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Chapter 77 - 77 Almost a Billion in Funds!
Chapter 77 - 77 Almost a Billion in Funds!
77 Almost a Billion in Funds!
Jiang Feng was stunned, but he returned to his senses quickly. He asked curiously, “Uncle Sang Yan, why do you ask?”
The question seemed harmless, but it was in fact, rather tricky.
Jiang Feng felt rather strange.
Sang Yan was just a chauffeur. Logically, even if he was capable, he could not be better than professionals. If he was so capable, why was he only a chauffeur? Even his second uncle had said Sang Yan had a very keen eye for real estate. For ordinary people, they definitely would not choose to be a chauffeur if they were capable.
Jiang Feng could not see through Sang Yan’s thoughts. All he knew was that Sang Yan was rather mysterious and that there was more than meets the eyes with Sang Yan. He could not help but want to know more about Sang Yan.
Jiang Feng was certain that Sang Yan would definitely be a great help. If he managed to recruit Sang Yan, he would not need to get involved with many things. He believed his second uncle and Sang Yan were a powerful and invincible combination. Thinking of this, he could not help but become excited again.
Sang Yang remained silent. His mind was filled with scenes of him and his old friend. When his friend decided to join the real estate industry, he had been hesitant to join his old friend. His old friend persuaded and encouraged him, but in the end, he only helped his friend when he could and did not join the company in an official capacity. After so many years, he had seen many things and seen many companies. He also realized that the real estate industry carried a high risk. It was comparable to investing in stocks.
Not to mention where or what to invest in, the prices of houses and land and the policies varied in every state. That alone would cause a huge headache. Moreover, there were many people who tried to speculate and bought a piece of land. However, in the end, their speculations were wrong, and they had to face bankruptcy.
Initially, Sang Yan did not have much confidence in his friend. However, he still wanted to help his friend so he had worked hard. Unexpectedly, he discovered his friend had rather good vision and surpassed many people. His friend profited greatly due to his accurate judgment.
In the past, Sang Yan vaguely remembered an incident where his friend was focused on buying real estate in first and second-tier cities. However, at that time, land and houses in third and fourth-tier cities were on the rise. However, later, his friend’s judgment was proven correct. Due to changes in the cities and policies, the real estate in third and fourth-tier cities gradually cooled down. On the contrary, real estate in first and second-tier became rather popular. At that time, many people were eyeing the real estate in those cities. With that, his old friend made a lot of money.
Although his old friend lost in the end, Sang Yan still believed in his friend’s ability. As long as there were enough funds, his friend would be able to fight again. The company would definitely grow stronger, and his old friend could also realize his dream.
Seeing that Sang Yan did not respond for a long time, Jiang Feng called out, puzzled, “Uncle Sang Yan? Uncle Sang Yan?”
Jiang Feng did not know why Sang Yan was lost in his thoughts.
Sang Yan returned to his senses, realizing he had fallen into a daze. He scratched his head sheepishly and said, “I was thinking about something earlier and became immersed.” Then, he said calmly, “You don’t understand the market. Real estate isn’t easy. It’s not as simple as just starting a company.”
“What do you mean? Uncle Sang Yan, please enlighten me,” Jiang Feng said seriously as a hint of anticipation flashed in his eyes. He looked forward to Sang Yan’s words, certain that he would benefit from listening to Sang Yan.
“This business on a large scale requires a huge amount of money. You have to have a lot of money to burn. It’s unlike other small businesses where you can invest less but still profit. Moreover, once you fail, you’ll have nothing. Moreover, the industry has been around for a long time. There’s limited room for price increases. There are both market and policy risks as well. If you invest blindly, you’ll lose everything.”
Jiang Feng nodded. “Uncle Sang Yan, I understand. Although I don’t know much, I know that real estate investments are large and that it takes time. It’s common for an investment to take a few years or even more than ten years to see profits. Moreover, developing land and building houses takes time as well. The market has been declining and fluctuating, causing many to lose money in the beginning. Investing so much money makes it even easier to lose everything.”
Sang Yan saw that Jiang Feng had some knowledge so he said, praising Jiang Feng, “You’re right. Since you know that much, you should know that if funds are suddenly cut off in the midst of a project, everything will crumble immediately. Whether one is smart or foolish, everyone knows the risk. Due to the huge funds needed, companies will rely on bank loans in the beginning. However, what happens if there aren’t enough funds? Not only will the project crumble, but there’s also the bank loan. It’s very easy to go bankrupt.”
“I understand, Uncle Sang Uan. Don’t worry. I’m prepared. I’m also very confident,” Jiang Feng said calmly and confidently.
“That’s what everyone says in the beginning. You don’t want to be burdened with debts after failing, right? Bank loans are quite troublesome. It’s nothing if you make money, but if you lose money, it’ll be troublesome,” Sang Yan said, slowly persuading Jiang Feng to give up, “There are all kinds of people in this industry. Alright, let’s not talk about other things first. You don’t have enough funds so you’ll definitely need a loan. I’ve seen too many people lose in the first battle.”
“Take your second uncle for example. In the beginning, he did not have any liquid funds so he borrowed from the bank first. At that time, many people were looking at new commercial houses. However, your second uncle did the opposite. He bought more than a dozen public houses elsewhere. At that time, many people advised him that the value of public housing was rising too slowly, and it would be difficult to see the results of his investment. However, your second uncle was determined. In the end, the property market soared, and the rental of public housing became popular. As a result, the rental income increased greatly. However, that’s all due to luck. Young people like you don’t understand the risks. If you fail, you’ll be burdened with debts for the rest of your life. Are you willing? I think not.”
“No, Uncle Sang Yan. I don’t need a bank loan. The funds I have now are about a few hundred million. In fact, it’s close to a billion,” Jiang Feng said seriously. He did not look like he was lying at all.