Reborn, back to a small county town to become a wealthy family

Chapter 676 Two old foxes

Fu Bin’s prediction was correct.

Fifteen years later, development companies set their sights on price depressions, or areas where housing prices are still relatively low.

The most widely distributed areas are small third-, fourth- and fifth-tier cities.

Fifteen years ago, even in the Yangtze River Delta region, housing prices in those economically developed fifth-tier small cities were not high, with the price of a new house being only around four to five thousand yuan per square meter. However, with the influx of a large number of real estate developers, land prices were quickly driven up, and the investment properties of houses began to soar, causing housing prices to rise year by year.

Until around 19, housing prices in some small cities had almost increased tenfold.

The price increased from the initial 4,000 to 5,000 yuan per square meter to 30,000 to 40,000 yuan per square meter.

Even in cities with poorer economies, it is common for prices to double several times.

It was during those years that a new round of spontaneous urban infrastructure projects spread across the country, changing the appearance of these small cities, with wider roads and more beautiful urban greenery.
"Old Fu, Mr. Luo, if this judgment is correct, then should we take a few plots of land in several small counties around the Magic City?"

Wei Chaoping was not in the mood to play golf at the moment. He looked at Fu Bin and Luo Yang and said, "At the end of 14 or the first half of 15, take advantage of the low market conditions and buy a few plots of land at low prices."

"Then bring in Lao Liang, and we can work together to set up a development company and make a fortune."

Fu Bin increasingly felt that he should focus his energy on Cathay Industrial Real Estate, so he hoped to use a cooperative model to carry out the project.

In this way, he only needs to take out the money and at most send someone to keep an eye on the finances. In order to save energy, he can even give up the division of rights and interests in the project department.

Especially the judgment just now, it was a burst of inspiration, but he couldn't be 100% sure.

Therefore, we need to bring Luo Yang, Wei Chaoping and others together to share the risk.

Wei Chaoping also had the same idea.

His main development market is still in Shanghai, and the reason is based on the project value. The value of a piece of land of the same area developed in Shanghai will be more than five times that of those in fourth- and fifth-tier small cities.

So he also tends to favor Fu Bin's model.

"I won't participate, right?"

Luo Yang shook the golf ball in his hand and declined politely: "I am focusing my development efforts on my hometown, Yang City. Besides, my main business is not real estate at all."

"It doesn't take any effort on your part, just invest money."

Fu Bin smiled cheerfully and advised: "Just like when you were in Jincheng Real Estate before, as long as you are in charge, even if you are just a consultant, everyone will think that the project is stable. Even if the market conditions change, you will find a way to solve it."

This is not to flatter Luo Yang, but the prestige he has built up through case studies.

"Look, if I have some spare money by then, I'll invest a little."

Luo Yang answered this way, not because he wanted to participate.

By 15, the new energy vehicle manufacturing project should be launched. By then, I believe Fu Bin, Wei Chaoping and Liang Xingmin will not force themselves to use the excuse of tight funds, right?

"It's enough for a family to come up with 1 million yuan in start-up capital."

Wei Chaoping didn't know what Luo Yang was really thinking, so he took over the conversation and said, "The housing prices in these places are currently around 1.5 to 2.5 yuan per square meter. If the market conditions are really low, the prices may drop further. Considering that the plot ratio of small cities is generally between and , the unit price of land per mu is only about to million yuan."

“We can create a high-end brand.”

Fu Bin also enthusiastically proposed: "It is not difficult to create a brand premium by taking the quality of our Shanghai community and adding some advanced apartment types and property management concepts."

“Brand premium?”

The purpose of creating a brand premium is to create higher profits with the same cost.

Fu Bin's statement immediately brought back some memories for Luo Yang.

Probably starting from 16, most areas in the country no longer allow approval of villa construction projects. Because of this regulation, in the next few years, villa products in newly built communities in the country's third-, fourth- and fifth-tier cities became scarce, and the premium was much higher.

If we had built more villa products in the land planning acquired in 15, when the documents for 16 come out, the sales price and speed of these products would have been surprising.

