A century-old wealthy family that rose from Shanghai

Chapter 101: Massive Deployment (Please subscribe to the full version)
Tuesday, May 5th.

Changjiang Real Estate published an advertisement in Shenbao:
The second batch of villas built by the Changjiang Real Estate Trust Department. Located at 1136 Yuyuan Road (near Hongye Garden), the property boasts an excellent location and is served by bus routes 1 and 9. The buildings are authentic Western-style, 14 feet wide and 50 feet deep, and feature gardens, steel windows, sanitary ware, and hot and cold water pipes. Cost: 3599 yuan per second-floor unit with six bedrooms; 4099 yuan per third-floor unit with eight bedrooms; and 8 yuan per third-floor unit with nine bedrooms. A total of 4699 villas, totaling 9 floors, are available on a first-come, first-served basis. Features: Delivery guaranteed by Yinshi Bank during the construction period; principal repayment guaranteed by a renowned bank after 39 years of residency; and free running water.

Once the advertisement was published, it attracted considerable social attention.

"It seems like Changjiang Real Estate built a new lane with 45 buildings a few months ago, and now they've built another one with 39 buildings. That's incredible!"

"It's not a big deal, but it's just opportunistic. The trust department of Changjiang Real Estate builds houses on behalf of others. Meaning you have to pay upfront, and Changjiang Real Estate will build the house on the land for you, but you can only move in a year later."

"That's pretty good! Look, you only need to deposit 4000 dollars and you can live in an apartment. The principal will be returned to you in 4000 years. I know what you mean, the interest is used to pay the rent, right? But think about it, 320 dollars in a year only pays 30 dollars in interest. How can you live in an apartment for dollars a month? The transfer fee is already or dollars now."

"You have a point, but there is a bit of trickery involved!"

"Taking shortcuts will also help improve Shanghai's housing market. I predict this model will soon become a trend, and Shanghai's real estate market will usher in a round of great opportunities."

"Okay, you're absolutely right!"

Major real estate developers have begun to study the model of Changjiang Real Estate. After all, a small and unknown real estate company was able to continuously build new-style alleys within half a year, totaling 84 buildings.

Judging from the strength of 84 buildings alone, this is generally something that only real estate developers and banks with assets of around 500 million can afford. Because real estate development in this era is too rigid!
The sales office of Changjiang Real Estate soon welcomed customers, and this time there were more people acting as "salesmen", a total of eight people.

When customers arrive at the sales office, they first receive a "property brochure" and then are taken by rickshaw to Lane 1136, Yuyuan Road, where a dedicated person will explain the geographical location, specific planning, etc. After viewing Lane 1136, they return to Lane 608 for a visit, and finally go to the sales office for final consultation and inspection.

After visiting the three places, the middle class who are interested in buying a villa for their own use or investment will basically surrender.

The most frequently asked question is: "What if we pay the capital and need to withdraw the principal midway?"

The salesperson will then say very professionally: "You can withdraw your money at any time, but you also need to move out immediately. That means you will get your principal back if you move out. It doesn't necessarily take 20 years."

Other real estate companies would never dare to make such a promise, but Changjiang Real Estate, led by Chen Guangliang, made a bold promise.

Because Chen Guangliang understood one thing: in the next twenty years, houses in Shanghai would become more and more expensive (including rent), but money would become more and more depreciating.

If the owner wanted a return of the principal after two years, Chen Guangliang would welcome it with open arms, because by then, the rent might have risen to 80 yuan and the transfer fee might have been 800 yuan. At that point, whether it was a bank mortgage or resale, it would be very cost-effective.

In fact, in that situation, only a fool would return the principal and move out. The only way is to rent it out. You can collect 1800 yuan in transfer fee and rent a year.

The main reason why other real estate developers dare not make such a promise is that they are not clear about the future trend of real estate, that’s all.

After receiving the promise that the principal could be refunded at any time, the customer had basically no more questions and decided to go to the Shanghai Commercial and Savings Bank to register and pay.

period.

Wang Zuoyi, the 'earth beetle', also came to congratulate, and his words made Chen Guangliang feel agitated.

