Screaming for Capital

Yesterday was the last day for filing candidacies for the local elections. I should have known months back that the elections would present me with oppurtunities for my Agri-Financing Business, but I did'nt. More elections will come, and I should be prepared next time. Lessons learned.

The other day, I was offered large tracts of rice land for pawning (20 years), but I was not capital ready. I accepted one, which I promised I will deliver the funds within April. More was offered, but my capital can only accomodate one. Hahaha.

So? I must pay all my outstanding loans within the next two weeks, so I can apply for a re-loan. This money (which will serve as capital), I will loan to the guy that offered me 8 hectares of rice land. I will tie his land for 20 years, which means that he cannot redeem his land for the next 20 years. The land will produce rice 2 to 3x a year - which would serve as profit for the loaned amount. The capital outlay would be recovered in two years - 18 years profit. I could not ask more than that, hehehe.

This re-loaned amount (charging me 12% p.a.) I will target to pay by September, so I can apply for a reloan again - which I will provide to those running in the Barangay elections come October (definitely more clients would be available by then). I am targeting to acquire 15 to 20 hectares of riceland this year.

I have been telling myself - make do with what you have, do not overextend your finances, choose clients carefully.

Going to this business is a bit corrupting to the soul. I will endure, besides if I don't take them, a more hungry shark would. Remember I charge them less than what the current market is offering.

Hay...

Where is Gold going?

Despite the sideways movement of gold prices, I still feel very much bullish on this metal in the long term.Gold for April delivery closed down $1.40 at $662.50.

In my opinion, this is a good buy. I would buy, and sit on it for the rest of the year. My target is at least double its current price.

My reasoning for doing this - is something I cannot post, a gut feeling, and a dream.

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Besides, to quote Sam Kirtley on his article, The Gold Bull: How Long Left? Gives me more confidence to buy gold aggressively.

" A commonly known figure amongst gold bugs is just over $2000, which is the figure you get when you adjust the 1980 high for inflation and represent it in terms of today's rapidly devaluing US Dollar. If this is to be the high for gold in the current bull then this would suggest that we have at least another $1000-$1500 rise in gold prices to come. In other words, from the low at $250 to $2000 we are currently at $650/oz, about 37% of the way through this gold bull market."

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I am going to my farm tommorow to harvest and sell my farm produce for this season. Further, my adsense income have being increasing by 25% month on month since January 2007 despite my erratic updates on my sites.

I have no idea now where the Peso is going. No currency trades for me as of today.

This is all for now.

I am back

There's been no entry this past few days because I was out - I was in my farm doing some farming work, hehehe. I asked my "katiwala" to arrange for some people to dig irrigation canals so that part of my rice land would be able to access water. Now its been fixed.

We are going high tech now, I bought a water pump, and plans were laid out to maximize both farm input and outputs, whatever that means. We expect bountiful harvests in the coming months.

I also expect "graduation invitations" this coming days and weeks. I got scholars, and I am a "supporter" of the local basketball team - three of its members are graduating this March.

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I will be back trading currencies in a few days. And I will post whatever I got.

This is all for now.

What's up?

This post is a sort of recap, and would try to answer the question: what's up? how am I doing? This was because, I recieved an email from my KSA e-group asking me: "What happened to you?"

If you have been following my blog, you already know that I finally decided to leave my job in KSA for reasons detailed in my earlier posts. That was in June 2006, and I have been sort of "jobless" for the past 10 months. The easiest question then is " how am I doing financially"; and "what happened to your plans".

My answer is, I am doing great!

Over the past months, I have realized that I have to divide my "assets" into expandable, and consumable, whatever that means.

My consumable assests are those sources of money that I would use for daily expenses, bills, booze, etc. and currently these are:

1. Adsense, I have decided to move to DHL, better safe than sorry. For this year (Jan, Feb and March 11), I earned more than 40K in pesoses. I also earn from links sold, of course.I hope to grow my adsense income slowly until December.
2. My transportation business, adding 9K a month.
3. My fish retail financing, adding 8K a month.
4. Copra income, adding 2.5K a month
5. School supplies shop, adding 7K a month.

I now live on a tight budget. I must never spend more than what I earn from above.

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Now, about my expandable assets. Thus far, my assets on this category are those that are into Agri-Financing. This business model is very simple. I give loans to rice farmers, the loan is secured by their land title, they farm their land, and they pay rent to me every cropping.

The capital for this business was obtained from a bank loan, coupled with the huge chunk of my savings from working in KSA. I tried making it a cycle, and benefit from outside financing, and earn from interest differential. What I mean by cycle is that, I pay all my loans every six months (obtained at 12% p.a.), obtain another loan again, which I re-loan to farmers (at a shameless interest rate, but much lower than the on-going rates, nakakakonsensya kasi, hehehe). I pay my loans completely 2x a year to create a good credit record, which hopely, would translate to a higher credit limit, which hopely would translate to a higher income for me.

I made a spread sheet for this, and hopely by 2010, I expect to earn around 1.1 M a year on interests alone, excluding the capital.

Risks, of course, there are huge risks, but then, I would choose my clients carefully, and all loans are secured by their land titles.

This is the life gamble that I have entered myself into: my own business, on my own terms, with the possibility of unlimited earning potential vs a secured high paying job, far from love ones, with a "masungit" Saudi Boss, hahaha, take a pick. I actually have decided to declare my freedom, the first day I started my KSA stint - economic freedom was my goal. So, what happened to me? "I am no longer a modern desert slave"...nuf said. My life is my choice.

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These are all passive source of income. Fact is, a big chunk of my time is spent on the internet, on my blogs, on games, and lakwatsa. I also spend around 20% of my time in all of these miniscule investments.

As a side note, I was also offered two jobs for the past 10 months which I declined. I just dont want to work, maybe until December 2008, and I want to see what would happen to me. Would I perish or prevail? Also, I just want to live on my own terms, no Bosses, no waking up at 7 AM, no hassles, no office politics, no commuting, no traffic etc.

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I am not disclosing here my earnings from forex and metals trading. However, when it hits really big, I will make a post.

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Now to my dear friend, "What happened to me?" I am doing great! Maybe soon, it will be my chance to ask you the question, "What happened to you?" hahaha.

What to do next?

I posted a warning in my earlier post. I hope it was heeded,I said: put your stop loss, and do not bite what you can't afford to lose.

So what's next?

This is just a pause. And let us wait for the bottom. Let us wait for China. What they are going to do, and when.

For now let us stay in the sidelines.