Super Rich from Winning a Lottery

Chapter 115: Ou Xiaolong Wants to Borrow 600000000_2


And so, they had no choice but to play the family card and beg Ou Xiaolong's wife for help. They knew full well that Ou Xiaolong despised them for how terribly they had treated him in the past, so they didn't dare ask for his forgiveness, only his wife's.

They had considered asking Ou Xiaolong's father-in-law, but he had taken ill and had already transferred his company shares to his granddaughters—Ou Xiaolong's two daughters.

Ou Xiaolong knew his wife still valued family ties and was somewhat inclined to forgive her uncles, aunts, and her nephews. He couldn't completely disregard his wife's feelings.

In the end, after discussing it with his wife, Ou Xiaolong decided to buy back the company shares from her uncles and aunts, using his own money to do so.

Ou Xiaolong went to see Yi Anguo to ask if he could help by lending him the money to acquire the shares from his wife's relatives.

Yi Anguo certainly supported Ou Xiaolong taking control of the company. After a moment of thought, he asked, "How much money do you need to borrow?"

Ou Xiaolong held up two fingers. "Six hundred million!"

"What?" Yi Anguo asked in amazement. "Six hundred million? That much?"

Ou Xiaolong nodded.

"Six hundred million is no small sum," Yi Anguo queried after some thought. "What do you plan to offer as collateral? And for how long do you need the loan?"

He had the funds and wanted to help Ou Xiaolong, but business was business. Interest was a given, and collateral was essential. Even though he was wealthy, he still owed the bank over a billion yuan from financing his stock investments.

Ou Xiaolong was well aware that borrowing six hundred million on mere words was impossible.

"As for collateral," Ou Xiaolong said helplessly, "to be honest, while the company has quite a few unsold properties, developments under construction, and land reserves, they're all mortgaged to the bank. We can't touch them."

"Especially now, after what just happened, the banks are watching us like hawks. It's become significantly harder for our company to secure loans."

"Then why are you willing to spend six hundred million to buy their twenty percent stake?" Yi Anguo pointed out. "A payment of one or two hundred million should be more than enough to get rid of them."

"Not all of the six hundred million is for them," Ou Xiaolong explained. "The main problem is that the company's capital chain is tight, and we can't get loans from the banks."

"Because some of the steel and concrete used in construction were substandard, we have quality issues with some developments. A few buildings need to be demolished and rebuilt. The company has suffered huge losses, and the banks have repeatedly cut our credit line in response. I'm out of options, so I have to turn to friends for help to get through this crisis."

"The real estate market is heating up. As long as the buildings are finished, we won't have any trouble selling them. In fact, prices are still climbing. So, if we can just overcome this hurdle, I'm confident the company can continue to develop steadily."

"I believe you," Yi Anguo said, sounding a little exasperated, "but you can't borrow such a large sum without any justification. We may be friends, and I do want to help you, but you can't expect to just walk away with this much money without any collateral, can you?"

"I know it's unreasonable to ask for a loan without collateral. So how about this: why don't you invest in our company instead? What do you think?" Ou Xiaolong suggested.

"Invest? I'm not interested in real estate development," Yi Anguo replied, shaking his head.

Despite how well real estate companies seem to be doing now, many of them will go bust later on. For that reason, Yi Anguo wanted nothing to do with it.

A wry smile touched Ou Xiaolong's lips. Here was a man who owned 5,000 properties claiming he had no interest in real estate development.

"In that case, how about this?" Ou Xiaolong proposed after a moment. "Once the development is completed, I'll transfer six hundred million yuan worth of property directly to you. I'll give it to you at a twenty percent discount on the current market price, which will cover the loan and the interest you're owed."

"When would the properties be ready?" Yi Anguo asked with a nod.

"September or October of next year at the latest," Ou Xiaolong said after a brief silence.

Yi Anguo nodded again. "Alright, let's do that."

"Normally, I don't buy off-plan properties. I only purchase existing ones that are fully furnished and ready for immediate move-in," Yi Anguo continued. "But I consider you a brother, so I'm willing to help you. By the way, where is this development you plan to transfer to me located?"

"In Longhua's Meilong Town, outside the old special economic zone border. The current market price there is around six thousand yuan per square meter," Ou Xiaolong explained.

"Meilong Town! An excellent location!" Yi Anguo couldn't help but exclaim.

He was familiar with this area! Before his rebirth, you couldn't talk about the 2008 financial crisis without mentioning Meilong Town. The first phase went on sale in 2006, with an average price under six thousand yuan per square meter. In July 2007, the second phase launched at eighteen thousand per square meter, and the third phase in October 2007 held that same price. But in May 2008, the fourth phase launched at 6,670 yuan per square meter—a catastrophic drop of more than half. Right now, it's at six thousand yuan per square meter. A twenty percent discount brings it down to less than five thousand, just over four thousand per square meter. In a year, it'll easily be worth eighteen thousand. That's a massive profit!

While it couldn't compare to stock market returns, the stock market had its limits. It was hard to maneuver with too much capital, and pulling out quickly wasn't easy. It's always better to diversify investments. You can't put all your eggs in one basket.

After Yi Anguo and Ou Xiaolong reached a preliminary agreement, Yi Anguo naturally didn't handle the specifics himself. He delegated the matter directly to Wang Bing and Tao Hong.

True to his word, Ou Xiaolong visited Yi Anguo's redwood furniture factory the very next day to browse and make a purchase. Yi Anguo had renovated the ground floor of the dormitory building into a showroom, displaying samples from his factory for visiting customers.

Seeing the array of exquisitely crafted redwood furniture, Ou Xiaolong said with delight, "It seems you're quite the expert on redwood furniture! I want every single piece I see. I wish I could buy them all and take them home."

"If you like them, then buy a few more," Yi Anguo said with a smile. "They're not that expensive right now. It's no loss to buy more while the price is low. It won't be so cheap once the prices rise later."

"Take this set of elephant-head sofas made from Cochinchinese rosewood, for example. It's only 48,888 yuan right now. In six years at most, you won't be able to find it for less than three or four hundred thousand."

"A seven-to-eight-fold increase in six years? Are you joking?" Ou Xiaolong asked, stunned.

"It's normal. This type of wood takes an incredibly long time to mature. In a few years, the trees in its native region will all be logged. Plus, the producing countries will tighten regulations to protect the environment. When a thing is rare, its value increases. The price will naturally shoot up," Yi Anguo explained with a nod. "Add to that currency devaluation and inflation... Right now, an average worker earns just over a thousand yuan a month. In six years, I'd say their wages will at least double. By then, an average worker's monthly salary will be over three thousand!"

Ou Xiaolong felt that Yi Anguo's reasoning was sound, yet something seemed off. He just couldn't put his finger on what it was.

"And three to four hundred thousand is just the price after six years. If you wait a bit longer, say, a decade or more, it could be eight hundred thousand, maybe even a million," Yi Anguo added.

"If it's going to be that expensive, you'd be better off keeping it. Wouldn't you earn more selling it later? Selling now is a loss, isn't it?" Ou Xiaolong said jokingly.

"I'm only telling you all this because I consider you a brother," Yi Anguo said, affecting a look of frustration. "To be honest, I'd rather not sell this type of premium rosewood. I usually sell the more common varieties. I can sell those cheap, make everyone happy, and still earn a little more myself."

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