Bab 45: Chapter 45: Start at a Very Low Price
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The next day, Hardy, accompanied by Sean and the real estate salesperson, arrived at the Los Angeles City Bank.
Upon entering the opulent bank lobby, the receptionist asked, "Who are the gentlemen looking for?"
"We're here to see Kevin Madden," Sean replied.
"Do you have an appointment?"
"Just mention that we're here to discuss the toy factory with him. He should be aware of our visit."
The receptionist glanced at them, then picked up the phone to call Kevin's office. "Mr. Madden, there are three gentlemen downstairs who are here to talk about purchasing a toy factory. Do you have time to see them?"
Kevin, upon hearing "toy factory," quickly responded, "Yes, please send them to the reception room on the third floor. Have them meet Daisy; she will assist them."
"Understood, Mr. Madden," the receptionist replied.
She then smiled at Hardy and his team. "Mr. Madden has invited you to the third floor. Please follow me."
The receptionist led them to a well-appointed reception room and offered them coffee.
This was not the first time the salesperson had visited the bank, but the warm reception was unprecedented. The salesperson wondered if Mr. Hardy had significant influence.
Soon, Kevin entered with Dave, the head of the non-performing asset management department. Both greeted Hardy and his team warmly.
"Hello, I'm Kevin Madden, head of the credit department, and this is Dave, head of the non-performing asset management department."
Hardy recognized Kevin but noted that their previous encounter was under less formal circumstances.
"Hello, Mr. Madden. I'm Sean, and this is my boss, Mr. Hardy. We've come to discuss the toy factory with the bank," Sean said.
Kevin was aware that Hardy was the friend of the robber he had encountered earlier. He was eager to finalize this deal to ensure his safety from future threats.
"Nice to meet you, Mr. Hardy," Kevin said, extending his hand.
"Hello, Mr. Madden," Hardy responded, shaking his hand.
As they settled into negotiation, Dave began:
"Mr. Hardy, I trust you've reviewed the toy factory details through the sales representative. The bank's asking price of $98,500 is quite reasonable."
"Considering the land alone, which is 18 acres, and the current price of $1,800 per acre in West Hollywood, the land itself is worth around $32,000. Additionally, given the proximity to Hollywood, the land has significant potential for future appreciation."
"Moreover, the factory buildings, warehouses, and dormitories originally cost over $20,000. You could utilize them immediately, saving at least six months of construction time."
"Finally, the factory's machinery, which was valued at over $40,000, is also included. The previous owner invested heavily in new machinery just before the war disrupted plastic supplies."
After Dave's detailed explanation, he turned to Hardy. "There's considerable interest in the factory. If you're serious, I suggest making a decision soon before someone else buys it."
Hardy smiled, recognizing the sales tactic. "I visited the site and observed that, although the land is 18 acres, it's quite distant from Hollywood. Given these factors, $1,300 per acre seems fair."
Dave was initially taken aback by the low offer but tried to negotiate. After a prolonged discussion, Hardy remained firm on the $1,300 per acre.
Seeing Dave's frustration, Kevin intervened. "The location does impact the value. I believe Mr. Hardy's offer of $1,300 per acre is reasonable."
Dave was stunned by Kevin's agreement. He looked at his boss in disbelief.
The real estate salesperson was also surprised by the quick agreement to lower the price. This indicated that Mr. Hardy might have influential connections.
Continuing, Hardy addressed the buildings. "The structures have been neglected for years. The $20,000 valuation seems excessive. I believe $5,000 is a more realistic figure."
Dave was agitated. "The buildings were constructed over several years. They're in good shape and only need some renovation."
Hardy remained steadfast. "I think $5,000 is fair."
Just then, Kevin, who had been quiet, offered a compromise. "I've reviewed the reports. The buildings are wooden and have been affected by termites. How about we set the price for the buildings at $6,000?"
Hardy nodded. "That works for me."
Dave was again surprised by the concession. He was puzzled by Kevin's willingness to agree to such terms.
When it came to the machinery, Hardy remarked, "The machines are outdated and rusted. Given their condition, $3,000 seems fair."
Dave was almost incredulous. "Even second-hand, the machines should fetch at least $10,000."
"Then you can sell them yourself," Hardy countered.
Dave was left speechless. The bank typically sold assets in bulk, not individually.
Kevin spoke up again. "Mr. Hardy, while the bank usually sells assets together, I understand your position. How about we price the machinery at $8,000?"
He looked at Hardy, awaiting his response.
Hardy considered the total price: $23,400 for the land, $6,000 for the buildings, and $8,000 for the machinery, totaling $37,400. This was over half of the original asking price.
"Agreed. Let's proceed with the contract," Hardy said.
Kevin felt a sense of relief. He had managed to secure a deal and earn a commission of $5,000.
The real estate salesperson was astonished. The final price was far below what they had anticipated. Hardy's negotiation skills had slashed the original price by more than $60,000.
Dave, still processing the deal, struggled to comprehend how the bank had conceded so much.
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Bab 46: Chapter 46: Small Cost Movies
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After leaving the bank, Hardy congratulated the real estate salesperson with a smile. "Mr. Hardy, you did great! You bought that toy factory for under $40,000. Even if we sell it directly, we can make $10,000 to $20,000."
