Defects in real estate properties deals: material defects that are repairable and those that are unrepairable

Nation building via learning and being the best in business

This post learned from a book by George Bockl on community based real estate business that there are 1 defects to watch out for:

     1.  The repairable ( material) defects  

     2.  The non repairable

Because of these, our filters for new projects only turned up very few projects.  We do not take projects where the water supply is doubtful, or those that are clearly flood prone or those that are near factories and pollution.    Anyway we do not have projects like we see now.   This post saw a subdivision project of a premium developer submerged in flood waters in Pampanga

The material defects are those that are part of the construction:  foundation walls, beams, columns, ceiling, roofing HVAC water sewage STP.   The non repairable are those that are inherent mostly in the land and location:   bad feng shui being located near a cemetery, near a river bank or beach property (can be eroded or destroyed by storm surge) near a volcano, sits neear a fault (like San Andreas)

So the buyers now would be wary because of the floodings.  What would result from these floods is that buyers would migrate to less flood  prone in the hills (but not in steep ravine that could erode)  The houses in Pampanga had sound construction but maybe they did not know about the elevation of the flood (it is easy now to check via google earth) or situated in flood plain. 

The towns involved in flooding in Pampanga  Bulacan and Tarlac may see sudden decline in values of real property (the zonal valuation would have to be revised -  ZV keeps going up up for the govt coffers)

Let us see also better compliance with no build zones, issuance of ECC and the like which every developer has to go through (except the companies owned by some officials that are exempt from inspection?)

Putting people first, or putting good system first

Nation building via learning and being the best in business

It is the mission of the compnay to provide jobs and employment (it is embodied in vision mission and beliefs and principle statement. )  However as of late, maintaining this priority is under extreme scrutiny as we encounter a generation of workers who abhor responsibility, hard work, vs the old school system, and sometimes brute insubordination.  We encounter plenty of unauthorized discounts, allowing a service to proceedd without payment.  This happens  despite constant training guidance and reminders.

Survival of the business and good health of business owners take precedence.   Especially if the labor environment is left leaning

Labor disputes are prevalent and sometimes the litigation involves negligence of the employee who failed to file the proper reports to the govt agency.  These things sap the energy to manage and run the business and prepare this for the future

In many companies, the idea is lean and mean, having outsourcing and offshoring to lessen cost of labor and administrative task of managing the labor

This post would rather than now have a system that can not be over ridden (a computer program) that an employee must simply follow otherwise the whole transaction will not proceed, lessening errors in human judgement.  This should have been before..  But it is a thing we must do now.  Beginning 2027...

This was supposed to be happening in car registration and NBI clearance.  The govt paid the Quiambao firm to authomate many govt processes.  I wonder if this is being implemented.

Essential system a small business needss

When business and govt leaders debase their personal values (character) they also devalue the economy

Nation building via learning and being the best in business

This was expressed in 1990s by one of the popular Fed boss (Greenspan I remember or Volcker?) that when you debase your personal values, the debasement of the economy follows.  He said these when markets fell because some of the top wall street guys were discovered to be sheenigan.  

Just look at Phil economy now.  Low FDI, cheap assets, no one dare to look at them because we have been popularized as the epicenter of corruption, of ghost projects, and endless stream trillions worth of infrastructure anomalies.   Who made them so -  business people in cahoots with politicians.   The vicious cycle of value debasement

Engaging prospective investors horde, or just deal with a representative

Nation building via learning and being the best in business

We prefer to deal with individual representing a clan or a group.   A town hall is ripe for shouting match and misunderstanding.  Better get spa, or board resolution and talk to one guy.  He talks to his group.  

I experienced that one well known realtor, a Pres of a firm selling golf shares in premium golf clubs, searching me out and asking me to do the whole works of putting up a subdivsion:   financial, sdp, operations, construction.  He had the cad free with several revisions  

The land was owned by 4 sibilngs now all dead (subject to EJS)  being new I proceeded without an engagement contract or a fee and or authorization from family members.  I depended on his word that he could handle his cousins.  ....could handle his cousins.

