My Age of Investment

"All our real estate assets are here."

In the Silicon Valley office of Vision Capital, Tom, the CEO of the Little Dog Family Office, handed a document bag to Abel.

Abel took the cowhide bag with both hands, then quickly opened the bag, took out a stack of bound documents, held it in his hand and read through it carefully.

Seeing this, Xia Jingxing and Xiaoquan stopped talking and stared at Abel silently.

A few minutes later, Abel gently placed the document on the table and asked: "A total of 286 properties?"

Tom replied: "Yes, and they are all properties in big cities such as San Francisco and Los Angeles."

"Real estate in big cities that has almost fallen by half?"

After being ridiculed by Abel, Tom's face suddenly became a little unsightly.

Abel stopped paying attention to Tom, turned to look at Xiaoquan, and said in a serious tone: "Mr. Xiaoquan, the purchase price of these nearly 300 properties is as high as more than 90 million U.S. dollars, and the current market assessment value is worth 50 million U.S. dollars. In other words, a loss It’s almost halfway there.”

Xiao Quan nodded, "I know that. We just bought these properties, and then the subprime mortgage crisis broke out, and the real estate market plummeted.

At that time, Darren reminded us to sell all the houses as soon as possible, and we did so, but it was still a step too late and we only sold twenty or thirty houses. "

Having said this, Xiaoquan cast an apologetic look at Xia Jingxing. He felt that he had failed his boss's expectations and often caused trouble, and in the end he had to help with the aftermath.

Xia Jingxing patted Xiao Quan on the shoulder, "The losses on the real estate are actually not bad. Fortunately, you disposed of the $100 million CDO assets. Otherwise, their value may have been wiped out by now."

Xiao Quan smiled and nodded. Under Xia Jingxing's reminder, he ordered Tom to quickly sell the CDO assets at a 10% discount, in exchange for US$90 million in cash, and then he handed all the money to Vision Capital. In management.

Nearly two years later, the return on this investment has exceeded tenfold.

Without Xia Jingxing's help, he would have almost lost money, let alone making ten times the return rate.

Thanks to Vision Capital's superb investment level, the $50 million he lost on real estate investment was easily covered by the gains from investing in hedge funds, and he no longer had to borrow $250 million in equity pledges. And felt worried.

Xiaoquan has always kept Xia Jingxing's kindness in mind and mailed Xia Jingxing various P station small gifts to him every month.

Xia Jingxing looked at Abel and said, "Now all the properties held by the Xiaoquan Family Office are here. Tell them how Vision Capital plans to operate next."

Abel said "Okay" and began to introduce: "Vision Capital plans to establish a real estate recovery fund next, with an initial fundraising size of US$1 billion.

There is only one investment direction, targeting those properties that have been auctioned by the court because of the failure of payment. "

Tom opened his mouth and asked: "Buy a foreclosure house?"

Abel shrugged, "Yes, our target is those houses.

First, they are cheaper than ordinary houses and have greater room for arbitrage.

Secondly, the scale of foreclosed houses is very large. Banks and courts jointly conduct centralized auctions, which is more labor-saving than collecting houses one by one offline.

Finally, this is a business action that actively responds to the government's call for rescue and can receive dual support from the government and banks.

When necessary, we can also use debt to make acquisitions and increase the leverage ratio. "

The little dog was dumbfounded, and the boss took action. It was indeed extraordinary!

He is the most unpromising type of real estate speculator, speculating houses with all his money.

And if the boss directly uses up the leverage, he might have to acquire thousands or tens of thousands of houses?

Xia Jingxing smiled slightly. Foreclosure houses are not only popular in China, there is also huge room for arbitrage in the United States.

Against the background of the outbreak of the financial crisis, millions of foreclosed houses appeared on the market, and banks and courts were overwhelmed by these bad debts.

In order to resolve these troublesome debts as quickly as possible, banks often choose to sell houses at a discount to collect cash.

Tom asked again: "After acquiring a foreclosed property, how do you exit and make a profit?"

"That's a good question!"

