A century-old wealthy family that rose from Shanghai

Chapter 79 Renting Land and Building a House
Chen Guangliang was not particularly concerned about the situation of the fight between the 'Car Dealer Alliance' and Gu Zhuxuan. He focused more on his own development.

Because he himself was not optimistic about this loose alliance. After all, Gu Zhuxuan still had the support of "big gangsters" such as Huang Jinrong and Du Yuesheng, and once Gu Zhuxuan won the lawsuit against the "Workers' Council", his reputation would be even higher.

In the dividend distribution in early January, Chen Guangliang received a dividend of 1 oceans, and the sales of goods brought him a profit of 2400 oceans, for a total profit of 400 oceans.

Next, 50 more "Da Zhaohui" rickshaws will be put into use, and Chen Guangliang's monthly income will increase by at least 500 yuan.

The profit for the next month is about 3300 yuan, considering that there are still 20 rickshaws that need to be paid off.

The future is expected!

Of course, the income from the rickshaw was only a 'security' for Chen Guangliang, and this year (1928) was also a period of repaying debts.

If you speculate in land, you will have to wait three years before you can sell it.

Therefore, he now needs a new career, which is the "real estate" he has been planning recently.

mid-December.

Chen Guangliang brought Guo Deming, an accountant from Changjiang Real Estate, to Yufa Yongjinhao and met with its general manager Wang Boyuan.

Wang Boyuan (born in 1893), also known as Huaizhong, was a native of Cixi, Zhejiang. At 14, he began his apprenticeship at a gold trading house. At 23, he was hired as the manager of the Hanheng Gold Trading House. After the house closed, he became the deputy manager of the Tianchangxiang Gold Trading House. In 10, he founded the Yufayong Gold Trading House, serving as its manager himself. He also invested in several other gold trading houses. His accurate market judgment and exceptional skills in gold trading led to his consistent success, earning him the nickname "Gold King." With his vast wealth, he diversified his investments into money shops, banks, silver companies, insurance companies, factories, and land.

It can be said that Wang Boyuan was a multi-millionaire. (In his previous life, Wang Boyuan took over the Huaxia Reclamation Bank in 1929 and personally invested 145 million yuan.)

Nowadays, in the Shanghai Stock Exchange, only those who have millions of dollars in capital can be considered truly wealthy, and those who have tens of millions of dollars in capital are considered top-tier wealthy people.

People of Chen Guangliang's level can only be considered "rich people".

To put it simply, the rent for an 80-square-meter apartment (without common areas) is around 40 yuan, and there's also a 500 yuan "transfer fee." The value of this apartment is hard to say, as properties are often sold individually these days, and few people are willing to sell, as renting is more profitable. But if you were to truly value an 80-square-meter apartment, it would probably be around 4000 to 5000 yuan.

(Lu Xun came to Shanghai in 1927 and rented an apartment with a transfer fee of 500 taels of silver, which he could only pay in installments of 200 taels of silver, resulting in a monthly rent of around 40 taels of silver. Xu Zhimo came to Shanghai in 1927 and rented a small Western-style house (without a garden, similar to a townhouse in later times), with a monthly rent of 150 taels of silver.)

Therefore, Chen Guangliang's net worth is probably around 3 to 5 oceans, which means he can only afford less than ten houses, which is equivalent to a multi-millionaire in later generations.

"Boss Wang"

"you are?"

"Please allow me to introduce myself. My name is Chen Guangliang, and I'm the general manager of Changjiang Real Estate. I came to see you today to lease the land you own at No. 608, Yuyuan Road!"

Finally, I met Wang Boyuan in the office. Chen Guangliang generously introduced himself, but under the name of "Yangtze River Real Estate".

Wang Boyuan looked at the young Chen Guangliang and thought to himself that he might be the son of a wealthy family, who had entered the real estate industry at the age of 20.

Of course, he didn't think much of it when he heard about leasing the land. After all, the land he invested in was empty anyway, so he could rent it out.

"What kind of factory do you plan to open on that piece of land you rent?"

Land investors in this era generally rent the land to factories, which avoids waste and facilitates recycling.

At this time, Wang Boyuan did not realize that Chen Guangliang wanted to do real estate.

