How Much?

[ThaiPauly]

Hi Guys,

I am looking for some advice and am hoping you can help me.

I have been approached by a Thai freind of mine who I have known quite well for six months regarding a business propsal. He knows that I have been looking to invest in a business for a long time but having been "bitten" in Bangkok before I am now very vary wary of investing in LOS BUT if the right opportunity came and bit me on the bum, I would take an interest in it.

He knows where I can lay my hands on 2 rai of land at 1m baht per rai, just on the outskirts of the City. (10-15 min drive into town.) I cant say where it is.

He says that he has contacts that could build a 12 bedroom homestay/hotel on this land and furnish the whole place and landscape the gardens, including a restauarant for another 5m.

Now call me stupid but just having completed my own house and knowing how much this one cost me, I cannot for the life of me be confident that this whole project can be done and completed for 7m baht. But that was not really using Thai contacts as I really did not have any when I came here, my freind having been born here obviously does although he does not want to invest any money himself (go on laugh if you will) his end would be that he has a company that does excursions and he would want the rights to be able to do these in return for all his imput and help getting me started. He has spent many years in hotel management , I know this to be true.

Yes I can research it further, Yes I can talk to builders and architects and all that but my health is not that good at the moment and I felt the knowledgeable and long time CM residents may be able to give me your opinions and if they are positive I can pusue it further irrespective of my health.

But I am not naive either.

I hope I can look forward to receiving some constructive response.

Many thanks

TP

[Ajarn]

So many issues, TP..

Land have a chanot?

Is it actually worth anything close to the selling price?

Does your vision of the project match his vision in terms of overall quality, etc?

Are you willing to supervise every minute detail of this project, like you did (or should have done) with your house?

How can you guarantee you aren't getting ripped off, or how can you best protect yourself from being screwed? Six months of smiling and kissing butt ain't hard for most Thais, especially the con men, and these guys consider most of us ripe pickings- especially the ones with poor health... And after you've lived here awhile, you'll also have a collection of 'scammed farang' stories....

Sorry for the negative sound, but I'm always very suspicious of such 'great deals', and I get offered many of them.... And some of them could be good deals, too. I guess it's my nature now to take anything someone says here with a huge grain of salt...

If you have the money to blow, and you're looking for a hands-on project to occupy yourself, then I might look further into it. As an investment, I've never known a guesthouse to do much more than maybe pay for its upkeep, but that's about it, in my experience. And you won't even really own the land...

Huge potential headaches, but maybe an interesting and challenging project to do... Though it sounds interesting, I'd be more inclined to sit back, relax, and enjoy my hard-earned money. That's one of the great things about living here, in my book

Good luck.

[ThaiPauly]

Thanks for your imput Ajarn, it is very hard to be positive about any business idea out here, thats why I posted this, to get positive and negative feed back alike.

yes the headaches could be monsterous and I am very wary of anybody that comes to with a GREAT idea, been there done that lost money here.

BUT....... on the other hand it might be the best opportunity in Chaing Mai, who knows.?

Thanks once more for your pearls of wisdom Ajarn, they have been duly noted

[CM451]

Hi ThaiPauly,

I read your post and became curious as to why you came to Thailand. If you came here to make money or become a Real Estate developer you probably are on the right track, but you probably wouldn't need much advice. It sounds like it will be a very good deal for your Thai friend if you make this investment and he probably didn't ask anyone if it was a good idea if he take in a farrang investor.

So here is what I think, if you want to make money go do it where you know what is what. And if you are just bored I think you can relieve it for less than 7 million. And if you just want to help Thai friends, family, economy just give away some money, buy somebody a motorcycle , throw a big party and invite everybody you know. All greatly appreciated.

Cheers,

Edited April 3, 2005 by CM451

[Gary A]

ThaiPauly, why would you want to saddle yourself with headaches and worries? Stress will kill you faster than anything else. Relax and enjoy life.