Abel looked confident and explained in a leisurely manner: "Our exit plan is to renovate the house and re-list it for sale to earn the difference."

Tom smiled. He thought there was some new way to play, but it turned out to be the same old routine.

"I have a question, what if the house cannot be sold after renovation? Now the real estate market is in a whirlwind, and ordinary people are almost afraid to buy houses anymore."

Abel glanced at Tom. To be honest, he didn't think highly of the CEO.

If it hadn't been for Vision Capital's intervention, the US$250 million in assets of the Xiaogu Family Office would have been lost by this guy.

If it were him, having lost so much money to his employer, he would definitely have no shame in staying in the company any longer.

Seeing the puppy looking at him expectantly, Abel patiently explained: "This involves the second profit plan, renting a house!

In recent years, there has been an influx of young people in big cities in the United States, and the demand for rental housing has surged, so there is no need to worry about renting.

For renovated houses, the rent may increase.

Moreover, rent can continuously generate cash flow, supporting us to carry out larger-scale housing acquisitions. "

Tom continued to criticize: “House renovation, rental management, and house maintenance are not easy tasks.

Especially since you are not planning to start small and aim to acquire tens of thousands of houses.

This is a huge project, and I'm worried about management problems.

Vision Capital is an excellent investment institution, but it is not a professional real estate company. "

Abel replied calmly: "This involves the third profit plan. Our real estate recovery fund plans to cooperate with Friedrich Real Estate Group to jointly establish a professional real estate leasing company."

"Friedrich, that real estate tycoon in New York!" Tom said in surprise.

"Yes, that's him. He is known as the businessman who knows the most about real estate in the United States!"

Abel changed the subject and said: "However, he will not personally participate in this cooperation. Instead, he will entrust his eldest daughter, Miss Ivanka, the vice president of the Friedrich Group, to be responsible for the specific contact and cooperation with us.

In summary, the house rental company we plan to establish will not only achieve profits through the appreciation of self-owned properties, rents, and leverage to increase yields. When the time is right, we will also choose to promote the listing of the house rental company.

We don’t have to sell houses one by one, but we can sell the entire company’s equity in a package and exit at a profit easily and conveniently. "

Hearing this, Tom was completely speechless and couldn't find any fault even if he wanted to.

Because they have considered all aspects of the problem, including the timing of bargain hunting, abundant funds, and well-established partners...

I even thought of four plans for profit-exiting!

There seems to be a reason why Vision Capital can be so successful.

The whole plan introduced by Abel made the puppy very excited. He almost clapped his hands and screamed, and asked very excitedly: "What do we need to do?"

Xia Jingxing said: "Inject the 286 properties in your hands into our leasing company and give you one share.

Don't worry about other things, just wait for dividends or return on equity investment. "

Xiao Quan nodded hurriedly, "No problem, you can take these houses away at any time."

Xia Jingxing smiled, looked at Abel, and said: "With more than two hundred houses, the house rental company can also open its doors. Let's do it first, explore the model, and then replicate it on a large scale."

Abel nodded to express his understanding.

The house rental company that Vision Capital intends to establish is not a small company. Based on the current median house price in the United States of US$150,000 to US$60,000, US$1 billion in principal can purchase nearly six to seven thousand houses.

If leverage, rental loans and other financing tools are added, it is not impossible to get 20,000 to 30,000 houses under the company's name.

Assuming that in a few years, house prices double, that is, they rise back to the highest level in 2006, and if the rent received during the period can be equal to the operating expenses of the house rental company, this investment can double the profit Investment income, after financial leverage amplifies the income, the income can be expanded four or five times, which is considered a very good investment.

At the same time, this is the first time that Vision Capital has tested real estate funds in the United States, and it needs to create a benchmark case to facilitate subsequent fund-raising.

Of course, more importantly, this is raising American money to speculate on American real estate, which is similar to what Blackstone is doing in China.

Therefore, Xia Jingxing has no objection at all to being a charterer in the United States.

However, he is a charterer with a financial mindset, or one who does as the Romans do, and knows how to use innovative financial tools to maximize investment returns.

:,!