We Study Billionaires - The Investor’s Podcast Network

TIP552: Mastering the Art of Investing: A Deep Dive w/ Sam Zell

May 14, 2023

01:06:21

Episode guests

Sam Zell

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Podcast summary created with Snipd AI

Quick takeaways

Creating competition among buyers and increasing the breakup fee can lead to successful acquisitions.

Understanding supply and demand dynamics, long-term thinking, and focus on cash flow and liquidity are crucial in real estate investing.

Money equals freedom, and liquidity equals value, providing more choices, flexibility, and opportunities for investors.

Deep dives

The Acquisition of Equity Office Properties

Sam Zell walks through the acquisition of Equity Office Properties and how the deal unfolded. He explains his strategy of creating competition among buyers and increasing the breakup fee to discourage competing bids. The ultimate sale to Blackstone for $39 billion was a significant success for both parties, with Blackstone able to liquidate two-thirds of the portfolio at prices above what they paid for the entire company.

Real Estate Investments in an Upturned Market

01:18

Investing vs. Flipping: Time and Taxes Dictate Fortune

01:38

The Importance of Money in Creating Freedom

00:42

The Oversupply of Workspace Buildings

01:39

Introduction

2min

Sam Zell's Balance Between Drive and Ego

4min

The History of the REIT Industry

2min

The Rise and Fall of REITs

1min

The Modern Wheat Era of Real Estate

2min

How to Create a Positive Environment for Real Estate

2min

The Rise and Fall of the REIT Industry

2min

The Pandemic and the Real Estate Industry

2min

The Pre-Pandemic Period

2min

10.

The Effect of the Pandemic on Work From Home

2min

11.

The Importance of Doing Your Homework

2min

12.

The Rise and Fall of the Retail Industry

2min

13.

The Importance of Maintaining Fear in Bitcoin Security

4min

14.

The Dynamic of Supply and Demand

2min

15.

The Impact of High Inflation and Low Unemployment on Investing

2min

16.

The Importance of Supply and Demand in Inflation

1min

17.

The Supply and Demand of Capital

2min

18.

The Future of Money Market Funds

2min

19.

The Importance of Stopping Inflation

1min

20.

The Importance of Supply and Demand

2min

21.

The Decline of the Real Estate Market

2min

22.

The Leader Long Ago, Is Losing Population

2min

23.

The Power of Competition

2min

24.

The Importance of Long Term Appreciation

4min

25.

The Importance of Buying and Holding

2min

26.

The End of Equity Office

2min

27.

How to Sell Equity Office

1min

28.

The Blackstone Group's Strategy in Selling

2min

29.

The Problem With Antitrust Laws

2min

30.

Blackstone's Second-Round Success

2min

31.

The Importance of Timing

1min

32.

The Importance of Purpose in Your Career

2min

33.

The Challenge of Climbing a Mountain

2min

34.

Money Equals Freedom

2min

35.

The Importance of Freedom

2min

36.

The Importance of Freedom

2min

37.

Millennial Investing by the Investors Podcast Network

2min

On today’s show, we have the honor of interviewing legendary real estate investor and entrepreneur, Sam Zell.

Sam Zell has an impressive background, having started his career in real estate in the late 1960s. He is the founder and chairman of Equity Group Investments, a leading private investment firm. Over the course of his career, Sam has made many bold moves and investments, earning him a reputation as a savvy and fearless investor.

One of Sam's most notable achievements was his role in creating the modern-day real estate investment trust (REIT) industry. He did this by founding Equity Office Properties Trust in 1997, which became the largest office REIT in the United States. In 2007, he sold the company for a record-breaking $39 billion.

Joining us today as a co-host is David Greene, an accomplished real estate investor, and host of the BiggerPockets podcast, one of the most popular and highly-rated podcasts in the real estate investing space.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

04:49 - How Sam helped pioneer the REIT industry and what improvements he would like to see today

30:42 - What drives him to succeed at 81 years old

35:37 - Why Sam would raise interest rates further if he was the head of the Federal Reserve

49:36 - How Sam thinks through when to buy and when to sell

50:48 - A play-by-play breakdown of how he sold Equity Group Investments to Blackstone for nearly $40 billion dollars

1:06:08 - Why he says “liquidity = value”

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Am I Being Too Subtle by Sam Zell Book
Bigger Pockets Podcast
Trey Lockerbie Twitter

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We Study Billionaires - The Investor’s Podcast Network

TIP552: Mastering the Art of Investing: A Deep Dive w/ Sam Zell

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Acquisition of Equity Office Properties

Lessons on Real Estate Investing

The Importance of Freedom and Liquidity

Lessons from the Equity Office Properties Sale

Sam Zell's Unique Approach to Investing

Real Estate Investments in an Upturned Market

Investing vs. Flipping: Time and Taxes Dictate Fortune

The Importance of Money in Creating Freedom

The Oversupply of Workspace Buildings

Get the Snipd
podcast app

AI-powered
podcast player

Discover
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Save any
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We Study Billionaires - The Investor’s Podcast Network

TIP552: Mastering the Art of Investing: A Deep Dive w/ Sam Zell

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Acquisition of Equity Office Properties

Lessons on Real Estate Investing

The Importance of Freedom and Liquidity

Lessons from the Equity Office Properties Sale

Sam Zell's Unique Approach to Investing

Real Estate Investments in an Upturned Market

Investing vs. Flipping: Time and Taxes Dictate Fortune

The Importance of Money in Creating Freedom

The Oversupply of Workspace Buildings

Get the Snipdpodcast app

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Discoverhighlights

Save anymoment

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