I have a question for you..are you interested or are you committed? If you are just interested in making it big in real estate you will do what is convenient. As soon as things become inconvenient you stall out. Now when you are committed you will work beyond the inconveniences and find a way around them and go on to become wealthy like the wealthy real estate investors have done.
Okay, another question… What do businesses like McDonald’s and Publix grocery stores and billionaire’s like Donald Bren, Stephan Ross, Ted Lerner, John Sobrato, Sam Bell, Barbara Corcoran and Warren Buffet all have in common? I know; not exactly a trick question but, yes, you guessed it they have all amassed a great deal of wealth in Real Estate.
Real Estate investors disguised as businesses
If you have not already heard the story of McDonalds you will be interested to know that it really is not a burger and shake restaurant. Well perhaps McDonalds as you know it is a burger business, but digging deeper into the business model you will find that the burger business is just a great producer of revenue which makes for a great tenant capable of paying the rent to its other business. “The business of owning some of the most valuable land in the country”.
There are a number of businesses that are in the business of owning valuable real estate. It is a brilliant business model. Buy the cities and countries’ most highly sought after property, create a tenant capable of producing great revenue that can pay you solid and sustained rents and then repeat.
Publix grocery store is another example of this. While they tend to be tighter lipped over their business model, they have obviously noted a great portion of their prosperity coming from owning the property.
Their asset management team now controls over 330 of the stores and shopping centers that their stores are operating in and that number continues to grow. They obviously understand that the grocery giant adds value to its surrounding stores and that landlording makes for wealthy property owners.
Meet a few of the wealthy landowners and investors in the U.S.
Ted Lerner: Wow! Ted actually started a real estate company with a $250 loan he secured from his wife (back in 1952 when a dollar actually bought something.) He sold more than 22,000 homes for developers. Eventually he actually became a developer himself and now owns hotels, 7,000 apartments and an estimated 20 million sq.ft. of commercial and retail space.
Stephen Ross: Stephen is the chairman of the largest private real estate project within the U.S., a $15 billion, 28 acre Hudson Yards neighborhood and is expected to be completed by 2024.
Donald Bren: perhaps the country’s wealthiest real estate mogul. Donald has reportedly turned a $10,000 loan he got from the bank and into a multi billion dollar powerhouse and is now worth an estimated $17 Billion. Donald had started building and flipping a large number of houses and was successful in riding the economic wave of prosperity during the real estate boom of the late 60’s. Recently his portfolio has evolved into 50,000 apartments, 3 hotels, 40 shopping centers as well as marinas and golf courses. He is said to own 1/5th of Orange County. Now that is some serious market share.
John Sobrato: John owns 6,600 apartments along the West Coast
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Sam Zell: Sam holds stake in many investment classes and is big in health care, however his bread and butter is made in real estate. He successfully sold his equity office properties to Blackstone for $39 billion after paying only $96 million a few years earlier
Barb Corcoran: We all know and love the real estate mogul we see on Shark Tank. Her rise to notoriety was from taking a $1,000 loan and turning it into New York’s real estate empire. Barb became very well known in the real estate industry throughout all of New York and later throughout the entire country. She later sold her real estate empire for a reported $70 million dollars.
Warren Buffett: What investment story would be complete without including the infamous investment guru of all time. The mighty Warren invests in a large array of investments and he is very bullish on Real Estate. He owns a 377 million dollar stake in “Capital Store” which is a real estate investment trust which is a 2.7 trillion dollar investment market. He owns mortgage companies, real estate companies and a large amount of real estate throughout the country.
Be like the wealthy
Do you see a common denominator here? Many of these pioneers all started with a tiny little loan and multiplied it enormously! Suggesting that with diligence and a plan you can do anything you desire.
Just watch out for those obstacles that tend to get in the way. We all experience obstacles but as these wealthy investors have proved you can overcome every challenge as long as you stay focused.
Indeed, there are thousands of investors who you may choose to be like. After all better than 90% of millionaires have made their way through the real estate investing channels. These millionaire and billionaire real estate investors have plowed the path for many investors.
As Henry Ford said “ I do not need to know everything I simply need to associate myself with people who know all these things.” As you do this you too can be like these successful investors who have amassed a great deal of wealth in real estate .