Expertise in JV

Every generation needs a revolution - an entrepreneurial revolution

We have managed about half a dozen jv.  We can be very adept in formulating one and explaining one to an agent or a land owner.   Many do not understand the documentation and mechanics

We have successfully managed joint projects for the last two decades.  We are cooking about 2 now.  I hope we can close 2.  

As a consultant, I will spearhead the development and marketing of real estate holdings to help the bank grow, but as if I own the properties

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
August 16, 2016

I am being invited to join the board of the RB that is being geared to grow into a billion in five years. (I foresee a much shorter time)

I have been given papers of two real estate holdings of the lady CEO who bought them at a bargain:

1. One is a one hundred thousand square meters with 1,000 individual titles which she bought from SPAV for only P12,800,000 (it should cost about 4 times as much)  Very easily as raw land, it can be sold retail for P200,000,000

2. The other is a 24 hectare property along the highway (with commercial potential) in a fast developing CL, Region 3 town at only P50,000,000.  It too has individual titles soon because it has development plan.  A Villar company which is located in the interior (developed) sells for P3,500 to P5,000 per sm.  It is fronting an international school and a resort.  It could be easily worth half billion pesos market value.

    In the meantime, the property can be made the paid up capital, 50% for the lady CEO as capital for the holding company.

The strip along the highway can be set aside for commercial property/rental and lease.

Action Plan:

1.  The site development plan will be given next week and we will have site inspection.

2.  The engineer will get the development plans and engineering drawings if not he will prepare a new one based on site development plan and IRR of PD 957 or BP 220;  He will prepare a BOM, specifications for bidding. for outside contractor or to save money by administration

3.  The marketing group will submit a proposal how to sell prior to development. The lady CEO will meet the marketing group who will need a budget

4. ROW and LTS will be obtained where it is needed.

Instructions/guidelines

1. Prof Jorge will be the consultant/PM but will manage it as if he was the owner;

2.  He will make sure that it will make the bank grow:

      1. DP and cash flow will be deposited with the bank

      2.  The 70% balance will be mortgaged with the bank

      3, In SMC branches may be put up

What is the proposal of the prof for compensation?

Creating opportunities and wealth from what one has

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
August 16, 2016

Today I brainstormed with a lady Chairman of a group of companies and former CEO of a huge financing company, chemical company that supplied all the chemical needs of the detergent FMCG in the country. She is 55, he is 73 but still very creative and innovative.

He invited me to be executive director of the group who will form a holding company:

The holding company will gather capital and invest 50%-50% in the following ventures:

            1. Bank (the rural bank which we are working on now)

            2,  Real Estate (horizontal and vertical)

            3. Schools

            4. Health Care (nursing and hospitals

            5. Energy (solar)

            6  Telecom  (e Pole)   from Enersphere  designed to solve telecom congestion, dropped calls and slow internet speed

The various groups will have their own CEO and be profit center, and funds will be raised through ordinary subscriptions and even IPO.  This calls for a hard driving CEO who will kick ass. The elderly CEO thinks I am talented enough to run this complexity and kick ass (or more mildly nudge

This will be a conglomerate approach just like MVP group (energy, telecom/utilities), Aboitiz (power and banking or San Miguel (food energy, and construction) or Phinma which is into schools, real estate and energy (divested from  cement and construction/technology

How will I be compensated, do I have time for this.?  Initially once a week and as a consultant. Or be fee based on projects.  He likes my approach as an academician businessman which is methodical, organized and scientific

 The businesses we talk about amount to:

1.  School   -   100,000,000 million

2.  Solar manufacturing -   100,000,000 million

3.  Bank                         -   100,000,000 million

4.  Real estate               -    400,000,000 million raw land value

We now have a asset for stock swap capitalization for the holding company:  200,000,000 million (conservative appraisal) consisting of 24 hectares of prime land (along the highway) near the Philippine Sports Arena.    Earlier, raising capital for holding company was problem, today, we have a solution

Wow.  Just brainstorming and manipulating the assets and applying innovation can create more wealth and opportunities for many people