Bella Terra Mall. Santiago.

[sayanora]

If onions and carrots and pichardo had a child, the reality of DR business would be exposed.. both of these guys know exactly how things work and if I ever intend to do business here formally, they would be my go-to guys. I would take both of their opinions before forming my business plan and with that start alone i would be ahead of 99% of any foreign started business here

 

[cobraboy]

I'm quite tired of repeating this over and over again here on DR1 to all expats living for years in the country and yet, still haven't grasped the more basic of this economic system.

You never answer my question. It doesn't matter what is revenue and what is expense. A P&L, Balance Sheet and cash flow statement is fundamentally exactly the same.

Unless you're saying there's some cheatin' goin' on...:classic:

Otherwise you posted a bunch of blather. Your "you don't get it" don't fly with me, Bubba.

 

[cobraboy]

I admit Pichardo exaggerates but let's just suppose that the owners of Bella Terra Mall are already filthy rich and had the capital to do the project. I don't know what space is renting for but I image it has to be a premium price. Therefore, to do a real analysis someone needs to post the actual rental price per square meter and the actual amount of space rented on average and compare that to the operation and maintenance cost before someone can say for sure this business can't float itself.

This is based on numerous years in the development field and having worked for numerous filthy rich people who were looking to invest their millions as opposed to putting them in a bank. My two cents.

Those "filthy rich" guys own the banks, Chip. They make a pile of dough loaning it out.

Unless, of course, like many of the beautiful structures in Santo Domingo , there needs to be some soap and water to clean the dirt off the cash...because it is definitely possible, based on what I understand how the money laundering biz works, to build a capital model that is 35% lower, before the differences in various costs, than a similar structure done with legit $$$. But the question is how much 35% makes...

 

[cobraboy]

If onions and carrots and pichardo had a child, the reality of DR business would be exposed.. both of these guys know exactly how things work and if I ever intend to do business here formally, they would be my go-to guys. I would take both of their opinions before forming my business plan and with that start alone i would be ahead of 99% of any foreign started business here

O/C knows his stuff.

Often Pichardo bloviates. That only impresses those who don't have neither academic bona fides nor working business experience to know it.

 

[cobraboy]

BTW, this isn't the first time Pichardo hasn't been able to offer real debit/credits analysis as to how the "Dominican Business Model" actually works.

I admire his nationalism, truly. I think he is an educated man and COULD provide answers to the actual differences if he wanted to. I also think he provides an angle of insight to some aspects of Dominican life that others don't.

And I ask that question owning three businesses here and dealing with a Dominican accountant on various debit/credit issues. I have a LOT of experience in finance, and with the exception of some *tax procedures* and *labor laws* don't see a fundamental difference in GAAP and analysis of either business valuation or various financial statements between Dominican and American models.

One would think Pichardo could offer actual debit/credit differences instead of multiple paragraphs of bloviation, obfuscation and question avoidance.

Early on we thought about building a modest garage and office for our motorcycle business. At the suggestion of a prominent family we went to one of the large banks to inquire about some 50% financing options for construction. The loan procedure-which we declined-was a virtual clone of every formal loan application from any bank in the states, the EXACT same audited financial statement requests. Not one question about the "Dominican" business model, no reference that we didn't understand. We might as well have been dealing with a senior officer of BofA or Chase...

 

[Chip]

Those "filthy rich" guys own the banks, Chip. They make a pile of dough loaning it out.

Unless, of course, like many of the beautiful structures in Santo Domingo , there needs to be some soap and water to clean the dirt off the cash...because it is definitely possible, based on what I understand how the money laundering biz works, to build a capital model that is 35% lower, before the differences in various costs, than a similar structure done with legit $$$. But the question is how much 35% makes...

cobraboy I don't doubt your pedigree in this matter but some of your terms are a little over my head honestly.

Still, if Bella Terra Mall was built using capital as opposed to financing I honestly don't see based on my background of running a business and economic classes why the mall wouldn't be operating in the black as long as the rent covers the operation, maintenance and overhead expenses.

