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Maverick Real Estate Investing : The Art of Buying and Selling Properties Like Trump, Zell, Simon, and the World's Greatest Land
Maverick Real Estate Investing: The Art of Buying & Selling Properties Like Trump, Zell, Simon & the World's Greatest LandOwners
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BOOK DETAILS

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BOOK DETAILS

Steve gives an overview of the book:

How do the world's most successful developers--from Donald Trump to Sam Zell--make the most of every real estate transaction? The answers are found throughout Maverick Real Estate Investing. In this one-of-a-kind book, you'll learn the secrets to making a good deal, using other people's money, establishing cash flow targets, finding the best locations, getting top legal and tax counsel, overcoming negative responses, selling at the right time, and much more. It's must reading for every aspiring real estate titan, and will give you the tools necessary to make every deal a profitable one. Table of Contents Introduction. Chapter 1: Make a Good Deal. Chapter 2: Understand Cycles. Chapter 3: Use Other People’s Money. Chapter 4: Establish Cash Flow Targets. Chapter 5: Be in Alignment. Chapter 6: Find a Nearly Perfect Location. Chapter 7: Benefit from Someone Else’s...
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How do the world's most successful developers--from Donald Trump to Sam Zell--make the most of every real estate transaction? The answers are found throughout Maverick Real Estate Investing. In this one-of-a-kind book, you'll learn the secrets to making a good deal, using other people's money, establishing cash flow targets, finding the best locations, getting top legal and tax counsel, overcoming negative responses, selling at the right time, and much more. It's must reading for every aspiring real estate titan, and will give you the tools necessary to make every deal a profitable one.

Table of Contents

Introduction.

Chapter 1: Make a Good Deal.

Chapter 2: Understand Cycles.

Chapter 3: Use Other People’s Money.

Chapter 4: Establish Cash Flow Targets.

Chapter 5: Be in Alignment.

Chapter 6: Find a Nearly Perfect Location.

Chapter 7: Benefit from Someone Else’s Disasters.

Chapter 8: Make Safe Gambles.

Chapter 9: Hire Savvy Managers.

Chapter 10: Get Good Legal and Tax Counsel.

Chapter 11: Overcome Negative Responses.

Chapter 12: Sell to Your Advantage.

Notes.

Index.

Quotes

"Steve Bergsman's profiles of some of the most successful investors of our time give an illustrative and illuminating insight into how the best in the business have consistently managed their risk . . . and raised their returns. If you want to make it in the competitive world of real estate investing, read this book!"
--Dale Anne Reiss, Global and Americas Director of Real Estate, Hospitality, and Construction Services, Ernst & Young

"For the novice--and even the experienced--investor in real estate, Steve Bergsman's book contains lots of worthwhile ideas. Better still, it clearly explains how to implement them. Easy to read and insightful, it's one of the better how-to investment guides around."
--Richard Rescigno, Managing Editor, Barron's

"I have been reading Steve Bergsman's insightful real estate reporting and commentary for over a decade. He is one of the best real estate writers in America, as evidenced by his captivating analysis in Maverick Real Estate Investing, where he melds personalities and investing principles into a very good read."
--Jonathan L. Kempner, President and Chief Executive Officer Mortgage Bankers Association

Read an excerpt »

When it comes right down to it, the best advice for real estate investors is to practice patience. Though there are many instances when it is necessary to act quickly, patience is a virtue even in situations where time is of the essence.

As one case in point, right after the dust cleared from Equity Office Properties’ initial public offering in 1997, the real estate investment trust’s chairman, Sam Zell, began planning a major expansion. Caught in his crosshairs was another real estate investment trust (REIT), Cornerstone Properties, which he wanted to own.

Zell knew that although Cornerstone had managed to quickly grow its portfolio of properties, the New York–based REIT was smaller and would have trouble gaining access to the capital markets. It took three years, but Zell finally snared his prey, buying the company for $4.6 billion.

The key to this deal was persuading a Dutch pension fund, which owned about 30 percent of Cornerstone, to sell. Although Zell clearly coveted the company’s 15 million square feet of office space, much of which was located in the same cities where Equity Office Properties already had a presence, he took his time with the pension fund. “After three years, the timing was right,” Zell said.

Convincing the fund to sell was only the first part of the deal. The bigger challenges were ahead. Zell wanted the transaction to take place on his terms, plus he had to convince a group of banks to do the funding. A notoriously tough bargainer, Zell eventually agreed to pay $18 per share in stock and cash in what amounted to adding a 20 percent premium to the stock price at that time.

Equity Office Properties assumed $1.83 billion in Cornerstone debt, but the total price tag amounted to the equivalent of Cornerstone’s net asset value—no more, no less.

Since the investment banks were happy to finance the deal, Zell wrangled additional financing, including a $1 billion bridge loan, a $1 billion revolving credit facility, and a $500 million bond offering.

Patience and slow, deliberate negotiations produced for Equity Office Properties a huge addition to its portfolio, along with plenty of capital leeway for anything else Zell might stumble across.

If three years seems like a long time, in the real estate business, it’s really not. Hamid Moghadam, president and chief executive officer of San Francisco–based AMB Property Corporation, tells of pursuing a deal for two Kennedy International Airport cargo facilities for two and a half years before nailing down the properties. For Moghadam, it was also a matter of slowly and deliberately convincing the seller to come to the table.

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Note from the author coming soon...

About Steve

Steve Bergsman has been a freelance journalist and real estate columnist for the past three decades. His news stories have appeared in over 100 newspapers, magazines, newsletters and wire services around the globe.
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