Chapter 23: Fifty Million

While adjusting the cuffs and lapels of his suit, Tao Zhiming remarked, "After all, my résumé did state my height and weight." Fortunately, Tao the Elder hadn’t let himself go—he wasn’t overweight or out of shape.

He walked over to the bathroom mirror. The new high-end suit indeed made him look even more handsome.

"Miss Runa, could you help me cut off the tags? Just like this, no need to change," he said.

"Yes, yes!" Runa Onodera hurried over, her footsteps light and quick. "Um... I'll use a paring knife, if that's all right."

"Anything is fine," he replied.

Runa fetched the small knife from the kitchen shelf nearby and reached out.

Her fingers brushed the nape of Tao Zhiming’s neck as she gently slipped off the tags from the jacket and shirt. Out of the corner of her eye, she glanced at his reflection in the mirror, only to see that he was looking her way as well. Her lips pressed together nervously as she carefully prepared to cut the string.

The sharp blade was right next to his neck, and an unexpected feeling of trust welled up in her.

Next came the tag on his trousers. She half-knelt on the floor, suddenly realizing the intimacy of her posture, her heart beating ever faster.

Quickly finishing with the tags, she stood up at once. "All done!"

She set down the knife, gathered the tags in her hands, and hurried over to the trash to throw them away, hoping to hide the flush in her cheeks.

Tao Zhiming paid no attention; he glanced at his reflection one last time as the door sounded with another knock.

"That must be the bank," he said casually, heading for the front door.

Though he’d unexpectedly received a windfall of 1.26 million yen, it was only enough to provide a little more leeway for additional collateral—still not enough to support a larger position.

If he could secure a loan of thirty to fifty million yen, he’d have the equivalent of over two hundred thousand dollars at his disposal, giving him much more room to maneuver.

He opened the door. As expected, it was Segawa from the bank, accompanied by a female colleague.

Seeing Tao Zhiming, Segawa’s eyes lit up; he smiled broadly. "Good evening, Tao. You look even more dashing tonight!"

Tao Zhiming returned the smile modestly, then asked, "Sorry to trouble you, Brother Segawa, coming all this way so late. And may I ask, who is this lady?"

"This is my colleague, Haruki Minamoto."

"Pleased to meet you both—please, come in..."

Inside, seeing Ueno Yosuke and the others, Segawa and Minamoto paused in mild surprise.

Allowing no awkwardness, Tao Zhiming made the introductions. "This is Ueno Yosuke, my classmate. This is Miss Runa and her daughter; Yosuke is helping little Miko with her studies. My apologies for the intrusion."

"Ah! Then Mr. Ueno is also one of Todai’s prodigies. Haruki, be sure to leave your card with Mr. Ueno too."

At once, Haruki Minamoto stepped forward and, with a bow, presented her card with both hands. "Mr. Ueno, a pleasure to meet you!"

Ueno Yosuke, a bit flustered, accepted the card and replied with equal courtesy, "A pleasure—thank you very much."

"Brother Segawa, just a moment. I have all the documents prepared," Tao Zhiming said, retrieving the files he had organized the previous night and sitting by the low table. "The total purchase price back then was about twenty-five million; there’s still over eleven million unpaid. Now, a real estate company has approached me, hoping to buy at seventy million. Please assess—if I were to use the property as collateral, how much could the bank approve?"

The mention of seventy million yen didn’t elicit any reaction from Runa Onodera, though it was the first time she’d heard Tao Zhiming state his expectations so clearly.

In truth, the president might agree to such a sum. Yet, hearing that he was inquiring about a loan, perhaps he didn’t intend to sell the house so easily. After all, if he needed money, this was a ready way to obtain it.

Was he waiting for property values to rise even further, aiming for a higher price?

But with Mogami Holdings so determined, the president might resort to more aggressive tactics.

He’d asked to meet the president—what exactly did he intend to discuss?

As Tao Zhiming spoke, Segawa leafed through the documents, nodding thoughtfully.

Tao Zhiming had prepared everything: the mortgage contract, proof of purchase and ownership, his own identification. Every required detail was present.

The property title was clear, and they were well aware of property prices in Minato Ward.

Now that he was on site, Segawa could make a solid assessment.

After setting aside the documents, Segawa joked, "Tao, a man who owns a luxury home in Minato Ward, a Todai genius, and so handsome to boot. How about joining Ueno and me for a mixer with some of our bank’s lovely ladies?"

Ueno Yosuke, seated nearby, was momentarily stunned. Tao Zhiming laughed. "Brother Segawa, you’re always so amusing..."

"I’m quite serious," Segawa replied, giving him a once-over. "Is that Armani? Looks like your presentation went well today! Is this what Sumitomo can provide? No wonder they're such a powerhouse!"

Tao Zhiming demurred, "You flatter me, Brother Segawa. I couldn’t resist trying it on to see if it fit. So, what’s your assessment?"

"Seventy million is the premium the real estate company is offering. In reality, the current market price is around forty-five to fifty million. Aside from your mortgage, you have no other credit liabilities, which speaks well for your finances. And with your academic credentials, if you use the property as collateral..."

He considered for a moment. "I could probably approve a loan up to forty million yen."

"But..." Tao Zhiming interjected, "once interest rates start falling, and before exchange rate shifts harm manufacturing and exports, rates will likely keep dropping. Savings will become less attractive, and investment will flow into higher-yield assets like real estate. Otherwise, the real estate company wouldn’t be so eager to buy my house. So, the loan amount should factor in the expected appreciation."

Segawa looked at him in surprise.

"Besides, even if I decide to sell soon, I could likely get sixty million. So, couldn’t the loan be as high as possible?"

"You never fail to impress, Tao—truly a Todai mind," Segawa said sincerely, then relented, "Given those considerations, I can personally approve up to fifty million. Beyond that, the risk becomes unmanageable."

"I understand," Tao Zhiming said. "And what about the interest rate?"

"For real estate loans..." Segawa explained, "it depends on the loan term. For fifty million, a term of at least five years is best to keep the pressure down."

"But the longer the term, the higher the annual rate, isn’t that right?" Tao Zhiming asked with a smile. "What rates can you offer?"

Segawa chuckled. "Indeed... For three to five years, it's 9.36% annual; five to ten years, 10.08%; over ten years, 10.8%. Tao, with my authority, there's not much room to lower it."

Tao Zhiming winced. "That high?"

He recalled that during periods of excess liquidity, strong clients could sometimes get rates as low as 4%.

But then, large-scale fiscal stimulus hadn’t begun yet, and rates had only ticked down slightly.

Given the anticipated trends, it didn’t matter much. With higher returns ahead, the cost of financing was acceptable.

"Indeed, only long-term loans make sense, or the pressure is too great. But Brother Segawa, isn’t over ten years a bit steep?"