Another thing is to break the ceiling of the villa.

It is now 12, and the vast majority of villa products across the country still continue the previous tradition. Although there have been audit breakthroughs in terms of house types, the main indicator of area has not been reduced.

The size of the house is also one of the decisive factors in determining the total price of the house.

A villa with a yard, starting at 500 to 1000 square meters, even if it is sold for or yuan per square meter, the total price will be to million yuan. For most home buyers, buying and living in a villa is a luxury.

But later this situation changed, and some real estate development companies reduced the area of ​​villas to less than 200 square meters (this is the area on the property certificate. In reality, due to the structure of the villa, much of the usable area is not included in the volume. Therefore, after the renovation of this type of villa, the actual usable area is often around 300 square meters).

What does this area mean?
The total price of the house can be reduced by half at once, and the down payment only requires 30%, allowing many middle-class families to purchase villas.

So Luo Yang helped me open up my thoughts at once.

For future projects that we develop ourselves, we can stock up on more villa products, from high-end large villas to small townhouses that break through the ceiling. These products will not only be hard to come by in the future, but will also have an extraordinary premium.

Should I tell this to Fu Bin and Wei Chaoping?
Luo Yang looked at the two people who were communicating and suddenly smiled.

Let's wait and see, the deals that are rushed are not worth the money.

"To be honest, the more I study the real estate market, the more I envy you."

I don't know what the two talked about, but Wei Chaoping suddenly sighed: "Why did Mr. Luo find you in the first place? You got such a big advantage."

"Haha, Brother Luo and I get along well."

Speaking of this, Fu Bin was also proud: "Besides, Brother Luo fed the meat to Lao Liang at the beginning, but he didn't even chew it and missed the opportunity. If we talk about regrets and projects, it has to be Lao Liang."

"You now have to focus on Santai Real Estate's projects while also taking into account Cathay Pacific's expansion."

Wei Chaoping continued to talk about this topic: "Do you feel that you don't have the energy to take care of it? And I heard that there is a China Fortune Land Development in the north that also does this. Their expansion speed and scale are much larger than yours. Is it because the funds can't keep up?"

It seemed like he was concerned, but in fact even Luo Yang could hear another meaning in his words.

"Why, Lao Wei, you have plenty of cash flow?"

Of course Fu Bin also heard it. He looked at Wei Chaoping with a smile and said, "The pace and scale of your Sunshine Real Estate development projects are similar to those of Santai. I know my own cash flow situation very well, and so do your Sunshine Real Estate."

What this means is that his Santai cannot generate enough cash flow to expand Cathay Pacific, and Wei Chaoping's Sunshine Properties is similar to him and cannot generate enough cash flow.

"I own more than just a real estate company." Wei Chaoping responded to Fu Bin calmly, "Old Fu, maybe you don't know that I have a brother-in-law who does foreign trade business in Zhejiang Province. When he started, I also bought shares in the company. The scale of this company is quite good, and the market value is about 20 billion."

After saying this, Fu Bin's eyes widened instantly.

"You are so good, Old Wei. You kept such a big thing a secret. We have known each other for seven or eight years, how come you didn't know about this before?"

"I am just a shareholder, not involved in management. What can I say?"

Wei Chaoping smiled, then said meaningfully: "Old Wei, if your Cathay Pacific wants to speed up its expansion and seize the market, it needs to introduce more funds."

After saying that, he looked at Luo Yang again.

Wei Chaoping knew that Luo Jianguo held a 20% stake in Cathay Pacific.

After hearing this, Fu Bin did not refuse politely, but lowered his head to think.

Luo Yang on the side did not rashly express his opinion, but he knew that what Wei Chaoping said just now was correct. If Cathay Industrial Real Estate wanted to expand rapidly, it would need a lot of financial support, and it would be best to go the route of listing and financing.

If we want to go public, it doesn't matter if we introduce one or two more shareholders.

Of course, the prerequisite is to grasp the proportion of shares to be transferred and ensure that you control or are able to manage the company.

"Old Wei, are you serious?"

