Super Rich from Winning a Lottery-Chapter 380 - 257: Wanting to Be a Hands-Off Boss (Part 2)

"Secondly, once the house is truly completed, the price will undoubtedly have risen again, much higher than when you pre-sold it."

"You know my funds are quite abundant, so there’s no need for me to pre-sell."

Ou Xiaolong hurriedly said: "I know your funds are abundant, but you could develop multiple projects at the same time."

"Haven’t you acquired quite a lot of land all over the country? If your funds are abundant, you can develop them simultaneously."

"Wouldn’t that speed up the earnings?"

"If I can avoid selling pre-sale properties, I will try not to. Although I have acquired many plots across the country, as long as these lands are in my hands, developing them slowly is the same; the money I should earn will eventually be mine," Yi Anguo explained.

"If I were to develop all the lands to build projects simultaneously, no matter how abundant my funds are, it wouldn’t be enough."

"Of course, I could also finance by pledging land like most developers, but if I do that, it will increase my development costs and add some uncontrollable risks."

"As long as the land is in my hands, I would rather develop slowly than take on big risks."

"Even if earning money a bit slower is fine, at least there isn’t much risk."

"On this note, I must remind you not to be blinded by immediate gains and take on excessive risks."

"Also, stay away from Xu Pidai, don’t emulate him. His development model doesn’t suit you, and you won’t be able to learn it."

"There’s no benefit in learning from him. Don’t be fooled by his current carefree demeanor; he’ll inevitably run into trouble in the future. If you get too close to him, you might be implicated in the future."

"At best, you might lose money; at worst, you could end up in deep trouble, regretting it all."

Ou Xiaolong and Zhuo Weidong have always been puzzled about this matter, not understanding why Yi Anguo is so against Xu Pidai.

Now, hearing Yi Anguo warning him once again not to get close to Xu Pidai or become friendly, Ou Xiaolong couldn’t help but ask: "Why are you so against Xu Pidai?"

"Although Xu Pidai is a bit ostentatious and seems a bit high-profile, he’s actually very nice and generous, not stingy at all."

Yi Anguo couldn’t help but smile and said: "If he weren’t generous, how would he gain everyone’s trust? How would he get people to invest in him?"

"If you’re brave enough to lend him ten billion, he’d dare to give you three billion back as a tea fee; would you dare?"

"What! Lend him 10 billion, and he gives you 3 billion as a tea fee? Is he crazy?" Ou Xiaolong exclaimed in surprise.

"Is he planning not to return the 10 billion you lent him?"

"He will definitely return it; otherwise, how could he continue borrowing money? It’s not a one-time deal," Yi Anguo said.

"Moreover, with the current good real estate market, and house prices soaring, his operation won’t necessarily lose, and he could even profit."

"However, his debt keeps accumulating, and if house prices suddenly stop rising or start plummeting, he’d be close to defaulting and going bankrupt."

"But didn’t you just say that in the next 10 years, house prices won’t see a crash like in ’08?" Ou Xiaolong added.

"Doesn’t that mean that Xu Pidai’s operations would be safe within 10 years?"

Yi Anguo couldn’t help but furrow his brow and said: "Firstly, I never said Xu Pidai would definitely run into trouble within 10 years. Secondly, his operations are wholly irresponsible to society; he’s focused solely on making money without considering the risks buyers have to take."

"He secures a piece of land, mortgages it for a bank loan, but instead of building houses, he uses the money to buy more land, fences in good locations, designs a post-development model, and starts selling homes."

"If house prices continue to rise and don’t crash, then eventually, the houses will be built. But if house prices crash, all pre-sold homes will become defunct."

"Banks won’t suffer much loss; the losses will fall on those who bought their pre-sold properties. They can’t see where their house is, yet they have to make regular payments on home loans. If default occurs, banks will take legal action and blacklist them in the credit system."

"Paying for a house they can’t locate, indefinitely postponed handover date, default not only means loss of down payment and loan payments but also continued debt to banks, risking lawsuits, credit blacklisting, high-consumption restrictions, etc. Imagine how painful this must be for them?"

"This is why I don’t want to sell pre-sale properties. I don’t want to transfer the risks to those buying homes."

"Only when the house is entirely built and ready for handover will I sell; otherwise, I won’t launch sales."

In Yi Anguo’s mind, as long as funds are sufficient, he doesn’t rush to sell houses, because prices will rise in the coming years. Why hurry to sell now when collecting rent is lucrative?

Waiting another 10 or 8 years to sell would undoubtedly profit more.