A century-old wealthy family that rose from Shanghai

Chapter 103: Buying Land
In the office of Tongchang Car Dealership.

Chen Guangliang asked, "How much capital does the factory plan to raise, and where will it be built?"

Zhu Wenwu replied, "We're planning to invest 10 yuan and set up the factory in Zhabei, but the exact location hasn't been determined yet. If we want to develop and produce three-wheeled rickshaws, I'm afraid the capital will need to be expanded to around 15 yuan. And, Boss Chen, you might not know that our Tongchang Bicycle Company imports parts and components, and payment can be split six months apart. This is a low-cost, high-profit, and fast-turnover business. For example, in 1925, we imported 2000 French Carvin bicycles at once, paying 12 yuan upfront for each, with the remaining balance due six months later."

Wow, the profit is really high.

Of course, what Zhu Wenwu said was nothing more than increasing their bargaining chips.

What this means is that for the subsequent parts, they have connections and can pay in installments, so the investment doesn’t need to be too much.

Chen Guangliang then said: "If a factory is built in Zhabei, I will not agree to buy shares."

Zhu Wenwu was stunned and asked, "Why?"

Chen Guangliang said, "Transportation hubs are battlegrounds, so I'm worried about war. If it's Shanghai South or the concessions, I can consider it."

He owns land on Yuyuan Road, but he is not considering renting it out, after all, he is using it for speculation.

Zhu Wenwu said doubtfully, "Why would there be a war? The Nationalist government is now gaining momentum, and there is hope for unifying the country."

Chen Guangliang said, "Japan's wolfish ambitions should not be underestimated. They frequently provoke wars in the north, and a large number of Japanese have arrived in Shanghai. A gentleman never stands beneath a dangerous wall. I feel that southern Shanghai and the concessions are the safest. Furthermore, I want to acquire at least 30% of the shares, because my advantages are the same as yours."

Zhu Wenwu thought for a moment and said, "Aren't you worried that I might plagiarize your ideas?"

Chen Guangliang said frankly, "Tongchang Vehicle Company simply purchases parts from abroad and assembles them. If I had the energy and time, I could do the same. This is the design of the first three-wheeled rickshaw. I already have a preliminary plan. I also understand the specific operations of promoting three-wheeled rickshaws. Therefore, I am not afraid of you using my ideas. This is the second point. Of course, for a company that has been in business for thirty years, I believe that their integrity is impeccable. This is the third point."

Zhu Wenwu applauded and said, "Haha, Boss Chen, you're so experienced despite your youth. No wonder you've become a rising star in the Shanghai real estate industry. Okay, I can give you 45000% of my shares, which means you'll need to raise yuan. Secondly, we won't open a factory in Zhabei. We'll look for another target."

Chen Guangliang thought of Zhu Guangsheng again. After all, he had invested in a piece of land in southern Shanghai. However, this time, he did not speak out immediately.

"Okay, we'll talk about it later."

"No problem. Let me show you around our Tongchang Car Dealership first!"

"it is good"

Chen Guangliang does not need to worry about the funding issue of "Tongchang Car Dealership" to raise funds to build a factory.

After all, it takes about a year and a half to prepare a factory, and the 150,000 yuan of funds does not need to be invested all at once, but can be divided into three phases.

In fact, according to Chen Guangliang's idea, everyone should invest a total of 50,000 yuan first, and then consider going directly to the bank to obtain a loan.

After all, if a company's development plan is presented, it will undoubtedly attract the attention of banks. Even the bicycle business alone would be worth a loan, let alone the three-wheeled rickshaw business.

Of course, these are all things that will happen later. If Chen Guangliang does not use loans, he can also gradually withdraw the funds.

In the following days, Chen Guangliang was really busy.

He was busy acquiring the land in the western section of Yuyuan Road, directing Changjiang Real Estate's second real estate project, managing the operations of Changjiang Car Dealership, and communicating with Zhu Wenwu to cooperate on the industrial project of "Tongchang Manufacturing Plant".

So busy!
Especially for the acquisition of land in the western and middle sections of Yuyuan Road, Chen Guangliang needs to be in charge personally.

If we count the entire western section of Yuyuan Road as 1 kilometer, there are approximately acres of land on both sides that are within the scope of acquisition.

At present, the land price here has been driven up to about 2000 yuan per mu by Chen Guangliang himself. If other expenses are included, it will be about 2200 to 2300 yuan per mu.

Chen Guangliang personally has a loan limit of 20 yuan, which is enough to purchase about 90 acres of land, of course only in the western section of Yuyuan Road.

If it is in the middle range, it is probably around 3000 oceans, which is also within the scope of consideration for Chen Guangliang.

After all, whether it is the western or eastern section, their increases should be similar.

Even in many places in Shanghai, the price has increased several times in recent years.

What Chen Guangliang can be sure of is that the price of Xiafei Road (later Huaihai Middle Road, with a total length of 5 kilometers) should increase by about 5 times in the next four years.

Therefore, if there is land for sale on Xiafei Road, Chen Guangliang will also consider it.

At that time, the price of land on Xiafei Road was only between 3000 and 8000 yuan per mu.

this day.

An owner of five acres of land asked tentatively, "Boss Chen, did you get any inside information?"

It’s normal to want to sell at a high price, but you’re also afraid of missing out on a higher price.

Chen Guangliang said calmly, "If there's any inside information about Yuyuan Road, it must be that I'm planning to acquire another piece of land to develop a new lane. Of course, if Mr. Sun is reluctant to sell, he can rent the land to me to build houses. With regular annual rent, I'll almost get my money back in ten years."