This financial model isn't any different really than a French client of mine in Orlando who has a million in capital to burn to develop an industrial subdivision and he understands how much the lots need to rent out in order to cover his maintenance costs and have a steady income that eventually will pay off the investment and then some. BTW, since this person is already wealthy he stated that the only purpose of this industrial subdivision was a future income for his and his business partner's children.

I don't understand why this couldn't be the same model as used in many developments here in the DR. At the end of the day this capital is privately owned and thus is not subject to performance criteria other than what the owners feel is a good and stable investment.

 

[PICHARDO]

You never answer my question. It doesn't matter what is revenue and what is expense. A P&L, Balance Sheet and cash flow statement is fundamentally exactly the same.

Unless you're saying there's some cheatin' goin' on...:classic:

Otherwise you posted a bunch of blather. Your "you don't get it" don't fly with me, Bubba.

Robert, the basics are the same, the dynamics aren't!

That's the whole gist of the matter as debated on the pictures as you stated!

 

[PICHARDO]

Those "filthy rich" guys own the banks, Chip. They make a pile of dough loaning it out.

Unless, of course, like many of the beautiful structures in Santo Domingo , there needs to be some soap and water to clean the dirt off the cash...because it is definitely possible, based on what I understand how the money laundering biz works, to build a capital model that is 35% lower, before the differences in various costs, than a similar structure done with legit $$$. But the question is how much 35% makes...

Believe it or not, the actual big launder of money in the DR is based on tax evasion and very little of it on drug or illicit stuff...

 

[PICHARDO]

BTW, this isn't the first time Pichardo hasn't been able to offer real debit/credits analysis as to how the "Dominican Business Model" actually works.

I admire his nationalism, truly. I think he is an educated man and COULD provide answers to the actual differences if he wanted to. I also think he provides an angle of insight to some aspects of Dominican life that others don't.

And I ask that question owning three businesses here and dealing with a Dominican accountant on various debit/credit issues. I have a LOT of experience in finance, and with the exception of some *tax procedures* and *labor laws* don't see a fundamental difference in GAAP and analysis of either business valuation or various financial statements between Dominican and American models.

One would think Pichardo could offer actual debit/credit differences instead of multiple paragraphs of bloviation, obfuscation and question avoidance.

Early on we thought about building a modest garage and office for our motorcycle business. At the suggestion of a prominent family we went to one of the large banks to inquire about some 50% financing options for construction. The loan procedure-which we declined-was a virtual clone of every formal loan application from any bank in the states, the EXACT same audited financial statement requests. Not one question about the "Dominican" business model, no reference that we didn't understand. We might as well have been dealing with a senior officer of BofA or Chase...

Here you are again on basics and little if anything on the dynamics of the biz itself.

You can read tons of the dynamics I posted here on DR1, even debated in other threads with you as well.

The whole point you miss is that you equate basics of doing biz and the actual actions of carrying out that biz itself to be the same, which they aren't.

The day you take the plunge and go formal with a DR local biz for the local public, you'll find out why the home-office and the formal type of biz is so strong in the DR. Neither one has to be doing great for the biz to stay put and bring in the much needed cash to your pockets.

That's something that seldom, if ever, can be recreated in the US economy, due to how the system there treats both biz as the same and even blocks via regulation atop regulation that home biz side.

I gave it to you in the very simplest of terms, the dynamics that seem so elusive for you to grab Robert. You're stock in basics and missing the dynamics of how that basic is translated in the real world you carried out in.

You can have 50 years of experience in a restaurant biz in NYC and be a lamb in Dubai on the same line of biz....

They both have as you listed above, the same basics of doing biz, but two totally different dynamics on how that biz gets carried or executed out...

 

[cobraboy]

Robert, the basics are the same, the dynamics aren't!

That's the whole gist of the matter as debated on the pictures as you stated!

Build me a P&L model that proves your point.

"Dynamics" doesn't appear in the General Ledger.

 

[cobraboy]

cobraboy I don't doubt your pedigree in this matter but some of your terms are a little over my head honestly.

