Reborn, back to a small county town to become a wealthy family

Chapter 829 Want both and want
Even if Liang Xingmin really has an illegitimate child outside and favors his son, Liang Yuxin may not get the lion's share of the family fortune, but she should still get several hundred million in assets.

But the humiliation of being squeezed out of the company by Lao Liang and those veterans was a thorn in her heart that she could not pull out.

In a way, this is a disgrace.

If Liang Yuxin could regain power and return to Jincheng Real Estate, it would be a real-life version of a prince's revenge.

"Luo Yang, tell me quickly, in just two or three years, what methods do you have to get me back in control of Jincheng Real Estate?"

Liang Yuxin was eager to know what methods Luo Yang would use to help her achieve her dream.

"It seems you've forgotten what I said back then."

Luo Yang leaned back slightly to make room and said, "When I was working part-time at Jincheng Real Estate, I mentioned more than once that the domestic real estate market has a cyclical pattern of ups and downs. Around 08, due to the impact of the US subprime mortgage crisis, the global economy declined, and during that period, the domestic real estate market was also in a trough. It wasn't until the four trillion yuan stimulus plan was introduced and implemented, that is, starting in the second half of 09, that the domestic real estate market gradually recovered."

"I remembered!"

Upon hearing Luo Yang's words, Liang Yuxin immediately recalled the remarks he had made before.

"At the time, you also assessed the overall situation. Because of the booming housing market, housing prices were rising too fast, and the soaring prices would put enormous economic pressure on ordinary people. Excessively high housing prices would lead to a decline in residents' quality of life and increase factors of social instability."

After opening the floodgates of her memories, Liang Yuxin spoke eloquently: "Moreover, the real estate market has very special characteristics. An overheated market hides great risks. If housing prices are allowed to rise freely, it may lead to excessive concentration of resources and damage social fairness. Therefore, in order to balance market supply and demand, prevent market monopolies and speculative behavior, and maintain fair competition in the market, the government will definitely introduce policies to curb the rapid growth of housing prices."

"Yes, these are all the reasons that have been laid out on the table."

Luo Yang nodded, indicating that Liang Yuxin was right, but at the same time, he also implied that her statement was incomplete.

“There are also deeper reasons at the financial level.”

He further explained: "In fact, the US subprime mortgage crisis in 08 is the best example. When houses are assetized and financialized without limit, the harm to the market will become very great."

"I happened to be in the United States during 07-08, so I had some understanding of the root causes of the subprime crisis."

Liang Yuxin lamented, "Mortgage loans are turned into financial products and traded in the financial market. The key is that it's not as simple as one or two rounds. Later, non-performing assets are even added to package them and then these asset packages are put into circulation. Once there are problems at the source of mortgage loans, such as defaults becoming common or housing prices falling, making the asset packages insolvent, the subsequent series of links will collapse like dominoes."

"It's similar in China. If a house costs 100 million, the down payment is 30%, which is 30. The remaining 70 is paid off in about 25 years. With interest, the total mortgage amount becomes about 130 million."

Luo Yang scoffed, "But the bank can't wait 25 years. It will turn this loan into an asset package and sell it to the next level of financial institutions for 110 million. The cash flow recovered will then be used to lend to homebuyers."

"Yes, the institutions that take over the bank's asset portfolios can't wait 25 years; they'll resell the loan at a discount to a lower-level financial institution."

Liang Yuxin immediately echoed this sentiment.

"Fortunately, this cycle won't be as crazy as in the US. After all, the domestic regulatory mechanism is relatively strict, and when the authorities see that housing prices are rising too fast and the housing market is too hot, they will periodically introduce policies to curb housing prices in order to regulate the financial market."

Luo Yang poured the freshly brewed tea into his cup, took a small sip, and then continued, "This is the underlying logic behind my judgment that regulatory policies will be introduced around 14 to 15. As for whether the arrival of this downturn will be earlier or later, I cannot be sure."

"I think I understand your line of thinking a little."

Liang Yuxin said thoughtfully, "Given Lao Liang's current aggressive expansion, if he doesn't control cash flow and continues to maintain high debt, Jincheng Real Estate will face the risk of a broken capital chain when the real estate market reaches a downturn."

"You're right."

Luo Yang put down his cup, then pointed to the tea in it: "This freshly brewed Jin Jun Mei is quite good, would you like to try some?"

His words implied that Liang Yuxin should sit back in her seat.

"Okay, Xiao Luo, bring it to me."

Liang Yuxin wasn't fooled. She whispered in Luo Yang's ear in a coquettish tone, "I don't mind if you use a cup."

Luo Yang: "."

