svetikya Page 904
Page 904
Considering this huge amount, the profit of 800 million only accounts for about one-third of the total investment.
However, we must not ignore a key fact: this is He Yuzhu's first foray into the real estate industry.
In this highly competitive and complex field, many experienced practitioners have inevitably failed. However, He Yuzhu has achieved such results in just half a year through his own exploration and hard work. This is already a very good start and has firmly established him in the real estate field.
However, in reality, He Yuzhu's total investment was not just what was shown on the books, but a whopping 300 million yuan in cash!
Among them, the way of acquiring the land is particularly unique, which fully demonstrates He Yuzhu's extraordinary business acumen.
At that time, competition in the real estate development field was fierce, and everyone followed the convention and spent a lot of money to directly purchase land.
He Yuzhu, however, was clear-headed and knew that this approach would not only be incredibly costly, but would also greatly reduce flexibility in subsequent development. Any slight mistake could lead to a double dilemma of funding and planning.
After repeated consideration, he decided to find another way. After several days of hard thinking, he finally came up with a bold and innovative strategy - acquiring land by exchanging properties with residents.
Imagine that during that period, He Yuzhu worked tirelessly and frequently traveled through the old streets and alleys.
The old streets are narrow and deep, with mottled walls and slightly dilapidated houses on both sides.
He visited every household, each time he pushed open a creaky door, he was full of sincerity. When he entered a resident's home, he always greeted the host politely, and then sat on a slightly worn chair to chat with them at length.
His eyes were focused and sincere, and he patiently and meticulously painted a beautiful blueprint for his future new home.
From the modern architectural exterior with smooth lines and unique shape that sparkles in the sun; to the complete community supporting facilities, there are lush green gardens, play areas for children, and sports venues for residents to exercise; to the comfortable and convenient living experience, the smart access control system ensures safety, ample parking spaces solve parking problems, and 24-hour attentive property services.
Every detail is taken into consideration, striving to let residents truly feel the beauty of future life.
He first reached an agreement with the residents out of sincerity and bought their land on credit.
During this process, residents inevitably had doubts and raised various questions:
"Can this house really be built on time?" "Can the replacement area be guaranteed?"
He Yuzhu always smiled and answered their questions one by one in a firm tone to eliminate their concerns.
He then immediately set to work, with the construction site filled with dust and the roar of machinery.
Not only does he have to deal with the endless questions and concerns of the residents and patiently answer them, he also has to run around and coordinate resources from all parties.
In terms of purchasing building materials, he carefully screens suppliers and compares the quality and price of materials from different manufacturers, only to buy the most cost-effective materials; in the scheduling of construction teams, he reasonably arranges the workers' work tasks to ensure the orderly progress of the project.
Every link must be ensured to be foolproof to ensure the smooth progress of the project. The difficulty involved can be imagined.
In this way, He Yuzhu's initial investment of 300 million yuan was mainly used to pay for design fees, initial raw material purchases, and wages for construction workers. In the design phase, he hired a well-known design team in the industry, striving to create a unique and practical architectural plan, and the design fee accounted for a considerable part of the initial investment.
There are also many considerations when purchasing raw materials.
In the early stages of construction, there is a huge demand for various raw materials, such as steel bars, cement, river sand, etc., which are indispensable basic materials.
Speaking of raw material procurement, there is one detail that must be mentioned here.
Even when purchasing raw materials, He Yuzhu showed extraordinary courage and strategy. He did not pay cash directly, but also used credit.
For example, when he purchased river sand from a company owned by Ho Ying-tung, although the supply of river sand in the market was not scarce at that time, the price fluctuated frequently, and high-quality river sand was even more in short supply.
He Yuzhu is well aware of this. Relying on the reputation he has gradually accumulated in the industry and his firm confidence in the success of future projects, he has conducted multiple rounds of sincere negotiations with suppliers.
He explained in detail to the supplier the scale, planning and broad market prospects of his project, and expressed his large and long-term demand for river sand.
After some difficult communication and negotiation, we finally reached an agreement to buy the goods on credit first;
The same is true when purchasing cement from Yingzhou Cement. Yingzhou Cement is well-known in the industry for its high quality, so it naturally has no trouble selling it.
He Yuzhu personally went to Yingzhou Cement Company and had in-depth communication with the other party's senior management. He not only explained the prospects of the project, but also impressed the supplier with his sincerity and order commitments for multiple future projects, and successfully won the opportunity to purchase on credit first.