We spent hundred of hours poring through plans my staff prepared pro bono.  Being green and being from same school (whom I thought to be honorable and gentlemen we proceeded)   We happened to meet a certain GE, a cousin daw,  who for a fee:  would handle the EJS and prepare the subdivision plan, take care of BL and DHSUD for a fee (which was cheap then)  So I drafted a MoU for them and told them my role is done (di pa maliwanag ang fee for consultation and packaging)    Months passed.   Thereafter, the GE texted me because his cousin is nowhere to be found.    And so I followed up.  He didnt answer the phone    And all I got was a text:  his brod did not agree .. Maski kapatid niya hindi niya hawak, wala siyang authority.    He wasted my time and that of the GE..... Part of my tuition

Should profit arrangement be limited to existing proposed agreement or should it go into future product or new venture under the wings of original company

Nation building via learning and being the best in business

This was asked in a recent business meeting.  If we expand into other business should we retain the same sharing arrangement

I said we should limit this to the original purpose.  If this is a land deal, it is going to be just the land deal sales.  For services, it could mean a new corporation and new equity.  It could mean also a change in composition of investors.  Those in the land deal may opt out or not interested in new deals.

Better stick to the articles its intended purposes...

What if the other party, the joint project prospect says "no deal because you seem to be cooking us with our lard (ginigisa sa sariling mantika

Nation building via learning and being the best in business

We often encounter this in many deals.  Distrust of the other party and the thought that one is putting one over the other.   

In a failed deal before which we tried to revive before.  we met yesterday with the business developer marketing, operations financial  and  construction team.  We proposed a hybrid deal:    joint project and sale for the 3 parcels.  Simultaneous.  However the other senior team at the other side said the other party may not agree (in which case the deal will be off)

The deal that fell through involved a cts that involved forfeiture which this post objected to being a financial suicide.  They brought it to other property developers and they did not have deal...  They were

not interested and the price was too high....

Now the negotiator was able to bring down the price by roughly  30 6 digits.  Thats great negotiation (because there were no takers.  )

We have to establish with certainity and confidence that really we CREATE THE WEALTH and they will get their desired PHP.   We have the intellectual property and expertise (and part cash) to make things happen.     (Tinanggihan na nga ng malalaking developer. )

Is making profits on deals that involve paper trading a good business; or must you involve in yourself that creates something for the world?

Nation building via learning and being the best in business

There are many people who make huge business on "patong" on margins toll over a transaction like stock trading, hedge funds,  crypto trading.   Are they the right businesses or good businesses.  For most people, just making money  on a deal is a business.   

Asking for toll:   interest,  service fee, packaging fee hedge fund management fee is enough business. One of the richest men on the planet made money by stock picking.  Well he invested his money on the company that really produced goods:    Apple, Coke, Gilette 

And that makes the whole business desireable as something advancing society and humanity.

Before I worked in a bank.  One of the colleagues happened to be the son of the Chairman.  Later on as part of the group he was sent to head a cement plant.  

Thereafter some years later we met again and said that being a banker was not really a godd job or business.  You are simply a commissioner on the money lent, you are not really creating something for the world.  You are a toll collector.  (But would anything be built, without funder or financier) without somebody pooling the money for your enterprise.   

Since you are simply a toll collector, that source of income could be volatile and not steady.  It could be affected by rumors, politics, weather.     Unlike if you create something for the needs of the populace.  

What do you think?  Are paper shufflers really businessmen?  

Participated in a deal negotiation with a foreigner on a long term lease yesterday

Nation building via learning and being the best in business

A cousin requested my presence in an event where:    1.   They will inaugurate a sculpture on top of a building as an attraction   2  where the proponent of a long term lease agreement will come to examine a draft lease contract and where the owners will appraise the proponent of character

This post examined and analyzed the draft:

1.  The property is intestate for probably 30 years or more.    

2.  The surviving heirs want to incorporate;  that can happen only if the EJS has been done

3.  The lease looked low but  the proponent will build the building and may probably increase the market

     value by 100%

4.  The sore point were:   EJS expenses, and the RPT

The negotiator arrived an hour late and learned he was in his 50s and lived for over 50 years in the PHL.  He thought a lot of opportunities in the PHL.  He says he is motivated by the thought he could make things better   He admits Koreans worked hard and are deeply influenced by military training that we should obey and be disciplined.  

