After rebirth, I became a great master

Chapter 550 Hoarding Housing Projects

"Sir, I have something I'd like to ask you."

Wei Qingfeng was unusually solemn.

"Mr. Wei, we're all on the same side, so please speak frankly!"

Zhou Haoran was invited to the Wei family's house tonight, accompanied by Qiao Suiqing.

It's also a way of broadening her horizons.

Look at how Mr. Wei's sisters-in-law get along harmoniously; comparison is the key to competitiveness.

After that, those three sisters-in-law all lived up to expectations.

It can be described as patient and persuasive guidance.

She advised Qiao Suiqing to be magnanimous and not petty. Mature women are tolerant and forgiving; they know when to turn a blind eye to certain things. Sometimes, a different perspective is needed to accept things more readily.

Don't use the values ​​formed during nine years of compulsory education to understand the world; the upper class is different.

Zhou Haoran and Wei Qingfeng were discussing serious matters in his study.

"Sir, what exactly is going on with the unfinished housing business?"

While Wei Qingfeng was away, he would undoubtedly support the Grand Master, regardless of the reason. Privately, they could then discuss other matters.

Zhou Haoran laughed and said, "A double win of fame and fortune."

"What about the risks?"

This was what Wei Qingfeng was most worried about.

"There is no risk."

Zhou Haoran was very certain.

"Are you sure the housing market can recover and prices will continue to rise?" Wei Qingfeng frowned slightly, analyzing, "Taking over unfinished buildings has a low cost, which is an advantage. But the most important thing is taking over all the related debts. An unfinished building project might have debts of thirty to fifty million. If we really operate dozens or even hundreds of unfinished building projects..."

Wei Qingfeng took a deep breath. "Then the debt must be billions!"

"Yeah, almost."

Zhou Haoran nodded; he had expected this.

Seeing his nonchalant attitude, Wei Qingfeng was secretly surprised. After a moment of contemplation, he said, "A debt of several billion means that every day you open your eyes, you'll be paying millions in interest. I support your decision, but please consider it carefully."

Zhou Haoran smiled and said, "I've thought it through."

“Operating so many unfinished buildings is a huge undertaking…” Wei Qingfeng’s worry was written on his face. “I’ve heard some rumors that the large number of unfinished buildings is causing the housing market to slump. The authorities had already contacted several state-owned real estate companies, hoping they would take over or provide guarantees. This matter has been underway for three months, but it has not been able to move forward.”

Zhou Haoran said casually, "Someone has to step up and solve this problem. We live in a market economy now, and we can't just wait and rely on others like we used to. The problems all involve private real estate developers, so it's only right that they should bear the responsibility. There's no reason for state-owned enterprises to take over when private enterprises mess things up."

“The economic crisis is very serious!” Wei Qingfeng felt that he was looking at the problem too simply. “This Asian financial crisis has had a huge impact. Even South Korea has completely collapsed. A large number of South Korean giants, such as Hanbo Steel Group, Sammi Group, Kia Group, Hantae Group, and Shinseo Group, have gone bankrupt.”

"South Korea?" Zhou Haoran scoffed. "A tiny country! Look at Japan, it was less affected by the financial crisis. And domestically, its economy is undoubtedly the most resilient in Asia. Mr. Wei, with me here, you have nothing to worry about!"

“I know, I will fully support you.” Wei Qingfeng paused for a moment. “I just want to know the result.”

Zhou Haoran smiled. "What was the result?"

Wei Qingfeng said, "There are only two outcomes when you take over an unfinished building project. Either Zhongbo Real Estate, Qingfeng Real Estate, and Fuxing Real Estate all go bankrupt and are liquidated, and we as individuals will also be held liable. Or, you can rise to the top in one step!"

"Yes, instant success."

Zhou Haoran consistently displayed an optimistic attitude.

Wei Qingfeng said, "Reaching the top in one step means that even Vanke will be trampled under our feet, and we will become the largest real estate developer alliance in the country!"

Zhou Haoran understood the other party's concerns and reassured him, "Old Wei, don't worry. The real estate economy hasn't really taken off yet. Getting in early and making moves ahead of time is crucial. Buying up unfinished buildings at rock-bottom prices involves leverage of at least several dozen times, which is much more profitable than investing in stocks!"

The next twenty years will be a golden age for China's real estate market.

However, when entering the market during an uptrend, how can you expect a higher return than buying at the bottom?
Currently, the government has not officially launched a policy on commercial housing; it is still in a "testing period." Therefore, the increase in land prices is limited, and there is no phenomenon of many real estate developers competing for land to create land auctions at record prices.

This means that the cost of acquiring land is extremely low!
Moreover, the current management fees, material costs, and labor costs are all low.

Twenty years from now, a real estate project might generate 100 billion in revenue.

So, 5 billion is the land price, and 25 billion is the construction cost such as materials and labor. The gross profit of the real estate developer is only 25 billion. After deducting taxes, there is only a profit of a little over 1 billion left.

It's May 1998 now, things are different these days.

If a real estate project generates 100 billion in revenue, the cost is only a few billion, and the rest is profit.

This is why unfinished buildings can be saved now, but unfinished buildings in 20 or 30 years will not be saved.

Ultimately, it comes down to cost.

These days, unfinished buildings have extremely low costs, meaning the cost of taking them over is minimal, while the potential profits are enormous. The greater the risk, the greater the potential return must be. If taking over involves huge risks but minimal returns, then there's no point in doing so.

