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6 Lessons EVERYONE in Real Estate Should Know
From Jeff Blau, CEO of Related
Jake at Stoutland RE
May 10, 2024
Jeff Blau is CEO of one of the world's largest real estate developers (Related)
He has overseen $60 billion of real estate development
I listened to as many of his interviews as I could
Here are 6 lessons from Jeff Blau:
Friday Four
Video Awesome story of how Larry Silverstein acquired his first deal in New York City (start at 4:00 minute mark)
Podcast Rick Caruso seems to be a great person, and he is unequivocally a tremendous real estate developer. Interesting to hear his full story in this podcast
Tweet Interesting thread on the medical office asset class. Matt is one of the smarter real estate investors I know. When he talks, I listen
Ever wonder about the $460 Billion industry of medical office buildings?
Chances are you're going to be spending more time at them as you fight the war against time.
A thread on trends in the asset class, why we're BULLISH, and how well it holds up in recessions:
— Matt Lasky (@MattLasky)
1:31 PM • Mar 16, 2023
Quote
When you lose your reputation, you lose everything
The larger and more complicated the project, the better
Related has two advantages:
1. They can raise LARGE amounts of capital
2. They have niche expertise in development
When you combine the two, the air becomes much thinner (less competition)
There are 2 main problems in the real estate industry today:
1. Old office buildings
2. Capital markets
Otherwise, real estate fundamentals are sound
Developers need two characteristics
1. Optimistic - able to sell a vision
2. Realistic - have a dose of realism, those that don't have this always get wiped out
You learn more in a downturn
Jeff entered in the real estate industry in 1992, one of the worst real estate recessions in the past 50 years
He says the knowledge he learned was pivotal to the real estate professional he has become
Real estate is a local business
You need local talent and local execution to succeed
Be wary of placing big city talent in small(er) cities - the two don't often mesh
GMP should mean guaranteed minimum price, not guaranteed maximum price
As soon as there is an overrun, the contractor is nowhere to be found and the overruns ultimately fall on the developer
Always have reserves
If you want to dig deeper, here are a few interviews from Jeff Blau
Until next week,
Jake
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