Leveraging and OPM - that is the magic and what real estate deals are all about...

Ateneo Professor on Entrepreneurship

Rizal Philippines

History of Meralco

The real real estate deals are those where little or none of your money is used.   And only brilliant deal makers entrepreneurs can do that.

Examples.

1. Purchase of Lopez from GTU of Meralco...

    Under the Laurel Langley agreement, all US owned companies in the Phil by 19.., they shall be sold and transferred to Philippine owners, especially the utility firms like Meralco, Channel 7.
Classic was the purchase of Meralco by Lopezes from GTU

   1.  Lopez using personal money makes a DP;  Lopez borrows from PCIBank

   2.  Lopez executes a Contract for term payment of Meralco (which could probably come from
        earnings,) say 10 years

   3.  Lopez incorporates a holding company to hold the Meralco shares, keeping corporate structure
        of Meralco intact:  Meralco Securities Lopez of course are the majority stockholders

   4.  Meralco floats some of the shares at an IPO.  The proceeds are used to  pay off the PCIBank
        loan.

   Question:  did Lopez use his own money to buy Meralco..? At the end he did not spend a single
    centavo.  Only the genius of Lopez could have thought of that...

On being an Angel Investor/Angel

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 20,2019

While I was teaching, one of the required special reports was on Angel Investors.   Anyone could look for one or be one later on.

I  find now myself in the latter situation.    Who is an angel investor:   compared to venture capitalists, these are former entrepreneurs who put in their time and money to assist businessmen who are in trouble.  Or start ups.   They do  not have very strict rules but do require high returns because of the risk involved.

One such group was the group of Dennis Mendiola who was helped  by the Pres of Meralco now (he just retired from Meralco then).    The Angel Investor gave the  group of Dennis the  connection with SMART to make a software for them (involves the E load send)

Those that are I have on my plate are:

New

1.  One memorial park queen pin in an island province wanting to put up 10 in first class municipalities for the next 10 years;

2. A marketer turned developer who needs assistance in funding and new business model.

Turn around:

1.  A memorial park in Northern Iloilo

2.  A memorial park in the heart of Iloilo

3.  A memorial park in Northern Luzon.  This needs huge amount and time because  it has been foreclosed by a bank after being in arrears for nearly 15 years for 8 numbers.

Hoping to help tackle all of them

Read my newest blog on small stuff lessons