Even when they had reached the next serving point, Fu Bin was still thinking, not to mention Wei Chaoping, who had no intention of playing at all at this time.

"Nonsense, who am I, don't you know me, Old Fu?"

Seeing Fu Bin, who had been thinking for a long time, asking this question, Wei Chaoping knew there was hope.

He suppressed his inner joy and replied seriously, "I am also worried that the real estate industry will decline in the next few years. The industrial real estate development model you are currently pursuing may not be very successful, but at least it can continue smoothly. So I want to invest in your Cathay Pacific with sincerity."

"Brother Luo happens to be here today, so he should be able to make the decision for Old Luo."

When discussing the issue of adding new shareholders, Luo Jianguo cannot be avoided. Now that Luo Yang is here, Fu Bin thinks it is more appropriate to discuss this matter in front of him rather than with Luo Jianguo present.

"Of course."

Wei Chaoping also acknowledged this point: "If Mr. Luo approved of my joining, his father would not object. On the contrary, if Mr. Luo was here today, and he did not get support from Mr. Luo, he would definitely oppose it later."

“How much do you value Cathay Pacific now?”

Fu Bin immediately asked the core question: "How much money do you plan to invest? Will you participate in the company's operations and management?"

"It would be irresponsible for me to directly say what Cathay Pacific's valuation is now."

Wei Chaoping also responded seriously: "If you are really willing to accept my investment, then find a professional appraisal company to evaluate it, and then discuss the valuation premium part based on this."

The premium he mentioned is not the brand value, but the model value.

"This is acceptable."

When it comes to professional matters, Fu Bin also believes that it cannot be just talked about verbally.

He also hopes that an appraisal company will evaluate Cathay Industrial Properties at its current stage, and find out the value of the company that he has spent so much effort to develop in the eyes of professional institutions.

"As for the shareholding ratio, I think 10% to 15% is more appropriate."

When Wei Chaoping said this, he glanced at Luo Yang out of the corner of his eye.

Because of his investment, Luo Jianguo's equity will be diluted, and the original 20% equity will become 17%~18%.

This number is a bit tricky.

If Wei Chaoping only took 10% of the shares, he and Luo Jianguo together would only have 28% of the shares, which would not have much impact on Fu Bin's control of the company.

But if Wei Chaoping takes 15% of the shares, it means that he and Luo Jianguo together will own 32% of the shares.

This ratio is just at the bottom line of 33%. If it is more, the two shareholders together will have the veto power over major company affairs.

Maintaining this ratio before Cathay Pacific goes public can give Fu Bin peace of mind.

As for after the listing, not to mention that the two of them can buy stocks in the secondary market, even Fu Bin himself may sell some of his shares, so at that time, this bottom line will no longer be so important.

So Wei Chaoping is a smart person. He knows where other people's bottom line is and doesn't test it easily.

Of course, Fu Bin was also aware of the twists and turns involved, so after Wei Chaoping said the number 10%~15%, he thought for a moment and nodded.

“This ratio is not a big problem.”

After he finished speaking, he looked at Luo Yang: "Brother Luo, what do you think?"

"The reason why I asked my father to invest in Cathay Pacific was to help him find a career. As for how big it can be, it doesn't matter."

Luo Yang shrugged his shoulders and said, "After all, the old man is only in his forties this year. We can't let him stay at home idle and wait for his grandchildren, right?"

"Hahaha"

"Forty-something is the golden age for men to start their careers"

After hearing that Luo Yang had no objection, Fu Bin and Wei Chaoping, one laughed out loud and the other commented with emotion.

“As for the company’s operational management rights”

Wei Chaoping said: "I just want a seat on the board of directors of the company, and I want my son to have some experience in Cathay Pacific. He doesn't need to be given a high position, but can start with projects."

"Old Wei, you have the same idea as me."

Fu Bin smiled and said, "My kid is also gaining experience on the project. They can get to know each other better if they have the chance."

Looking at the two people talking happily, Luo Yang couldn't help but feel dazed for a moment.

Why is it so smooth?
Could it be that the two old foxes had already reached an agreement in private?
Were you playing me just now?

(End of this chapter)