After rebirth, I became a great master

Chapter 342 National General Agent
After hearing what he said, Guo Guanchang felt relieved about the cooperation.

His biggest worry was that this junior was too young.

The real estate business is not the same as the book business.

This industry has a江湖 (jianghu) atmosphere; it's a deep and complex place, and you can't get by without seasoned skills.

Guo Guanchang pointed out this loophole simply to test the waters.

The feedback was very positive.

Often, when designing such systems, it's not that people are unaware of the loopholes or lack the ability to fix them, but they choose to let them run rampant, precisely to allow certain individuals to exploit them.

Zhou Haoran clearly has this understanding.

It doesn't matter whether the people buying the discounted resettlement housing are laid-off workers or not, since there are only 500 units available. As long as they have a layoff certificate issued by the relevant department, they can buy the discounted resettlement housing.

Houses are too expensive.

Many leaders and their cronies in government agencies can't afford it, so it's considered a form of welfare.

Seeing that Zhou Haoran was reasonable, Guo Guanchang actively sought cooperation.

They even took the initiative to make overtures.

"Foshan Pharmaceuticals is going public, do you want some pre-IPO shares?"

"Pre-IPO shares?"

Zhou Haoran's eyes lit up.

Guo Guanchang laughed and said, "If you're interested, I'll prepare 200 million shares for you."

"forget it."

Zhou Haoran sighed.

Guo Guanchang assured him, "Trust me, Fuxing Pharmaceuticals will not let you down!"

Zhou Haoran said, "I know this is a great opportunity to make a lot of money, but I have limited funds. They all need to be invested in this real estate project, and I really don't have any extra funds."

"That's it..."

Guo Guanchang showed a regretful expression.

My heart was already bursting with joy.

Now we've finally figured out everything about this junior.

He's going to invest all his wealth in this real estate project, so to ensure success, he'll inevitably have to put in a lot of energy, connections, and social relationships.

For our partners, this is a huge guarantee!

That's all set!

Guo Guanchang can now cooperate with even greater confidence and boldness.

The tripartite talks will take place on Saturday.

The cooperation ratio has been determined.

In this real estate project, Zhongbo Real Estate holds 65% of the shares, contributing the land and RMB 1000 million in cash; Fuxing Real Estate holds 30% of the shares, contributing RMB 3000 million; and Kailuorong Real Estate holds 5% of the shares, contributing RMB 500 million.

The total development cost for the project is 4500 million yuan!

The project officially started in July!
The development of the property is expected to be completed and sales will begin in April next year.

The biggest challenge now is that Zhongbo Real Estate is just an empty shell.

Where can we find this 1000 million?
In addition, the land use designation needs to be changed from industrial land to commercial and residential land, and a payment of 1500 million yuan must be made to the government.

A total of 2500 million yuan!

Where did it come from?
Jiang Xiong has made it clear that he doesn't want to get into real estate. He's a cultured man and has no interest in this kind of informal business. This means that Zhongbo Real Estate can only be operated by Zhou Haoran and Li Changxing alone, and they can't withdraw funds from Zhongbo Bookstore.

That evening, Li Changxing hosted a banquet at Jin Baxian.

Zhou Haoran invited Ji Yingyang to join him at the appointment.

Li Changxing watched as Mr. Zhou was always surrounded by beautiful women, feeling both admiration and envy. He thought to himself that once this project succeeded and he made a fortune, he would definitely find a pretty secretary to be his assistant!

"Sir, let me toast you! This collaboration with President Guo and President Wang is all thanks to your connections!"

Li Changxing raised his wine glass.

Zhou Haoran smiled and said, "Zhongbo Real Estate was built by the two of us. It can't be just you doing all the work."

"I only do manual labor, you do mental work, we're on different levels!"

Li Changxing was very modest.

"People are equal regardless of status or wealth. Since we're cooperating, we're all the same!" Zhou Haoran waved his hand, exclaiming with boundless confidence. "Old Li, the real estate business has great potential. If this project succeeds, Zhongbo Real Estate will surpass Zhongbo Bookstore in scale!"

Li Changxing laughed and said, "Let Jiang Xiong regret it!"

Zhou Haoran said earnestly, "Now that Zhongbo Real Estate is officially launched, you'll have to keep an eye on it!"

“That’s to be expected, but…” Li Changxing sighed and brought up the money, “We haven’t even started yet, and there’s already a deficit of 2500 million in the accounts.”

"Ah."

Zhou Haoran downplayed it.

Li Changxing said in a deep voice, "Sir, we need to find a solution regarding the money as soon as possible. If we cannot make the payment on time, it may affect the cooperation between all parties and even lead to the failure of the project."

"indeed."

"I think a pre-sale system would be appropriate."

"Ok?"

Zhou Haoran raised his eyebrows.

Li Changxing said excitedly, "During this period, I have been studying the pre-sale system, which is selling houses off-plan. The houses haven't been built yet, but we can make a model and then use the model to promote the property to users, allowing them to pay for it first. Once the user pays, we get the money and can then pay the fees."

As someone who lived through the next two or three decades, Zhou Haoran was naturally very familiar with the pre-sale system.

However, it's only 97 now.

Commercial housing has not yet been officially implemented in China.

Only a few large cities are piloting the program.

The pre-sale system for properties, introduced from Hong Kong Island, is not easy to promote on the mainland. The houses aren't even ready yet, and then you have to empty the wallets of three generations... it's just too difficult.

