Chapter 159 Land Auction
'Actually, I can give it to anyone. Whoever wants it can have it. I can even add an additional ten billion dollars in investment! It doesn't matter if you don't know how to do business, and it doesn't matter if you lose money. If tenbillion dollars isn't enough, then add another 100 billion dollars. Profit is not the goal; in fact, I hope they can lose money. Losing money means spending more,' Charles thought.
The auction continued.
The bankrupt companies that were up for bidding spanned various industries, but Charles did not participate in any more bids.
'Big Cat TV is enough; mainly, this company hasn't even been given away. I don't know who to give it to. Let's deal with Big Cat TV first!' he thought.
"Ladies and gentlemen, today's charity auction has been going on for over two hours. The next item is the last one for today, and I believe many of you are here for it. The last item up for auction today is a piece of land. This land is located on 9th Avenue in Syeattel, with a total area of about 260 acres. The starting bid is 200 million dollars. The bidding starts now!"
As the auctioneer finished speaking, the screen on the stage began to detail the location of the land, the surrounding land prices, and the city government's planned subway development route. The 9th subway line was expected to open in two to three years, passing directly through this piece of land. It would then connect with the 2nd subway line.
This piece of land on 9th Avenue was not far from the Light Valley commercial center in Syeattel.
Once the subway opened, you could reach the commercial center directly via the subway line.
Although it wasn't a large piece of land, its value was definitely more than 200million dollars, with guaranteed appreciation in the future.
If developed into a high-end residential community, it would be a guaranteed profitable project!
200 million dollars was just the starting bid. Charles estimated that to actually secure this piece of land, it would take at least 300million dollars.
The Cunningham family, the Hank family, and many real estate developers in Syeattel were ready.
"230 million dollars!" The head of the Hank family made the first bid, immediately adding thirty million dollars.
Charles was a bit surprised.
'This guy has never been this generous before. When the Mitchellng Family married off their daughter and allied with the Hank family, selling 20% of Oceanic Trade Ventures, he only offered fifteen million dollars. Now, to secure a piece of land, he bids 230 million dollars. Can the Hank family really come up with that much money at once? Or will their cash flow break after this expenditure?' he thought.
Of course, what Charles didn't know was that the complexity of real estate operations offered many strategies.
As long as they could secure this piece of land, they could use the land sale contract to get a mortgage loan from the bank. Meanwhile, during the real estate development period, commercial properties would be pre-sold.
In other words, the project hadn't even been built yet, but the houses were already being sold!
The pre-sale prices were generally lower than normal housing prices, with many promotional activities to quickly recoup funds.
They would use these recouped funds to build the properties!
Additionally, some real estate developers would subcontract the project, while large real estate developers had their own construction teams, operated building material markets, and offered interior decoration services, providing a one-stop service.
In the 90s, some real estate developers exploited commercial loopholes for profit.
They would first pretend to have massive liquid assets, get a bank loan, then use the loan to buy the land, and use the land sale contract to get more loans from another bank.
Then they would bargain with construction teams and material suppliers to get the foundation built.
After that, they could start pre-selling the properties. Once the houses were pre-sold, they repaid the loans.
In the end, even without putting in any cash, they could make billions!
As long as you could strike a bargain, anything was possible!
However, as time went by, government control over land sales had become stricter. Exploiting commercial loopholes for profit was no longer realistic.
Still, there was still a lot of room for maneuvering in terms of fund recouping operations.
Of course, some people had successfully exploited commercial loopholes, going from being mere con artists to becoming truly successful businessmen.
Others had failed and were labeled as frauds. These people often ended up in prison.
Charles didn't have that many ideas, nor did he understand capital operations.
In short, there were many competitors for this piece of land. Before he knew it, the bidding had already reached nearly five hundred million dollars.
Charles wanted to make a move but he didn't have the qualifications to bid.
The land auction process required participating companies to apply in advance, and they had to adhere to certain regulations:
1. Bidders must obtain relevant auction documents;
2. Bidders must apply to the city's land transaction center and pay a minimum deposit to qualify;
3. Qualified bidders must collect bidding signs from the city's land transaction center before the auction, etc..
Charles hadn't prepared in advance, nor had he obtained the relevant documents, so there was nothing he could do about the final land auction.
Those qualified to bid were all certified real estate developers in Syeattel!
In the end, the land was successfully auctioned off to Rivera Drake Real Estate for five hundred million dollars.
The auctioneer's final hammer fell.
At 10:30 PM, the auction finally ended successfully.
But the cocktail party had just begun.
Charles took out his phone and sent a message to Jessica: [Jessica, how about I give you a piano?]
Jessica quickly replied: [Huh? Why do you want to give me a piano? Isn't there already a piano in Villa No. 1?]
Charles: [That one was given by someone else. It annoys me. Get rid of it tomorrow, and I'll send you a new one!]
Jessica thought Charles's gift would be an ordinary brand-name piano.
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