Chapter 137: Business Opportunities in Crisis
After listening to Li Hualong's introduction, Bao Yunqiu looked at Li Hualong with a little surprise and said with a smile: "Third brother, isn't your appetite a little too big!" Even if it is acquired at the current market price, the cost of acquiring these old buildings will not be less than 50 million Hong Kong dollars! ”
Li Hualong asked with a smile: "Do you think your third brother can't come up with 50 million Hong Kong dollars?" ”
"Of course not!" Bao Yunqiu smiled, "I know you have money, you are the richest person in Hong Kong, and you are still the major shareholder of Hang Seng Bank, spending 50 million Hong Kong dollars to buy an old building is just a small case for you." ”
Li Hualong sat down again, took a sip of tea, and continued: "Don't disclose the matter of providing guaranteed loans for homeowners for the time being. I hope to be able to buy more than 30% of the old building within a month, and the purchase price is tentatively set at 60% of the price at the end of last year, and if you own multiple houses, or a single large homeowner, the price can be slightly higher. ”
"In a month, buy thirty percent of the units,......" Bao Yunqiu paused and said with a smile, "It shouldn't be a big problem." If I remember correctly, there are at least a dozen houses listed for sale in Centaline Real Estate in these old buildings. ”
"You have a really good memory. These old buildings listed for sale were bought first. Li Hualong smiled, "Now that the property market is sluggish, as long as the price can be afforded, many homeowners will consider selling their houses." ”
"Third brother, do you think we can take the initiative to contact real estate developers and buy spot houses from them. Now that the property market is sluggish, some real estate developers have a tight capital chain, and we must have a lot of discounts on the price when we buy a large number of units at a time. ”
"That's a good idea. We buy a lot of old houses and have a large number of new homes for sale, which solves the problem of those homeowners changing houses. In addition to new homes, there are also old homes that are listed for sale, and as long as the price is right, you can also buy them in large quantities. ”
"Got it. I think that those old houses that are listed for sale, if you want to buy Hua, you can sign a contract first. When the transfer process is delayed, when the old buildings are acquired, these old buildings can be resold to the seller, avoiding two transfers, which can reduce a lot of costs. ”
"That's a good idea!" Li Hualong said with a smile, "Yunqiu, our Zhongyuan Real Estate Company can open a new business in the future. ”
"What business?"
Li Hualong replied: "To provide sales business for other real estate developers, negotiate a price first, and sell more, and Centaline Real Estate will make money." If you sell less, Centaline Real Estate will be in debt. ”
"It is estimated that this business is not easy to do, after all, real estate developers can sell off-the-plan properties...... However, when the market is in a downturn, you should be able to get a lot of business. ”
"You should put more thought into the acquisition of the old building this time." Li Hualong smiled, "This matter is done, in the future, these old buildings will be demolished and rebuilt, and I will build an office building for rent collection." You can stake at cost price. ”
"Thank you, third brother, you are too generous!" Bao Yunqiu said happily, "If I hadn't gotten married, I really wanted to kiss you." ”
"Or don't. I'm afraid your husband will be jealous. ”
"He's not a stingy person."
"It's not a question of being petty or not." Li Hualong smiled and said, "Wouldn't it be too troublesome to let you become a shareholder, how about selling a building to you at cost price?" ”
"Very attractive. Hehe, let's talk about it then, you know it too. My and I's income can't afford to buy a building that's too big. ”
"Listen to you, do you think the salary I gave you is too little?" Li Hualong joked that he felt that he had given Bao Yunqiu a salary and bonuses, as well as various benefits, which were generous enough.
"Nope!" Bao Yunqiu hurriedly denied, "My income is twice as much as Ah Hua's, and if I am not satisfied, I will not have enough people's hearts to swallow elephants." ”
"You are still young, don't be too easy to be content, do things for me, there is still a lot of room for growth in income, and I will introduce you to good investment projects in the future."
"Thank you, third brother, you are too high for me." Bao Yunqiu smiled sincerely, turned around and brought a pencil, "Third brother, you are going to buy those old buildings, and tell me again." ”
"Okay, here, start from ** Street and ...... east" Li Hualong took the pencil and drew some marks on the map.
After listening to Li Hualong say it again, Bao Yunqiu basically remembered it, not to mention that there were marks on the map.
"Third brother, I found that most of the properties you hold now are facing the street."
"yes, that's right. Don't you think this kind of property is easy to tear down and rebuild? ”
Bao Yunqiu didn't answer, and asked rhetorically: "You wouldn't have thought about demolishing and rebuilding the house in the future at the beginning of building it, right?" ”
"To be precise, when I acquired the old building, many of the properties I hold now were acquired and demolished from several old buildings and rebuilt by merging the land."