After some discussion the unsettled items were:

1.  The amount of rent

2.   The need for EJS prior to the lease signing;   it could be two docs:   1.   a mou   2.   a conditional lease agreement;   Robie promised he can give advance to process the EJS.  We can wait for passage of law to reprieve penalties and interest on the delayed payment of estate taxes

3.  The property tax:  whether they will just pay for the building, or also the land... (The practice is for the commercial and industrial lease, the lessor pays the taxes...    The proponet says they pay for the building permit, mayors permit

This post noticed that for the representative of the owner, the attention was directed towards the small items that are straw traps for the negotiator and not on the substantial ones that affect the PHP of the deal.    and the things that matter  Or even the bait and non negotiable for the other party.    (Thats the advantage of experience

The negotiator says he will send draft of the (their own version) lease for the gaps in the current lease agreement draft we examined;

As for the business they are into retail business with 8 branches (franchisee) And the concept is so good that some big stores make about a million a month (This answers my concern for stability) And they have gone to this place for market studies.   They would go for 24 hours service because they see the young people being awake in the wee hours of the morning .  Will depend mostly on foot traffic

They plan to put up 3 buildings with total area of  1,000 sm, and will determine in 3 years if they will put up all of these..

Being consulted for a 25 year lease for as downtown 800sm commercial property

Nation building via learning and being the best in business

A cousin, daughter of favorite uncle who is into food production business, recently consulted me via text.  Because she is a relative, I gave my opinion via text.  Its a 800 sm property near the Municipal Hall, and the 3rd generation would make the decision respond to the deal proposal by a Korean corp:   5 years lease totalling P57,000,000.   or 170.00 /sm per month;   that translates to about P2.28m/year or P190,000.00 /month.  

 Will they make money on the deal?   Is this the best deal for the family?

The big deterrent on the deal is the fact that the property is intestate and the estate tax which include the compromise, interest and the estate tax itself is huge..The zonal valuation is higher now .(Better wait for the new law extending amnesty be passed)

Am awaiting an appointment as biz consultant by the heirs.    To clarify obligations and make a substantive comment guidance on the deal

Evaluating a deal - how much to sell a property

Nation building via learning and being the best in business

In the 1980s, I did a project  - 8 hectare prime property development which we bought from the famous Iloilo family now divesting of their holdings due to family intramurals.  I did not ask for salary or other compensation.    But asked instead for lots as compensation 3 lots -  2 x 400 sm, and one 300+   I could have asked for PHP.  But asked for lots instead to conserve the company cash flow.

The lot then was valued at P300.00 sm...  Now some lots were bought by Jollibee allegedly for P60K for sm...

Now some people are courting the 800 sm property, 3rd lot from the highway lot.   The asking before by the fam was P15,000.  Some are indicating that they would buy at P20,000.   However the lots near the lakefront is at P30,000/sm.  

The price should be near the P30,000 shouldnt it be?     Not P15,000?!!!

Tackling traffic, customs processing as key to improving competitiveness in export import trade

Nation building via learning and being the best in business

I was invited to join a gc of young entrepreneurs.  Its admin is top banker in the PHL who graduated ME from a top university in the PHL.

The main topic in the GC was the import export trade especially at ASEAN.   This is a top emerging opportunity.  China continues to be the source of cheap goods (I was told by a bikemate that he earns 100% on 2 to 3 months in one deal)  Why reinvent the wheel, when everything can be made in China, even custom design!!

However the hindrance (obstacles still despite having efficient logistics system) are:     difficult customs procedure, uncertain traffic rates (mostly under the table) and traffic and tongpats at street corners by TE and policemen.

The other topics were automotive industry -  the emergence of EV.  The structural weakness in the supply chain are the weakness:   repairs, servicing, charging stations financing... And the real estate.  It can only be alive near the industrial estates, processing zones where the workers aggregate.    Not anymore in my opinion as in MM, where real estate is overpriced, overbuilt

How when can we remove this difficulties in doing business (this laws are clawless?)

Ease of Doing Business Act (Anti Red tape law)

Is Pax Silica bad for the Philippines?

Nation building via learning and being the best in business  

Everybody is agog over the Pax Silica project 1,600 hectares in Tarlac City for tech hub presumably for data center locators.   Oppositors  have two issues:   that the data center will need too much water for cooling and it will further disrupt the power situation in Luzon grid, the supply situation all ready thin.

It is to be noted that the players in the AI supply system are numerous:

1.  Power gen -  turbines, cables, transmission tower, gen set, nuclear power, switch gears, nuclear power, bus...

2.  Cooling system -  aircon, water cooling for the chips

The business outside of high tech could be much much bigger than data center itself.    Data center should be better be located at the bottom of lakes or oceans which we have plenty.

