Yi Anguo figured Ou Xiaolong didn’t quite believe him and probably thought he was just trying to trick him into buying rosewood furniture!
"A set of my Siam rosewood sofas weighs almost a ton, and it takes at least two tons of wood to process. The market price for those two tons of wood is about 25,000 yuan. Add the costs for carpentry, painting, carving, and other miscellaneous fees, and you’re looking at another 10,000 yuan. All things considered, if I sell you a set for 48,888 yuan, I’d be lucky to make a profit of 10,000 yuan.
"It might sound like I’m making a lot, but how many sets like this can we even produce in a year?
"And what about the annual rent for my factory? If these were sold in a shopping mall, how much would that rent be? Not to ntion labor costs, taxes, and everything else!
"Forget it! You’d better not buy it. I don’t want you thinking I’ve ripped you off, and I’m not that desperate to make a sale."
Seeing that Yi Anguo seed genuinely unhappy, Ou Xiaolong—regardless of whether he was telling the truth—quickly said, "No, don’t say that! I never said I wasn’t buying, nor did I say I didn’t believe you!"
Considering Yi Anguo had helped him out of a jam twice, Ou Xiaolong felt he absolutely had to buy the rosewood furniture today.
Ou Xiaolong was very clear on one thing: the 600 million yuan Yi Anguo had promised still hadn’t hit his company’s account. At this mont, Yi Anguo was his lifeline. Whatever Yi Anguo said, goes.
It wasn’t just about buying; he had to buy in bulk. He couldn’t afford to seem cheap.
Aside from a bed, he needed a wardrobe, a bookcase, a TV stand, a shoe cabinet, a chest of drawers, a desk, a dining table, and a sofa. He decided to buy a complete set of all the furniture he needed for his office and ho.
This shopping spree ended up costing a considerable sum—over a million yuan in total.
Yi Anguo was at a loss for words. "Maybe you should just get the Burse Padauk," he suggested. "It’s much cheaper and still looks very nice."
"Brother! What’s that supposed to an? Are you worried I can’t afford a million yuan?" Ou Xiaolong retorted, clearly displeased.
"My company might be facing so cash flow problems right now, but I’m short several hundred million, not a re one million!
"Several hundred million? I can’t pull that out of thin air, but I can definitely co up with several million!"
Yi Anguo said helplessly, "Then do as you wish! Buy whatever you want if it makes you happy. It’s fine if you don’t buy anything, either!
"Whether I help you or not has nothing to do with you buying a bit of furniture from ."
Ou Xiaolong smiled. "I know. That’s why I’m buying this furniture. It’s not for any other reason than the fact that I genuinely like it. If I didn’t, why would I buy it?"
Yi Anguo couldn’t say much more. You can’t argue with a man who’s happy to spend his money.
After the detailed negotiations were finalized and the paperwork was completed, Yi Anguo promptly transferred 600 million yuan to Ou Xiaolong’s company account.
Having just transferred 388 million US dollars back to the country, which was nearly 3.1 billion RMB, 600 million yuan didn’t seem like such a large sum to Yi Anguo.
According to their agreent, after lending the 600 million yuan, once the housing project was completed, the unfinished units would be delivered to Yi Anguo at a price of 4,500 yuan per square ter. In total, one thousand five hundred units of various sizes would be handed over for him to manage.
Yi Anguo had no intention of keeping them. His plan was to sell them off and convert them into cash.
The price was 4,500 yuan per square ter now, but a year later, it could easily hit 18,000. Turning 600 million into 2.4 billion—this investnt was definitely worthwhile.
At this ti, the Ren Family’s real estate developnt company was facing problems similar to Ou Xiaolong’s.
Ren Xingsheng’s father had fallen ill and entrusted the company’s largest developnt project to his son. However, the praise had gone to the arrogant Ren Xingsheng’s head, and he’d lost touch with reality. He ended up being swindled by the very cronies he thought were his true friends.
During construction, a large amount of substandard rebar and cent was used. As a result, all thirty-five completed buildings were deed unsafe and failed to et the standards for delivery.
This was a disaster. Failing to deliver the buildings on ti would incur massive fines. Even if the company offered refunds at the original purchase price, the buyers wouldn’t accept it. The reason was simple: property prices were rising daily, and new developnts were sold out the mont they hit the market. It had gotten to the point where even having money didn’t guarantee you could buy a ho. People wanted their apartnts, not a refund.
Besides, a refund couldn’t be for the original price. It would have to be for the current market value, which was much higher than the pre-sale price. For example, when they bought their apartnts, the price was only 10,000 yuan per square ter, but now it had risen to 13,000 yuan per square ter. Any refund would have to be at the current rate.
Not refunding was another option, but that ant dealing with delivery delays. For every month the delivery was delayed, the real estate developer would be responsible for covering the buyers’ monthly mortgage paynts to the bank for the duration of the delay.
Reconstructing these unsafe buildings wasn’t a simple task. They had to be demolished first, and the subsequent rebuilding process would take even longer than constructing them from scratch the first ti.
Previously, securing bank loans for construction wasn’t difficult. A developer could use the land as collateral for an initial loan. Once the foundation was laid, they could secure another. As construction progressed through various stages, more funds could be loaned out. This step-by-step financing model allowed them to complete the developnt, sell the apartnts, and then repay the bank.
Reviews
All reviews (0)