551 M.F.

Jhocson Street, Sampaloc, Manila 1008

College of Business and Accountancy

RESEARCH PAPER

MIDDLE TOWN

Submitted to:

Mr. Ireneo R. Aguilan CBA Professor

Prepared by:

Michael Anthony T. Dela Cruz ACT132

Camille Berly Mae Duran ACT132
Karen Joy Garcia ACT132
EXECUTIVE SUMMARY:

The first year of Middle Town will be spent to expanding our building
opportunities. The company will strive to create and maintain an image and
reputation in the industry as an honest, cooperative, and creative enterprise,
characterized by ethics, fair play, and win-win results. Our operations will be noted
for our high technology processes that will utilize state of the art information and
management systems. In order to ensure success, Middle Town will focus on the
development of strong partnerships with key real property professionals such as
sales brokers or agents, financial institutions, law firms, building trade contractors,
real estate service firms, and others.
This Middle Town will take advantage to create investment income through
the purchasing and reselling of distressed homes. A targeted 100% profitability will
be generated by performing cosmetic or functional improvements to single-family
homes. These renovations will significantly increase the value of the property and
make it available for sale to a focused customer marketplace.
According to recent demographic studies, more than 40% of the Philippine
population will be in the age group of 23-45 by the year 2015. With these trends in
mind, our target customer is a young, professional, dual-income family. These buyers
will have good credit and income potential, but may not have significant cash
reserves. Our approach to these buyers, therefore, will be to get them into our
houses with creative solutions to their cash shortage problems.
In financial analysis, Each property to be purchased will go through an
extensive financial analysis in a spreadsheet that has been created for this purpose.
This analysis will provide the decision making data to determine the appraisal value,
appropriate purchase price, detailed estimates of potential renovation, acquisition
costs, and potential sale price as well as anticipated profitability.
As a home construction and real estate investing firm with a high technology
flair, Middle Town will be managed much differently than traditional construction or
small investment companies. Utilizing our significant expertise in information
systems, financial controls, and project management, Middle Town will be a very
tightly managed company. In addition to the individual property financial analysis
process mentioned earlier, a corporate financial control and reporting system has
been developed for the business as a whole. Meticulous recordkeeping and
continuous transaction monitoring will be accompanied each year by a profit and loss
statement that would be used to track the performance of the company for all parties
involved.
Yearly revenue and expense outlooks will be performed and, each year, actual
results will be compared to the outlooks to monitor performance and make
adjustments as necessary in daily operations to achieve the desired corporate profit
attainment.

MISSION STATEMENT
Our mission is to create investment income through the purchasing and
reselling of distressed homes and to be a world-class real estate company by
building beneficial and lasting relationship with our clients through a process of
continuous Improvements. We will serve our customers' needs and will consistently
produce and manage developments of lasting value to the community. We recognize
the need to be flexible, entrepreneurial, and aggressive, both as individuals and as a
company. .

VISION STATEMENT
Strive towards the enhancement of quality of life of the society in harmony
with nature to build a best company and profitable leader in real estate.

OBJECTIVES
A targeted 100% profitability will be generated by performing functional
improvements to single-family homes and these renovations will significantly
increase the value of the property and make it available for sale to a focused
customer marketplace which is the young, professional, dual-income family customer
that had cash shortage problems.
1. Develop 30 additional affordable housing units per year for low to moderate
income families.
2. Manage the whole housing units for low to moderate income families.
3. Promote and uphold high standards of moral, ethical and human values in the
realty business and to improve decency, dignity and reliability of the trade in
the public mind and to encourage among the members a sense of rendering
healthy and socially desirable and qualitative services
4. Achieve the 100% targeted gross profit or profitability.
5. To enhance the operational system of the Real Estate Industry and remove
roadblocks for providing a better culture and client oriented service, with a
sound understanding of customer needs.
6. To encourage among the members, a sense of rendering healthy and socially
desirable qualitative services.
7. To offer clarifications and counseling necessary in the real estate transactions
and to avoid spreading of rumors.

KEY TO SUCCESS
I.

II.

III.

Management and board are on the same page regarding the projects
outcomes. Real estate development is a long and tough road to hoe so it is
important that management and the board of any organization are equally
committed to the project and share the same vision for its outcomes. This
shared vision and commitment will help focus the organization and its
professionals on what is important. It will help to reduce distractions and
smooth over the bumps in the road that are inevitable in any real estate
project.
There is a reasonable amount of time to develop the project. Everything
takes time and for something to be done well you need to allot sufficient time
to it. Middle Town spend a great deal of time discussing how long construction
will take and granted construction is a big chunk of time but there are many
steps in the development process that collectively can take as much or more
time than construction.
Middle Town will focused on the development of strong partnerships with key
real property professionals such as sales brokers or agents, financial
institutions, law firms, building trade contractors, real estate service firms, and
others