บท 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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