An Unsuccessful Negotiation
"I don't have much money; a portion of it needs to be used for the initial construction of the apartments..."
Hart didn't lie, nor did he exaggerate his current situation, whether it was good or bad. He simply told the truth: he had no money, and that was indeed the case.
"But the land you hold is extremely important to me!" He remained sincere throughout, so sincere that he didn't seem like a businessman, much less a real estate developer. It's rare for someone to be so honest and tell the truth.
When discussing business, they often show an indifferent attitude, as if it doesn't matter whether it's there or not, and sometimes they are not very reasonable.
He kept his eyes fixed on Lin Qi's, not avoiding Lin Qi contact, as if this could prove something about his current situation.
"I've prepared two plans. Would you like to hear them?"
Lin Qi nodded. "Of course, otherwise why would I be here?"
Lin Qi's words relieved Hart, at least on the surface, and he began to talk about his plans.
"The first option is that I can pay you approximately..." He thought for a moment, "... about 600,000 in cash. The remaining amount can be converted into this project. We will have a more detailed evaluation meeting later. After the total investment is assessed, you will be given shares in the project according to the proportion."
This is a fairly common form of cooperation; to put it simply, it's like investing technology as equity.
When others cannot ignore the necessary conditions in his possession, he can incorporate these into the total investment to occupy a certain proportion of the investment. This method is quite common and widespread.
After listening, Lin Qi neither agreed nor disagreed. Hart gave him some time to think before proceeding to present the second proposal.
"The second option is simpler: I'll exchange my company's equivalent shares for the land you own..."
This is also a very common practice, especially in mergers and acquisitions between Grand Duke. The larger the company, the tighter its cash flow pressure, but they still have this need, such as acquiring other companies. This method effectively solves the pressure on their cash flow.
Hart's second proposal was similar: he offered Lin Qi a portion of his company's shares in exchange for the land, and he considered it a good solution.
With the start of this project, his company's market value will definitely see a significant increase, meaning Lin Qi essentially made money twice with his land.
After introducing his company with a slightly proud tone, he looked at Lin Qi expectantly. He believed that Lin Qi would choose the second option, which was obvious. He had also used this option before to successfully attract more supporters and investors.
Instead of answering him immediately, Lin Qi asked a question, "Is my land really that important to you and your company?" He said thoughtfully, "You could choose some more remote plots of land, which would be cheaper and reduce your development costs."
Hart was taken aback. He hadn't expected Lin Qi to ask such a question that was unrelated to his plan. At the same time, he realized that the two plans he had prepared might not be among Lin Qi's choices.
Based on the principle of utmost sincerity in negotiations, he explained some of the advantages that Lin Qi's land possessed.
"That piece of land is right next to the city center. If we use a rougher straight-line distance, we could say it is the city center!"
Hart, along with Lin Qi and Qiao Geliman, couldn't help but laugh. This was the developers' favorite way of putting it: straight-line distance.
This also makes it easy to overlook the fact that the actual straight-line distance to reach another point by ordinary means of transportation can be very long, just like the two banks of a river, where the straight-line distance may only be a few tens of meters.
However, without a bridge, it's quite normal to have to detour for dozens of kilometers to get across.
"It is surrounded by commercial and residential areas, which better meets people's housing needs than other places. I know that land is cheap outside the city, but people would rather live in the park than go to the outside of the city."
"The living environment and the surrounding environment affect the occupancy rate of these apartments, including whether they are easier to resell after the project is completed. The closer to the city center, the easier it is to solve these problems, and the higher the financial subsidies will be!"
Hart didn't seem to be hiding anything; he directly stated the core information. After listening to this, Qiao Geliman nodded repeatedly, and Lin Qi also thought there was no problem.
If the project is built on undeveloped land outside the city, the City Hall can grant them land use rights for free. But the problem is, who would be willing to travel halfway across the city to live outside? If these houses cannot be sold after the project ends, they may lose money! The real money-making part of this project is the last step: after the entire project is completed, sell all the apartments at once. Anyone with a normal brain will understand that apartments near the city center, in terms of both popularity and price, far exceed those in the suburbs.
