Chapter 74 There is no father and son in the mall

In fact, Mr. Shen is a little reluctant to accept his old age. He is willing to hand over the company to his son-in-law for operation and management. After all, he only has one daughter, and the company will be handed over to his daughter in the future. There is no difference between handing it over to his son-in-law for operation and management and handing it over to his daughter.

However, Yang Hai was unwilling to accept it. Instead, he founded his own Huarong Real Estate Development Company and threatened to acquire his Shen Group in the future.

Of course Mr. Shen was not convinced. You said to acquire it, so I acquire it!
So he also wanted to continue to make the Shen Group bigger and stronger, so as not to let his son-in-law catch up so quickly.

Father Shen has been paying close attention to the development of Huarong Real Estate Development Company. Seeing that Huarong Real Estate Development Company was constantly making moves, acquiring many real estate development companies, growing rapidly, and going everywhere to acquire land at land auctions, Father Shen suddenly became a little restless.

Instead, the Shen Group also began to make efforts, following suit and taking frequent actions, launching acquisitions of some weak real estate development companies and starting to acquire land everywhere.

Last year, because of the timely sale of the inventory of houses, the Shen Di Group did not suffer any losses from the housing price plunge and the financial crisis. Instead, it made a lot of money. Its strength has reached a new level and its funds are still relatively sufficient.

However, no matter how sufficient the funds of the provincial and municipal groups are, they can never compare with Huarong Real Estate Development Company. After all, with Yang Hai's endless capital injection, the funds of Huarong Real Estate Development Company will never be exhausted.

Now we see that Huarong Real Estate Development Company is not selling the completed properties anymore, but renting them out at low prices.

At this point, Mr. Shen was a little confused about what his son-in-law was thinking.

No matter how strong the Shen Group is, if the built properties are not sold and the funds are not recovered, and all these houses are fully renovated, equipped with home appliances and furniture, and rented out, it will be a bit unsustainable.

In fact, few real estate development companies can afford it! It requires too much capital to support it. Which real estate company does not rely on bank loans to develop real estate?

After the property is built, even if you don’t want to sell it, the bank will urge you to sell it quickly because it is still waiting for you to pay back the money!

Unless your company has a lot of money and sufficient cash flow, you will have money to pay back the bank even without selling the houses, and you don't even need to ask the bank for a loan to develop the property.

However, real estate development companies all hope that the more properties they develop, the more money they can make.

If the cash flow is really sufficient, they will still seek bank loans to buy more land and develop more real estate projects. Therefore, it is impossible for a real estate development company to have sufficient cash flow because desire cannot be satisfied.

This is also why, more than a decade later, when housing prices suddenly stopped rising for several years and continued to fall, the larger the real estate development companies, the more likely they were to go bankrupt.

Even a strong company like Daheng, which became the largest real estate developer in China, eventually collapsed due to a broken capital chain and owed a huge debt of more than 2 trillion yuan.

Another company called Bi Guiyuan, one of the largest real estate developers in the country, also suffered frequent bankruptcies and was unable to repay its debts, so it chose to go bankrupt.

Relying on borrowing money from the bank and blindly expanding the company's development scale should be fine within the next ten years, because the next ten years will be a decade of rapid development of domestic real estate. As long as housing prices continue to rise, the capital chain will not be broken, and there will be no explosion.

But ten years later, if things continue to develop in this way, a financial crisis will be the inevitable result.

However, these are not the issues that Yang Hai needs to consider at the moment, because he does not need to borrow money from the bank at present, so there is no risk.

But Shen's Group can't do that! Father Shen must consider the risks involved.

Facing his father-in-law's questioning, Yang Hai smiled and said, "Dad! I invested all the money in Huarong Real Estate Development Company that I founded myself. My Huarong Real Estate Development Company does not owe any money to the bank, so the risks you mentioned do not exist."

"Are you so optimistic about the future development of real estate?" Father Shen said after a moment of hesitation.

Yang Hai nodded and said, "Of course I am optimistic about the future development of domestic real estate. Otherwise, why would I set up Huarong Real Estate Development Company?"

"For the development of domestic real estate, now is the darkest time before dawn. As long as we break through this dark moment and wait for the dawn, the next 10 years will be the best golden time for the development of domestic real estate."

Father Shen said thoughtfully: "That's why you are desperately trying to acquire land everywhere and acquire those weak real estate development companies everywhere."

"If the darkest time before dawn lasts a little longer, it will be a lot of pressure!"

"My Shen Group has been developing for more than ten years, and I have finally accumulated a little wealth. If I lose it all, it will be miserable if I get stuck in the quagmire."

Yang Hai nodded and said, "So Dad, your Shen Group should not copy my Huarong Real Estate. You can just operate according to the normal practices."

"If you have money, you can buy more land and don't rush to develop it. You don't have to renovate it. You don't plan to rent it out anyway. You might as well wait a little longer. Maybe dawn will come soon and house prices will start to rise right away. So there's no need to rush to sell the house you've already built."