Afterwards, when a customer comes to buy a property, the company will use the customer's loan to repay the debt.
This seemingly risky way of operating funds was actually a decision made by He Yuzhu after careful consideration.
Chapter 662
He meticulously controlled every aspect of the project, demonstrating a clear understanding of market demand and the capital recovery cycle. Under He Yuzhu's careful planning and step-by-step approach, the entire project's cash flow proceeded smoothly and efficiently, a testament to his impressive business acumen.
He Yuzhu carefully planned a series of financial operation plans, with each link closely connected, just like precision gears meshing with each other, fitting perfectly.
Initially, the funding gap of over 2000 million yuan seemed like a towering mountain blocking the road to the project, making people hesitant and fearful.
But with his clever planning, he first integrated the scattered funds on hand, and then, relying on his own business reputation, he obtained deferred payment of some payments from suppliers with whom he had cooperated for many years, thus buying valuable time for capital turnover.
Then, he keenly captured the investment demand for short-term idle funds in the market, and used the future returns of the project as bait to attract a batch of private capital injections.
After a series of operations, a large part of the funding gap that seemed insurmountable was successfully filled.
In reality, He Yuzhu only received a mere 1000 million yuan loan from Chuangxing Bank.
Now, the house has been successfully sold, the relevant loan has been processed and is directly used to repay the debt.
The entire process was smooth and unobstructed, and everything seemed well-organized, just like a precision-operated machine. Every part played its role precisely and accurately in its respective position, helping the project to a successful conclusion.
He Yuzhu sat alone in the slightly dim office. It was so quiet that the only sound he could hear was the ticking of the second hand of the wall clock.
He held the slightly yellowed report steadily in his hands. The paper was rough and felt like it bore the marks of time.
On the report, densely packed data are like ants lining up in a row, recording in detail every detail of the project from the cautious and difficult exploration in the preparation stage to the day and night running and all-out sprint in the sales period.
Each number seems to be endowed with fresh vitality. They are the concrete medals of his hard work and struggle during this period, carrying countless days and nights of working late into the night and forgetting to eat and sleep. Each one of them is filled with his hard work and unreserved dedication.
He Yuzhu stared at the data, his eyes seemed to be attracted by a magnet, and his thoughts drifted away involuntarily.
He frowned slightly and thought back carefully. In order to start this project, he had gone through many banks and gone through a lot of trouble to finally get a loan of 300 million yuan. This 300 million yuan was like a double-edged sword. While it provided the project with start-up funds, it also brought a heavy interest burden. The interest expenses alone amounted to 100 million yuan.
Looking at the total operating costs, which were originally estimated to be astronomical, he meticulously calculated and strictly controlled every expense, and the final cost was only 400 million.
However, when his eyes fell on the profit column, his eyes widened instantly, and his mouth opened slightly in surprise, unable to close.
In just six months, the project's profits skyrocketed to a staggering 800 million, like a firework suddenly bursting into bloom!
This number was so shocking that even he himself felt it was unreal, as if he had stepped into a bizarre dream. He kept questioning and confirming it in his heart, but he still couldn't believe that all this was true.
He Yuzhu stood in front of the huge floor-to-ceiling window, holding the detailed sales report tightly in his hand, staring at the numbers on it without blinking.
At this moment, there seemed to be two small flames jumping in his eyes, which was a light intertwined with excitement and joy.
He couldn't help but sigh in his heart that the real estate industry is indeed a field with endless treasures and an excellent way to make money steadily.
Take this project, for example. With only a modest initial investment, we've seen a twofold return in just six months. This exceptionally high return on investment is like a powerful magnet, radiating an irresistible attraction.
His thoughts became more and more active, and he was thinking in his heart, this is just the result of half a year. If the time span is extended to a whole year, and various sales nodes and market opportunities are fully utilized, what kind of amazing results will be created that will shock the entire industry?
In an instant, his thoughts were like a wild horse that had broken free from its reins, galloping freely across the boundless grassland of his mind. He began to carefully outline a grand business blueprint for the future, in which tall buildings stood in rows and wealth poured in continuously.
He leaned back comfortably in his boss chair, his eyes blank, his thoughts drifting away involuntarily, and he began to imagine freely.
What would it be like if the 800 million earned this time were decisively reinvested in the ever-changing yet infinitely promising real estate market, continuously purchasing high-quality land and meticulously building new houses?
