Blackstone Code Chapter 160: Unsuccessful negotiations
"I don't have a lot of money, and some of it will go towards the pre-construction of apartments..."
Hart didn't lie or exaggerate his current situation, good or bad, he just told the truth, he had no money, and that's true.
"But the land in your hands is very important to me!" He has always been sincere, so sincere that he doesn't look like a businessman, let alone a real estate developer. Such people are rarely so honest. to be honest.
When they talk about business, they often show an attitude that it doesn't matter if they have it or not, and sometimes they are not so reasonable.
He always looked directly into Lynch's eyes and did not avoid looking at Lynch, which seemed to prove some of his current situation.
"I have prepared two plans, are you interested in hearing about it?"
Lynch nodded, "Of course, otherwise why would I be here?"
Hart breathed a sigh of relief at Lynch's words, at least it seemed, and he started talking about his plans.
"The first plan, I can pay you about...", he thought for a while, "about 600,000 in cash, some of the other funds can be converted into this project, we will have a later In a more detailed evaluation meeting, after evaluating the total investment, we will give you the shares of the project in proportion.”
This is also a relatively common means of cooperation. In fact, in a popular way, it is like investing in technology.
When others cannot ignore the necessary conditions in his hands, this part can be brought into the total investment to occupy a certain proportion of the investment. This method is relatively common and common.
Lynch didn't say good or bad after hearing it. Hart left some time for him to think, and then began to talk about the second plan.
"The second plan is relatively simple. I will exchange the equivalent shares of my company for these lands in your hands..."
This is also a very common behavior, especially in mergers and acquisitions between large companies. The larger the company, the more pressure on liquidity, but they also have this demand, such as mergers and acquisitions of other companies. , This method effectively solves the financial pressure.
The same goes for Hart's second plan, where he gave Lynch a share of his company's shares in exchange for the land, and he thought it was a good deal.
With the start of this project, the market value of his company will definitely increase significantly. Lynch is equivalent to making money twice with his own land.
After introducing his company with a slightly proud tone, he looked at Lynch expectantly. He thought that Lynch would choose the second option, which was obvious. He had also used this option successfully. attracted more supporters and investors.
Lynch did not answer him immediately, but asked a question, "Is my land really that important to you and your company?" He said thoughtfully, "You can choose some more remote land, the price will be lower, and the development cost will be lower."
Hart was stunned for a moment. He didn't expect Lynch to ask such a question unrelated to his plan. At the same time, he also realized that the two plans he prepared might not be among Lynch's choices.
On the basis of negotiating with the greatest sincerity, he explained some of the advantages that Lynch's land had.
"That piece of land is next to the city center. If we use the straight-line distance of some rogues to calculate, we can say that it is the city center without any problem!"
Hart, including Lynch and Joe Grimman, couldn't help laughing, and that's what developers like to say, straight line distance.
This is also easy to ignore the actual straight-line distance. If you want to reach another point by ordinary means of passage, it may be very long. This is like the two banks of a river, and the straight-line distance may only be tens of meters. .
But if you want to pass without a bridge, it is normal to go around dozens of kilometers.
"It is surrounded by commercial and living areas. This place is more in line with people's living needs than other places. I know that the land outside the city is very cheap, but people prefer to live in the park instead of going outside the city. to live."
"The living environment and the nearby environment are related to the final occupancy rate of these apartments, including whether it is easier to sell after the project is over. The closer to the city center, the easier it is to solve these problems, and the higher the financial subsidies. !”
Hart didn't seem to have anything to hide. He directly said the most important things. After listening to these words, Joe Grimman nodded frequently, and Lynch also thought there was no problem.
If the project is built on undeveloped land outside the city, the city hall can directly give them free land use rights, but the question is who is willing to cross half of the city to live outside the city? If these houses don't sell, they could lose money!
The real money-making part of this project is the last step. After the whole project is over, all the apartments will be sold in one go. Anyone with a normal brain will understand that the apartments next to the city center are not only the audience, but also the price. , are far more than suburban apartments.
It doesn't seem like there are too many problems, Lynch pondered a little and looked at Joe Grimman's house. His movements were not small, and Hart had been observing him.
