Investment: Requirements

Location | Area of Land Needed | Housing Standard |
Construction Cost Per House
| Landscaping Cost | Roads/Security System | Selling Cost | Investor Profit | Repayment Percentage | Estimated Time Frame | Processes and Departments


Suburban areas of Fuzhou city.

Area of Land Needed

The cost of land is about 39,000 USD/acre. The total area needed for the construction of 100 houses is approximately 30 acres. The total land cost is approximately 1,170,000 USD.

Housing Standard

Either one-floor or two-floor villas, that have a yard, and an interior that is unfinished throughout is the most desirable form of construction. The area of land for each house will have a footprint of about 0.12 to 0.16 of an acre (approx. 6970 ft2). The square footage of each house is about 200 m2 (approx. 2153 ft2).

Construction Cost Per House

Single level house = about 8,000 USD
Two Story house = 16,000 USD
These fees include:
  1. Labor
  2. Material
  3. Public Utlities
  4. Miscellaneous Costs

Landscaping Cost

Approximately 2% of the total construction cost.

Roads/Security System

Approximately 5% of the total construction cost.

Cost of Selling

Approximately 5% of the total construction cost (possibly only 2%).

  1. Fee for registering a company
  2. Promotional Fees
  3. Employees' Salary

Investor Profit

Repayment Percentage

After Kinann Construction, Inc. has met the target goal and generated 3.5 Million USD, in contractual form. Investors and Kinann Construction will divide all net profits equitably. 15% in taxes needs to be paid to the Chinese government plus normal construction-related travel and lodging expenses for the principals. Return investment: approximately 1 year. PROFIT = [(Sale Price of each house) x (amount of houses we build (~100))] - (Total costs for construction, development) - (land) = 7,550,000 - 2,224,000 - 1,320,000 = 4,006,000 USD

Estimated Time Frame

The development and construction will commence within 3 weeks after the funding has been generated. Four to seven days will be needed to get the official government paperwork for the property indicating that development of the land may begin. It will take Kinann Construction, Inc. approximately 4 to 5 months to complete the first phase of the development. During construction we can commence sales, and it is anticipated from the typical sale and demand for housing of other existing projects in the area, that all units will be sold within a time period of 6 to 12 months.

Processes and Departments

  1. Paperwork needed to commence business and the departments that are needed to be dealt with (see List 1).
  2. Also included are the permits needed (see List 2).

The list of paperwork that needs to be completed and all of the government departments that need to be dealt with are in List 1.

These departments have specific names that would most likely lose the precise name should they be translated; hence, to preserve the EXACT name and function of the department, translation was not attempted in order to eliminate confusion as to what department we are referring to.

The permits needed are included on List 2.

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