Just turned over a new leaf and became a wise and intelligent student

Chapter 245: Uncle is sweating profusely (4k)

After hearing Lin Jihua's words, Xu Qingshan broke out in sweat on the back of his forehead.

I'm sweating all over, uncle.

"No, uncle, you didn't do anything illegal, did you?"

Xu Qingshan didn't want his second uncle to be thrown into jail after being asked to help by him.

In the past, he was just doing small things and playing around in the gray area, and the most he could do was run away.

Now that his business has grown so big, if he acts out in front of the government and big groups, the outcome will definitely be worse than encountering pirates in Somalia.

"What's illegal?"

Lin Jihua gave Xu Qingshan a speechless look.

"Is your uncle that kind of person?"

"Yes."

"Hey, then you don't understand. I, your uncle, have been traveling around the world for decades. My main skill is to adapt to local customs and be flexible. At most, I just skirt the edge of the law. This is like the Chinese national football team. Facing such a huge temptation, hey, I just don't shoot, and even if I shoot, I won't hit the target."

My second uncle is a member of the Chinese national football team.

Because when he was still wandering in Japan, the Chinese national football team went to Japan to play a game. My second uncle went to watch it with great expectations, but ended up shaving his head bald by Xiao Ri.

Back then, my second uncle was living a carefree life, and his main focus was on fighting the Japanese in a roundabout way.

How could I bear that kind of humiliation?

After coming back, he became a hater of the Chinese national football team.

"Uncle, you still can't forget that experience in Japan."

Xu Qingshan sighed.

"Of course, I've been a hater all my life, but no matter how bad the Chinese national football team is, it can only be this bad. I don't believe that such a great country can be beaten 0:7 or 0:8 by the little Japan in the future. That would be so embarrassing."

"That's hard to say, maybe we'll get kicked by double digits."

Xu Qingshan curled his lips.

Lin Jihua was indignant and the two of them changed the topic.

"Okay, uncle, tell me about your recent operations. I haven't seen you send me any updates. I'll go to the beach with you to play football tomorrow."

Xu Qingshan quickly changed the subject back.

"You wouldn't conceal the transaction price to make a profit, sell at a higher price without transferring ownership, make multiple contracts to commit fraud, increase the common area to speculate on the house price, use illegal loans to leverage, collude in fundraising, illegally pre-sell without a license, or divide up a house and sell it to multiple people, right?"

Xu Qingshan listed a long series of operations in a continuous stream.

Now it was Lin Jihua's turn to brake and pull over quickly, with sweat all over his forehead.

He gripped the steering wheel with both hands and turned his head to look at Xu Qingshan.

Now the person who was sweating profusely was Lin Jihua.

Lin Jihua's throat was a little hoarse, he spoke dryly, his hands gripping the steering wheel even trembling a little, he seemed to have used up all his strength before he spoke slowly.

"Xiaoshan, how do you know so much about this business? Have you ever worked in this field? Hurry up and move all that stuff to the company. Although your uncle is useless, he can still be of some use."

Uncle Xu Qingshan and nephew Lin Jihua looked at each other for a moment.

The sweat on their foreheads was almost like a waterfall.

"No, I'm just worried that you might do that. I don't understand it. I don't know anything about it. Don't worry, uncle. I have never done it."

Xu Qingshan denied the allegations.

I just added two sentences in my mind: I have never done it in this life, and I have never practiced it in my previous life.

Think about it, it’s not against the law, right?

"That's good, that's good, my uncle didn't do that."

Lin Jihua breathed a sigh of relief.

"Our company's revenue this time is mainly due to Qin Xuan's bankruptcy, right?"

"Well, didn't Qin Xuan just fall down not long ago?"

"Yes, so some of Qinnan's assets need to be absorbed by the government, and some projects are also contracted out. Because these assets come too quickly, ordinary companies cannot use them immediately unless they have sufficient liquidity in their accounts."

Lin Jihua explained everything in detail.

"Although we didn't have much capital, we had cash, so although we didn't eat meat, we still got some soup."

"Then why is the money still in the account?"

Xu Qingshan understood.

"Because we already have so much funds, after we have selected the bids, we will use the new land to apply for a loan. This time, Shanchuan Games will also provide the cash flow."

"Um"

Xu Qingshan found some tissues in the car and wiped his sweat frantically.

Every day, it's really a challenge to my heart rate.

"You can take out a loan, but don't use leverage."

Xu Qingshan explained.