He said that on purpose!

Moreover, he had already agreed with Wang Zuoyi not to force people to sell land and not to cause trouble.

To put it bluntly, he has 20 oceans in his hands. He can buy the western section, the middle section, and even the land in other places. It only takes two months to buy them all, and in two to three years he will make a lot of money!
There is no need to force any sales.

The owner surnamed Sun laughed and said, "That's too much trouble. It'll take ten years to get it back, so we'll sell it to you. We know you built two new lanes on Yuyuan Road." Wang Zuoyi then said, "It's right to sell. Now's a rare opportunity. The price has increased so much, and you're still not satisfied! To put it bluntly, it's all thanks to Boss Chen raising the price for you. If he withdraws his investment, this land will be worth 1500 yuan!"

"That's right, Boss Chen is the big boss!"

It was worth 1100 oceans last year, and it has risen to 2000 oceans this year, and that’s only been half a year!

It was because everyone found that only Chen Guangliang was raising the price here that they were willing to sell to him.

After all, who can predict what the next trend will be?

"Okay, it's settled. Please cooperate with me in applying for the Dao Deed. Once this step is completed, we'll go to the law firm to sign the contract and pay the money."

"Okay, okay, Daoqi is a good thing!"

Through an introduction, Chen Guangliang met a "earthen beetle" on Xiafei Road, his name was Gao Chenglin.

Gao Chenglin was very happy to meet a "new real estate tycoon" who was very enthusiastic about his work. Because in the eyes of many people, Chen Guangliang built "Happy Home" and "Sunshine Home", which made him a real estate tycoon.

People will not delve into the fact that Chen Guangliang used other people's funds to complete the project, but will only attribute the achievements of these two new-style alleys to Chen Guangliang.

"Boss Chen, are you planning to build your own garden villa, or are you preparing to invest?" Gao Chenglin introduced the situation here while asking Chen Guangliang's opinion.

Chen Guangliang said: "It's all fine. Anyway, we have to look at the land first."

Gao Chenglin's eyes lit up. Does this mean that the boss is going to purchase a large amount of land?
"Okay. Xiafei Road is a little over 3 miles (4.8 kilometers) in total. This is the new area of ​​the second expansion of the French Concession. It has great development potential."

Chen Guangliang selectively ignored the last paragraph.

He felt that Xiafei Road had not yet been hyped up at the moment, after all, it only cost 3000 to 8000 yuan per scene.

As the second expansion land of the French Concession, its appreciation potential is greater than that of the old concession. Then it gradually developed into a gathering place for foreigners, which in turn boosted the business development here.

There is great potential for appreciation in the next few years.

Xiafei Road is the area of ​​Huaihai Middle Road and Huaihai West Road in later generations.

As the second expansion sphere of influence of the French Concession, there was a large area of ​​land on both sides of Joffre Road.

"This is the land for sale. It's 2 mu (approximately 5 acres). The owner wants 6000 yuan per mu, which means a total of 1.5 yuan," Gao Chenglin explained enthusiastically. "This land would be a great location for a private garden villa!"

Chen Guangliang was ashamed. The construction cost of a private villa was more than 100,000 taels of silver, or even hundreds of thousands of taels of silver. He could not afford it.

The construction costs in this era were very different. The construction costs of some apartment buildings and commercial buildings could easily reach hundreds of thousands or even millions of yuan, because most of the materials used were imported. On the contrary, the new alleys built by Changjiang Real Estate used brick and wood structures, and the materials were available locally, so the cost was very low.

For example, the Happy Home he built has a construction area of ​​10800 square meters and the construction cost is 18 yuan; if it were a high-rise apartment or office building, the same construction area would require at least 50 to 80 yuan in construction costs.

Chen Guangliang asked, "Do you have a Dao contract?"

Gao Chenglin said as a matter of course: "The land on Xiafei Road is basically all in Daodeed."

Chen Guangliang nodded and then visited the nearby geographical locations.

This is probably the middle section of Xiafei Road, so the price is as high as 6000 yuan per mu.

The unit price is not the issue; what is important is the potential for future appreciation.

Starting from 1928, the Nationalist government restricted the expansion of the concessions, so the increase in land prices in the concessions was naturally much greater than that in the Chinese areas.

The area around Yuyuan Road is considered "road construction beyond the boundary" and is now patrolled by the concession police, so it will be assumed to be under the management of the concession.

As for the appreciation potential of Xiafei Road in the French Concession, there is no need to say much.

After nearly an hour of inspection.

"I'm very interested. When can I talk to the owner?"

"How about tomorrow?"

"certainly"

Chen Guangliang’s idea was to acquire the land on Yuyuan Road and Xiafei Road at the same time and take it if it was suitable.

Although he only has 20 yuan in funds, it does not mean that he cannot continue to raise funds.

In this era, many "real estate speculators" have grown through snowballing, and of course many have gone bankrupt as a result.

Chen Guangliang borrowed 20 yuan, mortgaging the subsequent rental income of "Happy Home" and "Sunshine Home", not the more than 9 yuan profit from construction costs this year. He also mortgaged the deed for purchasing the land with the 20 yuan.

So these 9 oceans can be used!
Secondly, the total value of the car dealership is more than 2.5 yuan. After paying off the debt this year, the debt will be about 5 yuan (including interest). You can still get a loan by mortgage, and a loan of 10 to yuan is also possible.

As for investing in Tongchang Manufacturing, apart from the initial 1.5 yuan, the rest of the funds will be obtained through loans.

(End of this chapter)