Aplicación de reducciones y exclusiones

Until he was 13, taipan John Gokongwei enjoyed a  privileged lifestyle as the son of a rich man. He “went

to Cebu’s best school, lived in a big house and got free

entrance to the Vision,”1 _{the largest movie house in Cebu}

which his father owned.

But then his father died and the family became poor and had to split up. His mother returned to China, taking his ve siblings because it was cheaper to live there. John

1_{Quotes from John Gokongwei in this chapter come from http://www.webphil.com/philip-}

 pineentrepreneur-mrjohngokongwei.htm (accessed November 15, 2006) or see Biz News  Asia, vol 4 no 30, Aug 14-21, 2006.

Gokongwei was placed in the care of his grand uncle, Manuel Gotianuy, who put him through school.

Two years later, World War II came to the Philippines and the young Gokongwei found himself out in the streets. His grand uncle could no longer see him through because they lost everything. But so did everybody.

Mr. Gokongwei, giving the Commencement Address at

Ateneo de Manila University in March 2004, recalled, “War was the great equalizer. In that setting, anyone who was willing to size up the situation, use his wits and work hard could make it!”

The young Gokongwei had to nd a way to support himself and his family.

You would hardly think today that John Gokongwei of the Robinson group found himself in the same x that many Pinoys are in today. But he did and look where he is now.

The 5/7 Program

Whether consciously or not, Gokongwei followed a

simple framework of action to amass his wealth. I stumbled into this framework after immersing myself in Kiyosaki’s  books starting with Rich Dad, Poor Dad, studying stories

reecting on my own experience of success and failure. I call the framework Larry’s 5/7 program.

Larry’s 5/7 program for making massive income through real estate foreclosures in the Philippines and

 providing housing for our kababayan:

P T L F A (that’s the 5)

Larry’s Seven Steps (that’s the 7) Both are linked by the letter A.

The letters P T L F A stand for: Plan

Team Locate Finance

Act (Carry out Larry’s 7 steps)

So there’s the framework. You’ve got to have a plan, you’ve got to have a team, you must gure out the location where you want to work, you have to work out your

nances.

When you have these gured out — you act.

The time frame can be: daily, weekly, monthly or yearly.

Make a Plan

The plan is not a complicated big business plan. It’s as simple as starting by buying four small houses (could be townhouses, apartments or duplexes) and converting them to one big hotel (or bigger apartment units or multiple

condo units) just like in the game, Monopoly.

Or, in the case of John Gokongwei, he became a market vendor. Gokongwei describes that time: “It was every man for himself, and I had to nd a way to support myself and my family. I decided to be a market vendor. Why? Because it was something that a 15-year-old boy in short pants could do.”

 The young Gokongwei had a bicycle which he loaded up with thread, soap and candles. At 5 a.m., he pedaled 30 minutes to the market outside the city, rented a stall, laid out his goods on a small table and started selling P20 of goods every day.

He recalled, “Sixty-three years ago, it was enough to support my family. And it left me enough to plow back

into my small but growing business.”

Today, we know that Gokongwei’s business spans nine core businesses: retailing, real estate, publishing,  petrochemicals, textiles, banking, food manufacturing,

airlines and telecoms.

But he started it all with a simple plan — by becoming a market vendor. It’s the same thing for the rest of us,

whether it’s real-life bank foreclosed property or the games Cashow 101 or Monopoly.

How do you win in Monopoly? You have to get those houses. And when you have four houses, you can replace them and buy a big hotel.

In our context (bank foreclosed properties), we

start with small deals, like a duplex, two-three-or-four condominiums, ve adjacent townhouses or four-or-ve door apartments. You get a number of those and generate  passive income of P5,000 a month, P10,000 a month,

P20,000 a month per property.

Your plan can be: I will acquire two properties a year for the next 10 years so that I can generate P100,000 in  passive income monthly for the next 10 years.

Suppose you get your rst property and make a

mistake and earn maybe only P100 a month or you have  It’s All in Your Head 

negative income. If you don’t have a plan, you’ll quit. You’ll say it’s too much trouble for too little money.

But if you have a plan, you won’t quit. You’ll say, “Wait a minute. That’s just the rst property. My plan is two per year for the next 10 years. So let’s go on to my second property.”

Losers quit. Winners never do. They just move on, learning from each

experience. And if they have a daily journal to record their experience, learning becomes tangible.

You learn a lot in your rst purchase. By the time

you hit your third, fourth, fth  property, you’re ying. You’re slowly becoming an expert.

I didn’t have a plan. All I knew was that I wanted  passive income, which I learned about from the network

marketing business, Skybiz. I started buying property after three months of failure. I didn’t even know how many

 properties I wanted to get. By the end of the rst two years, I had more than a dozen properties. Yet, I wouldn’t be able

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