It seemed there weren't too many problems. Lin Qi pondered for a moment, then looked at Qiao Geliman's house. His movements were quite exaggerated, and Hart had been observing him closely.
Qiao Geliman dutifully fulfilled his role as a mediator, not interfering with either side's judgment, but simply sitting quietly, sipping his drink.
After a while, Lin Qi turned his gaze away from the house, looked calmly at Hart, and proposed another deal. "I'm not interested in investing in real estate for the time being, but I am very interested in houses."
"You know, I'm just an ordinary person. Ordinary people have a kind of obsessive love for houses. I really like the houses here. Maybe we can use the houses here to offset the price."
He then looked at Qiao Geliman and asked, "Mr. Manager, how much do you think these villas are worth now?"
Qiao Geliman was taken aback. He hadn't expected Lin Qi to choose this approach, and he actually preferred the second option.
When Lin Qi asked, he thought for a moment and gave a fairly reasonable price, after all, both parties were his friends, "Around 70,000 to 100,000 yuan, there are several specifications."
Hart nodded in agreement; that was about the right price. However, he had a different idea. "Joe, and Lin Qi, you've overlooked one thing: these completed villas will appreciate in value again after the economic downturn ends."
"Four years ago, any house here cost over 200,000, even the smallest one. And..." he paused, "I received some information from the City Hall that this area is very likely to be designated as one of the city's drinking water sources, and there will be no more opportunities for large-scale projects to be built in this area in the future!"
Currently, the drinking water source for the Sabine City does not come from this lake, but from an artificial lake further away.
As the urban population increases, the burden on drinking water also begins to grow. The City Hall has long had such a plan, but so far there are no specific steps to implement it. It is just a plan, an intention, but it is not difficult to bring it to fruition. This is exactly what capitalists are best at.
Lin Qi interrupted him without hesitation, "My land will also appreciate in value. We all know that Sabine City is almost a million people, and the urban area will inevitably expand further. At that time, that land will not just be 'close to the city center,' it will be the city center itself!"
When it comes to "playing the rogue," Lin Qi is no less familiar with it than they are; he just goes on and on about it, and what he says isn't entirely wrong.
Hart was somewhat disappointed. "Mr. Lin Qi, I can't accept the conditions you've proposed. We all know that things are indeed a bit bad here right now, but they will eventually get better, just like the troubles our society is facing."
"Maybe in five or ten years, the cheapest house here will sell for three or four hundred thousand, or even more. I can't accept your proposal."
Lin Qi didn't show any strong dissatisfaction, but just smiled and nodded. "I understand, Mr. Hart. That's how business is. Only when both parties reach a consensus can the business continue."
Hart still found it hard to accept; it wasn't what he had expected before he came. "Don't you want to reconsider?"
Lin Qi shook his head. "If you've been paying attention to recent developments, you'll know that my company was just valued at 70 million, and investors are lining up to give me money. If it weren't for Mr. Qiao Geliman being a good friend of mine, I wouldn't have even considered selling this land."
"I completely agree with what you just said. The economy can't stay sluggish like this forever. In three or five years, things will eventually get better. The Federal has a better foundation than other countries, and we will recover faster in terms of the economy."
"Right now you might think that piece of land is only worth 1.5 million to 2 million, but I can guarantee that in ten years, even if you add a zero, you still won't be able to buy one-tenth of it!"
Lin Qi stood up and extended his hand. "Although we didn't reach an agreement, it was a pleasure to meet you, Mr. Hart."
He showed no intention of continuing the conversation, and Hart couldn't persuade him to stay. At this point, trying to persuade him to stay would be like handing a knife to the other person and lying on the slaughtering table, meaning he would have to wait for another chance.
"Me too, Mr. Lin Qi!"
Lin Qi said a few polite words, bid farewell to Qiao Geliman, and then left.
Hart was still a little confused, and only after Lin Qi left did he finally ask, "What is it that's valued at seventy million?"
Qiao Geliman sighed, a hint of melancholy in his voice. "His Interstellar Trade Company, the one that deals in secondhand goods auctions!"
Hart looked shocked, then bewildered. "A company like this... can have such a high valuation?"
Knowing he was a little disappointed, Qiao Geliman patted him on the shoulder and said, "He knows how to seize opportunities better than you do."