"You'll earn a commission, too," Hardy responded with a grin.
"Yes, if you have any real estate needs in the future, feel free to contact me. My name is Edward," the salesperson said, handing Hardy a business card.
"Didn't you give me a card before?" Hardy asked, surprised.
Edward smiled, "I always hand out my business card when meeting new clients to make future communication easier. It helps in strengthening our business relationships."
Hardy nodded, recognizing the value of leaving a good impression.
Back at the toy factory, now under Hardy's ownership, he instructed Sean, "Find someone to renovate the office building and dormitory. Also, tidy up the yard and create a brand for it—'HD Commercial Security Company'. This will be our headquarters."
"Understood, boss."
As Hardy toured the office building, he noticed a large basement beneath it and had an idea. "Sean, let's remodel this basement too."
"What will it be used for?" Sean asked.
"Transform it into a gun library. A security company needs its own armory," Hardy suggested with a smile.
He envisioned a 200-square-meter basement stocked with firearms and ammunition—an impressive sight for any security firm.
In the U.S., where gun ownership is common and legal, security companies must obtain proper licensing for firearms. Although the HD Security Company's license and weapons permits were still in process, setting up an arsenal could proceed.
Hardy knew that Sean, despite his combat skills, had a good sense for the company's needs. The setup would attract more personnel.
With Henry and the team still recruiting, Hardy decided it was time to visit the film company. Despite not being paid, his role as an assistant to the chairman of Noah Film Company required some involvement.
Arriving at the film company, Susan at the front desk greeted Hardy with a charming smile. "Good afternoon, Assistant Hardy."
"It's already afternoon? Good to see you, Susan. Your skin looks even more radiant," Hardy replied.
Susan beamed at the compliment. If Hardy were to invite her to dinner, she would certainly accept.
However, Hardy was involved with Ava Gardner, one of Hollywood's top stars, so his romantic interests were set elsewhere.
Entering his office, Hardy was met by Cohen, the general manager, who opened the door and said, "Hardy, I was about to call you. I didn't expect you to arrive this afternoon."
"What's up, General Manager Cohen?" Hardy inquired.
"The movie we discussed previously—Warner has read the script and agreed to collaborate. We have a meeting this afternoon to finalize the details and prepare for the contract signing with Warner," Cohen explained.
"Great, I'll be there," Hardy said.
After enjoying a cup of coffee from Susan, Hardy went to the meeting room where Cohen, along with other department heads, was waiting.
Cohen reviewed the agenda. "Warner has agreed to collaborate, but they want to revise the script. The film will be titled 'Golden Outlaws'."
Hardy mentally searched for any recollection of the film but found none. This indicated that the movie likely did not become a classic.
The film industry often sees a high percentage of losses, with a few films achieving lasting success.
Cohen continued, "Warner will handle the production. Our role is to invest, and they will make the final decisions."
This arrangement highlighted the imbalance of power—Warner, with its resources, held the upper hand.
Thomas, the head of the performing arts department, expressed concern. "What about our actors? Many have been idle for six months."
Hans, the head of production, was equally dissatisfied. "Our team of directors, screenwriters, and other crew members are also waiting."
Cohen, feeling the strain, acknowledged the challenges. "I understand, but we have to proceed with Warner's terms or risk losing the investment."
The decision was made: Noah would invest $150,000 in 'Golden Outlaws', with Warner handling production.
After the meeting, Hardy visited Thomas in his office. Thomas voiced his frustrations, "Even with small-budget films, if we continue like this, the company might not survive."
"Is Cohen doing a poor job?" Hardy asked, smiling.
"Yes," Thomas said, "Cohen lacks vision and connections. Despite being in charge, he hasn't brought any real success to the company."
Hardy pondered the conversation. It seemed that Thomas might be using Hardy to express dissatisfaction with Cohen, possibly hoping to communicate with Siegel through Hardy.
Intriguingly, even small film companies were rife with internal conflicts.
Returning to his office, Hardy lit a cigarette and considered the situation. Although he had intended to offer Ava Gardner a small role in Noah's projects, the shift to Warner's control meant that might not happen.
Hardy thought about investing in a low-budget film himself. With his extensive knowledge of films, he could identify a promising project.
He estimated he could invest around $150,000—enough for a small production. He envisioned a film with the potential for high returns, inspired by a concept he recalled from a PS4 game that had later been adapted into a classic movie.
He wrote down a film idea on a piece of paper: **"Red Dead Redemption"**.
**Summary of the story:**
A lone bounty hunter, Jon, comes from a small town on the Mexican border. He learns of ongoing conflicts between the Romon brothers and Sheriff Baxter, which are devastating the town. Jon decides to eliminate these threats to restore peace and help the townspeople.
The film features a key female character, abducted by the Romon brothers. Hardy believed Marisa would be perfect for this role.
He crafted a detailed outline of around 3,000 to 4,000 words and decided to contact the company's screenwriters for assistance.
"Mr. Hardy, how can I help?" came the response from the office.
"I need the screenwriters. I have a project for them," Hardy said.
Given his lack of experience in scriptwriting, Hardy planned to rely on professionals for this endeavor.
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