"Boss Chen, you've recently revitalized the land on Yuyuan Road, and many property owners and farmers are looking to sell. The western section is generally just over 2000 yuan, the middle section is 3000 yuan, and the land near Jing'an Temple and the easternmost section is 4000 to 5000 yuan. If you need more land, I promise to find enough for you quickly!"

Chen Guangliang's heart was beating fast at this moment. He had always been optimistic about the more than 1,000 acres of land on both sides of Yuyuan Road because it was within the scope of "building roads across the boundary"; with the National Government's "Greater Shanghai Plan", the expansion of the concession became history, so the price of land in the concession would naturally increase.

Secondly, Yuyuan Road is 2.7 kilometers long, of which about to meters is parallel to Nanjing West Road, which is the closest distance; in other words, it also provides convenient transportation to Nanjing East Road and the Bund.

In summary, in 1930, the land on Yuyuan Road that Chen Guangliang gave was valued at 8000 taels of silver for the western section, over 15000 taels of silver for the middle section, and taels of silver for the eastern section.

The lowest price now is just over 2000 yuan, so you can imagine the profit.

The reason why the land at No. 1136 Yuyuan Road (Sunshine Home) was given to Zhu Guangsheng for purchase this time was because he wanted to build a house, so the land could not be speculated.

If Chen Guangliang were to "speculate in land" next, it would undoubtedly be the fastest and best plan to increase his wealth.

He only needs to remember two points: first, the global economic crisis did not really affect the Shanghai Stock Exchange until after 1931, after all, it takes time to spread; second, the "Battle of Shanghai" broke out in January 1932, causing the Shanghai real estate market to plummet.

Theoretically, the 'global financial crisis' may have even suppressed Shanghai's real estate, stock market, and even the entire economy at the same time as the 'First Battle of Shanghai'.

Of course, there is also a possibility that after the real estate in the concession plummeted in 1932, there may be a small climax between 1933 and 1937; but there is basically no hope for the land in the Chinese area.

"Okay, you help me find some land in the central and western sections. I'll find a way to buy as much as I can! Of course, I'll also need to seek support from the bank."

Wang Zuoyi smiled and said, "Boss Chen is so popular right now, the bank will definitely give you face. It's settled then. I'm going to get busy!"

"Go ahead and good luck!"

Wang Zuoyi received a lot of commissions from him, so he was naturally happy about it.

After two days, Sunshine Homes had sold more than two-thirds of its units, a remarkable achievement. This meant it was practically certain to sell out within three or four days.

Chen Guangliang came to the headquarters building of Shanghai Commercial and Savings Bank, and found out that Chen Guangfu had time to meet him, so he went to his office.

"I heard that 'Sunshine Home' is selling well?"

Chen Guangfu's status was naturally much higher than Cheng Zikang's. Not to mention that Cheng Zikang was only the general manager of Jincheng Bank's Shanghai Stock Exchange dividend, even Zhou Zuomin, the general manager of Jincheng Bank, was not as high as Chen Guangfu's status in the banking industry.

Therefore, it is indeed an honor for Chen Guangfu to pay attention to Chen Guangliang, a small fry.

"Yes, almost 70% of the items have been sold, and we expect them to be almost sold out by tomorrow."

Chen Guangfu nodded and praised: "Now that you have come up with this solution, our bank's advantages have been completely wiped out!"

What this means is that banks originally invested in a large number of new-style alleys for collecting rent and preserving asset value.

But now, Chen Guangliang can also pull off the "making money out of nothing" trick, and banks and big capital no longer have a monopoly.

Chen Guangliang laughed and said, "This business model is unlikely to become mainstream, and there is a big gap in the market right now."

He didn't know what the future held, but Chen Guangliang felt that as a small-time investor, he could hardly change the overall trend of Shanghai's real estate market. Even if many people followed suit, the second wave of real estate boom would last until the end of 1931.

"That's true. Your two projects will only earn you a few hundred thousand at best, which is nothing. By the way, I heard you wanted to talk to me about something?"

Chen Guangliang immediately said, "Yes, I would like to borrow 20 yuan from your bank, using the profits from the Happy Home and Sunshine Home projects as collateral. At the same time, this 20 yuan will be used to acquire the land on Yuyuan Road, which will also be mortgaged to your bank."

