Chapter 226 - RiverStar Building in Gangnam (3) – PART 1
Gun-Ho received an email from Jae-Sik Moon who was working at GH Media as a chief editor. He sent to Gun-Ho the translated manuscript of Professor Jien Wang’s book— Economy Trend in China for the 21st Century. It was the final version with all necessary editing work and ready to be published. The book became even thicker after being translated into Korean and it was 400 pages.
Jae-Sik Moon changed the book title from ‘Economy Trend in China for the 21st Century’ to ‘Economy Prospect in China for the 21st Century.’ He modified some parts of the translated version to make it smoother while giving more flavor to it.
“Is this really done by Jae-Sik? Wow. I knew he was good, but I didn’t know he was this good.”
Gun-Ho started reading the translated manuscript of Jien Wang’s book. He thought he should read it before giving Jae-Sik any comment or response. However, it was too much.
“Whew. It will take forever to finish this book. It hurts my eyes too.”
Gun-Ho replied to Jae-Sik’s email after finishing only the first ten pages.
“I received the manuscript. It looks good. I think it is ready to be published.”
Gun-Ho received a phone call from Min-Hyeok Kim who was working at Suzhou City, China. He said he found a good storage building.
“The building is 300 pyung, but the land is huge. It’s 1,000 pyung. With the yard this big, it would be easy for vehicles to make turns.”
“I guess we can build an additional building there in the future if necessary.”
“Of course, there is plenty of space for an additional building.”
“So, is the owner selling the land?”
“He said he would. He said the land is not Hua fa land, but it is Zhuanrang land, so it is transferable.”
Gun-Ho was somewhat knowledgeable about real estate in China.
“Zhuanrang?”
“Correct. Zhuanrang land is transferable and can be used as collateral for a loan while Hua fa land is not since it was leased by the government for free. It cannot be transferred, leased, or used as collateral.”
Gun-Ho went to the bank in Gangnam to meet with the branch manager.
“There is a real property that I am interested in. It is located at the entrance of G Garosugil Road in Sinsa Town. It’s a 19-floor building with a 370 pyung land, and its total floor space is 4,200 pyung.”
“It must be very expensive.”
“I was told that its current fair market price is 200 billion won.”
“Wow. It is expensive.”
“If I purchase this building, how much can you support me?”
“I will lend the money as much as you want; however, if you buy the building personally, not with the company’s name, DTI (Debt to Income) will apply. Moreover, Sinsa Town is a restricted area for speculation, so we might not be allowed to lend you a significant amount.”
“What if I buy it with my real estate development company’s name?”
“If you buy it for business purposes, it would be a different story; however, since the building is very expensive, I will still have to discuss it with our head office.”
“How much cash do you think I have to bring in at a minimum?”
“I would say that you would need at least 40% of the price. Well, it might work with less than 40% of the price since we can use the security deposit. How much cash are you thinking of investing in?”
“I intend to use 20%.”
“Even 20% of the price will be 40 billion won. Do you have that much cash?”
“I came here to discuss with you because I have it.”
“Really? You have 40 billion won in cash. Wow. You are indeed a big player in the field.”
The branch manager was astonished, and the assistant manager of the bank who was sitting outside the office turned his head to the office when he heard the sound of the branch manager.
“Either you buy that building or not, why don’t you store your 40 billion won in our bank?”
“I have it stored in my stock account.”
“We do stock trading too. Why don’t you move to our bank? We are very good at stock trading.”
Gun-Ho didn’t respond to the branch manager’s suggestion, and the branch manager started thoroughly looking at the documents that Gun-Ho brought. He might have felt embarrassed.
“The building owner has a lot of debt, and some of them are from our bank. You can take it over once you buy the building.”
“Maybe I should contact the owner.”
“The owner with this expensive building must be rich. Why does he want to sell the building?”
“He has children who have different mothers and that gives him a headache.”
The branch manager grinned.
“That makes sense. Once the building owner dies, the children from the current wife will inherit more than the children from prior spouse. And those children won’t stay quiet.”
“What if the first wife is still alive?”
“Well, in that case, we will have to see who is recorded as his legal spouse.”
“Mr. Branch Manager, you probably want to be very careful with women too.”
“Haha. I am not capable of doing anything complicated like that. The only asset I have is a condo that I am living in. President Goo, you haven’t been in any complicated situation like that?”
“I don’t do that.”
Well, Gun-Ho had a beautiful woman already—Mori Aikko. He had no reason to look for another woman.
“President Goo, why don’t you leave the documents with me, which you brought? I will examine and analyze it. I am anticipating having another good business with you, sir.”