Really, we could be missing out in case we just go along with the bandwagon thinking that Data center per se is bad    There are cooling system that are not dependent on fresh water  (How about salt water, the processors do not drink water -  its only for cooling, and there are various ways to cool the computers.   Power gens can be provided by their own locators)

  

By  Leo Cui

Shifting from labor intensive operations to mechanization

Nation building via learning and being the best in business

We have long fostered giving jobs and livelihood to workers as one of the missions of the company.  However, wages have been increased and wages of a worker amounts to 1/4 of a million.   It is going to be a burden soon.

However beginning 2025 we have bought two excavators to mechanize the digging operations    Costs shrink from P2,500 to only P500 if we are mechanized.

We will attempt to mechanize the:    grass cutting opetratins and the soil dumping.    We can buy from Chi na or /Lubao Pampanga

Shift to QR code from UPC Bar Code after 50 years

Nation building via learning and being the best in business

UPC bar codes made supermarket check out and inventory efficient:   faster and cheaper.   However there are news that the barcodes will be discarded in favor of the better tech:   the QR...

If you have a machine that can turn P20.00 into P100, or sell you milions what will you do to have it, develop it and have one of your own?

       

  SUBJECT  f you have a machine that can turn P20.00 into P100, or sell you milions what will you do to have it, develop it and have one of your own?

  Date:   July 26, 2026

We discussed this yesterday  to upgrade the marketing plans and resubmit the same in the new format, incorporating the new promos discussed.   This post further discussed

various tactics and tools to advance the efficiency and effectiveness of such machine

Objectives        1.  To further advance self improvement

                         2   To help SBUs reach sales targets

                         3.  To help develop skills and determine tools that will make sellers more effective

Background:    1.  Only people sell, AI cant

                        2.  We have to develop one system that sells, and here is one I see that can be effective and efficient

                        3.   Sellers create wealth that pays expenses and salaries. 

                        4.  Sellers make the world go round and advance move forward

                        5.  We have seen resistance of subordinates who do not like to see their work that does not work questioned or ordered revised

Gleaned from  YT:   How to sell so good that saying No looks stupid

From :    A LITTLE BIT BETTER  by Alex Horowiz

There are just four ways/methods

        1.  Attraction

        2.  Upselling

        3.  Downselling

        4.  Continuity 

        to address various situations and customer behavior

     SOME EXPLANATIONS

     A.  ATTRACTIONS

    1.  Attraction are offers that attract prospects as in AIDA, no offers, the ad readers will continue to scroll, no asttractivve offers, no hooks, no offers.

        Not a discount -  discount removes values,  FREE OR ADD ONs freebies add value

       1.  Grand price offers that is really valuable

            1.  Win millions, a car, by getting an offer

            2.  Win a plot FREE if you buy now;   or reserve now.

            3.  Free offer is better than a discount

                1.   Buy one take one instead of 50% discount

                2.   $30.00 for one set is bettone free  than $10.00 each

               3.   After you increased the price and there is resistance.     P1,700,000 for a GE, 12th lot is free (that is less 8%)

      2. Decoy offer:   offer a low ticket offer, and then upsell the prospect for something bigger.  Get his feet at the door

           e.g   offer a cheap lawn and when you sense he/she can buy GE offer him  one.  

     3.  Performance based free;   (Mostly gymn related)   "If you reach your weight reduction goal, we return to your $__enrollment fee

         We guarantee you (no one dies in your family in the next 90 days)  if you do we will give you an __discount;

    4. Pay less if you buy now  (referring to our at NEED VS pre need price)

Secrets of winning in business (from a millionaire)

Nation building via learning and being the best in business

The guyis the leader in FI racing ticketting.   His secrets:

1.  The hardest worker mindset is passe  Results, matter. 

2  If you are not winning, you are sticking to the rules

3.  Let the competitors underestimate you

4.  Winners repeat, (they become complacent)  losers improve reset.

5.  Be the best in the category....

Entering into a different sub branch of the industry? Dont we need focus? Doesnt it weaken the main business

Nation building via learning and being the best in business

Earlier, I had a the idea of letting a thousand flowers bloom, the  model being that of a keiretsu (or indu strial group) which happens in an industrial group.  If you are in an industry, you gather all your resources that are relevant:  suppliers, housing for employees, restaurants, malls, hospitals other materials   Thus an industrial estate matters.    You place all these in one location.  That is why an industrial estate does not work here in the absence of such model

Recently I learned that the family bought a commercial property near SM.  for good 8 numbers.  Said it wa xxx square meters.   Found out it was just yyy square meters and for which they paid for double.

