We were comparing two investment options: one in a City in an island province, the other in Rizal equal number of population

Every generation needs a revolution - an entrepreneurial revolution

We were confronted with making a choice between possible investment

                      island province                              Rizal province

Area                 3.2 hectare                                   3.5 hectare

Docs                 titled                                            tax dec (untitled)

Populations      303K                                            313 K

Competition     3 other MPs but distant               none (will be the sole MP

deal                   purchase at  P8K/sm                   JV

Cash out          P200M                                         Max 20M

Degree of        high for cash flow                        high for titling

difficulty    

What is your choice?  Which do you prefer?

When and how do you exit from your business investment

Every generation needs a revolution - an entrepreneurial revolution

For the sake of discussion and learning, we talked about a colleague and friend who made about P3-4 million into what has become a famous organic farm.  Initially somebody offered  P35 -40 million for her 3.5 hectare property located some 50+ km from our town.

Now she wants P100M+ as the only possible deal  We said that it is not possible.  That price of about P3+ per square meter would seem to be a price of someone who is not selling   Maybe a P1,500 to P2,000 /sm would be a more feasible price.   Since she/we are all ready old.

If it is going to be a residential or farm lot project, 30% of the land has still to be set aside and the investor would need cost of money or ROI

What do you think:   1.  Sell at P1=2,000/sm           2.  Sell at P3K/sm?

We did not invest in Kanlaon City; were we blessed.

Every generation needs a revolution - an entrepreneurial revolution

We just learned that Kanlaon Volcano just erupted.   And heavy rains washed down lahar unto its rivers and roads.

Several years back, one of our business partners, a doctor (a famous skin care specialist) brought us on a trip for possible investment at the City:   subdivision, health care, storage facilities, a cemetery.

However we balked at the idea because of another risk:   peace and order.  Those on the left used the area for their R and R.  True enough, several days later at the neighboring town, there was an ambush of PNP personnel resulting in several deaths.   

Since it was cool at the area, all vegetables and flowers can be grown just like in Baguio.   We could go on chicken farming and cattle raising.   

We still balked at the idea, the target market being sparse.

And now the eruption of Kanlaon Volcano.   Were we right in our decision?