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