After rebirth, I became a great master

Chapter 548 Increasing Leverage Rapidly

Having learned about Zang Tianrui's past, Guo Guanchang was secretly impressed by Zhou Haoran's handling of the situation.

I thought to myself, this junior really knows how to manipulate human nature.

First slap me, then give me a sweet treat.

They were completely at each other's mercy.

More importantly, this incident achieved at least three objectives.

First, it punished the traitors;
Second, it reflects the humble and modest spirit of the great man.

Third, make big money!
That's right. Taking over an unfinished building is much easier than developing a real estate project from scratch, such as applying for qualifications, acquiring land, handling procedures, contacting partners, and finding financing channels!
And it's faster and more profitable!

Take, for example, the real estate project that Zang Tianrui owns.

Since the goal is to take over unfinished buildings, Zang Tianrui, who has had conflicts and internal disputes, is the first choice. Let everyone see how the "Master" repays evil with kindness and saves people from dire straits.

Zhou Haoran invited Guo Guanchang, Wei Qingfeng, Li Changqing, and Wang Xinhe to go to Pudu District to check out Tianrui Real Estate's property development.

It is worth mentioning Wang Xinhe.

He is the father of Wang Wenrui, a high school classmate.

He is the richest man in his hometown, Yangguan County.

He had previously collaborated on a real estate project and benefited from it. This time, upon hearing about taking over an unfinished building, although he didn't quite understand what was going on, he still actively participated.

How could you possibly make a mistake working with Mr. Guo of Fosun Group?

Just follow along!

Wei Qingfeng was not in good health and kept his eyes closed, pretending to sleep the whole way.

Zhou Haoran also had a lot to say about this Senior Brother Wei.

He has stomach cancer.

Although it was in the early stages, it was still cancer after all. Half of his stomach had been removed, and he needed regular checkups and chemotherapy. He was very thin. He had three wives, the youngest of whom was not yet thirty years old.

However, a few days ago, Zhou Haoran heard from his third sister-in-law that Old Wei was still up to his old tricks and seemed to have gotten involved with his beautiful 19-year-old female secretary again.

The three sisters-in-law were very angry.

They're really courting death!

They were determined to prevent the fourth wife from entering the house.

I implore you, sir, to help dissuade him. His health is already poor; if he is further depleted by lust, even Hua Tuo himself would be powerless to save him.

"Ugh!"

Zhou Haoran sighed inwardly. Even heroes can't resist the charms of a beautiful woman. Dying under a peony is still a romantic death... It's only natural that Senior Brother Wei would do this.

The group went to Purdue District.

I saw this development by Tianrui Real Estate. The plot of land is about 20 acres, and they plan to build 10 buildings, each with 12 floors.

The plot ratio is quite high.

It's clear how difficult it must have been for Zang Tianrui to get all those procedures done.

The buildings are almost all completed.

The building had a total of 12 floors, but construction stopped when they reached about 10 floors.

Someone on site organized the work team.

Zang Tianrui and his team quickly stepped forward to explain, saying that they had invited a big boss to come and inspect the place.

Don't stop them!

If things go smoothly, their wages can be paid out quickly, and work can resume soon!
The situation on the scene was quite somber.

It is clear that Zang Tianrui had no other choice but to seek refuge with Young Master Zhou, a desperate act of desperation.

Zhou Haoran went to the construction site for a site visit.

He doesn't understand how to assess the quality of engineering projects.

At first glance, it seems alright. The walls are very sturdy; you can't break them by hand, and you can't even kick them off. The cement quality is excellent. Furthermore, the exposed steel bars are very thick, so there shouldn't be any hidden dangers of shoddy construction.

However, we still need to ask a professional evaluation agency to do the testing.

After obtaining the relevant materials from Tianrui Real Estate, the group returned.

The vehicle I was traveling in was Mr. Wei's car, a spacious and comfortable MPV.

Wang Xinhe quickly glanced at the report and exclaimed excitedly, "Great! This business is really good! I didn't understand it at first. I didn't understand why we had to take over unfinished buildings and dispose of those unwanted abandoned assets. But looking at it this way, it's a gold mine!"

Zhou Haoran smiled and said, "It's just a small business."

"No, no, this is no small business. Just this one project... wow, that's amazing!" Wang Xinhe quickly gleaned some crucial data from the project materials. "Total investment of 40 million yuan, expected return of 150 million yuan. Construction is scheduled to end in September... Doesn't that mean that as long as we take over this abandoned project and restart construction according to the original plan, this project can earn us over 100 million yuan within four months!"

Guo Guanchang nodded. "Yes, it's low-cost, efficient, and easy to operate. Especially since it's a way to alleviate the burden on society, it will be warmly welcomed by local authorities and will receive the green light all the way."

"Great! Taking over unfinished buildings is definitely a good business!"

Wang Xinhe was very excited. Wei Qingfeng, who had been resting with his eyes closed, also spoke up, which was unusual for him: "But there is a prerequisite, which is that the real estate market must recover. If the real estate industry fails to recover and deteriorates again, then buying in will not be buying at the bottom, but buying in the middle of the mountain."

"Huh?" Wang Xinhe was just a small business owner in a county town. Lacking judgment on the overall economic situation, he became insecure. "It shouldn't be... it shouldn't be, right? Housing prices have stopped falling and stabilized. The prices of many good properties have rebounded."

