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