Get rich quick starting with buying a house with zero down payment
Chapter 56: Long-Term Holding
Procedures are rigid, but people are flexible. Shen Mo naturally had her reasons and necessities for wanting that specially approved position; her position required some flexibility in handling certain matters.
You're right to insist on the procedure; it's your responsibility. But you also need to understand that sometimes, even within the rules, there are boundaries. This isn't a matter of right or wrong, but rather... a matter of degree.
He turned his head, looked into Ji Fanyin's clear but confused eyes, and said in a gentle but firm tone, "You're just starting out, take it slow."
Remember, in your position, it is your duty to uphold the bottom line of procedures.
As for balancing procedures with flexibility, and judging which things can be accommodated and which must be insisted upon, this requires experience, and also... an understanding of me, of Lu Chaoyang, and of the others. This is much harder than simply memorizing procedures.
Ji Fanyin nodded as if she understood, but her mind was even more confused. She had always thought that the workplace was a clear-cut black-and-white world, and that you just had to follow the rules.
But now it seems that the gray areas involved are far more complicated than she imagined.
Lei Guoliang didn't say anything more. Some truths can only be understood through personal experience and setbacks. Shen Mo's seemingly casual rebuke this time might not be a bad thing.
Seeing the complexities of this world sooner will help Ji Fanyin grow up faster and also... make her understand better who she can ultimately rely on.
Shen Mo held a pricing meeting in his office in Zhujiang New Town, Guangzhou. A site plan of the project was laid out in the center of the conference table, with each building marked in a different color.
"The opening price can't be the bottom price; it has to be the benchmark price." Shen Mo pointed to Building 3 in the prime location with a laser pointer and said, "Here, prices start at 3388 yuan. That's 15% higher than the highest price in the surrounding area."
The meeting room was silent. The price was nearly a thousand yuan higher than the 2500 yuan they had expected.
"Mr. Shen, is this price...?" The manager of the Dongguan store hesitated before speaking.
"Will it be difficult to sell?" Shen Mo took over the conversation, switching to a PPT slide that displayed detailed market analysis data: "The demand for improved housing in Dongguan is exploding, and the spillover of investors from Shenzhen and Guangzhou is accelerating. 0769 has the best location, quality, and scale in the region."
We don't want customers with immediate needs; we want people willing to pay for quality and the future.
She paused, then said with certainty, "Moreover, with hundreds of millions of yuan at our disposal, we have every confidence to take our time."
In the first month, we won't be chasing sales volume; we'll focus on one thing: setting a new price benchmark in Dongguan.
Shen Mo's trading skills are delicate and experienced.
In the first week, she only released 20 premium units in Building 3, priced at an astonishing 3588-3788 yuan.
At the same time, she invited renowned architects and landscape planners to hold an international residential concept sharing session at the project site, inviting only selected high-net-worth clients to participate.
During the sharing session, Shen Mo personally explained the five value systems of 0769, from architectural design to property services, from landscape design to community amenities.
At the end, she casually added, "The first batch of 20 units are show flats, and they're in prime locations. The second batch, launching next week, will have prices returning to normal market levels."
A strategy of feigned indifference to lure the buyer in. By the weekend, 18 of the 20 exorbitantly priced properties had been sold. News spread quickly, and a client in 0769 was willing to pay nearly 4000 yuan per square meter for a unit.
In the second week, Shen Mo released 50 more units in Building 2, with prices adjusted back to 3188-3388 yuan. She simultaneously launched a referral program: existing customers who refer new customers who complete a transaction will receive a three-year reduction in property management fees, and the new customer will also enjoy a 98% discount.
More importantly, she had her team inadvertently leak the sales plan for next month, which showed that prices would be rationally increased by 1-2% each week. This was not a secret; it was an open conspiracy.
The market began to stir. Investors keenly sensed an opportunity: a 1% increase every week, that's 4-5% a month, and over a year... this is much more reliable than stock trading.
By the end of the second week, 42 out of 50 units had been sold, with an average transaction price of 3280 yuan per square meter. The proportion of investors quietly rose to 40%.
In the third week, Shen Mo came up with a new trick. She announced the launch of a value growth plan: all signed clients could apply for a value reassessment if the overall average price of the project dropped by more than 10% before the handover of the property, and the contract would be renewed at the new price. In reality, this was just a disguised promise to raise prices.