"Why? I see Evergrande, Country Garden, Wanda and others are playing with loan leverage, so that they can ensure that the maximum amount of hot money is always in their hands and attract more orders. Look at how fast they have expanded in recent years. I feel that it will be even faster in the next few years."

Lin Jihua drove the car back on the road and said confidently.

"In the short term, or even within ten years, they can certainly make a lot of money from this."

Xu Qingshan said.

"But uncle, do you know the real estate companies in our Ludao?"

"Ah? Are you talking about the three municipal state-owned enterprises? One is Jianfa, one is Guomao, and one is Xiangyu."

"Correct."

Xu Qingshan nodded.

"I know, but the three of them are too complicated, and I feel that they are a little too conservative, as if they want to take root and die in our Minyue land."

“Because of the asset allocation structure.”

Xu Qingshan said calmly.

"C&D, Guomao and Xiangyu are all municipal state-owned enterprises. Their goal is to consolidate and expand their base."

Xu Qingshan looked up and out the window. From their position, they could see the huge cruise ships and containers gathered at the dock. He continued.

"They all adopt the supply chain + real estate model. They use the supply chain with low profits, large cash flow and large scale as the basic foundation, and use the supply chain to provide the group with a large enough cash flow, especially in ocean freight. They then use real estate with extremely high profit margins to expand their scale and continue to expand."

"Compared with the crazy gamblers like Evergrande, Wanda, Country Garden and even Kaisa, they are much more stable and safer."

Xu Qingshan’s words made Lin Jihua fall into deep thought.

"But whether it is the former or the latter, they are actually expanding in line with the development of the real estate market."

"Once the property market is flat, the first to suffer will inevitably be Evergrande and other companies that leverage loans. As long as their profit margins do not reach the sum of their various layers of interest and costs, even if their profit margins on paper are 200%, their capital chain will collapse overnight."

"It is possible that a group worth tens of billions or even hundreds of billions of dollars could disappear overnight."

Xu Qingshan’s description made Lin Jihua terrified.

At best, he can only be regarded as the boss of a small group, especially since this small group only has a small real estate company worth tens of millions and a game company that makes pretty good games.

All together, it’s not even a fraction of what others get.

“It’s not that exaggerated.”

Lin Jihua swallowed hard.

"Nothing will be apparent within a few years." Xu Qingshan's eyes were deep and he looked very far ahead.

When he was in Tilanqiao, he was a cellmate with a real estate tycoon for a while. He heard this kind of talk every day and remembered it.

"You have to understand the underlying logic behind their crazy acquisition of land and building."

Xu Qingshan continued.

"For example, when Evergrande first started, they had 1000 million yuan. In order to get the best land as soon as possible, especially in a busy area of ​​the city, they first picked a small residential land, which was probably worth 500 million yuan at the time."

Lin Jihua nodded.

It is not impossible that the cost of acquiring land is more than twice the land price.

After all, he was a playboy who had been in both black and white situations. He had heard some big bosses bragging that a piece of land was worth 500 million, but the final bid might be 700 million, and the remaining 300 million would be handed over to the gentry in exchange for their eyes and ears and stability.

"Then, the cost of building the building is also 500 million. Originally, the 1000 million should be 500 million for the land and 500 million for the building. After it is built, we can start selling it, right?"

"Yes, after the subcontract is completed, we are already looking for a new small plot of land and plan to build it this way."

Lin Jihua nodded.

"There's no rush to talk about this, let's continue talking about Evergrande and them."

Xu Qingshan waved his hand. Since he was back for the National Day, the real estate company's strategy would definitely have to be slightly adjusted.

"They have bought the land for 1000 million yuan now. Do they have no money to build a building? What do you think they should do?"

Xu Qingshan asked back.

"To get a mortgage?"

Thinking about the subcontracting operation he had done this time, Lin Jihua asked tentatively.

"Yes, use this land as collateral for a mortgage and get 500 million yuan for building the building."

"And use the 500 million to build a building?"

Lin Jihua felt that he had figured out the key.

"If that were the case, it wouldn't be called leveraging."

Xu Qingshan said with a smile.

"After getting 500 million, you can also use the bank's endorsement and government announcement to pre-sell the house, but who do you think should you sell it to?"

“Aren’t they selling it to customers?”

Lin Jihua touched his head.

"How long will it take to sell it? It doesn't matter who sells it, the owner, the contractor, or anyone else. As long as they can buy one floor at a time in batches, and then symbolically take out one or two floors to individual investors, and then put them on the market together, they can get the 2000 million yuan they earned from selling the building at this time."

"Ah? This is just a piece of land?"

Lin Jihua was stunned.