"speak nicely."

He tried to take advantage of Miss Liang: "If you keep doing this, I won't take care of you anymore."

Okay~~~

Liang Yuxin's expression softened as expected. She released her arm from Luo Yang, leaned forward onto the tea table, took back the cup opposite her, and picked up the teapot to refill her tea.

The person was still sitting on Luo Yang's lap; it could only be said that half of the changes had been made.

What happened after Jincheng Real Estate experienced a cash flow crisis?

While sipping her tea, Liang Yuxin continued to ask, "Old Liang has a solid foundation and some connections in the industry. It shouldn't be a problem for him to borrow money through normal channels to get through the crisis. How did you manage to do something like this?"

Why would I tamper with it?

Luo Yang laughed and said, "Besides, if we tamper with things, with Lao Liang's connections and abilities, he will definitely find out and end up hating you because of it. It would be a loss for him."

"what?"

Liang Yuxin couldn't understand it at all.

"I remember saying before that the domestic real estate industry has at most about ten more years of market opportunities, and its glory days will be over after that."

Luo Yang tapped Liang Yuxin's nose with his finger: "Therefore, this cyclical downturn will be more severe than before, and the market slump will last longer."

Liang Yuxin's eyes lit up immediately.

"So the money that Lao Liang borrowed through normal channels is useless."

Miss Liang nearly jumped off Luo Yang, exclaiming excitedly, "This is like drinking poison to quench your thirst!"

In Luo Yang's memory, this sluggish market cycle, which started in 14, continued until the first half of 16 before it began to slowly recover.

Moreover, the market was quite sluggish for nearly two years.

He had a housing development under construction, and in a full six months, he only sold seven units.

For a period of time, the sales office was unusually quiet. Sales staff took turns distributing flyers in crowded places such as streets, residential areas, and shopping malls to promote the property and attract customers.
House prices also plummeted suddenly, leading to a significant wait-and-see attitude in the market.

Even customers who have a need to buy a house want to wait and see if the price will drop a little more.

It is precisely because of this sluggish market cycle that many large real estate companies have temporarily abandoned the first- and second-tier markets and turned their attention to third-, fourth-, and fifth-tier cities to find price depressions, leverage projects with lower capital, improve capital turnover, and at the same time tap into the last batch of potential home buyers in the market.

This also marked the final sunset for the real estate market.

When the housing prices in a small fifth- or sixth-tier county with a population of less than 100,000, a GDP of only a few billion, and an average monthly income of three to four thousand, exceed ten thousand, the development potential is exhausted.

After the initial excitement, reason returned.

“Luo Yang, even if Jincheng Real Estate is facing the risk of a broken capital chain, you—” Liang Yuxin stopped halfway through her sentence because Luo Yang had repeatedly said that he was not optimistic about the future of the real estate market. So even if such an opportunity came up, he would not get involved in the industry, so why would he be willing to spend money to acquire shares of Jincheng Real Estate?

"It's not me, it's you!"

Luo Yang picked up where Liang Yuxin left off: "Starting next year, Pinduoduo will begin a full-scale expansion. Through two years of development, I am confident that I can value the company at 40-50 billion. During this period, there may be 3-4 rounds of financing, and your shares will be diluted to about 7-8%. As long as you think it through, you can get 2-3 billion in cash by giving up your shares at that time. With this money, you can talk to Lao Liang about the shares."

Liang Yuxin immediately fell into deep thought.

"Luo Yang, do you think two or three billion is enough?"

"By the end of 14 or the first half of 15, even if Lao Liang is considered relatively prudent, I am certain that Jincheng Real Estate's overall debt ratio will not be lower than 80%."

Luo Yang smiled faintly and said, "How much do you think Jincheng Real Estate was worth back then?"

According to his estimate of Jincheng Real Estate, even after two years of rapid expansion, by 14 years ago, its total assets were only around 30 to 40 billion yuan, and this included more than 80% of its debt.

If Luo Yang remembers correctly, Lao Liang's shareholding in Jincheng Real Estate should be around 65%.

If Liang Yuxin could come up with around 3 billion yuan in cash flow at this time, and given that she is Liang Xingmin's daughter, she could easily get more than 30% of the shares. If she were ruthless enough, acquiring 40% of the shares wouldn't be impossible.

With so many shares, Liang Yuxin is almost guaranteed a position as general manager, if not chairperson.

"But."

After Luo Yang asked his question, Liang Yuxin didn't answer; instead, she became conflicted.

"But what?"

"According to your logic, even if I were to return to Jincheng Real Estate in about 15 years, the deadline would only be four or five years away."

