Opportunity in a foreclosed memorial park project in the North

Ateneo Professor on Entrepreneurship

Rizal Philippines
August 9, 2019

                                  Cute magandang memorial park to be lost in a foreclosure

                                                 Heavenly with clouds in the background

Yesterday was double 8, an august day for fortune and luck...

Not all bad happenings can be bad for someone, it can be an opportunity to run our brains and think of solution

Take for example a memorial park project in the north which we tried to take on the JV way back  20 years ago.... Because of a staff who tried to grab it from us, the JV was terminated.  We had to go to CA to get back our P1M advances...

Five years ago, the owner tried to get us to help:   we lent her P1m on a discounting line, and a P4 million loan from a JV partner who was looking a place to park her money.   This was to redeem her property from arrears  in loan incurred 5 years ago.  However the bank as usually they are, took the P4 million, with P5 million pa in arrears.  The owner of the memorial park was never able to pay a single centavo to the friend JV partner.  (for the 4 million)

Lately last July, after several years in hiatus, the same memorial park owner sought us in a meeting to help us rescue her park...This time from consolidation and/or end of redemption period...We asked for certain docs because:

Restraining Force/threat

       1. The property is registered in personal name of the owner of the land not in the name of
           the corporation;  however the project the LTS CoR is the name of the corporation.  Maybe
           that is the reason why the bank cant implement the foreclosure

       2. The bank's computation for redemption is P15 M.  The total development cost at P1,000 gross
            and the total area is 6.5 hectare.  That would be about P65,000,000 at least or P80,000,000
            total expenditures...

       3. The owners have not been able to sell plots, at most 3 to 5 per month, because the people
            of the town cant afford more than P1,000 a month for Monthly amortization and/or kuripot -
            wont part with their money...

       4. Hindi developed memorial park, wala silang pondo for development

       5. Nakatapat ang municipal cemetery which however does not have the nod of HLURB

Driving force/opportunity

      1.  The town is a 1st class municipality with over P200 million in revenues; population of 60,000

      2. There are 25 banks in the town; is a financial and commercial center of NV

      3.  Millenials who can do on line marketing;   facebook marketing

What can be done:

     1.   Pay back the bank P15,000,000 flip and loan 70%  P10,000,000 payable in 5 years, at say 7%
           interest.

     2. Salable plots is 6.5 hectares x 55% x P45,000  =   17,000 plots x 45k/plot  P765,000,000

     2.  Program sales and collection to match:

          P65 million in 5 years of P12 m per year, and sell 100 lots a month, 1,200 a year

                 1.  sell say 2,000 plots cash or in bulk at P25,000.00. to finance project = P50,000,000
                      minimum of 10 each (pn or outright sales) tubo na sila ng 100%

                2.  FB internet selling (ask Joemar to help)

                               1. Mga fan driver students

                               2. Mga closers (sa office) o telemarketers

                               3.  Mga gimmicks:

                                    gifts, free or discount on weekends or month end, and all Saints day..

                                    1/100

Meet the new media mogul, marketer, seller and relationship king

Ateneo Professor on Entrepreneurship

Rizal Philippines
August 9, 2019

This entity  has turned the business world upside down and has many top execs squirming in their seats, wondering what hit them;  pondering what business should they be in next...Especially the media industries and or service provider.

I am referring to Facebook, which has now become the most dominant media, marketing and sales channel.  (and even news media)  Thus it has affected advertisers, marketing company, TV and even the news media.. Hence sale of hard copy newspapers is on the decline; People look at FB for the native news and tidbits, not the mainstrream media  Although FB faltered after IPO because of unclear monetization strategies,  it has now dominated the Digital space with ratio of 2:1 to the next competitor.

FB has kept innovation up front and has supported  FB fan pages much much more than Google. I admire the tools that they have provided and the atmosphere to drive up likes and traffic:   ads, post boost, friends invite to like page,  insights (more depth than analytics)

FB has provided free FB to telco which benefits telco because it whets up appetitite of many to subscribe, with free cellphone, and constant demand for load (especially now for DATA which is needed for FB).  FB provides the content, and the telco only the infrastructure and system for the FB to be distributed in the subscriber area.

Because of its emphasis on friendship and relationship, FB has driven up its subscriber to nearly 2B and has dominated the landscape.  Also it is user friendly:  it is easy to sign up, it easy to log in (just tap your profile pic)   It easy to post and upload pics (unlike the leading search engine)  It is now searchable.

Before I disdain FB for office communications  FB algorithm forces you to simplify message put images, and thus improving office communication.  Many communications are now sent via PM (messenger)  or viber because you can send pics, memos, and videos.  I have seen other businesses use PM for reports...

Why is FB dominant in marketing in sales:

1.  The new media mogul is FB.   Other hads have low eyeball (viewers looking at it)

     1. Billboards while big is less seen this day.  Why the driver is driving, and the  passengers are poring
         over billboards;

    2. TV ads -  they are being zapped thanks to the remote. What happens to TV station ads revenue
        or agencies; or creative people

   3. Newspapers -  dont sell anymore and therefore fewer advertisers.  Many depend on cp for news
       from Yahoo and Google news and FB, albeit sometimes fake.

2. Marketing and sales

    1. FB system has made it possible to really go in bound marketing work - let prospects come to you
        instead of you running after them:

                   1. Thus the traditional sales force and selling system has changed from recruitment
                       to training and system:

                      You can have fan page drive the leads to you, and the content should sell

                      It saves you a lot of legwork, transpo expenses on prospecting. The sales kit could be
                      at FB post;   you need not be intimidated by SG and HoA presidents.  You can jump
                      over the bakod via the CP and FB

                      The seller need not be a professional seller.  They could be students who love FB (members
                      of Krusty Krab hehe2 who sells a group who does this, and closers.  

                      Ali Baba Shopee and Lazada are the new supermalls, selling across many regions..
                      You have noticed that many FCMG are now participating in their sales Thus FB
                      has  its market place.   It also trying to dominate the job search market (recruitment)
                      and  sales:  through ads, lead generation, and harvest and offers

    With this what would traditional businesses do?

               1.  Overhaul their set ups and rethink about:

                     1. Media strategy ads pend

                    2.  Sales organization

                    3. Sales strategy

           2.  The media, ads industry must start overhauling their system

FB employs millions of FB fan pages authors, for free and get revenues for FB for free work.  There are certain FB pages that generate 10,000 of views, I dont get paid for that.  That is for just being liked and popular and for that matter, taking from the surname of the chairman, suckers...

We all ready started this mindset shift

 

                     

Opportunities abound everywhere

Ateneo Professor on Entrepreneurship

Rizal Philippines
August 9, 2019

Yesterday was 8/8, double eight and 8 signifies bounty, infinity of the providence and I would say opportunities abound.  I am thankful that there were several, and unfortunately we were not able to grab this opportunities:

1.  A foreclosed property in Caviteheld by PDIC for 9.84 hectare covering 400 TCT and PDIC wanted about P70M for that.  Anyway I learned that it was for bid, (although there was a failed bid in February 2018) July 28, and the bidding was for July 31.  No time for due diligence and raise the finances. But it could very well net the company about P100M for  lot only sales (after development cost) and triple the amount
if for house and lot packages.

2. A 10 hectare property in island province near the Municipal Hall of a first class municipality.  Only for sale at P2.8 million.  An opportunity for a memorial park...?

Who says you must not believe in numerology?