With the valuable experience gained from this project, the extensive network of contacts he made, and the solid trust the market has gradually built in the company's brand, he silently calculated that in another six months, given the current market trends and the company's development, he would very likely earn 1600 million, or even have the potential to achieve even higher returns.
After all, in the business world, once a good start is successfully made, subsequent development will be like a snowball rolling down from the top of a mountain. With the help of inertia and the surrounding resources, it will expand rapidly and continue to grow.
The picture in his mind became clearer and clearer, as if he saw with his own eyes brand new skyscrapers springing up in every corner of the city like mushrooms after rain.
Those buildings, with modern glass curtain walls, reflect dazzling light under the bright sunshine, becoming a beautiful landscape in the city skyline.
He stood atop the tallest building, dressed in a tailor-made, impeccably tailored suit, his posture upright and radiant with confidence. A gentle breeze caressed his face as he surveyed the bustling city, now more vibrant and prosperous thanks to his hard work. His heart was filled with a profound sense of accomplishment, as if he possessed the entire world. He Yuzhu's thoughts drifted back to the turbulent era of 1955.
At that time, Hong Kong's economic landscape was in a delicate period of transformation. In a business wave that had not yet been fully explored, Ho Ying-tung, with his unique insight into the market, made a move that shocked the industry.
He successfully purchased a plot of land opposite the Causeway Bay Hotel from a long-established and deeply rooted family for HK$130 million.
This piece of land is located in a unique location, close to the bustling commercial center and with convenient transportation. Although the surrounding supporting facilities are not yet complete, it has shown great development potential, like a dusty pearl, waiting for someone with a discerning eye to carve it.
After Huo Yingdong purchased the land, his decisive style of action was fully revealed.
He quickly formed a professional team, carefully planned and designed, and started a huge project on this land.
Not long after, a brand new building rose from the ground. It was the tallest building in Hong Kong at that time - the Toad Building.
The building's architectural style incorporates the most advanced design concepts of the time. Not only is its exterior magnificent, but its interior layout is also extremely reasonable.
The construction cost of the building is staggering, totaling a whopping HK$200 million.
However, Huo Yingdong's ability in financial operations is unparalleled. He skillfully used financial leverage and capital operation methods, using only 10% of the total price, or just 130,000 yuan, to successfully launch the entire project.
Looking back at the Hong Kong real estate market at that time, it can be described as "the beginning of chaos".
Most people are still taking a wait-and-see attitude towards this emerging industry, lingering in the comfort zone of traditional business models, and are unaware of the huge potential in the real estate sector.
Huo Yingdong was like an eagle soaring in the sky, with sharp eyes, accurately capturing this fleeting opportunity.
While everyone was still hesitating, he was decisive and acted quickly. With a series of bold and wise decisions, he successfully opened up a new world in the real estate field, becoming a well-deserved industry pioneer and setting an insurmountable benchmark for those who came after him. His legendary experience has also left a strong mark in Hong Kong's business history.
He Yuzhu deeply admires Huo Yingdong's investment vision and strategy. In his heart, Huo Yingdong is a legend in the real estate industry and a role model for him to learn from.
Huo Yingdong always managed to accurately capture subtle changes in the market before anyone else noticed, and act decisively. His courage and acumen made He Yuzhu sincerely admire him.
The success of this project is like a bright ray of dawn, illuminating He Yuzhu's path forward in the real estate industry and making him full of confidence in his future in this field.
He secretly made up his mind to be as good as Huo Yingdong and to seize opportunities in a complex, changeable and turbulent market environment.
In the use of funds, we make full use of the leverage effect of funds, use the momentum of a small effort to achieve a great result, and skillfully operate each project to make our wealth continue to increase like a snowball.
He knows very well that in this industry full of opportunities and challenges, where competition is fierce and almost cruel, only those who dare to take risks and are good at planning, just like steering a sturdy ship in the turbulent and undercurrent business sea, can break through numerous obstacles, ride the wind and waves, and sail to the other side of success with extraordinary courage and superb steering skills.
To pay for the rest of the expenses, Ho Ying-tung relied entirely on the income from the sale of pre-sale properties.
At that time, Hong Kong's real estate market was on the eve of change. The emerging sales model of pre-sale properties was like a stone thrown into a calm lake, causing ripples and arousing curiosity and strong expectations from all parties in the market.