Disposal of non-performing assets?

Hearing Zhou Ming's sudden words, all the students in the finance class were stunned at that time, of course, as the students in the finance class studying at Harvard Business School, they have not heard of what is called the disposal of non-performing assets, but they are only limited to hearing about this stage, and they do not understand why Zhou Ming proposed this direction without in-depth understanding of this industry.

For most people, the so-called non-performing assets are nothing more than some difficult to deal with equity bonds and physical assets.

Generally speaking, these non-performing assets are caused by the bankruptcy of companies or individuals, they have been unable to repay any debts, and the court liquidates all their assets, which can be stocks, bonds, bank deposits, real estate land, or even a table or a chair, because these things have problems such as insolvency and difficulty in liquidation, they are classified as non-performing assets.

Most of the non-performing assets are bad debts caused by investment mistakes, and it is generally difficult to deal with them, so the disposal of non-performing assets is also a high-risk investment with a very low credit rating.

Zhou Ming looked around and saw that all the students in the finance class, except for some people who were born in banks or securities investment families, everyone else looked at a loss, Zhou Ming couldn't help but say: "I know you are all confused, in your concept, you must all think that the so-called non-performing assets are assets that will definitely lose money, so if we invest in this industry, aren't we doomed to lose money?"

Many students in the finance class nodded subconsciously, Zhou Ming understood their concept very well, in fact, more than 20 years later, there are still many people in China who do not understand the potential huge benefits behind non-performing assets, which is not because of insufficient IQ, but because of the difference in concept. In the eyes of most people, the reason why the so-called non-performing assets are listed as bad assets, to put it bluntly, are loss-making assets, so such assets are generally avoided, where is there still interest in acquiring and dealing with them?

As the old saying goes: isn't it stupid to do a loss-making business and still do it?

But in fact, this is a manifestation of short-sightedness, where there is money to be made, they will flock to it, and they will avoid it when they hear the loss falling.

And there is a more important point, that is, this kind of person who only looks at the rise, there is an information delay between his information and the real investor, when you know the rising news, the money has already been earned, so you go in at this time, isn't there a great risk of being trapped?

Zhou Ming vaguely remembered that in his previous life, he had a junior high school classmate who made tens of millions of dollars a year by dealing with non-performing assets, and he had no other tricks, that is, when there was a wave of bankruptcy of coastal enterprises in 14 and 15 years, he borrowed 800,000 yuan from the bank by mortgaging real estate, and then he used the funds to acquire and deal with non-performing assets in various bankrupt enterprises along the coast. Later, when the class reunion was held in 16 years, he drove a five-million Bentley to the show.

Zhou Ming was very impressed by this matter, so since Zhou Ming knew that the interests behind the handling of non-performing assets were so huge, and now that he had such a good opportunity, wouldn't it be stupid not to do it himself? As for someone making money, someone must have lost money, anyway, it was the Americans who were pitted, or Brooke Investment Company, who were his own enemies, and he did not have any burden of conscience.

With this in mind, Zhou Ming said to all the students in the finance class: "You think that you are destined to lose money, but I can tell you very responsibly that behind these non-performing assets, there are huge interests that you can't imagine." ”

Zhou Ming stopped when he said this, and Lin Muqing took over the conversation very sensibly and explained to the students: "There are many people in Hong Kong City who specialize in this kind of non-performing asset treatment, such as the very famous Hongxing and Dongxing Company, but the disposal of non-performing assets is not limited to these underworld methods that cannot be put on the table, and there are actually many legal means that can also be used." ”

Lin Muqing thought for a moment and then said: "Let's take my own example, my Siming Investment Company once spent $5,000 to bid for a non-performing asset package from the Hong Kong City Bank, and after a year of disposal, I finally made a profit of 300 million US dollars from this non-performing asset package. ”

Hearing this number, everyone in the financial class couldn't help but gasp, and everyone showed an incredible look of surprise, after all, even those who were born in banks and investment securities families could not have imagined that such a huge profit was contained in this non-performing asset, which was no longer a windfall profit, but a windfall profit in the profiteering industry.

"That's why I'm going to open the door to a new world for you. However, when it comes to dealing with non-performing assets, I'm not going to continue with Wharton, but I'm going to set up a new company and leave it to you. Zhou Ming said with a smile, and then he asked Ye Ning, "I heard that you were completing the accounting just now, so how much money do we have in our account now?"

"Teacher, since most of our accounts are still unfrozen, we still have about $5.6 million in funds to use. Ye Ning replied.

"The money is enough, and then the new company will be handed over to you. Zhou Ming said.

With Zhou Ming's words, all the students in the finance class immediately cheered, but just when all the students in the finance class were a little excited and eager to try, the class leader Chen Shu said: "Teacher Sister Muqing, I completely believe your words, but there are some things I think it is better to be cautious." ”

Zhou Ming raised his eyebrows, it seems that Chen Shu, the squad leader, still has two brushes, at least he is very calm.

