Chapter 1613: A different profession is like a different mountain (1) "Two months ago, a 91000 square meter land was auctioned in Xiaotang. The final price was about 2.9 billion. The land we’re interested in this time should be around the same price!" There won’t be too much left and right ..." Xia ruofei quickly calculated in his heart and said,""Brother Zhao just said that the land you’re interested in is about 15 mu, right? That’s about 10000 square meters, so ... It would cost about 320 million to get the land! This is definitely overspending!" Zhao Yongjun, song Rui, and Liu Jian looked at each other and laughed. Xia ruofei was even more confused."What are you guys laughing at? Don’t tell me you’ve pulled in more partners to expand the scale of your investment?" Zhao Yongjun laughed and explained,"ruofei, you might not know much about real estate. It’s no wonder. Different professions are worlds apart!" I’ll explain it to you briefly! After a piece of land is bought, the local government will not ask for the full payment immediately. Usually, they will pay a part of the down payment, and the rest will be paid after a certain time limit. " Liu Jian added,"the policy has been tightened. Generally, 20% of the bidding base price is required as the auction deposit, and then 50% of the down payment is paid within a month. The rest is to negotiate with the local government and pay in full within a certain period." Xia ruofei thought for a while and said,"then we have enough money for the time being, but ... I don’t think it’ll take too long, right?" Moreover, this is only the money for the land. We still need to invest a lot of money in the follow - up construction. We’re still stretched thin!" Song Rui couldn’t stand it anymore. He looked at Xia ruofei with disdain and said,""Brother, have you forgotten that there are banks in this world? If we can get the land, we should quickly take out a loan! With land as collateral, a loan of one or two hundred million Yuan would be child’s play. With this sum of money, we can start the construction!" "That’s right." Hou Liang also smiled and said,"brother Xia, after the down payment is made, the remaining local governments won’t pursue the matter too much. Us brothers have some face, so it’s not a problem to set a time limit of one or two years! In addition, if the bank had the land as collateral, the loan problem would not be too big. The starting capital for the construction would be enough! And there’s also a settlement cycle for the construction costs, so these can be turned around!" Xia ruofei sighed."I’ve learned something new. I didn’t know that capital could be used like this." Song Rui pouted and said,"it’s your company that’s weird, okay?" Which company didn’t have debts now? If I don’t owe the bank a few hundred million, I’ll be too embarrassed to say that I own a company!" Xia ruofei asked,"the payment period and bank loan that you mentioned, are there any violations?" Also, isn’t it a little bad to owe the project payments?" Xu Zixuan smiled and said,"ruofei, these are the rules of the industry, it’s not against the rules." "This includes the construction payments. The settlement cycle may be long or short, but the payment will definitely not be so quick. I’m not a loner, I’m just following the industry trends! "This is not a big deal. Those who do real estate development only pay a down payment for the land, and then immediately mortgage the land for a loan. After the whole process, the construction site will still be full of weeds! We can start to sell the houses and start to recover the funds in advance ..." Xia ruofei was dumbfounded.""Isn’t ... Isn’t this getting empty - handed? There’s such an operation?" Song Rui said in disdain,"you’re just being ignorant!" If a real estate company didn’t do this, how could it expand so quickly? "So, once the real estate market is bad, those small real estate companies will face a wave of bankruptcy. The reason is very simple. Because the houses can’t be sold, the capital chain will soon break ..." 𝓯𝙧𝙚𝒆𝙬𝙚𝒃𝙣𝙤𝒗𝓮𝓵.𝙘𝙤𝙢 Xia ruofei shrugged and said,"okay!" As long as you think there’s no problem, it’s fine. Anyway, my principle is very simple. Making money is secondary. Don’t let this kind of thing affect the career of your family elders. " "Don’t you worry about that!"Zhao Yongjun said. Compared to some black - hearted real estate developers, we’re even purer than little white rabbits!" Liu Jian and the others burst into laughter. Everyone chatted about the club for a while and felt a little sleepy. They had drunk a lot tonight, so Xia ruofei asked Wu Qiang to lead them to their respective rooms. Xia ruofei also went to the largest and most luxurious master bedroom in the second courtyard. The room was very clean, even spotless. All the items were placed meticulously. It was obvious that the maintenance was done very carefully. This was not the effect of a sudden cleaning. Xia ruofei was quite satisfied with Wu Qiang’s work. He took out the spiritual crystals, sat on the bed, and practiced the great Dao Sutra for a while. Then, he went to the bathroom of the master bedroom to take a shower and enjoy the jacuzzi. He changed into a new set of pure cotton home clothes, fell on the bed, and quickly fell asleep. The next morning, when Xia ruofei and the others woke up, Wu Qiang had already bought a sumptuous breakfast from outside. There were Beijing’s special soy milk and fried dough sticks, as well as steamed buns and deep - fried dough sticks. Zhao Yongjun and a few others who grew up in Beijing were drinking soy milk with a pan and eating it with relish. Xia ruofei had tried the taste of soybean milk once out of curiosity. From then on, he kept a respectful distance from this kind of specialty food that was similar to sour and rancid taste. So, he did not touch it today either. He dipped the youtiao in soybean milk and had a good meal.