property refers to the date of notarization of the document evidencing the transfer of said property. In general, the term “Escrow” means a scroll, writing or deed, delivered by the grantor, promisor or obligor into the hands of a third person, to be held by the latter until the happening of a contingency or performance of a condition, and then by him delivered to the grantee, promise or obligee.

_____________________

I said once in a lifetime, because exemption can be availed only once every 10 years.

How Do Banks Appraise The Value Of A Real Estate Property?

Banks use "table appraisal". Example, the developer of the property is accredited by the bank, the appraised value is equal to the selling price of the developer. Then, the loan amount will be 80% of the appraised value. (This is applicable only for acquisition loans for NEW house and lot.)

For properties with former owner (OLD house and lot), normally the appraised value is 70% to 90% of the current market value. Get the 70% to 80% of the appraised value to arrive with the approved loan amount. This is a very conservative computation. The bank might increase the amount of the loan depending on the borrower's capacity to pay.

What is a good property investment today?

To define investment, it should be differentiated from buying for “end-use”. If the buyer is an end-user, the property’s main use is for personal or internal-business purposes. On the other hand, investment is primarily for profit from the property by way of leasing, re-selling or entering into a joint development venture. To have an idea of a good property investment, it is imperative to define the criteria of a good property and of a sound investment. Here are some points to consider:

1. Location. A property is deemed desirable mainly due to its location. Typically, corner lots are generally considered better than mid-block lots. Nonetheless, good location for one use, say commercial use, may not be good for another, say residential use. A commercial lot along a national road is very desirable and saleable, while a house along EDSA is generally considered noisy and undesirable. Accessibility and good neighborhood are also points to consider in relation to location. Accessibility is basically proximity to major thoroughfares. Good neighborhood or consistent zoning is basically having similar or complementary land uses in one area. Having a ten-storey condominium project in a subdivision of bungalows would probably annoy residents. It is instructive, therefore, that a buyer should plan what to put up in a property before buying it.

2. Physical Attributes of Property. Apartfrom the proverbial location, location, location, the physical characteristics of a property is paramount. Regular-shaped properties are very desirable. Tumbok lots are avoided. Absence or presence of creek, power lines, big easement for road and drainage may affect the value of a property. If there is improvement, physical and useful ages are factored in.

3. Affordability. This generally include total costs, payments terms and interest rates. More than this, affordability is related to the surroundings of the prospective property. Buying a 1,000 square-meter lot in a subdivision of 100 square-meter houses may be considered ill-advised unless the buyer intends to subdivide the lot and re-sell it.

4. Saleability. The flip-side of affordability. Saleability is normally from the viewpoint of a seller while affordability is from the viewpoint of the buyer. It is also affected by neighboring or zoning.

Now what are the criteria for making a sound investment?

1. Low acquisition cost. When buying a property, the bottom line price is crucial. While the price per square meter may be higher, more people could buy a 100- square meter property worth P5,000 per square meter than a 500 square meter property worth P2,000 per square meter.

2. Potential capital appreciation or increase in value. One may buy a property worth P500,000 with a potential appreciation of 25 per cent in 5 years or a potential profit of P125,000, or one may buy a slightly higher P600,000 property with a potential appreciation of 50 per cent in the same period for a profit of P300,000. Typically, more mature developments have lower but steady capital appreciation while new developments may have higher capital appreciation and higher risks.

3. Minimal development and maintenance costs. These costs also include operating costs, taxes and interest rates of loans, if any. The last major criterion, but definitely not least, is high revenue generated by the property mainly from rent.

In summary, a good property investment has the following attributes: attractive location; acceptable physical conditions of land and improvements; affordability and saleability as compared to surrounding properties; low acquisition and recurring costs, and; high potential for capital appreciation and yield.

Initial Steps In Developing A Raw Land

You need to apply for Certificate of Registration (CR) and license to sell (LS).

You need this in order to do the "PRE-SELLING" prior to land development.

Here are the steps:

FIRST STEP: DENR Application.

SECOND STEP: LGU or Local Government Unit Application
2.1 Barangay Clearance
2.2 Mayor's Permit
2.3 Sanitary Permit
2.4 Preliminary Development Permit by Sangguniang Bayan
2.5 Final Development Permit by Sangguniang Bayan
2.6 Requirements for Subdivision of Title
2.7 Subdivided Title
2.8 Certification

THIRD STEP: HLURB-REG. OFFICE
3.1 Requirements for Certificate of Registration/ License to Sell
3.2 Developer's Undertaking
3.3 Affidavit of Undertaking
3.4 Certificate of Registration

FOURTH STEP: UTILITIES
4.1 Water (Are you going to construct your own centralized water tank for the subdivision?)
4.2 Electricity

FIFTH STEP: OTHERS
5.1 Registration Statement (Internal)
5.2 CREBA (Chamber Of Real Estate and Builder's Association) Certificate
5.3 Developer's Undertaking
5.4 Waiver of Quitclaim (if needed)...(In case that there are tenants' claims.)
5.5 Irrevocable SPA (Special Power of Attorney)...(If joint venture- internal)
5.6 Contractor's Contract (If Applicable-internal)
5.7 Performance Bond (internal)

How To Compute Monthly Amortization If You Don't Have A Loan Mortgage Calculator

To compute for the Monthly Amortization, derive first the Mortgage Constant or Monthly Amortization Factor (MC).

To get the Mortgage Constant or Monthly Amortization Factor (MC), here is the formula:

                  i
                ____

                 12
MC =  ________________________


                             -n (12)
          1 - ( 1 + i /12)

Ma = MC x P

where: MC = Mortgage Constant
           i    = Interest (Example, 0.18 )
           n   = no. of periods (Example, 15 years)
          Ma  = Monthly Amortization (unknown)
           P   = principal Loan


Using the examples above, just substitute the values to get the MC for 15 years. You wil get MC = 0.01610421

Problem:

Total Contract Price: Php 690,000.00
Down Payment: 10% or Php 69,000.00
Balance (P): 90% or Php 621,000.00 payable in 15 years at 18% interest per annum

Solution:

Ma = P x MC
Ma= Php 621,000.00 x 0.01610421 = Php 10,000.71 say Php 10,000.00