This plan completely ignited the market. The 80 units launched in the third week sold out in three days. The average transaction price was pushed up to 3380 yuan. Investors accounted for over 60% of the buyers.
By the end of the first month, 0769 had sold 186 units, generating approximately 6500 million yuan in revenue, and the overall average price of the project had stabilized at 3350 yuan. More importantly, the upward price trend had been firmly established.
When Shen Mo reported to Lei Guoliang, Lei Guoliang only asked one question: "What percentage are investors?"
"65%, and it's still rising," Shen Mo answered truthfully.
"Control the pace," Lei Guoliang said on the phone. "Too many investors are causing prices to fluctuate wildly. Guiding in some owner-occupiers will make the market healthier."
Shen Mo understood immediately. The following month, she adjusted her sales strategy: reducing the number of units released each time, but improving the quality of the properties.
Prices continued to rise slightly each week, but the increase was kept within 0.5-1%.
At the same time, we will strengthen the promotion of the advantages of the apartment layout and the living experience to attract customers who are looking to upgrade their living conditions.
The market response remained enthusiastic. By the end of the second month, 0769 had sold a total of 383 units, generating approximately 1.45 million yuan in revenue. At this point, the overall average price of the project had reached 3480 yuan, 40% higher than surrounding relatively new secondhand homes.
Late at night on the last day of the second month, Shen Mo pondered for a long time while looking at the sales report in his office, and then dialed Lei Guoliang's number.
"Mr. Lei, we've sold 383 units so far, generating 1.45 million yuan in revenue. We're less than 4000 million yuan short of fully covering the total cost of 1.83 million yuan. I suggest," she said calmly and firmly, "that we adjust our sales strategy and shift towards long-term value holding."
"Specifically," Lei Guoliang said succinctly.
"Three steps." Shen Mo was clearly deep in thought: "First, immediately stop sales and announce to the public that because the market response far exceeded expectations, the company has decided to retain some high-quality properties and upgrade product standards."
Second, 200 core units will be retained for long-term holding, which are in the best locations and have the largest floor plans, with a total area of approximately 2.5 square meters.
Third, the remaining 381 units will be sold gradually over the next six months, with an average price of 3800-4000 yuan.
She quickly reported the data: "383 units have been sold, with a net profit of approximately 5075 million yuan. There are 381 units yet to be sold, which, based on an average price of 3900 yuan per unit, could generate another profit of approximately 6500 million yuan."
The 300 properties held were worth at least 180 million yuan by 2007, an increase of over 100 million yuan.
During this period, there was also nearly 20 million in rental income. The total profit of this project could approach 230 million.
There was a moment of silence on the other end of the phone. Lei Guoliang was doing mental arithmetic rapidly.
"Have you calculated the cost of ownership?" he asked.
"I've calculated it." Shen Mo answered fluently, "The total cost of 200 sets is about 42 million, and even with the cost of decoration, it will only be about 50 to 60 million."
According to your estimate, the property prices here might rise to 7,000 to 8,000 yuan per square meter in three years. 200 apartments, totaling 25000 square meters, would cost approximately 200 million yuan. Using that 50-60 million yuan to gamble on reaching 200 million yuan in three years would yield an annualized return of 50 million yuan.
This doesn't even include the rental income of up to 2000 million over three years.
Moreover, holding core assets enhances a company's creditworthiness and facilitates subsequent financing.
Lei Guoliang smiled. This was the kind of general he wanted—one who not only knew how to conquer cities and territories, but also how to manage the country.
"Okay." He made the decision: "We'll do it your way, but instead of keeping 200 units, we'll keep 300 units. If we sell 646 units at the current average price, we can recover about 2.4 to 2.5 million."
Even after deducting all costs and expenses, it is enough to cover the 1.83 million yuan house price, the renovation of 300 houses, and all other expenses.
Of the 300 units I own, 100 will be developed into high-end long-term rental apartments according to the standards of Yangcheng Dijinyuan. I want to set a rental benchmark in Dongguan.
The remaining 200 sets may be released depending on the situation.
In addition, we will definitely take over the property management of Phase 1 of 0769. You should talk to the developer and buy all the ground floor shops in Phase 1 as well.
The average price should be reduced to 4000, and should not exceed 5000.
You'll personally oversee this matter. If you succeed, I'll reduce your profit target for the South China region by three percentage points this year.
"Understood!" Shen Mo's spirits lifted. Reducing the profit target by three percentage points meant that more resources could be invested in strategic planning.
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