Revival of other products and services

Every generation needs a revolution - an entrepreneurial revolution

5 years ago we were ahead of the memorial business.  It may be that when the entire family meddled in the business, we moved more slowly.   Many cooks spoil the broth.   

Some of the services being sold disappeared:  funeral service, cremation, chapel.  Today we had a gmeet.  The vision statement for C3 (Cremation, columbarium, chapel services) were gone from the mindset of the staff.  More hard work and work outs needed.   We need to synch our understanding 

Baliwag is more successful in expansion of offerings:  siopao, pares, toppings.    We are not so

Are we being left behind in the real estate game?

Every generation needs a revolution - an entrepreneurial revolution

There are a lot of changes in the industry and we have not kept up.  We were not keen on land banking

and we have been too conservatives.  We limited our financial risks by waiting for joint venture.

We also underestimated the market.   Our idea of the purchasing power of the buyers were based on the 70- 80 perception.  Now the needs and wants of buyers have changed.  We understand that the lack of conservatism on the part of the chiefs have caused them to fail.

Some realtors we know shifted to evangelization which is a business also

We missed out on:

1.  Cheap tax dec offerings

2.  Illegal pocket developments

3.  We did not plug our security on intellectual property

4,  Other real estate projects where we had memorial parks:    Calamba, San Fernando, San Carlos,

     Iloilo 

By being watchful, we can cope up again.  Search out for funders and financiers and land owners for JV.  Earn their trust and get noisy make them aware of what we have done

The Lord knows best; when a door is closed he has better deal for you.

Every generation needs a revolution - an entrepreneurial revolution

In the recent deal proposal and evaluation several were botched/did not proceed

1.  The 2600 sm property which we planned for a higher end residential.   The owner wanted P7,500/sm

     we bided only P6,000 because this input is what the market could take    At 7,500 + 2,000 dev                     cost/0.60 = 15,333 BE.    Retail plots at P20,000/sm to make a decent profit.   100 sm x 20,000 =  2M

     The selling price of a nearby subdivision is P12,000 only (P2,000,000 for a 180 sm property)  We               would be pricing ourselves out of the market.   Anyway, the seller gave a deadline and never more 

     responded.

2.  A 9,600 sm property located in a criminal laden site.   The owner was difficult to deal with being

     a former state university activist bad boy.    The property terrain is anti good feng shui and 

     had a cliff like depressed portion.  The seller said there is better access road but he could not show

     this.   We will forego of this project

But there were new opportunities and therefore, the Lord knows best:   There were better replacement:

B projects

1.  A 7.2 hectare project in NW Luzon a jv, this will save a lot of PHP for land acquisition.  Located in a tourism city and sales could reach B, because the product competition is priced at P100k+

     7.3 x 60% =  43,800/2.5 =  17,520  x  80,000 = P1,401,600,000

2.   A possible jv for a mp in town with 300,000 population for 1.4 + 4 hectare good for a yield of

5.4 x 60%/2.5 =    13,000 x P 80,000 per plot =  P1,080,000,000

3.  To substitute for #1, there is a 4,600 project located on the highest point of a hill located near a shrine that is overlooking that is priced at P2,700 per square meter.   We can do this as premium overlooking project.  

                          4,600 x 2,700  =  12,420,000    

                          BE    12,420,000  x 4,600,000/0.60   =   10,811  (dapat P15,000)   

                          HL premium project

4.  Another commercial residential   26000 sm kapapanalo lang sa Supreme Court.    say 

                      6,000 for commercial/sale lease   x 15,000  =     90,000,000

                      20,000 x 5,000                                                   100,000,000

                     Payag ng JV