More business opportunities - public market and 4ph

Looking forward to the future of business

This post introduced a broker/agent to the principals (EA of a major in major city in Region 1)  However the agent and his principal carelessly dropped the same by negotiating over the phone and advancing a crazy deal.   They did not examine the opportunities by crashing head on with their offer which the party from the north promptly dropped.  These were about a public market venture (their market just burned down) and 4ph (which the principal agent were looking for.

The market deal:      It involved an almost one hectare property and can be built on 2- 3 storey configuration and revenues can come from monthly rent, parking and rights.   The revenue can amount to 

(at 800 estiated locators )   P80M for rights, over P300 m in parking fees and P1,600M in rental for the next 30 years.  Rent will be at P32/sm.  

The housing 4ph  They have a ready package good for 2,000 beneficiary, on 4.7 hectare property.  While I though this was on public land, contractors have to obtain the site.  I will cost 77 million, for a site near the center of the city.   27 sm, 4 storey,   Cost not more than P30,000 sm, selling price not more than 42,000 sm.   The estimated Gp here is P300 - 400m.

The principal whom we talked last Friday, who did not do their computations are frantic in running after these deals, But the principals from the north would not like to do anything with them anymore    They would like us to do this for them.  We have in business for more than 20 years. 

This is on top of a memorial park we are about to buy and 3 hectare expansion of the exisiting project we have.

Business opportunities or telenovela series on Quadcomm hearings

Looking forward to the future of business

During ther past several weeks much of the time of this post was spent on watching the new telenovela series:    prosecutor like grilling of political personalites, alleged romantic relationship between former Pres and GM of a charity office, killings in a jail, link between police characters and informants.  I realized that they were not paying for my meals, but they were getting free ones, and were probably bribed big money to do this hearings. 

So I made an inspection trip and on the side tried to look for opportunities.  And opportunities there were.  This office brought a long a business and real estate agent who represented two friends:   one a solar senior officer, and other one a seruveying quantity firm making forages into real estate ventures.  We could be agents, brokers, consultants. to the following:

     RE

    1.  Prospective solar farms for sale or lease

   

         1. We can broker the project

         2.  Flip -  take a position on the land, and resell the propert y at a higher price once a deal goes

                         on

         3.  Permanent ownership -  buy the land, lease it, for say 5 years, with % increase on the 6th year

              and take equity on the lessor, participate on the RE

     2.  RE company for sale.   Onwers are quarelling.

     3.  Cooperative seeking funder, and/or builder of minihyrdro.

  Real Estate:

    1.  A city whose public market burned is willing to give a lease contract on a developer who

         can rebuild its project

   2.  Solar farm 100 hectares for sale

   3.  Eco zone looking for an operator.

   4.  Citylooking for a builder in the   4ph program program.  

      P250 b allocated for this via PAG IBIG  DHSUD through Sec Acuzar will spearhead the project  

      (teh LGU will provide the inventory of public lands for such housiing, and apply for developmental 

      land of the site.    The 4ph is contaiend in EO 648

The agent has a principlal who is going to this govt project.   It is not clear whether they  can build, finance  the project.   Or willing to get their hands dirtied.  

The opportuntity for RE is $66 billion, or P3.696 trillion pesos, for 40ph is  Php 250 billion.  Thousands of job would be made advailable,  say 10,000 plus the multplier effect   (4 trillion x 10  =  P40 trillion in additional GDP.  Thats a lot

What caused Romes decline? Is there a parallel in modern world

Looking forward to the future of business

These were mentioned as causes of Romes decline (mostly economic)

    1.  Heavy taxation

    2.  Inflation (debasement of currentcy)

    3.  Trade disruption caused by invation and internal strife

    4.  Reliance on slave labor

\   5.  Unemployment -->>>lack of finance for military

Causes of Roman Empire decline

US $35 trillion debt costs $3 billion a day (or $1 trillion a year); when will US solve this challenge

