Reborn with Consumption System-Chapter 472 - 222 We Have People at Every Step_2

The experts are busy handling matters on both sides. Charging 1% for that isn’t excessive, is it?

The total cost for the entire project, raising 1 billion, comes out to 13%.

If a company’s qualifications and assets are truly poor, the costs will inevitably be higher, but it can still be done for 18%, right?

If it still can’t be done, then it’s an insolvent shell company, and not even a deity could help.

You see, the lucky ones can secure funds at 13%, and even the unlucky ones can manage with 18%. So, what about you?

For your own financing, you accepted 20%, yet you’re lending out at 25%. Who are you lending to at that rate?

If someone actually takes that offer, they must be desperate enough to risk their lives. Once a problem arises, how would you ever recoup your money?

Lawyer Liu could help you file a lawsuit, sure, but even court enforcement can’t conjure money out of thin air, can it?

What, were you planning to send that entire family to the Mine Boss to have them mine ore to repay the debt?"

HAHAHAHAHA...

As soon as Han Lie finished speaking, the room erupted into hearty laughter.

The Mine Boss laughed the loudest, rubbing his bluish, gleaming scalp. He chimed in, clearly enjoying the drama and happy to fan the flames.

"That’s fantastic! I’m desperately short of miners. Yang, if you lend to a few more like that, just ship them over to me in a container by sea. I’ll take every last one!"

"You, you, you..."

Yang Zhi was so furious his words came out garbled. Staring wide-eyed, he finally squeezed out, "Who the hell can’t boast!"

He didn’t believe it, but the real estate developer named Gu Yong suddenly rushed forward, grabbed Han Lie’s hand, and asked eagerly, "Teacher Han, are you sure this can be done?"

Han Lie waited for the main party of interest, gave Yang Zhi a meaningful smile, and then responded to Gu Yong.

"Of course. From a policy perspective, there are no issues.

As early as December 2005, China Construction Bank issued the country’s first ’Jianyuan 2005-1 Personal Housing Mortgage Loan Securitization Trust.’ After six years of pilot programs, new guidelines were issued in May 2011, expanding the range of entities eligible for ABS projects.

In the second half of last year, Shenzhen launched the first trust project primarily backed by a real estate company’s properties under construction, and the industry reaction was quite enthusiastic.

Mr. Gu, if your company itself is sound, and the only issue is the current domestic lending restrictions on real estate, then securing upfront cash flow at a reasonable price is genuinely not a major problem."

"Below 15%, is that possible?!"

Gu Yong’s eyes were bloodshot, and his voice trembled slightly.

Han Lie’s right hand was still in Gu Yong’s grip. With his left hand, he gently patted the back of Gu Yong’s hand and said reassuringly, "We need to analyze the specific situation. I’m not familiar with your company’s needs and difficulties, so I can’t offer any guarantees.

However, the cost is actually quite straightforward to calculate.

If your project itself is strong, and your company’s mortgage adequacy ratio can reach 70%, or if you have friends willing to provide joint guarantees, then the intermediary costs can generally be kept within 6%.

Law firms, accounting firms, and rating agencies charge fixed fees. The more money you raise, the lower the proportion of these legal and administrative costs to the total.

Finally, there’s sourcing the funds—

If you need to underwrite externally and sell the product to retail fund investors, the cost of capital might reach 8% or 9%.

If you have connections to find cash-rich state-owned enterprises, the cost of capital could even drop to 6%.

Based on current cases, the lowest rates achieved are a little over 11%, while the highest, I’m afraid, might be around 20%. It varies."

Han Lie explained in detail, and Gu Yong finally understood completely.

"Thank you, thank you! Teacher Han, you’ve helped me immensely!"

Gu Yong shook Han Lie’s hand repeatedly, so excited he was almost incoherent. "Right, the intermediary! Please be my intermediary!

My company’s project is excellent; it’s definitely viable!

The industry norm is 1%, right?

How about this: if it can be done below 15%, I’ll pay you based on a 15% rate, and anything saved beyond that is all yours! If that’s not possible and it has to be above 15%, then I’ll pay you a separate 1% fee!"

My, Mr. Gu was certainly desperate!

It truly was a coincidence. From 2013 to the first half of 2014, the entire real estate industry was in an undervalued period. Difficulty selling homes was one aspect, but policy restrictions further compounded the problem. At that time, very few could have predicted that after the massive stock market crash of 2015, the real estate industry would experience its final, and highest, peak. This wasn’t about foresight; it was simply the era’s current unilaterally devastating individuals.

"WOW!"

Upon hearing Gu Yong’s promise to Han Lie, a chorus of astonished gasps erupted from the crowd.

They were in the same circle and knew exactly how much money Gu Yong lacked. Thus, they instantly realized what an immense fortune this represented.

At this moment, Yang Zhi’s face turned completely green. Ha, congratulations to Brother Yang for finally living up to his nickname!

"Brother Gu, you really believe Han’s empty talk just like that?"

Pure jealousy.

Gu Yong spun around, glaring fiercely at Yang Zhi. "Yang, I’ve indulged you enough, haven’t I? I have to address him as Teacher Han; who the hell do you think you are?!"

It had to be said, when Old Gu suddenly glared like that, he possessed a rather imposing aura.

Yang Zhi’s face alternated between shades of livid and red, but he dared not lose his temper. He could only reply meekly, "Brother Gu, I was just worried you’d be deceived..."

"Don’t you dare call me Brother Gu! Our only connection was that one bridge loan, and didn’t I pay you the damn interest?"

Gu Yong jabbed a finger at Yang Zhi’s nose, vowing to back Teacher Han to the very end.

"Regardless of whether Teacher Han can accomplish this, his professionalism and composure are evident. Our company, with all its employees, couldn’t find a solution, yet he broke the deadlock with just a few casual remarks."