Ji Yingyang chuckled and said, "President Li, I've also learned a bit about the pre-sale of real estate. It seems that the promotion isn't going smoothly at the moment, and the public doesn't accept this model."

"Some approval is enough." Li Changxing had already done the math. "The price per square meter here can reach 5000 yuan. If we can pre-sell 70 or 80 units, it will be enough to solve our financial difficulties." "Isn't that difficult?"

Ji Yingyang smiled, but did not agree.

"Ok?"

Li Changxing's heart stirred slightly.

He looked at Zhou Haoran, the person in question.

As expected, Zhou Haoran expressed a similar attitude: "This project will not be sold in advance. We are a newly established small private company and lack credibility in the market. It is best to sell the completed properties."

Li Changxing frowned and said, "I know many people may not have confidence, but our employees certainly do, right? Just ask all the employees of Zhongbo Bookstore to buy houses, and all the problems will be solved."

"Old Li, give up on this idea."

Zhou Haoran disagreed.

"why?"

Li Changxing didn't understand at all; he felt this was the best solution.

If we take out a loan, not to mention whether we can borrow that much money, the cost of a loan is too high, with bank interest rates exceeding ten percent! By pre-selling directly and getting the money from the buyers, we avoid any financial costs whatsoever.

Zhou Haoran couldn't be too certain, so he could only say vaguely, "Our project will start in July. However, Hong Kong Island will officially return to China on July 1st. At that time, some Western capitalists might try to sabotage the project and cause market fluctuations."

"So what?"

Li Changxing couldn't understand it.

"This is an uncertain risk, Lao Li. When we do this project, we must ensure that everything goes perfectly! We must eliminate all unnecessary hidden dangers!"

Zhou Haoran's biggest worry is the financial crisis.

At that time, harbor property prices will plummet.

The current housing price is 5000 yuan, but it may drop to 3000 yuan when pre-sales begin in July or August.

That wouldn't be worth it.

Therefore, pre-sales are strictly prohibited.

We'll wait until April or May next year, after all the buildings are completed, before proceeding with the sale of the completed properties. By then, thanks to the government's series of strong measures to stimulate the market, the housing prices in the harbor will have recovered, and that's when we can maximize profits.

Respecting the master's opinion, Li Changxing asked, "Then what should we do about the current funding gap?"

Zhou Haoran said, "The original plan was to use the land to secure a loan."

“It’s not enough!” Li Changxing said with a troubled expression. “I’ve asked around and consulted several banks, and the highest loan they can offer is 2000 million yuan, with an annual interest rate as high as 12%.”

Zhou Haoran laughed and said, "That's why I invited Director Ji over."

"Ok?"

Li Changxing looked confused.

Ji Yingyang smiled and said, "President Li, Zhongbo Real Estate currently has a funding gap of 2500 million. We will take out a loan of 2000 million, and the remaining 500 million will be provided by Haoqi Sunshine Trading Company. This will just solve the funding gap crisis."

"That would be great!"

Li Changxing looked excited.

"Real estate is a promising industry, and I'm very interested in it."

Ji Yingyang spoke frankly and without reservation.

"Okay!"

Li Changxing wasn't stupid; he could tell that this was Mr. Zhou's doing, and that the Chief Inspector was just a figurehead.

Zhou Haoran said, "Old Li, President Ji has invested 500 million, so we can't let him help for nothing. Here's what I'm thinking: Zhongbo Real Estate, even if it's a three-way cooperation, you should give President Ji 15% of the shares."

"That's it..."

Li Changxing knew he had no room for negotiation.

Zhou Haoran chuckled and said, "The shares can be divided like this: I'll take 50%, you'll take 35%, and we'll have General Manager Ji come over to represent Haoqi Sunshine and hold 15% of the shares. 500 million for 15% of the shares isn't much. You'll still be the second largest shareholder and the general manager of Zhongbo Real Estate, so you'll have the final say on all the day-to-day affairs."

"Alright."

Li Changxing considered it for a few seconds and then nodded in agreement.

He is self-aware.

I never had the right to be on equal footing with Mr. Zhou.

He was already somewhat uneasy about the previous division of shares in Zhongbo Real Estate, which was split equally between the two of them.

Now Mr. Da has raised 500 million, which has solved the funding gap.

Zhongbo Real Estate has now officially launched.

Had a meal.

Zhou Haoran escorted Yangyang home.

Ji Yingyang said helplessly, "Now the company has no money in its account, and I don't know how to carry out business in the future."

Zhou Haoran laughed and said, "It's a credit-based transaction; you take the goods first and pay later."

"You're such a hands-off boss, you make it sound so easy."

Ji Yingyang, sitting in the passenger seat, rolled her eyes at him.

Zhou Haoran said, "It's okay, I'll get you a big order later!"

"What big order?"

Ji Yingyang's beautiful eyes sparkled with surprise.

Zhou Haoran smiled and said, "Smart card."

"That research project you were working on?"

Ji Yingyang frowned slightly.

Zhou Haoran said, "The school is making campus cards, and the TV station is making Red Star cards. The current smart cards all need to have their radio frequency chips purchased from abroad, as they are not available domestically. Why don't you do this foreign trade transit? There are no smart cards available domestically yet, so this business is a blank. If you apply, you'll be the first person to do so, and you might even be able to become the national general agent."

Is it very profitable?

"necessary!"

(End of this chapter)