"It's impossible to sell it anyway. Even if I sell it cheaply, I won't be able to sell many houses. It's better not to sell it at all."

"If you really want to sell it, just sell it to me and I'll pay for it."

"Just don't regret it when the price goes up in the future."

Yes, what Yang Hai plans to do next is to take advantage of the darkest time before dawn, when housing prices have fallen to the bottom, to buy up some newly built communities or real estate projects and wait for the dawn to come.

If he keeps these houses for a year, it will be enough for him to make a fortune.

"You are too rich, this is unfair to our Shen Group." Shen's father protested helplessly.

"Dad! You can't say that. How many years has your Shen Group been developing? If my Huarong Real Estate starts from scratch and develops step by step, do you think it is fair to us?" Yang Hai said with a smile. "In the competition in the business world, how can there be absolute fairness?"

"I'm not trying to overtake you in this way, but I'll never have a chance to surpass your Shen Group in my lifetime. How can I acquire your Shen Group in the future?"

Father Shen also knew that what Yang Hai said was true, there is no father-son relationship in the business world.

He was just a little bit dissatisfied and said some complaints.

"Forget it, forget it. I asked you to take over but you didn't. Then I would have bankrupted the Shen Group. Don't regret not taking over the Shen Group earlier then." Father Shen said a little angrily.

"It's up to you. As long as you are willing to give me a hug and waste your years of hard work, I have no objection." Yang Hai said indifferently.

Father Shen was speechless for a moment, thinking to himself that Yang Hai, his son-in-law, was rich and didn't really care about inheriting his Shen Group.

Mr. Shen left Huasheng Investment Company with a depressed look on his face, and happened to run into his daughter Shen Ruobing walking out of her company.

"Dad! What's wrong with you? Who made you unhappy? Did you have a conflict with Yang Hai?"

Shen Ruobing saw her father walking out of Huasheng Investment Company with an unhappy look on his face, and hurried forward to ask with concern.

"Yeah! This kid Yang Hai doesn't care about me, an old man, at all. It makes me so angry." Father Shen started to complain about his son-in-law in front of his daughter.

"Dad, what's going on? Tell me. If he really did something wrong, I will help you deal with him." Shen Ruobing said with a smile.

He also knew in his heart that his father was not really angry, so he did not get angry with Yang Hai just because his father said something dissatisfied.

Shen Ruobing brought her father to her office, where the two chatted. Mainly, Shen's father complained about his son-in-law, while Shen Ruobing listened carefully, giving him some advice and guidance from time to time.

"Dad! You're so silly. Do you think you need to fight with him?" Shen Ruobing couldn't help but laugh after hearing what her father said.

"Yang Hai is a junior and your son-in-law. Can't you just give in to him a little?"

"What are you talking about? You are so selfish! Why should I give in to him? He shouldn't give in to me!" Mr. Shen said dissatisfiedly after hearing his daughter's words.

"He is the younger generation, shouldn't he show some respect to me? Why does he have to beat me?"

"Then you two should just fight based on your own abilities! If you can beat him, then just beat him and don't let him win. If he can beat you, then he will beat you and don't let you win." Shen Ruobing immediately did not help either side.

"No! I'm your father, why don't you support me?" Father Shen said angrily with his beard puffed and eyes glared.

"But Yang Hai is still my husband! Didn't I help him too?" Shen Ruobing said righteously.

Mr. Shen was so angry that he was speechless.

"Dad! It's not that I don't want to help you, the problem is how can you let me help you?" Shen Ruobing explained.

"Should I go to Yang Hai and ask him to invest several billion or hundreds of billions into Shen's Group?"

"If that's the case, when will the winner be decided between your two companies?"

"In my opinion, you might as well stay at Shen's Group and wait for Yang Hai to come and acquire it. Isn't that better?"

"You were originally planning to hand over the Shen Group to Yang Hai. Why do you still have to compete with him?"

"The more competitive you are, the longer it will delay Yang Hai taking over Shen's Group. Every day Yang Hai delays taking over Shen's Group, the more you will have to work hard for."

"If you don't want to retire early and take my mom around the world, then you should continue to fight him!"

"I'm telling you, Yang Hai is eager for you to fight him. If you continue to fight him, he will have more reasons to delay taking over the Shen Group. You will have to keep working. I wonder how long you will have to wait before you have time to take my mother and travel around the world."

After listening to his daughter's words, Father Shen thought about it carefully and said, "Your analysis does make sense! I didn't expect Yang Hai to be so cunning and actually figured me out. I almost fell for his trick again."

"But even if I don't want to be in charge of the company and want to retire early, Yang Hai is unwilling to take over the company now."

"If he doesn't take over, you can just help him run the company. Sooner or later, he will take over." Shen Ruobing said helplessly.

"When is sooner or later? Does he have to wait until I can no longer work before he is willing to take over the Shen Group?" Father Shen said a little unhappily again.

"Dad! Yang Hai is very busy now, and you can see him. Can't you be more considerate of him? It will just take a few years at most! Anyway, you are not very old now." Shen Ruobing persuaded.

(End of this chapter)