Zhou Haoran's plan is to raise 6-7 million yuan.

They're here to take over unfinished buildings.

With a leverage of 5 billion, that would mean controlling a market worth 30 to 40 billion, which is almost 10% of the total annual real estate transaction volume in the entire port city.

Four partners.

Divided into 3:3:3:1 ratio.

Zhongbo Real Estate can earn 100 billion from this!
With just its unfinished construction projects, Zhongbo Real Estate could surpass Vanke within one or two years and become one of the three major real estate giants in the country, alongside Fuxing Real Estate and Qingfeng Real Estate!

“If that’s the case…” Wei Qingfeng narrowed his eyes, making up his mind, “If we’re going to do it, we have to do it decisively! Let’s cut the Gordian knot and not give the market time to react!”

"Ok?"

Zhou Haoran immediately understood what the other party meant.

Wei Qingfeng said, “If we make money operating unfinished building projects, other peers will find out, and many people will inevitably follow suit. Once competition arises, prices will easily skyrocket. Right now, if we take over unfinished buildings, the other party will be begging us to take them over. Once unfinished buildings become profitable and people find out that there is money to be made, the highest bidder may win. Our cost of taking over unfinished buildings will increase by at least several times.”

Zhou Haoran laughed, "That's right, monopoly is the best business." "Right now, everyone avoids unfinished buildings like the plague, that's our monopoly market..." Wei Qingfeng chose to believe him, gritted his teeth, "In that case, we need to speed things up and try to take over all the more typical unfinished buildings in Haigang City within a few months!"

"Too many buyers have come in a short period of time; they can't digest them all, can they?"

"Then don't digest it."

"Ok?"

Zhou Haoran raised his eyebrows.

Wei Qingfeng said, "Didn't you say the real estate market is looking good? That's enough. There are too many unfinished buildings that can't be completed in the short term, so let's leave them for now and develop and sell them in batches. Slowing down the process will allow us to capitalize on rising housing prices and earn more profits."

"Then I'll trouble Mr. Wei to keep a close eye on this business."

Zhou Haoran naturally understood what he meant.

Just like the Hong Kong government's real estate strategy, after acquiring land... they don't develop it, they hoard it first, and as time goes on, land prices rise. Then they slowly develop it, and once the project is completed, property prices rise again.

Many domestic real estate developers have followed suit.

Later, the government discovered this loophole and made adjustments, requiring real estate developers to complete development within a specified period after acquiring land, otherwise the land would be forcibly reclaimed.

There is no such policy at present.

This facilitated Mr. Wei's plan to "hoard unfinished properties".

Since it's about buying at the bottom.

Then we must plagiarize extensively!
Regardless of whether they have the capacity to manage so many unfinished building projects simultaneously, they should buy them first and stockpile them first!

……

"Mr. Zhou, could you..."

"I told you long ago, don't call me President Zhou, call me Young Master Zhou!"

“Young Master Zhou…” Another small real estate tycoon surnamed Qiu came to see Zhou Zhengqi. “The bank has cut off my loan. I originally borrowed 2200 million, but only 600 million has actually been received. The remaining loan will not be disbursed. Young Master Zhou, please help me. Only you can save me.”

"I've already told you, don't bother me with this unfinished building issue!"

Zhou Zhengqi has been a bit irritable lately.

He is preparing a cultural performance for private entrepreneurs, using this kind of event to build up a team belonging to "Master Zhou".

Unexpectedly, he raised his arm and rallied the crowd.

Those who followed were all from the Beggars' Sect.

They've all come here to borrow money.

That's infuriating!
Mr. Qiu said with a bitter face, "Young Master Zhou, I heard that the master of the Red Mansion Teahouse is stepping in to save the market. He's going to take over unfinished buildings and help private businessmen get through their difficulties..."

"Then go find him, why are you looking for me?"

Zhou Zhengqi was furious.

"I don't know him..." Boss Qiu was really shameless. "Young Master Zhou, you are a big shot, you are the richest man in the harbor, you must know him. Can you help me make the connection?"

"Rolling the edges..."

Zhou Zhengqi was about to speak when he stopped himself.

His eyebrows were slightly raised.

I feel this is a good opportunity.

Doesn't the Master like to seek fame and reputation?

Didn't they claim they would take over unfinished buildings and rescue all the private real estate developers in the harbor from these abandoned projects?
Sure, I'll recommend one to you!
It depends on whether you're willing to take over!

Zhou Zhengqi chuckled inwardly as he thought of this.

Answer it!

Answer it quickly!
When the economic crisis hits, you won't even know how you died!

"Okay, I'll call and ask for you!"

Zhou Zhengqi gladly accepted the other party's request.

So they actually contacted Zhou Haoran.

"Who?"

Zhou Haoran was surprised by the phone call.

Zhou Zhengqi smiled and said, "It's me, Young Master Zhou."

"Oh, it's you. What's up?"

Zhou Haoran's tone was neither warm nor cold.

Zhou Zhengqi chuckled and said, "I heard you're going to take over unfinished buildings. Coincidentally, I know a few friends who also have unfinished building projects. I just wanted to help you out and introduce you to some clients."

"Alright, let them register at the teahouse."

Zhou Haoran ended the call concisely.

Zhou Zhengqi was stunned for a moment.

accepted?
He was immediately overjoyed.

it is good!
good good!
You love to show off and seek fame, don't you?

I watched you host a grand banquet, and then I watched your empire crumble!
Let's see how you handle this!

(End of this chapter)