Thanks to the dividends of bulk purchasing, Carter found that simply registering a construction company seemed insufficient.
If he could bring the total cost of a property, which typically sold for $50,000 on the market, down to $32,000, earning just a small profit didn't seem worth it.
But if he were to establish a real estate company and collaborate with construction companies to develop communities on a large scale - say, developing one area for every few hundred households, adding some landscaping, beautification, and minor road infrastructure - wouldn't it be reasonable to sell a house in such a beautifully landscaped community for $45,000?
What? Not enough money? No problem, get a loan!
Except for Atlanta, which was Georgia's top-tier city, real estate prices elsewhere were generally not high. With houses priced around $40,000 to $50,000 per unit, Carter calculated that, mortgaged to banks across different regions, he could likely secure loans ranging from $34,000 to $42,000 per unit. After deducting the even lower land acquisition costs, it was conservatively estimated that these people would have at least $32,000 to buy houses.
If he priced them at $45,000 each for sale, the maximum loan requirement would be only $13,000.
It might sound like a lot, considering a loan of $13,000 per household, which would amount to $39 million for 3,000 households. But when you thought about the profits - spending a bit on supporting facilities, Carter could make at least an extra $7,000 profit per house, plus the original $2,000 to $3,000 profit.
The net profit would be around $30 million, and with insufficient funds, he could also raise the deposit interest rate to attract depositors - Douglas residents should have some money on hand lately.
But then there were labor costs.
With 2,500 people to support families and repay loans, plus the physical labor involved in construction, basic wages couldn't be set too low. At least $500 per person would be needed, meaning monthly salary expenditures in construction alone would amount to $1.25 million.
And for this project, expected to be completed in no more than six months, the salary expenditure would be $7.5 million, with earnings of $30 million, minus some expenses for excavators and other equipment, the profit was estimated to be around $20 million. So, if loans were to be granted, there would be a shortfall of $10 million.
Could this $10 million be properly resolved?
"Carter! Carter! Someone's looking for you, what are you doing?!"
As Carter was lost in thought, staring at the settlement area in front of him, he was suddenly brought back to reality by a pat on the arm from Benjamin beside him. Startled, Carter turned around and unexpectedly saw two familiar faces.
"Uncle Duke? Kazim, what brings you here?"
"Well, it's a bit embarrassing, but we need a loan!"
"A loan? You can just go to the bank for that. Is there something wrong at home? How much do you need?"
Carter was taken aback. Business issues were one thing, but the other side was...demand?
Didn't Duke's family
"No, no, nothing like that! It's...well, the thing is, our house can only be mortgaged for up to $40,000, but I want to borrow $100,000. Also, I was planning to repay your legal fees this year, and I want to open a furniture factory."
Duke's dark face looked a bit embarrassed, but thinking of his goal, his heart suddenly became fiery. Stepping closer, Duke pointed to the settlement area below the hill:
"With so many people coming in, I think furniture is definitely going to sell well. So, I want to take a chance, start a furniture factory, and sell furniture to them. We black people used to make our own furniture because, back in the day, buying furniture would cost at least thirty percent more for us than for white people. I learned woodworking from my father since I was a child, and I think I can handle this business!"
Furniture, furniture, right!
"Did you make your own furniture at home?"
Before making a decision, Carter asked. He had seen the dining table and coffee table at Kazim's house, and the quality was indeed good, not to mention they didn't look bad. If Duke was willing to do furniture business, it could certainly relieve some pressure.
"Yes! Those were all made by myself with saws and wood I got myself. It's just that I have limited tools and not enough people, so I want to borrow more money and expand a bit. What do you think?"
As the saying goes, a penny saved is a penny earned. Duke believed in his skills, and what he lacked was funds.
How huge would the demand for furniture be for three thousand households?! Beds alone would require at least nine thousand, and there would be three thousand coffee tables, dining tables, and chairs, not to mention over ten thousand stools.
"No problem, let's go big. I'll lend you $1 million, but I have one requirement: you need to hire at least 100 workers for me, purchase some more efficient equipment, because construction here is fast!"
Duke's words seemed to open a door to a new world for Carter.
Perhaps he had become accustomed to solving problems alone because he had always done it alone before. Just like Duke, who saw the furniture market and came over to ask for a loan.
Carter believed that those who set their sights on this business would surely not be him alone. By the time these furniture factories, as well as other possible ancillary market demands, sprang up, he wouldn't have to solve the problems of 2,500 people alone.
But he could make the money from those 3,000 people!!
"A million-dollar loan... You don't need to mortgage your house; it's not worth that much. Correspondingly, I can't just hand you the money directly either. The money will be deposited in the bank. You need to purchase equipment, rent a venue, bring contracts to Goodman at the bank, and then we'll wire the money directly to the other party's account."
"Don't worry, we won't interfere with your operations. As long as it's a reasonable money demand, I assure you there won't be any delays!"
"Alright, alright! I believe you, I believe you! It's just that I'm a little worried about hiring a hundred people. Won't it be too many? With a monthly salary of $50,000 for each person, I..."
"Hahaha, don't worry. You've seen the demand, haven't you? Are you still worried about not making money? As for this round of money, consider the future afterwards, okay?"
Get the money in front of you first and consider the future later!
This was what Carter said to Duke, but it was also what he said to himself!
And the next day, as the registration application for DOG Real Estate Company was submitted to the state's relevant business registration department, the auditor, looking at the familiar name and the comical dog head logo, wondered how there were suddenly two companies registered in this small place.
In Douglas, a feast of snatching people had begun!
Yes, it's all about snatching people!
The addition of over 10,000 new residents brings a market impact far greater than what even Carter, this half-baked predictor, anticipated. It's not just his own construction and real estate companies that need to hire people; it's also newcomers like Duke, who just established furniture companies, and various other industries such as supermarkets, convenience stores, restaurants, vegetable logistics, and almost every sector related to daily life and essential needs.
Initially, Carter was somewhat surprised, but upon reflection, it seemed logical.
After all, industries that were originally only able to cater to the needs of about 50,000 people suddenly faced an increase of over 10,000 in demand. Wouldn't the supply side also need to increase accordingly?
With one thing leading to another, by June 5th, Carter suddenly realized that the market potential was even greater than he had imagined.