Luo Kangrui nodded and then talked about the investment plan, cost estimation, risk assessment, etc.

This land bidding costs about 30 million Hong Kong dollars, and development requires another 50 million Hong Kong dollars. The developed buildings are sold at market prices. If you count out publicity, taxes, loans, etc., you will probably earn about 50 million Hong Kong dollars.

If you make a profit within two years, about 50% of the profit is still relatively profitable in terms of normal business. Of course, compared to the profits of Ye Jin's movie, this investment is a bit far behind.

However, Ye Jin knew that making movies is really profitable. But it is already quite amazing to be able to invest in several big-selling movies a year.

After all, the movie market has limited capacity and box office cannot explode one after another.

In fact, because several big-time movies such as "Dragon Hard 2", "Raiders of the Lost Ark", "Star Wars" and "Weekend Night Mania" have been released one after another, the box office has already influenced each other.

If "Raiders of the Lost Ark" is released for half a month in the evening, then the first round of "Dragon Hard 2" can earn at least 10 million more dollars.

If Star Wars is postponed for half a month, then it will be no problem to get an extra 15 million yuan in the first round of "Raptors of Lost Ark".

If "Weekend Night Fever" is postponed for half a month, then it will not be difficult for "Star Wars" to be released for the first round of the box office, and it will be more than $20 million...

And these four movies were released in the same period, and there was almost no room for other movies to survive.

"The Legend of MacArthur" launched by Universal Pictures was created by the original cast member who produced and launched the big-selling movie "General Patton" in 1970s. It has a total investment of 18 million US dollars, and is committed to re-creating the box office myth of "General Patton".

The movie invested tens of millions of dollars, and North America alone earned $67 million in box office, which made Fox Pictures make a big profit. But unexpectedly, the box office of "The Legend of MacArthur" and "The Dragon Hard 2" that have great potential were released at the same time, but the box office was beaten to pieces.

It was barely released for one and a half months, with a total box office of 32 million US dollars. In addition to box office sharing, production costs, publicity expenses, taxes, etc., Universal Pictures will lose 20 million US dollars.

Paramount spent 15 million US dollars to follow the trend of "The Great White Jaws" filming "The Murderer" and originally hoped to take advantage of the shareholders' wind. As a result, the movie was in a schedule with "Raiders of the Lost Ark" and the box office was beaten to pieces.

After 40 days of release, the cumulative box office is less than 20 million US dollars. Excluding production costs, distribution costs, promotional costs, box office share, taxes, etc., Paramount's losses will also reach tens of millions.

The same encounters include Focus, Warner, and even Disney. It released the sequel to the hit movie "The Golden Beetle" series of the year - "The Golden Beetle Carter" - in July.

The movie went to France, Morocco and other places to shoot, with a total investment of more than 8 million US dollars. However, because it collided with "Dragon Hard 2" and "Raptors of the Lost Ark", the box office was extremely bleak, and it did not even break the five million US dollars. This is also one of the few investment failures in recent years.

In fact, although Hollywood has always been well-known, the total box office of the North American film market in one year is only about one billion US dollars. In terms of the box office abroad, it is only more than two billion US dollars.

Just like the box office of Middle-earth movies hit a new high every year, the total box office of movies in 2019 was 64.2 billion yuan, which sounded quite impressive. However, Xiaomi's revenue in 2019 was as high as 205.8 billion yuan, three times the total box office of movies. Xiaomi Group is only ranked 53rd in the top 500 China Earth.

So in fact, the Hollywood movie market is not as big as imagined. In comparison, the size of the real estate market in Hong Kong is so large that it is difficult to estimate. The annual revenue of major real estate companies is as huge as HK$20 to 30 billion.

Therefore, compared with the Hollywood movie market, the Xiangjiang real estate market is obviously larger and has more opportunities to make money.

...

Ye Jin nodded and then asked Luo Kangrui, "Then how do we invest and how do we distribute profits?"

He knew that Luo Kangrui had no money, and Rui'an's company is worth up to HK$5 million now. However, this time the investment was as much as HK$100 million, and it was obvious that he would pay the money.

"Mr. Ye, that's what I think." Luo Kangrui immediately replied, "We each invest 5 million Hong Kong dollars to jointly establish a company and share the shares equally.

Then you will be the guarantee, loan 20 million yuan from the bank, and take down the land first. Then mortgage the land, borrow money to build a building, and make money by selling the property. You account for 70% of the money you earn, and I account for 30%. What do you think?"

Ye Jin smiled slightly when he heard this.

Luo Kangrui's move was a bit like "making a fortune out of nothing". He only paid the first five million Hong Kong dollars, and other funds were basically all borrowed. To be honest, the risk was relatively high.

If the floor flowers cannot be sold and the loan cannot be paid, Ye Jin will lose the most by then.

Because he guaranteed a loan of 20 million Hong Kong dollars, if he did not want to affect his credit, he had to pay back the money. In addition, when he opened a company, he paid 5 million Hong Kong dollars, and the direct loss was 25 million. Not to mention, the investment failure would have a great impact on his reputation.

Therefore, 70% of the profit is actually not much more than the risks he has to bear. In fact, according to the proportion of investment, he invested 25 million Hong Kong dollars (5 million cash, 20 million loans), and Luo Kangrui only invested 5 million Hong Kong dollars. According to this proportion, Ye Jin should also account for 75%.

Not to mention, with Ye Jin's franchise, how much fame this project will be blessed. How much effort will it save when lending to banks and selling property.

Therefore, it is reasonable for Ye Jin to account for 80% or even 90% of his profits.

"I account for 70%, you account for 30%?" Ye Jin looked at Luo Kangrui, smiled slightly, and repeated his words, but did not make any further statement.

Luo Kangrui was immediately embarrassed when Ye Jin asked this.

He also knew that according to this, Ye Jin was indeed at a disadvantage.

But he actually has reasons. Ye Jin is not familiar with real estate, so after the company was founded, he must be responsible for the matters that happened before and after it was founded.

It means that although Ye Jin paid the money, he used his brains and worked. It was not an exaggeration to get 30% of the profits according to his work. After all, this project belongs to him.

"Mr. Ye, you should know that real estate development is not enough to have money. There are still many things in it. I have to work hard, and I don't take money in vain." Luo Kangrui explained, "Let's take a step back. You account for 75% and I account for 25% of the time. How about it?"

"Okay." Ye Jin nodded, "Young Master Luo, I don't want to eat alone, so that's it."
Chapter completed!