"But people say it's a building."

Xu Qingshan said with a smile.

"How can this empty space be a building?"

“Are invisible buildings still buildings? They just sold the buildings that were to be sold in 2015 in 2009, across time and space.”

"Is it weird?"

Xu Qingshan asked.

"Isn't it strange?"

Lin Jihua was puzzled.

"With credibility backing it up, it's not surprising. As long as credibility doesn't collapse and the economy doesn't go into recession, you can even move a building from 3009 to 2009 and sell it."

Xu Qingshan said with a smile.

“That’s ridiculous!”

“Isn’t reality absurd?”

“Can the absurd still be reality?”

“It can be done if someone endorses it.”

The uncle and nephew looked at each other and smiled, and Lin Jihua understood something.

"At this time, do they have 2500 million in their hands? Within the policy framework, everything is formal and reasonable."

"The bank is happy because they have lent money and also mortgaged a building. Regardless of whether the money has not been repaid yet, they used 500 million to get the land with an official value of 700 million. How can they not lose money?"

"The real estate developer is happy because he has acquired the land, and the money has increased from 1000 million to 2500 million. He has also attracted a bunch of powerful shareholders, and the property can be evaluated as a high-quality asset. He can change banks and use the company's name to lend money, and he can also borrow more money. So, is it a loss? It must not be a loss, right?"

"The local government is happy because the land has been sold, the accounts look good, there is meat to eat and soup to drink, and even the welfare can be increased by hundreds of dollars. After a year, they have received civilization commendations and even won a third-class group award. Do they need to pay anything? No, they won't lose money anyway, right?"

Xu Qingshan analyzed.

At this point, he asked back with a smile.

"Then, uncle, guess what? These three parties are not at a loss, so who is at a loss?"

"hehe."

Lin Jihua laughed twice and said nothing. The two looked at each other and understood each other.

"This is still the most basic routine. Let's change our thinking."

Xu Qingshan continued to sort out the logic.

"At this time, the real estate developers had money and connections with the local governments. Both the banks and the local governments hoped that they could make the projects a success so that everyone could sit down and discuss the issues together. But at this time, they took out 100 million yuan and threw it to the economists and public intellectuals as dog food to create public opinion, promote public opinion, and promote policies. They also took out another 400 million yuan for public relations fees to make the banking supervision ineffective. Then they took the remaining 2000 million yuan, changed two places, and did it again according to the above path."

"One city, three cities, seven cities"

"As long as no one overturns the table in this game and the money can be repaid, one day they will be able to cover the entire country. Where do you think the money for the loan comes from?"

Xu Qingshan asked questions and answered them himself.

“People’s wallets are the country’s warehouses and banks’ deposits.”

"No matter where they come from, this is undoubtedly digging up the roots, digging up the roots of an entire country."

Lin Jihua nodded.

"Then something even more exciting happened."

Xu Qingshan said with a smile

"They started to spend the money on different fields, including shopping malls, cars, daily necessities, football, film and television, and charity. They became very popular in the country and had a huge influence. Every city they had tried to curry favor with and do public relations with now had to look up to them and wait for their charity."

"At this time, they can squeeze the cost of land acquisition again. The land that originally cost 500 million yuan may be taken away for 400 million yuan, and they don't have to spend the public relations fees."

Lin Jihua agreed with this and added.

"I know this. We need their big projects to boost the regional economy. We need this influence to drive migration from urban areas, and even to make the city prosperous, with more jobs and consumption opportunities. These are all local performance."

"Yes."

Xu Qingshan nodded.

"Moreover, they can also let the contractor who contracted to build the building advance the funds for the construction. The 2000 million yuan pre-sold at that time was counted as Phase 1. When Phase 1 was half built, they started selling Phase 2. With the money from Phase 2, they gave the contractor 20% to 30%, and then let them continue to build and continue to advance funds."

“Phase 1 is finished and we will sell phase 3, and phase 2 is halfway through and we will sell phase 4.”

As Xu Qingshan spoke, Lin Jihua shook his head more helplessly.

My uncle is really sweating profusely!
(Some parts of this chapter look awkward because they were caught by river crabs)

Update! There is still one chapter to be completed tomorrow.

After thinking for a long time, I decided not to combine the chapters. Firstly, I feel that combining the chapters will make the writing slow, cluttered and watery. Secondly, after thinking for a long time, I realized that I don’t lack things like fine badges. It is enough to have them once. I believe that if I work hard, write well, and improve myself one book at a time, I will one day have a solid foundation and a wonderful story and take that step again.



(End of this chapter)