"It's hard to say."

Guo Guanchang spoke in a serious tone.

"what?"

Wang Xinhe's expression changed slightly.

Guo Guanchang said in a deep voice, "The impact on Harbour Properties comes from the Hong Kong government's real estate sector. The Hong Kong government has tried to rescue the real estate market several times, but there has been no improvement. Many properties have seen price drops of more than 70%. If the impact intensifies and spreads further, it may also encounter market shocks. The market is constantly changing, and no one can say for sure what the future holds."

"Isn't buying up unfinished buildings at rock-bottom prices the same as buying stocks?"

Wang Xinhe felt as if he had been doused with a bucket of cold water.

Guo Guanchang laughed and said, "Investment is inherently full of risks. If Mr. Wang regrets it, it's not too late to withdraw now."

"Withdraw?" Wang Xinhe's expression turned serious. "Impossible! Even if we lose money, I'll accept it! We're all friends who do business together. There's no reason to stick together when we make money and break up when we lose money!"

"That depends on what the master thinks!"

Guo Guanchang smiled broadly.

He was a big, well-known boss, and he wasn't particularly interested in Wang Xinhe, a small-time businessman. However, he was from the same hometown as Mr. Da, and also the father of his high school classmate.

To put it bluntly, Wang Xinhe was Mr. Da's "informant" planted in the real estate project.

After all, the eldest son is not involved in the specific implementation.

Having more people involved can create checks and balances, preventing corruption caused by excessive concentration of power within the organization.

Zhou Haoran had never worried about losing money, and asked, "Uncle Wang, what did they say? The total investment is 4000 million, but as far as I know, Zang Tianrui only has a little over 300 million in assets."

Wang Xinhe laughed and said, "Yes, it's all listed here. The personal investment representing Zang Tianrui is 700 million. Of that, 350 million is his personal assets, and the other 350 million was borrowed from relatives, friends, and classmates."

"Hmm, what about the remaining 3300 million?"

Zhou Haoran sighed inwardly, thinking to himself that people these days are too fierce and too ambitious.

With only 300 million yuan in hand, they dared to rush into a project worth tens of millions, hoping to earn 1.5 million yuan!

That's 50 times leverage!

Even when trading stocks or futures, you wouldn't dare to be this aggressive!
“1000 million is the amount owed to upstream suppliers, 2000 million is a bank loan, and there’s another 300 million… it’s not written here.” Wang Xinhe quickly gave his analysis, “This 300 million should be the amount owed to the construction team for unpaid wages.”

"It is an outrageous act to withhold wages from migrant workers!"

Zhou Haoran's face darkened.

Everything else is negotiable; if Zang Tianrui were truly capable, he might even be given a job in Mr. Da's real estate project. But his attempt to alleviate his own financial pressure by withholding wages from migrant workers is going too far.

He could be sentenced to death.

Wang Xinhe explained, "This is a common phenomenon. In many construction sites, migrant workers' wages are paid at the end of the year. Besides the need for stability in the construction team, there is also the need to maximize the use of idle funds."

Guo Guanchang said, "Many projects face significant cash flow pressure and require capital turnover. It is common for salaries to be owed for several months or even one or two years."

"I've made up my mind right now." Zhou Haoran, the youngest among them, was issuing orders without any hesitation. "I've decided that in all the real estate projects we cooperate on, there will not be a single penny of unpaid wages! No matter how tight the cash flow is, we cannot make things difficult for the hard-earned money of our migrant worker brothers!"

"This……"

Wang Xinhe opened his mouth, but hesitated to speak.

He has been in business for twenty years.

He climbed up from the very bottom, he has too much experience. When dealing with people at the bottom, kindness and goodwill are useless, they all fear power but not morality.

Guo Guanchang said with a smile, "That's how it is. The real estate company pays the construction team, and the construction team then pays the migrant workers. In principle, there is no employment relationship between the real estate company and the migrant workers. This way, the project funds can be paid in a timely manner, and the payment of wages to the construction team can be properly supervised."

Zhou Haoran nodded, then steered the conversation back to the topic, "This unfinished housing project has a funding gap of 2000 million yuan. Lao Guo, is this easy to handle?"

Guo Guanchang laughed and said, "It's easy, just a bank loan. If we apply for a loan in the name of Tianrui Real Estate, the bank definitely won't lend money. In the current situation, no one dares to lend money to a small private real estate company like this. However, if we take over this project and apply for loans in the names of Fuxing Real Estate, Zhongbo Real Estate, and Qingfeng Real Estate, then it will be very easy."

"When it comes to unfinished housing projects, borrowing should be the primary method. Don't be afraid of borrowing or leveraging."

Zhou Haoran's words set the tone for the business of unfinished buildings.

Use as little real gold and silver as possible.

All the cash flow was used to acquire unfinished buildings.

After acquiring the unfinished buildings, they used reputable brands like Zhongbo Real Estate and Fuxing Real Estate to secure loans and rebuild them.

To put it bluntly, it's about increasing leverage!

"Won't this be..." Wang Xinhe said with some concern, "Won't the risk be too great?"

Zhou Haoran said calmly, "There is no risk in my business!"

Wang Xinhe clicked his tongue in amazement.

Guo Guanchang almost burst out laughing.

(End of this chapter)