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
No comments:
Post a Comment