When setting up a food business in the Philippines—whether as a manufacturer or an importer—you are required to secure a License to Operate from the FDA. And getting that license isn’t just paperwork. The FDA will actually inspect your declared office/warehouse. They want to confirm that your business physically exists—that you’re not a fly-by-night operation that disappears the moment something goes wrong with your product. This principle isn’t unique to the FDA. Banks opera

If this is something that matters to you, the safest approach is simple: protect yourself contractually. When submitting an offer, include a clause requiring the seller to declare whether any of the following occurred inside the property: + Any death + Suicide + Violent crime or homicide If the seller refuses to sign such a declaration, well then, we know the answer. This approach is important because laws on disclosure vary widely across countries. In many developed economie

A buyer once came across an attractively priced condo online. He had been searching for a property for months, and this listing immediately caught his attention. The price seemed below market, so he scheduled an ocular right away. When he arrived at the building lobby, the owner personally greeted him and accompanied him upstairs. As they reached the unit, the buyer was about to step inside when something odd happened. The owner stopped at the doorway. He didn’t go in. He sim

When I first got life insurance, I had absolutely no idea how much coverage I actually needed. A quick search online gives broad rules of thumb. Many advisers suggest coverage of around: + 30× income for ages 18–40 + 20× income for ages 41–50 + 15× income for ages 51–60 + 10× income for ages 61–65 These guidelines are helpful, but they focus mainly on income replacement. In real estate, there’s another way to think about life insurance. At the very minimum, your life insuranc

Client: Juan, how do bank-financed purchases work? Do I have to pay the seller 20% upfront? What if something goes wrong—do I get my money back? JPRE: For bank-financed purchases, the buyer pays the equity portion, usually around 20% of the purchase price, while the bank finances the remaining 80%. The bank does not release the 80% immediately. Instead, it issues a Letter of Guarantee—essentially a promise to pay the seller once the title is transferred to the buyer's (your)

Once upon a time, a broker was about to close the sale of a property. They were already at the stage of signing the Contract to Sell (CTS) and receiving the earnest money — usually one of the final steps before the transaction moves forward. The sellers, siblings who inherited the property, agreed to meet the buyer at a bank. The broker did what brokers normally do. She reminded both the buyer and the seller the day before and again on the morning of the meeting. The broker e

What is a “hurdle rate,” and what does it have to do with real estate investments? A hurdle rate is the minimum return an investor requires before deciding to pursue an investment. If the expected gain/return is below that threshold, the investor simply turns down the investment. In real estate, investors often compare their hurdle rate against a property’s rental yield—the annual rent divided by the purchase price. If the yield meets or exceeds the hurdle rate, the property

One useful trick in real estate is learning how to estimate the size of a space just by looking at it. Here’s a simple method. Step 1: Use a car as your measuring stick Imagine a Toyota Fortuner. A Fortuner is common enough that most people can picture its size. Step 2: Place the car in the space Mentally park the Fortuner inside the area you’re trying to estimate. At the corner. If it helps, imagine standing beside the car: • the driver’s door • the back seat • the trunk Onc

Continuing yesterday’s story, here are the practical lessons: 1. Earnest Money: Size Matters There’s no fixed legal rule on how much earnest money should be. In institutional deals, 10% of the purchase price is common. But in private transactions between individuals, the absolute amount may matter more than the percentage. The larger the earnest money, the larger the risk if something goes wrong. Its purpose is to show commitment — not to create financial damage. Sometimes, a

Once upon a time, a broker was about to close what looked like a relatively smooth deal. After weeks of negotiation, the buyer and seller finally agreed on the price. To formalize the deal, the seller required 10% of the purchase price as earnest money — amounting to several million pesos. The buyer pushed back. The broker, fearing that asking for another concession might derail the sale, explained that 10% is common practice in many transactions, especially when the seller w