Now this is the problem:

1.  The funds needed to expand tthe main business is frozen.   They said it was for flipping.  But the supposed buyers is not there.

2.  The seller is a sob although a religious person

3.  Colleciton is difficult

4.  The rent gives a slightly better than bank deposits...

Before when I was not married we had rental properties which we abandoned because of losses from:

 1.  unpaid utilities by the renters,   2.   renters damaging the property.   WE solved the problem by disposing off the rental properties

It is better to focus.  By focussing many opportunities reveal themselves.  The conglomerates have found it the hard way that they cant manage conglomorates welll (SMC will find out when it branched into infrastructures copying the MPTC group) ...  So some focus on the cash flow:   all cash flow in industries that people use everyday:   telephone, water, express way...    or condo  (however the downside is that if the industry is down, the whole ship goes down)     Or energy....

How could you be so wrong? Which data you rely on?

Nation building via learning and being the best in business

Are experts better or unschooled memories?   Here experts  5 in all did not match the farmers memory which identified the site as former creek...

Personal improvement on source of data

Claiming credit for premium subdivision projects in my hometown

Nation building via learning and being the best in business

Two of the prime development in  Angono Rizal were envisioned by this post.:   Bloomingdale Homes and Richmond (on top of Venus compound)  We did not make much on the project;   the profits we had were the commercial properties in front along Quezon Avenue which became Capitol (RCBC now) bank, Puregold, (formerly Active Bank) and  Unishoppe.)  Houses there are in mid  7 numbers.  Bloomingdale connects the church with the market.    And several key commercial establishments are there:   public market, Unishoppe, Jollibee, Uncle John, McDo soon...

This post also headed the planners and group that built Richmond, then envisioned to be the Ritz world for the achievers in Angono.  Most were OFWs and ship captains.  The buildings in front, changed the skyline of Angono.  Lined up in front are Jollibee, Pizza Hut and KFC, not to mention other commercial buildings.   

These were key  developments that drove up demand and prices of real estate in Angono, and why it probably attracted key name locaters  (Not to mention a commercial complex development and a memorial park project)

The above projects attracted residents from other places and made Angono their home...

We risked whatever little the family had for these projects.    And they paid off.  We made  a little margin but mostly benefitted the community.  We developed our skills and made sure we used that and the little skills we had to make  Angono a better community.  

Angono is now an urbanized community.   And the other anchor projects would not have come here if it were not for these key projects..

Its not bad to lay a claim as to who planned and develop these projects.    Thats the only reward we can reap from the hard work and the early pioneering risky works for the community (not be sidelined nor forgotten completely.  If we cant claim credit for these acheivement, who else  will do this for me at this senior age.     True to the vision of hte company which promoted community development for its scholarship projects, which benefitted the author

A backfilling job could radically alter business trajectory; additional 9 number in the revenue

Nation building via learning and being the best in business

This post thought that a casual conversation with the supplier would only result in so little additional revenues to the company but 8 numbers is substantial and strategic.  It can add  4 -5 years worth of inventory.  And the costs are minimal on the average only P600/unit

-x-x-x-x-x-x-x-x-x-x-

Subject:   ESTIMATED ADDITIONAL BUSINESS FOR 3RD BATCH OF BACKFILLING

Objectives:

        1.  To construct additional inventories for sale

        2.   Add to sales amount and NI

Background

        1.  We ordered 100 tl for a sales campaign to build 1,400, may predev price at may marketing plan

       2.    We ordered two batches of 100 tl each;   the first one  at 4,700, the second one at  4,500

       3.  Yield  analysis

                                                                             Addtl area                           Addtl lots                 Volume /sm /lot  (15,000 cu meters              Cost  450,000/no of plots

                  4,700 x   100 =   470,000                  2,330 sm                                932                               16.00                                                      482.00

                 4,500  x   100=    450,000                  1,627.00                                 651                               23.00                                                        691.00          

                Average cost        920,000                  3,957.00                              1,583                                7.58???                                                   581.00

                ROI     estimated:     

                           Sales/investment                 158,300,000/ 920,000    171 x     1710%

                           Net sales/investment          158 x.  48%/.92  =   75.84/.0.920    824%

                           NI our share                        75.84  x 55%/920=   41.71/.920     453%

      WTDN

        option

      1.  Order another 100 tl   at 4,500    450,000 payable in the next 90 days

      2.  Estimate:

           Yield volume estimate

            Say 1,300 sm/2.5  =  520  ilow na natin 450 plots

     3.   Estimated area yield      1125   estimated plots yield  -  450                      Cost per sm     450,000/1125  = 400    cost/plot      1,000 sm

