Why the Post on Business Entrepreneurs in Angono?.

Promoting Entrepreneurial Revolution

My Photo study on business entrepreneurs of Angono showed that:   l.  There are very many entrepreneurs now compared to my younger days.   2.  They are more creative  and savvy  3.  They are ubiquitous.

I have not shown entrepreneurs in other areas of Angono, nor the banks, the hospitals, the drugstores, and other schools which are numerous and big.

Rewind 30 years ago.  Angono was largely agricultural.  It was very backward.  Population was less than 20,000;  it had one rural bank.  Municipal income was less than 5 million annually. Land was cheap.  Farmlands cost between P20 to P30/sm.  and developed subdivision land was Pl00.00 (Greenhills was P300.00 and Ortigas CBD was P1,000 per sm.  If you had money and enterprising at that time, you could be JG or HS.

Organizing a  savings and loan association ( a thrift bank)

1.  Thus when we put a SLA, the priest who blessed the thrift bank, Fr. Larredo SJ, said he would really pray for it because he does not see much hope for the new SLA.  The rural bank deposit at that time was merely Pl million.  Most banks were in Taytay. We put up  the SLA after I resigned from my job as drug rep from a major Fil. pharma, one year as AM of a rural bank where my parents were  stockholders (only Pl5, 000 paid up).  We decided to put up the SLA, after we got stinging words from the majority and officers that the patronage of their townmates in a MM town keep the bank alive. It was a stinging rebuke for my townmates.  Maybe a bank from that town for that town was in order.

At the end of first year, the bank had half million in net profits (compared to the RBs Pl50t when I was there) and P5m in deposit vs theirs Pl million.  The competition certainly did not make them happy nor made memories with us happy.  Because of this development, the Pl5t was bought out for 30x it was original cost.

It was wildly profitable,  We became an authorized agent bank of BIR collecting hundreds of millions revenues from Region 4B companies and lived off on 2 weeks of float.

We became a NHMFC originating bank and did Pl00 million of origination a year, second only to DBP, thus it caught the attention of government agency and we were acquired.

Real Estate development

2.  After putting up the bank, I took up a real estate broker's reviewer which was sponsored by Laguna Realtor's Board whose president is now the mayor of Calamba city.  What was significant there was not the review, nor the REBL which I got, but the mindset of a developer and realtor.

       l.  We developed a 2 hectare compound and we produced 70 units each one selling for P18t to P35t.  Average cut of the lot was 200 to 300 sm.  Acquisition cost of the raw land was P22.00/sm with mortgage.

      2.  We organized Bloomingdale Realty Inc as allied undertaking by the bank as allowed by BP 71 and 72.  We acquired a 7 hectare property right in the heart of Angono - between the church and the market, a real  town center.  We sold lots then at P35t/lot with 70% financed by the bank.  Now each l80sm lot sell over a million.

Just to give an idea of value creation, the raw land then earned the local govt P500.00 annually on real estate taxes;  now it is about P3t to P5t on each of the 270 lots.  It is nearly a million or 200 fold increase.  The mayors permit we paid for our group of co at that time amounted to P500,000 per year.

     3.  We developed a 2 hectare memorial park. People were laughing at us, thinking we were mad.
We sold at P3t each then.  Now, it is sold out.  The secondary market trades at between P80t to Pl00t.  Law of supply and demand.

    4.  We invested in subdivision development in Binangonan,  the next town:   Sunnyvale l, 2, 3, Montevilla, Westmont, Montevideo, Mirasolle.

    5.  I nearly forgot the upscale project we had, Richmond.  We bought this from the Lopez.  I negotiated with Mr. Oscar Lopez and Atty Quiazon.  At P55/sm acquisition cost, I thought it was rather high

People thought we were financed by Ms. Imelda Marcos and in l986, a PCGG agent investigated me on the basis of  the rumor.  Where o where did you get all the money?  Simple financial acumen and ledgermain.  And to think that I was a behavioral science major with zero background on finance accounting, civil engineering.  How did I do that?  The Ateneo MBA helped me a lot, the  Divine Providence and the people who believed in me.

Our vision was to be the Ayala of Rizal;  but then the 1997 crisis struck, HDMF run out of funds (scammed by a real estate co of a govt VIP?) and we had to alter our vision.

We shifted to memorial parks.

We also had financing companies, a water company, and commercial complex, and a supermarket.  I should have controlled the supermarket and went by way of SM.  It is one of my biggest mistake when I let my sister take over it and who later on bankrupted it.

Our strategy:

In the beginning, we had no resources;  my parents were poor but hard working and thrifty. We  had no war chest to speak of to carry these entrepreneurial ventures.  We were merely armed with courage, thick face and wild dreams to be great.  I recall here Timmons definition of an entrepreneur "BUILDING something from practically NOTHING."

Since we were aping Ayala, it was the same:  the triangle offense.  The real estate company must have three legs:  finance, construction and design, and marketing.  You have to have three areas of competence within that organization to be successful.  Miss any one of them and you are dead.

My reflection:

I think our early developmental efforts worked in a way to generate:

l  Residents and population growth.  We were developing bedroom communities but the residents bought goods paid taxes and needed schools for their children, transportation and generated demand and growth.

2.  The commercial complex was an anchor development.  We became ahead of Muzon and Binangonan in development.  It was funny that we were made to wait for 4 hours at offices of McDonald because we were inviting key tenant for Unishoppe and were sneered at.  Jollibee is doing fine at Unishoppe.  Besides Unishoppe the commercial comples are two banks,  SaveMore is besides Unishoppe.  Our Unishoppe supermarket closed. Mercury downgraded us too at that time. But there are 2 Mercury outlets in Angono. (the one in Binangonan, near the boundary actually serves the Angono market)

3.  The new developments we had inspired other developers and other entrepreneurs. Copycats increased in number.  New buildings sprouted;  the skyline of Angono changed.

4.  I think the bank helped us a lot.  We were able to finance a lot of market vendors. I think the bank has the power to create new industries that it support.  When were into housing, our interim rate prior to take out was 2% lower than other areas.  In no small way did this help the developers in this area, and helped contractors and construction materials suppliers.

No one will acknowledge these, it may appear a chest beating, a boasting post. But that is the way I reflect on this.  I guess, I made a dent in the progress of my hometown, a commitment I made when I was awarded a scholarship by Insular Life on community development.  I swore, I will pay that back by helping my hometown develop.