"You mean, there's still a way to save Haoyuan Group?”Mother Lin asked in disbelief.
"Mom, lower your voice!" Lin Feng looked around. After making sure there was no one around, he pulled the chair to Mother Lin's side and whispered,""There's a way!"
"What is it?" Mama Lin asked.
"The secrets of heaven cannot be revealed!" Lin Feng said.
"You child!" Mother Lin couldn't help but scold him angrily. This brat, he didn't say the most important thing. Wasn't this infuriating? God knows how suffocating she had been under the pressure of Haoyuan Corporation's trillion-dollar debt recently. Now that she finally heard about a way to save Haoyuan Corporation, she didn't expect Lin Feng to say that the secrets of heaven couldn't be revealed.
She was Lin Feng's mother. She didn't expect Lin Feng to hide it from her.
"Hahahaha, alright, I'll talk, I'll talk!”Seeing that his mother was getting angry, Lin Feng didn't keep her in suspense.
"Mom, what do you think Haoyuan Group needs to revive itself?”Lin Feng asked.
"What do you lack? Could it be that you lack funds?" Mama Lin asked uncertainly.
"How is that possible? The Haoyuan Group has assets of 900 billion and debts of 1000 billion. Even if I can borrow a large sum of money to complete all the projects and sell them off without a loss, I still have to owe 100 billion in debt. It's impossible to save the Haoyuan Group!”Lin Feng said.
"Then what do you lack?" Mother Lin asked in confusion.
"I lack time!" Lin Feng laughed.
"Time?" Mother Lin was stunned.
"That's right. The only advantage of the current Haoyuan Group is that it has a large plate, and many projects have been completed. As long as these projects are completed, we can quickly recover a large amount of funds in a short period of time!”
"If we can use this large sum of money for a period of time and then let the debt collectors take it away bit by bit, we can use this large sum of money to do some projects with fast cycles to earn profits. Then, we can pay off our debts bit by bit and form a high turnover!”
"We don't have to do much. We only need to earn 100 billion in profits, which means that we can use the Haoyuan Group to earn 11% of the profits. Then, we can completely turn the situation around and turn the debt ratio into a positive one!”
"And the more time we have, the more profits we will make. Once we reduce the debt ratio to 80%, the group can be completely revived!”
Lin Feng said passionately.
As mentioned earlier, high turnover was a huge killer of profits in the real estate industry.
For example, Lin Feng had 600 billion in funds, and a new project required 2 billion in initial investment. A total of 10 billion was needed, and the period was six months.
Then, he could take out 400 billion yuan and invest in about 200 such projects in total. This was because the initial investment only needed 2 billion yuan, and the subsequent payment would have to wait until the project was almost completed before paying little by little.
The remaining 200 billion was used as liquid funds to prepare for all kinds of emergencies and to pay all kinds of debts that were due.
Remember to invest in installments. Only by investing in installments can you rob Peter to pay Paul and form a high turnover. If you don't invest in installments, you won't be able to pay the remaining 8 billion for each project.
For example, you can invest in 200 new projects in 10 months. You can invest in 20 projects in a month, and the cycle of each project is half a year.
Then, after the first month's project payment is completed in half a year, you can use it to pay the second month's project payment. After the second month's project payment is completed, you can use it to pay the third month's project payment.
This cycle continued, and the funds were transferred over and over again, forming a high turnover.
The main point is, how big of a project did you leverage?
2 trillion!
That's right, it was 2 trillion!
Your 400 billion yuan of funds directly mobilized 2,000 billion yuan of projects. After all, each project only needed 2 billion yuan in the early stage. Then, the total capital of a project was 10 billion yuan. If you invested in 200 such projects in 10 months, then the scale of the project funds that you mobilized would naturally be 200 times 10 billion yuan, 2,000 billion yuan.
Then, let's assume that the average return on investment for each project is 8%. That's not too much, right?
Then do you know how much profit you'll make if you complete all 200 projects?
That's right, 2 trillion multiplied by 8%, which was 160 billion in profit.
In other words, Lin Feng had used 400 billion to leverage a 2 trillion project and earn 160 billion in profits.
The actual profit margin was 160 billion divided by 400 billion, which was 40%.
This was the power of high turnover!
The original profit of a project was magnified by several times.
Therefore, once a high turnover was formed, it would be very easy to save Haoyuan Group.
As the chairman of a large company, how could Mother Lin not understand what high turnover meant? Naturally, she understood what Lin Feng meant.
"But Feng 'er, how are you going to make the debt collectors willing to give you time to recover the large sum of money and form a high turnover?”Mother Lin said.
This book comes from：m.funovel.com。