     4.  Estimate for total

                                                              Lot yield                  Total cost                     Cost per plot

                             First two batch    -    1,583                        920,000                       581.00

                            Next batch                   500                       450,000                      1,000.00

                            Total                          2,082                      1,370,000                      658.00

                            Estimated total sales                                                                   208,200,000     x 200

    5.  Conclusion:

               1.  Order pa tayo 100+   additionl  baka 4,400

               2.  90 days ang payment period

              Pricing:            500   at        100,000                            50,000,000

                        next       500 at          120,000                            60,000,000

                                       500              140,000                            70,000,000

                                      500               160,000                            80,000,000

                                    Estd total revenues                               260,000,000

6.   Rewards 

                                 1%  x 260,000,000      =   2,600,000 to PO 

Lets subtrract the cgs from sharing  because this is beyond the scope of original jv  

                

Running a business (following blue ocean strategy ERRC)

Nation building via learning and being the best in business

by a Little bit better

The writer seem to be have employed the ERRC matrix which comes from the Blue Ocean Strategy.

The writer,vlogger lists down 9 steps in running a business

1.  Idea ideation is practical.  Can you get somebody pay you for the product in 48 hours.  If not dont go.  Its just like having MVP (minimum viable product)  Dont sweat out the website or the business plan, or the office lay out,  You waste time.  Find out if the idea works, and if even would pay you for he product idea.  No go if it wont take off

2.  Positioning.  Dont just be the ordinary product   Dont go on price war

3.  Premium offer -  exceptional, outstanding, out of this world, that the prospect cant refuse

4.  Marketing -  no one has such a product  because you used ERRC -  you reduced cost under eliminate and reduce and increased value through raise and create

5. Sales -  you fix a problem when you know the pain.  You are like the doctor.   The author said that when she applies, she asks before the interview:   what are the problems of the manager, and how do you fix it.  95% of the time she gets the job

6.  Profit  - take it first, then the tax, expenses, and others 

7.  Buy back your time    Hire first  admin (accounting hr) delivery, marketing and then the core:   your

     main interest and expertise...  say baking or editing.

8.   You are not building a product  Your secret is a system:   Like McDonald.  You have uniformity.  Thre are no experts but plain people  so you build a system so that the process is repeatable

    How:  1. You video

              2.  You document via AI

  

             3.  Have a checklist

              4.  See if it works..

Resurrecting a what could be a dead deal

Nation building via learning and being the best in business

We walked out from a multi million deal, because it had forfeiture provision.   And margin was very thin, because of the amount involved we will get only 25% ROI on total amount invested -  definitely not a way to conduct business.   But lately I thought about this if it by adding income from two other activities, the ROI can be improved, and restructing the deal,  DP, and  JV on the rest for stress and risk free payment terms.

It is a long time.  The assistant assigned did not do anything about the undesireable provision.   And we inquired about revival possibilities .  The land has not be sold due to its vicinity to the  special use.   And the other one they did not like the term,  The other baka walang pera   

We could earn from the deal, about a  9 numbers.    Its just about reframing the deal, and changing the deal structure

The partner in the said island asked for the cash flow But definitely the deal I have in mind makes the project doable and less risky and a chance for the upside

We redid the deal:   a hybrid of cash purchase representing  22.9% of the consideration, and the balance 

77.1 on a 48 months jv deal.   with  3.9 million payment monthly.  Can be done if we sell 100 lots per month...

We were able to scale down the deal:    170 down from 220,   40 m dp in two years, and then 2.166 for next 60 months monthly

Reviving a dead deal

The latest news I heard was that the owner approved the deal.  And he have to work very hard on what happens next

Adverse and less friendly business environment

Nation building via learning and being the best in business

One of our units in NL   is facing multitude of additiona business expenses:   one a P2M fine with regulators (our fault for failing to attend to this promptly it would have been a tiny penalty)  and one an 11M tax slap on supposed back taxes for failure to reclassify the property.   The dp was ok, and period of repayment was 18 months but later reduced to 12 months and 11 months.   

To top it all the landowner, the jv partner did not have money and was balking on paying and or us getting the payment and paying the interest.

Certainly this is not the type of environment that we need to face... We can have better business elsewhere.  Killing or stepping on goose that pays the taxes?   