Joe Grimman did his duty as a middleman very dutifully. He did not intervene to interfere with the judgment of anyone on both sides, but just sat quietly and drank the wine in his glass.
After a while, Lynch took his eyes away from the house. He looked at Hart calmly and proposed another transaction plan, "I'm not interested in investing in real estate for the time being, but I'm interested in houses. Very interested."
"You know, I'm just an ordinary person. Ordinary people have a more paranoid liking for houses. I like the houses here. Maybe we can use the houses here to offset the price."
He said and looked at Joe Grimman, "Mr. Manager, how much do you think the villa here is worth now?"
Joe Grimman was stunned for a moment. He did not expect Lynch to choose this method. In fact, he was more inclined to the second option in his heart.
At this time, Lynch asked, he thought about it, and gave a fair price. After all, both parties were his friends, "It's about seventy to eighty thousand to one hundred thousand, and there are several specifications."
Hart nodded too, it was about the same price, but he had a different idea, "Joe, and Lynch, you've overlooked one thing, these villas that have been built, after the economic downturn is over, will Appreciate again."
"Four years ago, the price of any house here was more than 200,000 yuan, even the smallest one. And...", he paused, "I got it from the city hall. Some news, it is very likely to be planned as one of the urban drinking water sources, and there will be no opportunities to build large-scale projects in the vicinity in the future!"
At present, the drinking water source of Sabine City does not come from this lake, but an artificial lake farther away.
With the increase of the urban population, the burden of drinking water has also begun to increase. The city hall has such a plan for a long time, but so far there are no specific steps to implement it. It is just a plan, an intention, but want to It's not hard to make it happen, it's what capitalists do best.
Lynch interrupted him without hesitation, "My land will also appreciate in value. We all know that Sabine City will almost have a population of one million, and the urban circle will inevitably expand further. That land isn't 'close to the city center', it's the city center!"
When it comes to "playing a hooligan", Lynch doesn't have to be unfamiliar with them at all, it's just a blowout anyway, and what he said is not wrong.
Hart was a little disappointed, "Mr. Lynch, I can't accept the conditions you put forward. We all know that this place looks a bit bad right now, but it will get better in the end, just like what our society is facing. Trouble."
"Maybe five or ten years from now, the cheapest house here will be able to sell for 300,000 to 400,000 yuan or more. I can't accept your proposal."
Lynch didn't show too much dissatisfaction, but just nodded with a smile, "Understandable, Mr. Hart, business is like this. Only when the two sides have formed a unified situation, can the business continue."
Hart is still a little hard to accept, this is not the same as what he thought before he came, "Don't you need to think about it again?"
Lynch shook his head, "If you pay attention to some recent developments, you will know that my company has just been valued at 70 million, and investors are lining up to send me money, if it wasn't for George Mr. Mann and I are good friends~IndoMTL.com~ I have never considered selling this land."
"I agree with some of your statements just now. The economy cannot continue to slump like this. After three or five years, everything will be fine. The federal foundation is better than other countries. In terms of economic recovery, We'll be faster too."
"Now you think that land may only be worth 1.5 to 2 million, but I can guarantee that in ten years you can add a zero and you won't be able to buy one-tenth of it!"
Lynch stood up and held out his hand, "Although we didn't make this deal, it's nice to meet you, Mr. Hart."
He showed an attitude that he didn't want to talk about it, and Hart couldn't hold it back. At this time, holding back was like putting the knife into the other's hand, and lying on the slaughtering table on his own initiative, it seemed that he could only wait for the next time. .
"Me too, Mr. Lynch!"
Lynch said two scenes, and said goodbye to Joe Grimman before leaving.
At this time, Hart was still a little confused. After Lynch left, he couldn't help but ask, "What is worth 70 million?"
Joe Grimman sighed with an indescribable melancholy, "The Interstellar Trading Company he runs, the one that trades and auctions second-hand goods!"
Hart's face was shocked, followed by dazed, "This kind of company...how can the valuation be so high?"
Joe Grimman knew that he was a little lost at this time, and patted the other party on the shoulder, "He knows better than you to seize opportunities."
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