Chen Guangliang smiled and said, "I plan to build a new lane there, so I need to lease your land for twenty years."

Wang Boyuan finally realized what was happening and couldn't help laughing. "How can you rent land to build a house? After the lease expires, who will own the house on the land?"

Unheard of!
This young man is a bit unreliable and has some wild ideas!

Chen Guangliang said calmly: "Of course it's yours. I have visited your land and think that it can be used to build a real Western-style building consisting of forty-five three-story brick and wood structures, which is equivalent to a 135-story residential building. I will rent your land for twenty years, and pay the huge construction costs and other miscellaneous expenses, and only collect rent for twenty years, and then transfer the land and the house to you together!" As soon as these words came out, Wang Boyuan immediately became serious and looked at Chen Guangliang.

You know, the investment in a new alley is not a small amount. The rent plus construction costs of this scale would probably be two hundred thousand dollars!
It was such a huge project, and it was a young man who was twenty years old (actually less than) who came to discuss it with him!

"Do you have the ability?"

"Boss Wang, you're joking. If I don't have the ability, you can just take the land back. After all, the land is only rented, not bought!"

Wang Boyuan nodded. This sentence made sense. It was unlikely that there was a trap here!

He pondered the possible traps and finally thought of one. He asked, "How do you guarantee the quality of the buildings you build?"

If the house built on it can only be guaranteed to last for twenty years, it will be impossible for him to rent out the land.

It's very simple. He would rather rent it to a factory so that the recovery can be easier. He would even rather leave it empty and not rent it out. After all, land with a deed is more valuable than cash.

Of course, Wang Boyuan also remembered one thing. Recently, someone had been building "rolling dragons" on that piece of land. He was worried that it would be targeted by the refugees. It would certainly be better if he could rent it out!

Chen Guangliang said confidently, "We plan to build this new lane according to the '30-year warranty'. You can send someone to supervise it."

It is said to have a 30-year 'shelf life', but it may be fine for 50 or 100 years.

In fact, many houses in Shanghai in later generations, such as "Xingyeli" and "Yalpeifang", are already a hundred years old.

After hearing this, Wang Boyuan began to calculate the account in his mind: if he rented the land to Chen Guangliang for twenty years, he could collect rent every year, which was better than leaving it empty; secondly, when he recovered the land after twenty years, he could continue to collect rent from the houses on it, generating huge profits.

But will this young man lose?
The monthly rent for a 135-story house is 5000 yuan, which is 6 yuan a year, and more than 5 yuan after tax. Calculated this way, it only takes four years to recover the investment.

Of course, these are all theoretical situations. If it is really possible to make a "guaranteed profit", many people would invest in it themselves.

"Boss Chen, what kind of business were you originally in? How many real estate projects has your company developed?"

I am still a little hesitant. After all, 'renting land to build residential buildings' seems to have never happened in Shanghai, or even in the whole of China, before (but there are cases of renting land to build commercial buildings, and the buildings will be returned to the owners when the expiration date).

Chen Guangliang said openly, "I originally ran a rickshaw business. My subsidiary, the Changjiang Rickshaw Company, had 265 large-scale rickshaws. I saw potential in the real estate business, so I decided to expand into it. I'm quite familiar with the people at Jincheng Bank, and I have a good partnership with the Shanghai Commercial and Savings Bank. Actually, I also have some land on Yuyuan Road, but it's only a few acres, so developing a new-style lane wouldn't be practical."

Wang Boyuan nodded and said, "Well, I'll think about the cooperation you mentioned and give you an answer in three days. How about that?"

"Of course, I'm waiting for your good news!"

He knew that Wang Boyuan was already moved, but it was still a little sudden.

But in fact, Wang Boyuan's land will basically be of no use in the next few years, or even for a long time.

Now someone is willing to rent the land, and is willing to rent it for twenty years, and finally give away forty-five buildings. This is simply a blessing from heaven.

Since Chen Guangliang dared to come, he must have made the most comprehensive preparations.

As for why he didn’t use his own land?

It’s very simple. Use other people’s land first, and then consider your own land later.

Of course, if you use other people's land, that is naturally a skill.

(End of this chapter)