Zhou Ming knew that because of his own face, Chen Shu's words were very tactful, in fact, what he meant was to worry about those bad assets, after all, high returns are usually accompanied by high risks, if you are not careful, it is very likely that all the investments will be lost, and you will not get back a penny, otherwise, if it is really so easy to do, why don't banks or other investment banks deal with it themselves, and sell it to others at a low price? Are the banks all brain-dead?

Thinking of this, Zhou Ming said to Chen Shu: "I understand what Chen Shu means, I know how to deal with the non-performing assets I am talking about, because the non-performing assets I am going to take over are the mortgaged properties of those subprime loans in the hands of Brooke Investment Company." ”

"I promised them that I would give them back their property when I was trying to persuade them, and now is the time for me to keep my promise. Zhou Ming said, "Of course, considering their ability to pay, I will not sell them at one time, but provide them with a lease service, that is, sign a long-term rental contract with them, as long as they pay me rent every month, they can go back to live in their original house, and as long as they live here for a certain period of time, I can give them the house." ”

"So I have a very stable monetization channel, and I have done research, and most of these people are capable, and even if those are not, I can lower some rents appropriately. Zhou Ming said, "According to my calculations, if I spend 5 million to buy these non-performing assets, I will rent all these houses back to those people, and it will only take five months at most, and I will be able to return the capital, and the rest will be profitable." ”

If Zhou Ming's previous proposal to deal with non-performing assets only surprised the students in the finance class, now they are extremely shocked by Zhou Ming's idea.

Indeed, according to the classification of assets, when Brooke Investment Company goes bankrupt, in order to pay off the company's debts, all the mortgaged properties of subordinated loans will be auctioned, but the auction of tens of thousands of properties and cars can not be completed overnight, not to mention the negative impact of so many assets entering the market at once, there is no doubt that these assets will eventually be classified as non-performing assets.

At this time, Zhou Ming was able to buy these mortgaged properties and rent them out, which was indeed not only a promise to the minorities who helped him set off a subprime mortgage crisis, but also a way to make huge profits by dealing with non-performing assets.

However, there is one of the biggest problems here, that is, there are so many mortgaged properties, no matter how bankrupt Brooke Investment Company is, he can't sell them at such a cheap price, right?

Chen Shu, Li Yang and Ye Ning and other students in the finance class looked at each other, they didn't know what to say in the face of Zhou Ming's self-confidence, and finally Chen Shu stood up and said: "Teacher, I think if it can be successful, then this will undoubtedly be a very successful disposal of non-performing assets, but the key is how to let Brooke Investment Company sell its mortgage assets at a low price, is this the topic we will discuss next?"

Zhou Ming nodded at Chen Shu with a smile and said, "My comrade squad leader, if you are questioning my decision, just say it, I am not so arbitrary." ”

Regarding Zhou Ming's words, Chen Shu scratched his head embarrassedly: "Teacher, I didn't say that, in fact, I also support your idea, teacher, but I think that if you get the mortgage assets of Brooke Company, it is the key to all problems." ”

Zhou Ming nodded again and said, "That's true, but I already have a good way, I don't know if you still remember a black woman who came here yesterday." ”

When Ye Ning heard this, she immediately said: "I remember that she is a family representative of the minority in the Vida community, and she came to discuss the housing issue with you, and said that the teacher promised them housing. ”

"That's her, she told me a very interesting story yesterday when she was leaving, she said that her subprime loan was handled through a friend in Brooke Investment, it seems that her friend was also promoted recently because of his outstanding performance, the company gave him a bonus of more than 100,000 yuan, he bought a sports car, but recently due to the subprime mortgage crisis, the company seems to be looking for trouble for him. ”

Speaking of this, Zhou Ming paused for a moment, and then continued: "I can understand that this lady Xiandi is a little jealous when she says this, but for me, it provides me with an important information, that is, this salesman, I may be able to take advantage of it." ”

All the students in the finance class were dumbfounded, Li Yang opened his mouth in surprise, and asked in a daze: "Teacher, you don't want to set out all those properties through this salesman, right?"

Zhou Ming shrugged his shoulders meaninglessly: "How do you know if you don't try?" Anyway, now I know that Brooke Investment Company has fallen into a subprime mortgage crisis, and there must be a shortage of funds, and he will be in a hurry to realize those mortgaged properties, this is my chance." ”

After speaking, Zhou Ming stood up: "Okay, let's do a good job of those who helped us apply for personal bankruptcy to do a good job in the statistics of their real estate, after all, I promised them, we still have to do it, remember that no matter we do investment or finance, integrity is still the most important thing!"

In the end, Zhou Ming smiled again: "Of course, it would be better if I could make some money by the way!"