Real Estate

“All experienced investors know that earning power exerts a far more potent influence over stock prices than does property value.”

“If you’re going to invest in stocks for the long term, or real estate, of course, there are going to be periods when there’s a lot of agony and other periods when there’s a boom. I think you just have to learn to live through them.”

“Euphoria can lift housing and dot-com prices; panic can send sound banks tumbling.”

“One thing all of us know for sure is that the stock market doesn’t go down just because a lot of folks think that it has entered the heart of looney land.”

“Investors in distressed property are motivated primarily by the expectation that the equity value of a real estate asset acquired at less than its original cost-to-construct will in time increase to a point that justifies its original indebtedness.”

“Real estate investment decisions do not lend themselves to macroeconomic issues. Real estate is a local market, by definition. lt is not possible to focus on national trends; one must focus on local issues and characteristics.”

“Do I think 100-story buildings were ever economical? No. They were just phallic symbols in an environment where we lived in la-la land and thought we were never vulnerable.”

“Internal rates of return and other mathematical formulas for real estate projections attempt to legitimize the presumption of predictable results.”

“The most significant factor influencing real estate’s future value is competition. One could argue that the higher the occupancy and the rates, the more likely this level of performance will not continue.”

“Growth, demographics, and liquidity drive the real estate business.”