On the other hand I would be willing to help you dispose of any extra money you have. LOL!

[ThaiPauly]

CM 451, I can answer the reason I came here quite simply.

To marry my TFGF of course, plus I have a son who has lived here way longer than me.

The first year was the same as most other people's wanting to be sure it was love and not just the usual infatuation although she is not that much younger than me.

I had two businesses in Bangkok which I ran paralel with my UK business. Both BK businesses bombed so I sold up my business in the UK for a substantial sum and moved to CM which is my favourite place in Thailand.

I have looked at many many businesses here as I feel at 50 I am too young to retire, having said hat my health has taken a sharp turn for the worse but I also feel that this s becaause I have to long to dwell on it and if I had some kinda business it would get me back the sharp bloke I used to be. I am also aware of two golden rules to follow here

1. Never spend what you cant afford to loose

2.If You want to make a small fortune in Thailand, come with a LARGE one.

Dont need to work but I do, if you see my point? Maybee Charity Work will be my best bet, then we can work without the risk, but I do see your reasons for your reservations

Thanks for your imput

[Heng]

Another couple golden rules for ya...

1. Never do business with friends (or their acquaintences).

2. Never do business with relatives that you value more as relatives than business partners.

These work for me anyway.

[ThaiPauly]

Thanks Guys,

I was going to form a company to own the land so then at least I have SOME security. The guy I call my FREIND is really only an aquantaince , we dont go drinking or anything like that.

In principle the idea should have possibilities what with Chaing Mai expanding and a New Airport to be built in this direction, but as Ajarn said and he's been here a while he does not know of any GuestHouses/Hotels/Homestays that do little more than break even and thats what I have found to be the case with the 20 or so business I have looked into buying up here.

So far I have done NO research I dont even know exactly where the land is , I am just flying this out on TV to see what other folks reactions are, if by tomorrow they seem as negative as they are today I wont bother pursuing it.

As far as I am concerned that is what this forum is all about. Us Farangs helping each other with any queries /problems we may have.

Thanks for everyone's imput so far, any other comments would be warmly received.

TP.

[CM451]

Hi,

ThaiPauly you seem to have a good attitude about it. I guess I know too many Farrang surrounded by folks (family and friends of family) urging them to spend the money, and it's good you can bounce it off a few of us who have no interest in the situation.

.

PS: I've been retired for 10 years, I'm 45 now, and busy all the time, busy enouph anyway.

Cheers,

[ThaiPauly]

CM451,

Would it be safe to say you have Children to keep you interested and occupy your time? you would not happen to live about 15 miles from CM and like Golf too would you?

Cheers for your response

TP

[ThaiPauly]

Ajarn, you have seen whats going down, anything to add mate

[ThaiPauly]

My Son has told me on the phone tonight that if I really want to do something meaningful I should return to BKK and buy my wife a hairdressing saloon, she has no contcats in CM but many of her ex-customers are in BK.(She being a hair coulourant specialist )This would be great for her but for me ... All I would have is nothing, yeah I can razor a blokes head but if the Police saw me doing this I am sure I would be arrested... any thoughts????

ANYBODY, ANYBODY. I am pretty desperate for some views frm TV experts. Cpuld probaly rent my place in CM for 40-50 thousand baht a month, it aint what I want but I do love my wife and at 39 she feels unfullfiied, no matter how much money I have

HELP ME PLEASE

[PeaceBlondie]

ThaiPaully, let me try to say this gently. You say that while your business or investments in the UK were successful, your two businesses in Bangkok 'bombed.' I'd say you're unlucky in business in Thailand.

Your acquaintance may be an experienced Thai hotel manager, but so is my boyfriend. However, BF doesn't know the first thing about law, buying land, building buildings, etc.

Nothing would wear you out more than a busy guesthouse. If you're in good health, even.

[ThaiPauly]

Thanks PB, I have decided NOT to proceed.

many thanks for your imput, it is appreciated

TP