When you meet the "truly rich" who have been investing in real estate for a long time and have achieved great results, most of them have had the experience of making a lot of money through reconstruction or redevelopment at least once or twice.
And we often hear that since then the scale of investment has changed dramatically.
Now you know why the truly wealthy invest in reconstruction and redevelopment.
No, to be precise, it would be correct to say that those who are good at investing in reconstruction and redevelopment become truly rich.

--- p.28 From “Why do the truly rich invest in reconstruction and redevelopment”

The perception that reconstruction and redevelopment investments tie up money for a long time was created by people who made blind investments during the past development boom.
At the time, many people would buy without even knowing the process of reconstruction and redevelopment, just by hearing the rumor that the area had been designated as a redevelopment zone.
(Omitted) If you purchase at a stage where the business is not going to fail and sales are somewhat visible, you can prevent your investment from being tied up.
If you are not too greedy, it is a good strategy to buy early and sell after receiving P a few steps later.

--- p.30 From “Misunderstandings and Truths about Reconstruction and Redevelopment Investment”

Another important thing to consider is the contribution.
Mr. Kim Dae-chung has already put his house, valued at 60 million won, up for redevelopment, but the price of the apartment he will receive as a member subscription is 300 million won.
An additional 240 million won is needed.
This money is called the 'contribution'.
We'll go into more detail about how to calculate the contribution in the future, but for now, let me just give you the bottom line.
The point is that 'the higher the general distribution profit, the lower the contribution.'
This is because the profits from general sales are returned to the members in the form of a ‘reduction in contribution’ since they were originally earned through assets put up by the members.

--- p.56 From “The Triangle of Premium, Contribution, and Rate of Return”

The important thing is to decide at which stage of that 10-year process to invest and at which stage to exit.
You don't necessarily have to get in early, and you don't necessarily have to wait until the sale is complete.
The challenge is to judge when to buy and when to sell.
To do so, the basic thing you need to know is the procedures for reconstruction and redevelopment projects.
The table on the right summarizes the major stages of reconstruction and redevelopment projects in chronological order. It's essential to keep this in mind when investing.
The horizontal line represents the passage of time, and the vertical line represents the price as each step progresses.

--- p.68 From “Progress of Reconstruction and Redevelopment”

When purchasing a property subject to reconstruction or redevelopment, you must confirm that the property qualifies for membership before purchasing.
Sometimes, there are items that are being auctioned off that do not meet the qualifications for membership and are subject to cash settlement. I sometimes see cases where people, unaware of this, blindly win the bid, thinking they are eligible for membership.
--- p.84 From “Not everyone who owns real estate is a union member”

Contribution = Member Construction Cost - General Distribution Contribution Amount
If we interpret this formula, it is as follows:
The money that went into building the apartments for sale to members was originally borne by the members, but these members also contributed to building the apartments for sale to the general public.
Therefore, the contribution is reduced in order to return the profits earned through general sales to the members.

--- p.158 From “If you organize the basic concepts, it becomes easier to analyze the rate of return”

The table above is an excerpt from the ‘Estimated Cost’ section of the actual management and disposal plan data for Complex B.
(Omitted) If you look at the other business expenses, there is an ‘unsold unit countermeasure expense’ (⑥).
This is the amount set aside in case there are unsold units during general sale.
In fact, this item is not something that must be set aside because it is a reserve fund, and in areas with poor business performance, this item may not be set aside at all.
However, the fact that this item has been set aside for 15 billion won means that there is a lot of room in the total project cost for this area, and that the project is quite profitable.

--- p.171 From “A Look Inside the Actual Management and Disposal Plan of Apartment B”