Sam Zell

“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.”

“Developers are creating a product that meets the developer’s test of profitability, not necessarily the marketplace’s test of economic viability. If the developer believes the creation and presale of the product assure him a profit, then the discipline of the marketplace disappears and oversupply follows.”

“My attitude towards business school is that there are six courses which are critical and most of those are accounting.”

“I look at situations and act when I think the problems are temporary. I believed if you could buy assets with sufficient ability to carry them then over time you could not lose.”

“Early on I adopted a philosophy I call the Eleventh Commandment, “Thou shalt not take thyself too seriously,” and it became a governing principle in my life. Big investment deals can get heady at times, and it can be easy to start thinking your brand is bigger than your performance.”

“In any negotiation I believe in leaving a little bit on the table. And in any relationship I believe in sharing the stakes.”

“I have a saying: “If everyone is going left, look right.” Conventional wisdom is nothing to me but a reference point.”

“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.”

“Reputation is your most important asset. Everything you do, everything you say, is part of the permanent record. Your name reflects your character.”

“When it is all said and done I am a professional opportunist. What has always intrigued and attracted me are scenarios where I believe there is significant inherent value beyond the price I am paying.”

“The market is unforgiving.”

“The very important basic premise of what really is a fair deal is a deal where everybody makes money, both the sponsor and the stockholder. That is what it is all about.”

“Reliance on historical perspectives must be tempered by individual market analysis.”

“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.”

“Faith in the future is as much motivated by confidence as it is a reflection of fear in acknowledging a mistake.”

“Taking risks today for tomorrow’s reward is both the most challenging and difficult of tasks. Unbridled optimism must be tempered with reality.”

“Technology is the ultimate definition of human capital.”

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

“Rather than focus on numerical indexes in investment decisions, the investor should focus on unique characteristics that protect the investment from competition. Thus bar to access is a critical element in the evaluation.”

“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.”

“The most intelligent investment may perform poorly if it is surrounded by too much supply.”

“Discipline comes from the marketplace, from fear of loss and the consequences that come from overindulgence.”

“I am very focused on understanding the downside. And I have a pretty good track record, but it’s not perfect. You can’t play at this level without some pretty big highs and lows.”

“Some might see buying and creating value from others’ mistakes as a form of exploitation, but I see it as giving neglected or devalued assets, in any industry, new life.”

“For me, business is not a battle to be waged — it’s a puzzle to be solved.”

“I do know, at least in my business, luck must certainly be enhanced by a keen sense of awareness.”

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

“You have no value if you have no liquidity.”

“People have always made money by taking advantage of inefficient markets.”