That explains why:   lesser FDI, unemployment , under employment is high, and GDP forecast is at 3.9% no longer 5 or 6%.    

We are looking at at least 3 business opportunities with a B potential revenues  in friendlier environmetn with better demographics and location

A cousin sees hope on inherited estate wherein she is all ready disinherited

Nation building via learning and being the best in business

A cousin recently called me about the inheritance the sibling had (and they are 5) and for which she is excluded.   She was quarreling with the rest of family, but I encouraged her to attend events of sis and brod and which she did.

She told me her sis who was almost 40% interest in the property approached her so that the same could be liquidated/sold and PHP divided. 

So I proposed:

    1  To have subidivided plots project

    2  I made three price points:   low mid and high with interest ranging from 6 to 9%

    3  Net proceeds after dev cost com amount to 4M2@ for low,  P5M @ for mid, and P6M for high

    She would earn ORC for marketing the project of up to 5% of gross and up to 3% of net amounting to about P700,000.  Wow.   Maybe counting the eggs early not yet  But we have to make estimate for motivation

From zero to something.    Entrepreneurs really create wealth

Elon Musk is the world's first trillionaire with Space X IPO

Nation building via learning and being the best in business

This was unthinkable a decade ago.   

5 worlds richest men

Have the recent political developments caused decline in business activities in the Philippines?

Nation building via learning and being the best in business

Early on, this post thinks no but the prolonged and deteriorating political situaiton have now caused fall in investor confidence, lack of focus among population and have divided the nation.   Its now affecting business.  

Risk management or being ultraconservative?

Nation building via learning and being the best in business

This post just show collapsed building at the cities in Southern Philippines which experienced magnitude 7.8 tremors recently.     Many have been injured many have died.

We had a project in Polomolok, a municipality 15 km from Gen San and we could have gone on investment spree at neighboring towns which now are very progressive.

But the recent earthquake may have pushed back progress by a couple of decades.  Maybe reconstruction will be quick.  The earthquakes have been strict building inspectors.   And clearly many have subscribed to lower magnitude of earthquake, or enforcement have not been up to par.

This post avoided investments in

    1.   Tagaytay (near Taal volcano)

    2.    Baguio (Punongbayan said that a lot of geological changes will take place in Baguio

    3     Pampanga and Zambales (due to Pinatubo)

    4.    Bulacan (it is sinking)

Is this post being ultraconservative or is this wise risk management?

What do you think of these disasters vs investments?

George Bockl, whose book on real estate I read many times warns of unchangeable faults (those that exist and cannot be remedied by repairs of human efforts.  Who can prevent damages from earthquake or volcanic eruptions? or collapse of property near a riverbank or sea?

What Patton did to Lt who stole from house of conquered civilians

Nation building via learning and being the best in business

The usual paradigm for the military is for victor to bring home the spoils.  Thus the Nazi loot, Yamashita gold.  But Patton was against that.   Patton did not want the victors to pillage.  There is no honor in fighting and killing others to be the same as the people whom you fought....

One of the things that conquerors must do is not to steal from the captured territory.

"No taking of captured, no looting"   Theft was  subject to court martial

Patton asked the Lt to remove his uniform and remove the bars of his rank.  He  was demoted to private

I took up reserve training and this does not seem to be the rule.   The organic officer seem to be stealing the uniform budget and even the patrol allowance.   Let us awaken the ghost of Patton.

Real estate has now become very expensive; how do you find shelter for the future generation

Nation building via learning and being the best in business

Early on this post tried very hard and entered into housing development in order to provide affordable housing for the working class.   The housing loans were P180K at most but land was cheap:   2 numbers and construction cost was still 4 digits.

But now raw land is in high 4 to 5  (in some areas this is 7 numbers) numbers and construction cost is in mid 5 numbers.     You cant reach their affordability  level.  And the wages, productivity are not keeping up.  

Are we in the same status as other countries where affordability, even rent is beyond the rich of the middle class (even In Japan, US, Europe) that is why citizens sleep in cars or tent (homelessness is up)

What happens to our childrens housing?  What can be the solution?   Capsule shelters, tents?

