Xinghua Sun

San Diego, CA (USA)
Role(s):
Associate/Staff

No

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Location: San Diego
Industry: Real Estate
Year Founded: 2006
Number Employees: 10-50 people
Description: • This is a three-step investment. The first step is to get a development license in China. The investment is secured by the license value. The second step is to buy public land. The land is worth twice the investment. As soon as we buy the land, all the moneys are safe. The last step is to start the project. Right after the project is started, a Chinese military retirement department will pay $2 million dollars deposit to order 110 condo units. • This is a development project in Harbin, China. The development includes four 16 story modern high rise residential buildings. The total area to be developed is 3.22 acre. The total salable area is 666,000 SF. The total investment is $5.4 million dollars. The total profit is $11.60 million dollars. The investment share return is $5.7 million dollars. That is a 103.53% profit in 2 years. • There are three steps in the investment process. First, we are going to get a foreign development license which costs $715,000. There were only two licenses issued last year. Second, we are going to buy the factory for $693,000 and the public land for $1.9 million. After we buy the land, we can sell it at 6.9 million dollars. The last investment is 1.7 million dollars for the public supplement and 350,000 for design, survey and city approval. After we invest that money, we can sell the land at $10.4 million. Every investment has been guaranteed. We are going to finish the project in 24 months and get 100% profit back. • The project belongs to a Chinese realtor who bought an employee owned factory in 2006, which is in the middle of a residential area located in the downtown area. He paid $956,000 and owes $693,000. The Chinese law does not allow banks to offer a loan because this is factory land not a residential area. The Chinese developers do not want to invest without buying him out because it is widely know that there is more than 100% profit to be made. • The development business is great in china because in 1988, the government started to allow people to own their own homes. That means 1.3 billion people have the opportunity to buy their first house. This is a great opportunity and it won’t happen again. • The Chinese government prohibits developing agricultural land in 2006 because there are only 296 million acres remaining for 1.3 billion people. • The average family house in Harbin is 90 SF. Most of the existing condos were built in 1960, and they are about 10 by 10. The mayor wants to improve family housing by increasing the area to 200 SF. There are 10 million people in Harbin which make the total increase area to be 1.1 billion SF. The mayor started a project called Old Zone Remodel at the beginning of this year. He plans to finish the project in three years. The total land to be remodeled is 1300 acre. Our land is 3.2 acre, about 0.25% of the total area. • I am a civil engineer and a construction project manager. I work for the largest construction company in San Diego whose history goes back more than 100 yrs. I designed more than 200 structures which include a 16 story Marietta hotel located in downtown San Diego. I am in charge of two Navy projects. One is a military depot, the other one is a Blue Angels hangar, CA. I know how to build a high rise building from the design stage to its completion. o I have the know-how. o I know Harbin like the back of my hand. o I have family ties that I’m well-connected, for example: My uncle is a famous architect and a realtor. My uncle-in-law was the vice-mayor. One of my brother’s college classmates was the CEO of the largest construction company in Harbin.