Still, if Bella Terra Mall was built using capital as opposed to financing I honestly don't see based on my background of running a business and economic classes why the mall wouldn't be operating in the black as long as the rent covers the operation, maintenance and overhead expenses.

This financial model isn't any different really than a French client of mine in Orlando who has a million in capital to burn to develop an industrial subdivision and he understands how much the lots need to rent out in order to cover his maintenance costs and have a steady income that eventually will pay off the investment and then some. BTW, since this person is already wealthy he stated that the only purpose of this industrial subdivision was a future income for his and his business partner's children.

I don't understand why this couldn't be the same model as used in many developments here in the DR. At the end of the day this capital is privately owned and thus is not subject to performance criteria other than what the owners feel is a good and stable investment.

i'm not debating whether the Mall is profitable or not, Chip, not what their strategery or business model might be.

My comment is that in all my visits there I haven't seen the buying traffic that supports the businesses in it.

The investors of the mall are Big Boys and are responsible for the risks they took. I have no issue with them at all. And, really, I have no issue with the businesses there at all for the same reason.

I DO have an issue with Pichardo trying to blow smoke on how somehow Dominican businesses use some different cultural model (or "dynamics") that transcends international Generally Accepted Accounting Principles.

 

[Chip]

Build me a P&L model that proves your point.

"Dynamics" doesn't appear in the General Ledger.

With all due respect my friend what about the model I proposed? Constraint free capital and income covering all overhead and operating expenses?

 

[PICHARDO]

Build me a P&L model that proves your point.

"Dynamics" doesn't appear in the General Ledger.

Biz dynamics is what move and cements the biz in all principles! Sorry to have to break it to you!

 

[cobraboy]

Biz dynamics is what move and cements the biz in all principles! Sorry to have to break it to you!

Where does "cultural dynamics" appear on the GL?

 

[cobraboy]

With all due respect my friend what about the model I proposed? Constraint free capital and income covering all overhead and operating expenses?

If that is what a person wants, fine with me.

What about inflation and weak currencies eroding actual value over time?

 

[PICHARDO]

Ask McDonald's to explain to you what biz dynamics are to the whole biz structure from one point to the other.

They had to "rethink" and "re-do" their entire biz as they knew it from their vastly superior and long term biz experience and knowledge, mostly based on the same basics you here tout as the same for all cultures/markets as equal for their complete China and Asia markets.

There's basics, and then there's the actual biz, which we call the dynamics of the biz itself. Basics like the ones you tout, are just that, basic principles of biz for the modern world of economics we adopted since the industrial revolution and fall of protectionism on home markets. The principles of biz are NOT the biz itself nor can they copy and replicate the same pattern of doing biz everywhere as you support.

The DR is not Puerto Rico, nor is it the same dynamics of biz as the USA. Each market owns a distinct dynamism of their home economies. Some like the DR are based on more cultural mix traits, than trends found in overall markets elsewhere using the same economic principles as basic building blocks.

Case in point: Hershey's a super duper and experienced biz operator had to pull the plug in the local DR market, because their business dynamics couldn't compete with that of the local mini-operator Bon...

As for your above reference equal and the same, the big corporate had the advantage being strictly under the same and exact biz model as you claim, yet failed?

 

[Chip]

If that is what a person wants, fine with me.

What about inflation and weak currencies eroding actual value over time?

Good point cobraboy, however I expect in the case of mall increasing property values and leasing and lease rental rates would compensate.

To be honest, Las Colinas Mall has come a very long way from the beginning and is pretty busy when I've been there not to mention the amount of lease space has easily doubled.

 

[ramesses]

Please explain this biz model....or link me to an overview.

 

[PICHARDO]

Please explain this biz model....or link me to an overview.

Plenty on it already posted, just use the advanced search function on the DR1 forum!

 

[ramesses]

Plenty on it already posted, just use the advanced search function on the DR1 forum!

It's all very confusing...I have read quite a few of the posts and it confuses me. Can you give a very quick overview of the basic points?