Our country's leaders are focusing on the wrong metrics; there is too much noise and confusion

Nation building via learning and being the best in business

There is too much noise and squid ink, and too much confusion.  We need clarity and be clear on what matters most

We talk about impeachment and numbers in Senate:   11 -13.    And who is going to jump

We forget about us not reaching our 6% GDP growth, 7.1% inflation.       Politicking is more important than stomach of our people

Being independent and being in control - the goal of an entrepreneur - how a former lawyer who was disbarred chose to work on her own instead of just being another employee

Nation building via learning and being the best in business

This post watched this video yesterday.  

This was a video regarding a waitress who was former lawyer associate but was disbarred due to a frame up by colleagues and had to make do as waitress.

During a signing of a contract, she noticed and saw through the documents of  poison pill which she authored and now buried deep into voluminous contract that says that all previosu legal liabilities would be passed on to the acquirer in the merger being made (We always insert -  there are no liabilities, real or contingent and the Vendor shall protect the VENDEE from any lawsuit or claim against whomsoever at the formers expense"

Maya  revealed that the poison pill will make the VENDEE liable  for a fine of $500 milliion in a $3.7 billion deal.    The Vendee must back out of a deal because of a potential half billion dollar loss.

So when the Vendee was about to sign, she said do not sign and the Vendor was angry.  The Vendee brought the waitress to their head office researched on her CV and found out:    

       1.   She was former law associate 

       2.   She was disbarred

 The Vendee was taking in Maya and Maya proposed a deal

     1.  They file a lawsuit vs the VENDOR a thin paper work which would mean the suspension of corporate papers and the clean up

      2  Or sign an agreemetn wherein:

          VendOR would surrender ownership for  $2B sale, and remaining  30% ownership

           and Vendees clean company do the clena up for  much lower amount and using their clean

           carbon credits

      In the deal, Maya saved the  Vendee, $1.5 billion in acquisition cost plus potentiallly $500 million in 

in clean up or $2 billion total

     Maya was offered a $600,000 a year pay, a senior management position plus a new car, and residence.    Maya knowing that the Vendee the employer would sooner or later disagree and fire her refused.!

     SHE WANTED INDEPENDENCE AS MOST ENTREPRENEURS WOULD!

     Instead she would:

    1.  Be a head of lawfirm and her fist client is the Vendee for $10.00 million engagement

    2   Strike a deal with the party that caused her disbarment so that she could be a lawyer again

From a lawyer to a waitress being humiliated and disbarred, being a white knight in a deal, and reestablishing her career as a lawyer.

Lessons:

1.  It pays to be patient (as Maya did being silent for a decade in her disbarment)

2.  Hire a good lawyer and accountant as you grow in size.

3  Your action change as you lower or higher your goal.  Being on your own rather than being rich made her change her decision

4.  Beware of poison pills  (as in the case of Lopez quarrel.  Family quarrels occur as I have experienced>)

         

   

You could create a new deal when you are the end of the wall and nothing would seem to work

Nation building via learning and being the best in business

This post had a meeting with a project officer and there was a business proposal:   the partner had a 1 hectare property in mind priced at P1,000.00 per sm so for a total of P10M.  However the proponent wants us to finance the project however we had alsmost a 50-50 deal and we shouldered the cost of goods sold and operating expenses and our margins were very minimal.  

The project looked doomed since it was one sided.  The other party was a former LGU head (they seem to share the same business behavior) and was used to a raw deal:   we finance the purchase, we get 50% -50% almost And we would landbank it he does not want us to get the project approved by the LGU - ilalandbank pa.    Lugi walang roi for the 10m.

So I did not like the raw one sided deal and participate no more in this kind of rip offs

I got a brilliant idea.

What Ecclesiastes talks about wealth?

Nation building via learning and being the best in business

Then he wrote one word to describe it all: meaningless. The book of Ecclesiastes is the most financially honest book in the Bible — and the one most pastors skip. It doesn't fit the prosperity sermon. It doesn't support "follow God's principles and get rich." It says the opposite. But hidden inside that brutal honesty are five financial principles more relevant today than when they were written 3,000 years ago. The 5 Principles: ▸ PRINCIPLE 1: Wealth never satisfies — the hedonic treadmill, described 3,000 years early ▸ PRINCIPLE 2: Diversify your investments — "give portions to seven, yes to eight" ▸ PRINCIPLE 3: Workaholism is vanity — one handful with peace beats two with exhaustion ▸ PRINCIPLE 4: Enjoy what you have now — the most surprising financial advice in the Bible ▸ PRINCIPLE 5: Fear God and keep his commandments — everything else is vapor If you've ever been sold a "biblical wealth code," this book is the antidote.