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