Looking forward to the future of business Savings from oil and coal importation

We could not generate that much profiit in a year (that is P150 billion )  We are lucky to make a million PHP a year.   And yet that is the reality of US economy and financed.  That is the downside of Keynesian ecoomics (deficit spending to pump prime the economy)

Nobody is the US Legislature is taking steps to balancee the US budget and solve this debt crisis:

    1.  No plans to increase revenues and reduce expenditures? 

    2.   Everybody in US wants to spend more and more:   for US military, foreign aid, more federal spending

$3billion a day interest for massive US $35 trillion debt

Developers role all but forgotten

Looking forward to the future of business

We were real estate developers about 3 decades ago.  The projects we had abutted the highway: 4.   Three were  were housing subdivsions and one was a memorial project.   

The frontage of the 3 housing subdivisions are now all commerical contributing to distinct skylines of this municipality.   This town has now but become highly commercialized.  About a dozen fast food establishments are located in projects this post built.  Land values zoomed from P350.00/sm to P60,000 per sm.   Quite a big income for the land buyers we had, and huge contributions to RPT or LGU, and huge CGT to BIR

However, we developers are simply in the background and all but forgotten.  Only self serving posts like this give me/us psychological income for having engaged in such a project

Jollibee at Unishoppe

Jollibee at Richmond

Consultation on holding company, exchanges between shares of stocks and real properties

Looking forward to the future of business

My youngest daughter and I had working lunch yesterday re corporate structures:

1. The Alice Guo case had some deep lessons on corporate affairs.  The purpose of multiple corporations are to create corporatre veeils which seemed to have been pierced.

2.  The viel curtains you from piercing eye of public and tax collectior.

3.  Establish M as holding company.  It will hold shares of stocks from various units.

4.  The holding of various properties and corporatins must be justified by cash infjusion.We learned from Makati boys how to maneuver sales of properties without actual cash out..  Its a secret

5. Match corporate structures with organiational strengths and performance

6. Maintain edge and majority as you establish crporate structure.   An equal sharing results in stalemate and in my case an ouster.    

Wealth creation for the consultancy

Looking forward to the future of business

Estimate of monetization of consultancy last Sunday:

1.   For development   -              P10,000,000

2.   RA 6552 (forfeiture clause)       P500,000

3.   Partial cancelleation in CTS    2,000,000

Must be about P10,000,000 -  12,000,000

Cost reduction, sound advice create wealth.   Experience count.   Mistakes and legal binds are avoided

Fmr employee solicited advice on a real estate project

Looking forward to the future of business

A fmr staff, millionaire wannabee asked help on a project doing a 6000 sm compound - titling this and selling on installment.  She had a plan for 60 sm a piece to be sold at P6,000 to P6,500/sm.  And still planning to buy the adjoining property for a staggering amount.

My advice:    on current porject

1.  Review pnl, what is going to be the promised amenity.  She plans to develop the property with roads etc.   I asked for the area of road lots.   Its  1,600 sm or roughly 40% of the gross area.   And if there is going to be development, she is going to be in the red.  The road development would cost a good 8 digts.

So be sure to sell this like the others on a as is where is basis.

2.   For the legalitties:

     1.  CTS with buyers -   insert 6552 on the Offer to the purchase.  Forfeiture if there are arrears

                                           state clearly that it is undeveloped property.

     2.  For CTS with the raw land seller -  that she can borrow the title when the time comes for the issuance of individual title.  That she can ask for partial release and cancellation for payments tht she has made.   

For her expansion:

1.  Do nothing at first since there is no ROW for the adjoining property (which she is developing now)

2.  Propose a jv, direct sales from the land owner to the buyer.   Go for 70-30  + 5% for the ROW

     Insert the same provision as in 1.2.2.   She can sign the DOAS for fully paid plots.

Many newbies and wanna bees have a lot to learn from aged business perrson