The King of Soft Rice in Chinese Entertainment

Chapter 453: The simplest operation

After Xu Jiuyang said that, the women present all felt somewhat uncomfortable.

Fan Bingbing coughed lightly, Li Yunxin looked away, Angela remained unmoved but her gaze was somewhat wandering, Yang Mi lowered her head and rubbed her nose, only Liu Qianqian asked stupidly, "How did you know?"

She spoke so quickly that Yang Mi didn't have time to catch up.
Xu Jiuyang snorted dismissively, "Isn't this obvious? When Anji and I came here, the waiters didn't even ask us anything, they just led us directly to this private room. If they don't come here often, how could they be so familiar with the place?"

Before Angela could argue, he immediately added, "Fan and Yunxin are both in front of us."

"So?" Angela, caught off guard, immediately asked.

"So it's up to you," Xu Jiuyang shrugged. "After all, you need a fixed place to exchange ideas and make plans."

After saying that, he looked at Liu Qianqian and suddenly asked, "Qianqian, how many bad things have you been discussing here?"

"Nothing much... Oh dear, what do you mean by bad things?" Liu Qianqian almost blurted out, but luckily Yang Mi pinched her hard, making her grimace and correct herself.

“A bad thing is a bad thing,” Xu Jiuyang snorted.

"Hey, Xu, aren't you going a bit too far by stirring up trouble for no reason?" Fan Bingbing couldn't help but slam her hand on the table.

“Student Fan, what’s done is done. Just admit it openly. Isn’t it a bit ungentlemanly to try to cover it up?” Xu Jiuyang raised an eyebrow and asked.

Not only that, he crossed his arms and squinted as he looked her up and down. She immediately raised her delicate chin and glared back at him defiantly.

Fortunately, this standoff didn't last long because Gao Yuanyuan arrived.

"Sorry, the little one was a bit hard to soothe, so I was a little delayed," she said as she came in.

She wore a light-colored, open trench coat over a black turtleneck sweater, paired with a light-colored short skirt, flesh-colored stockings, and black knee-high boots, exuding both elegance and charm.

In particular, although her figure hadn't changed much, she exuded a beautiful, rounded aura, so much so that both Fan Bingbing and Li Yunxin looked on with envy when they came in.

Although Angela remained calm and composed, her gaze lingered on Gao Yuanyuan for a long time.

As for the two younger children, they didn't have much contact with Gao Yuanyuan, so they were just a little surprised and confused.

"Don't worry, I'll come after I've fed him, but you need to hurry, I have to go back and take care of him," Gao Yuanyuan whispered to Xu Jiuyang.

Xu Jiuyang really wanted to say, "Isn't there a nanny?" But considering that the little guy was only a little over half a month old, it was better for his parents to be around, so he didn't say anything more.

Not only that, Xu Jiuyang also decided to finish today's commentary as soon as possible so he could go back and see his son, since it wasn't anything particularly complicated anyway.

Yes, what we're going to talk about today is an idea he asked Li Yunxin to bring to him—an idea that could yield hundreds of times the return on an investment of several million dollars.

He originally planned to gather them to discuss his plan after his son turned one month old, but that would mean it would be early next year, which would be a bit late. Since the plan had to be completed by the end of 06, it was better to start as early as possible.

After several rounds of communication, this gathering came about. "Let's take a quick look first. It's all related to American real estate," Xu Jiuyang said after handing the documents to them. "If you don't understand it, you can just read the parts I've highlighted in red."

"Are you suggesting we join in, or are you suggesting the US real estate market is about to collapse?" Angela asked after quickly browsing through the information.

“Both,” Xu Jiuyang shrugged, and continued after they all looked up. “The current US real estate market isn’t just overheated, it’s extremely overheated. Often, all you need to do is make connections with the banks, and you can get a mortgage no matter how good your credit is…”

In his past life, he had watched many movies depicting the 08 financial crisis, such as "The Big Short," "Too Big to Fail," and "Inside Job," and he knew some of the plots by heart. Although he didn't fully understand subprime mortgages, he was much better than the average person. With the answer in mind, finding evidence was naturally easy.

Of course, Xu Jiuyang had no intention of getting them involved in shorting subprime mortgages. If he did, not only would non-US capital like theirs be affected, but even US capital, unless it was a large corporation like Morgan Stanley or Goldman Sachs, would be dealt with.

As mentioned before, John Paulson made a total of $07 billion by shorting subprime mortgages starting in 300, and then gave it all back in various ways over the next decade.

Although he retained some profits and had a net worth of over a billion dollars, it was just a drop in the ocean compared to $300 billion.

Therefore, Xu Jiuyang's plan was simple: if he couldn't profit from the subprime crisis, he would join in and make the crisis even more severe.

The specific method is that Angela, Lee Yoon-hyung, or any other front person in the United States can establish or directly purchase a small real estate company, inject funds into this company, and then acquire various properties.

Don't buy properties in prime locations or those sought after by large companies; just buy those in remote, ordinary, or even useless places.

They then mortgaged these assets to banks to obtain funds for further acquisitions, and so on, growing larger and larger like a snowball, until the entire company was sold by the end of 06 at the latest.

Even with bad luck, one can still earn $1 to $2 million, while with good luck, one can earn up to $5 million.

The cost is around $300 million to $500 million.

Don't think this is a joke. Given the current state of affairs in the United States, where everything is flourishing and prosperity is booming, as long as there is a connection with banks, this deal is absolutely no problem.

The movie "The Big Short" was actually quite restrained; reality is even more outrageous. It's one thing for banks to issue loans to new immigrants without conducting background checks, but some audacious individuals even dare to do the same to drug addicts, as long as they use the money to buy real estate.

“Since the US repealed the Glass-Steagall Act in 99, the financial industry has taken off. So, if some banks won’t lend to us, that’s okay. We’ll just find those that are willing to lend. There are always some banks, big and small, that like to take risks,” Xu Jiuyang told the women.

“All we need to do is keep buying real estate, and then use these properties as collateral to take out loans to continue selling real estate. Of course, the specific operations still need to be discussed, and I am only giving a simple description now. In addition, the more initial investment, the faster we can get started and the faster we can make profits. But at the same time, there is a limit to the profits, and we must calculate our funds carefully to strive for the best profit.” He then added.

This was the simplest way he had come up with when he was bragging to his friends in his past life to profit from the subprime crisis: keep buying houses and then selling them before the crisis hit.

There's no need to get involved in those confusing securities, nor to worry about being resented by Wall Street for shorting subprime mortgages. You can get in early and leave early, and all you need is a relatively large amount of start-up capital.

Given Bank of America's behavior at this time, once they've established a connection with you, they'll be very proactive in clearing away any obstacles for you.

Even so, even though the operation is very simple, it is still an unattainable solution for ordinary people.

Putting aside whether they can afford the money, even if they could, how would they start a real estate company in the United States?
But now, that problem has been solved.

(End of this chapter)