If you want to play, play big!
Sometimes he thinks that if things develop according to plan, by the end of the year he will have a net worth of only 20 yuan, with real estate and car dealerships worth about yuan each.

This amount of property was not considered wealthy in Shanghai at that time. It was just someone with a little money.

Among the wealthy people Chen Guangliang knows:
For example, the family of real estate businessman Cheng Linsheng has assets of 2000 million. They own "two dragons". One "dragon" is from the bowling ball court on Henan Road to Xizang Road, and the other "dragon" is from Xinshijie to Card Road and Shimen nd Road. This means that these two streets are basically their properties, which are about three kilometers long!

Take the real estate developer Zhou Xiangyun's family, for example. Ten years ago, they boasted assets worth 500 million yuan. Today, they hold approximately 2000 million yuan, making them one of the wealthiest Ningbo merchants in Shanghai. Zhou Xiangyun's father's generation already owned properties along Fuzhou, Guangdong, and Hubei Roads near Nanjing Road. By the early 20th century, they owned over a dozen entire lanes in the city center.

Others, including 'Ade Ge' Yu Qiaqing and 'Huaxia Morgan' Chen Guangfu, are all worth a lot of money, with assets worth tens of millions.

Although these people are still very far away from Chen Guangliang, Chen Guangliang has a character that never gives up, so it is natural for him to catch up with them.

Set a goal: Become a millionaire by the early 30s!
Chen Guangfu didn't think much about it and said straightforwardly, "A loan of two hundred thousand dollars isn't too much. Our bank's funds also need a way out. I'll lend you the amount you asked for, and the interest rate will be 12%."

The last loan of 4 yuan had an interest rate of 13%. The Shanghai Commercial and Savings Bank thought it was an investment in the rickshaw business and had lower risks.

Now Chen Guangfu only wants 12% interest for a one-time loan of yuan. It seems that the bank needs to find a way out for the funds. After all, the savings of banks in Shanghai have increased greatly in the past two years, and the interest expenses have also increased greatly.

"no problem"

Chen Guangliang readily agreed, but he added: "But I hope this loan can be withdrawn in installments."

This prevents there from not being enough land, that's all.

Of course, judging from Wang Zuoyi's appearance, it seems that there are many people willing to sell land in the western section of Yuyuan Road, and there seem to be many opportunities.

"Okay, you can talk to them about the details!"

"Ok"

On the way back, Chen Guangliang was a little excited.

For a 20 yuan loan, the interest for 2 years is about 5 yuan; the interest for 3 years is about 8 yuan.

But if you invest it in land, doubling it is basic, and several times more is normal.

As for how much he earned, I believe it is a huge number, of course, for Chen Guangliang.

and.

The more money he made, the more Chen Guangliang reminded himself to be cautious and not to lose every last penny.

He had read two news articles in his previous life, which said:

During this era, there was a man named Sun Chunsheng, a native of Yuyao, Jiangsu and Zhejiang. In his early years, he worked for the British-owned Ye Guang Company. By his twenties, he had saved tens of thousands of yuan. With this entrepreneurial capital, Sun Chunsheng resigned in 20 to establish the Jinxing Real Estate Company. He subsequently built the Jinxing Building, the Sun Apartments, and large lanes such as Chunyangli, Yingchunfang, Chongyeli, and Anlefang, amassing assets exceeding 1925 million taels. Of course, he wasn't always victorious. The January 400th Battle of Shanghai and the global financial crisis caused a real estate market crash, leading to the bankruptcy of Jinxing.

Even a wealthy man like Cheng Linsheng, who had assets of 2000 million, participated in the speculation of "biaojin" around 1930 and boasted that he would control the "biaojin market in Shanghai". As a result, he was bankrupted by the bureaucratic capital of the Kong family and other businessmen. The huge wealth created by his father collapsed, and he finally fell into selling antiques to make a living.

This fully illustrates one thing: there are always people better than you.

This time, Chen Guangliang invested 20 yuan to purchase the land on Yuyuan Road, also considering that it was within his own affordability.

Besides, it was only the beginning of May 1928, and real estate prices had just begun to rise!

(End of this chapter)