"This way of merging land plots can increase the overall value of the property."
"yes. Clear-sighted people know that when the property market rises sharply, this kind of old building is demolished and rebuilt, and it also makes huge profits. ”
Bao Yunqiu nodded with a smile and said, "Third brother, before starting to buy a large number of old buildings, I will first do a detailed market research, and after determining the purchase price, I will give you a look." ”
"Okay, you move quickly, I hope the acquisition of the old building will not be too delayed."
"I'll hurry." Bao Yunqiu smiled, glanced at Li Hualong a few times, and asked, "Do you think this turmoil will subside soon?" ”
"It's hard to say." Li Hualong paused and continued, "Actually, I am quite conflicted in my heart, the turmoil will subside sooner, and Hong Kong's economy can recover as soon as possible, which is a good thing for me, but I am very optimistic about Hong Kong's prospects and am willing to gamble, the property market continues to be sluggish, housing prices and land prices have plummeted, and I can take advantage of the low to absorb it." ”
"It seems that you are really optimistic about Hong Kong's prospects."
Li Hualong smiled slightly and asked, "When will the acquisition plan you said be made?" ”
"Within five days, I'll give you a detailed plan."
"Thank you for your hard work."
"It's my job." Bao Yunqiu smiled and said, "Third brother, if I think the old building is worth demolishing and rebuilding, do I want to recommend it to you?" ”
"Yes. As long as it is an old building, facing the street, and the price is right, I am willing to buy it. ”
"There's really an old building like this for sale. I'll show you the information. Bao Yunqiu said and walked out of the office, and after a while, she took a copy of the information of the old building for sale and showed it to Li Hualong.
After reading the information, Li Hualong nodded and said, "The price is very affordable, I bought it." ”
"No counteroffer. Just bought it? ”
"That old building, I've seen, the location is good, the area is not small, the price is so cheap, now to buy it, it's quite cost-effective, there is no need to bargain."
"Okay, I'll contact the owner later." Bao Yunqiu paused. Asked: "I'll help you go to the owner of this building and ask if you want to put it on the market?" ”
"Yes." Li Hualong said with satisfaction, "By the way, how much did you buy for the land exchange rights and interests of Type A and Type B?" ”
In the early 1960s, there was a strong demand for housing in Hong Kong, and the government proposed a plan to develop a number of new towns in the New Territories, which necessitated the acquisition of a large amount of land in the New Territories. In order to reduce the cash expenditure on land resumption, the Government has replaced the cash compensation with a land exchange interest letter for part of the land resumption compensation.
Type A Land Exchange Option allows the holder to exchange 1 square foot of building land for every square foot of building land; Type B Land Exchange Interests allow the holder to be repossessed of agricultural land every 5 square feet. In the future, it can be exchanged for 2 square feet of flat land also in the New Territories.
Li Hualong, who has memories of the future, knows that many real estate developers in Hong Kong are optimistic about the prospects of Hong Kong's real estate and actively collect land exchange interest letters, especially when the property market is in a downturn, and the land price buys a large number of land exchange interest books. This has allowed these developers to reap huge profits.
Centaline Real Estate is not only a real estate agency, but also engaged in the business of buying and selling land exchange rights and interests, buying at a low price and selling at a high price.
Li Hualong had planned it a long time ago. In 1967, Hong Kong's housing prices plummeted and the property market fell into a downturn. In order to lay out, his Centaline Real Estate Company has already opened a business of buying and selling land exchange rights and interests, buying at a low price and selling at a high price to earn a difference.
At the beginning of May, when the price of the land exchange interest continued to fall, Li Hualong began to buy a large number of land exchange interest letters through Guò Centaline Real Estate, and as long as the price was satisfactory to him, he would buy a large number of them.
Bao Yunqiu took an account book and handed it to Li Hualong, and said with a smile: "A total of more than two million yuan was spent, compared with the highest price in history two months ago, the price of the land exchange rights book has dropped by about fifty percent." ”
Li Hualong took the account book, flipped through a few pages, nodded and praised: "Yunqiu, you are a bit condescending to be the vice president of Centaline Real Estate. ”
Bao Yunqiu said: "If you think I'm condescending, you can give me a raise and promotion, I won't refuse!"
"Since the establishment of Centaline Real Estate, I have been serving as the president, but you, the vice president, are doing the work of the president, and I am a little wronged by you. From today onwards, you will be promoted to president, your salary will be increased by 20%, and the year-end bonus will be discussed at the end of the year! Li Hualong smiled and asked, "No problem, right?" ”
"Thank you, third brother!"
