Exploring financial Ledger demaine (engineering)

Nation building via learning and being the best in business

Seen in book being sold as a guide for money making.

Many times we say its the capital that counts.  Again we say its the head the capito  Cunning, being smart counts.    (Many would say it is scam)   So this post thinks that many businessmen cross the lines of morality. 

Lets say you were lent P1 million to be returned in a short period of time -  one week to to one month.  How would you do it.?  Of course the long term business planning will not work.  It has to be ingenious.

The book says that this could be the way to do this (but this is fraught with risk and loopholes that could cause you to fail:

1.   First, open a CTD with the bank for one million

2.   Then borrow up to 90% of the  CTD -   P900,000.

3.  Use  the  900,000 to purchase Real property.   (Most would require 30% dp and that means you can acquire up to P2,700,000 real property  )

     Buy a property worth P500,000 cash

     Buy a property with P400,000 dp,  P1,200,000 total

4.  That means now that you now have the P1,700,000  +  P1,000,000  = P2,700,000 total assets.   You are now rich

5.  The big problem is now paying back the 1 million .  Thats where it gets  challenging and sticky:

6.  How.

      1.  Flip the house bought for cash at P1,000,000;

     2.  Or say sell for   P900,000,00, borrow against mortgaged property for P100,000 to add  to P900,000 for 1 million total.  Bur we did not include here:   the interest expense on the loans and the P1 interest.  But the scheme can be learned on how to create something from nothing   From zero to one   And yet many of us struggle on 8- 5 jobs