Liang Yuxin bit her lower lip and said, "Is it worth it for me to spend two or three billion yuan in cash to acquire a real estate company that is destined to decline?"

Anyone in this situation would hesitate.

Indeed, from Liang Yuxin's perspective, she was mistreated and even felt humiliated at Jincheng Real Estate.

But is it worth it for her to spend billions to vent her anger, especially since those billions will shrink significantly in the next four or five years?
After weighing the pros and cons, Liang Yuxin couldn't make up her mind.

"Hahaha"

Seeing Liang Yuxin's conflicted expression, with even her nose wrinkled, Luo Yang couldn't help but burst into laughter.

"dare you laugh!"

Liang Yuxin angrily punched Luo Yang in the chest: "Wasn't it all your idea? Now I'm caught in the middle. I don't care, you can't just let this go like this. You have to help me vent my anger, but you can't let me lose too much money!"

She has everything, which fits the character of Miss Liang.

"Okay, okay, I'll help you!"

Luo Yang subconsciously reached out and gently stroked Liang Yuxin's nose, smoothing out her wrinkles. He smiled and said, "Are you silly? Didn't I tell you that after 14 to 15 years, the real estate cycle will usher in its last wave of growth, and it will be a pretty crazy one. So you have plenty of time to make your money back."

"Earn two or three billion in four or five years?"

Liang Yuxin looked at Luo Yang with disbelief: "You know, if I can get two or three billion, it means that Jincheng Real Estate must make a net profit of more than 10 billion in four or five years, not even taking into account taxes."

"First of all, let me tell you something: if you're bold enough and have the right strategy, with Jincheng Real Estate's foundation, making 100 billion yuan in the next four or five years shouldn't be too difficult."

Luo Yang replied with a smile, "Secondly, you don't necessarily have to stay with Lao Liang and Jincheng Real Estate until the end. You can sell your shares back to Lao Liang about a year before the last wave of the market ends. That way, you can vent your anger and make a fortune at the same time. Why not?"

He was definitely not joking.

With Jincheng Real Estate's current scale of 30-40 billion yuan, if it operates well in the last wave of the market, it is possible to expand its asset scale to 150-200 billion yuan.

If you plan ahead and slightly reduce the company's debt ratio before selling your shares, you can easily sell your 30% to 40% stake for around 10 billion.

After hearing Luo Yang's suggestion, Liang Yuxin was stunned for a moment, but after a short while, she could no longer suppress the smile on her face.

This method of wanting both is really...
It was exactly what she wanted.

"Xiao Luo, thank you for helping me!"

Liang Yuxin wrapped her arms around Luo Yang's neck again.

This time, instead of being coy, they went straight for it.

With too little space to maneuver and Liang Yuxin's movements being rather sudden, Luo Yang managed to dodge her lips but not her cheek.

"do not move!"

Liang Yuxin quickly withdrew her hands, instead cupping Luo Yang's face in her hands, pleading with a mournful expression, "I've been thinking about this for two or three years, just let me be willful this once."

Luo Yang's heart softened for a moment.

It might be two or three minutes, or it might be ten or more minutes.
"okay."

Luo Yang gently pushed Liang Yuxin away: "If we keep being so clingy, Song Wan will be back soon."

Liang Yuxin didn't push her luck any further. She wrapped her arms around Luo Yang and buried her face in his chest.

"Go back and think carefully about Pinduoduo's next development plan."

Luo Yang's hands were still on Liang Yuxin's shoulders, but he couldn't push her away forcefully at this moment. He could only change the subject and ease the atmosphere by saying, "If you want to return to Jincheng Real Estate, making Pinduoduo bigger and stronger is the first step, and also the key step."

"Xiao Luo, do you think Pinduoduo can achieve such a large scale?"

Liang Yuxin said in a low voice, "After only three or four rounds of financing, the valuation will reach 40 to 50 billion. When it goes public, it will be worth hundreds of billions. As a result, it will definitely break through the encirclement of the major e-commerce platforms. Are you that confident?"

"In these three years, when have you ever seen me fail?"

After reassuring Liang Yuxin, Luo Yang continued, "By the way, does your mother own any shares in Jincheng Real Estate? In the next two or three years, it would be best to help her acquire some, even if it's only 5%."

"Yes, I will try to talk to my mom about it."

Liang Yuxin said softly, "Xiao Luo, you have to help me in two or three years. After all, I don't know much about real estate. Even if I take over Jincheng Real Estate, I will need a professional to help me manage the company's operations."

"You don't have to worry about that."

Luo Yang said confidently, "I'll definitely make all the arrangements for you!"

(End of this chapter)