"You're welcome. In all my companies, Centaline Real Estate Company does not make much money, but it is very important to me, in the future I will often buy old buildings and demolish and rebuild, Centaline Real Estate Company is operating well, and can provide me with many assistants. ”
"I'll do a good job and try to make your boss 100% satisfied."
"100% satisfied? Hehe, I'm very demanding! ”
"Go for it!" Bao Yunqiu smiled, "If you pick bones in your eggs, I can't help it." ”
"In your eyes, is the third brother an unreasonable person?" Li Hualong said with a smile.
"Nope."
After chatting a few words, Li Hualong raised his hand and looked at his watch, and said, "I still have some things to do, and I have to leave." If you have something important, feel free to call me. ”
"It's not important, I can't call you?"
"Absolutely. When the plan to acquire the old building is made, you and Quanfu will take the children to my house for dinner and report to work by the way. ”
"Third brother, is it mainly to return to work, or to eat dinner?" Bao Yunqiu asked jokingly.
"Whatever you want." Li Hualong said with a smile.
Bao Yunqiu personally sent Li Hualong to the door, watched him get in the car and leave.
After leaving Centaline Real Estate, Li Hualong went to work at Hualong Real Estate Company.
Looking at the flow of people outside the car window, Li Hualong had some smiles on his face, and he suddenly remembered Sima Qian's words:
The world is bustling, all for profit; The world is crowded, all for profit.
"For me, this is the harvest season, a once-in-a-lifetime opportunity...... Hehe, it's not a once-in-a-lifetime opportunity, another six or seven years, another great opportunity, another good opportunity during the Sino-British negotiations, and also, in the future, investing in companies such as Microsoft, the return on investment is far greater than buying property on dips now......"
That evening, Li Hualong returned home from work and saw his eldest brother Li Huawen sitting in his living room chatting with his mother.
After saying hello, Li Hualong sat next to Li Huawen, and the two chatted.
After chatting for a few words, Li Huawen sighed lightly: "Ah Long, recently, Hong Kong's housing prices have plummeted, and the future is unknown!" ”
"Crises and business opportunities coexist, and I am quite optimistic about Hong Kong's prospects!" Li Hualong smiled lightly, "I just came back from Centaline Real Estate Company, and many people are selling Hong Kong's properties cheaply and preparing to leave Hong Kong and immigrate overseas. As I said before, the downturn in the property market is not necessarily all bad, market forces can eliminate a group of weak real estate developers, and for us, buying on dips is a great opportunity. ”
"Do you still firmly believe that the Chinese Communist Party will not take back Hong Kong?"
"Of course!" Li Hualong nodded affirmatively, "Big brother, don't you believe it?" ”
"I ......," Li Huawen smiled lightly, "Your understanding of the current situation is far better than mine, and I choose to believe you." ”
"Trust me." Li Hualong said with a smile, "I estimate that in the next few months, Hong Kong's property and land prices will fall, which is a good thing for those of us who have a lot of money and are optimistic about Hong Kong's prospects." Others sell, we buy. In the future, as long as we feel that there is potential for value-added land and real estate, we will make a decisive move, don't hesitate! ”
"Isn't the retreat left before too small?" Li Huawen asked in a low voice.
"Take 10,000 steps back and say, if we have to leave Hong Kong and have 60 or 70 million Hong Kong dollars worth of gold in our hands, whether we go to the United States or Europe, we will not do anything for the rest of our lives, as long as we do not lose, we can ensure that three generations have no worries about life. If we seize this opportunity, then in the future, our Li family can become the uncrowned king of Hong Kong! ”
"The Uncrowned King?!" Li Huawen smiled heartily, "Your heart is too big!" However, it is not impossible. I believe in you, I'll go crazy with you! ”
"Big brother, how much cash do you have?"
"I have more than 40 million in the accounts of several companies under my umbrella, but these companies owe more than 10 million to the bank."
"I don't have to pay back the money I owe to the bank, and I can continue to borrow money from the bank when I encounter a good project."
"It is estimated that at this time, there are not many people who dare to borrow from the bank to invest, and the debt ratio of my company is low, and it is not difficult to borrow 100 million from the bank."
"Step by step, don't rush."
"How much cash do you have?"
"More than 100 million points."
"That's a lot?!" Li Huawen was surprised, "Then does your company still owe money to the bank?" ”
"None of the wholly-owned enterprises have debts, and several listed companies have no debts, and most of the joint ventures in which they participate have foreign debts." (To be continued......)