How will the next billionaires in real estate earn their fortunes?

mIRRacle's picture
Rank: Monkey | 43

If you had to speculate, what do you think future successful real estate entrepreneurs will build/invest in that will generate billions of dollars? What will the next Donald Bren/Will Zeckendorf do?

Are there any opportunities (ex. new government policies, repurposing of assets, economic/societal trends)
you could see these entrepreneurs utilizing to earn their riches?

How do you think the next elite real estate entrepreneurs will differ from those of the past? Or will they be very similar?

Comments (28)

Sep 2, 2019

very difficult to become billionaire in real estate, you probably have to invest in emerging or distressed market like Mexico or Brazil

Look at top 30 or even 50 on the fortune list, you can't really find anyone from real estate

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Sep 2, 2019

In 2016 there were 163 real estate billionaires, more than any industry other than Finance/Investments and Retail/Fashion...

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Sep 3, 2019

Lol I just went to Forbes and look at the list of billionaires from real estate, guess what, the whole page is all Asians.....

First 5 are Hui ka yan, lee shau kee, wang jianlin, yang Huiyan, and Joseph lau

I guess if you want to be the next billionaire in real estate, born as Asian first

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Sep 3, 2019

Do you know much about Brazil RE? My father in law presented the opportunity to buy undeveloped beach front property in Bahia for 60k Reis which is roughly $15k. Its in a gated community on an island that is somewhat developed and close to a major city. Have always wanted to own a piece of beach in Brazil but don't know the market well and am no master of RE. The exchange rate is very favorable now so I'm considering the options.

Dm if you have experience/advice.

"Out the garage is how you end up in charge
It's how you end up in penthouses, end up in cars, it's how you
Start off a curb servin', end up a boss"

Most Helpful
Sep 3, 2019

Finding a solution for affordable housing that is high quality, offers flexibility for tenants, and is more of an operation that traditional apartments. If you can make the middle class feel like they have a home and are taken care while they pay you rent forever, you've tapped into a gold mine.

"Life is like a song, you are supposed to dance while the music is playing."

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Sep 3, 2019

This 100%. I think micro-homes/neighborhoods make the most sense. Imagine a curated gated neighborhood with ~1,200 sf lock-and-leave cottages for rent with tasteful landscaping and amenities. This works assuming the averaging millennial couple is only having one child and rent is $2psf or so on the economic side. This could be planned with a dedicated bike path to public transit.

Sep 3, 2019

It's tough to curate community to drive the desired rents. I saw a presentation about this concept a few months back.

Sep 3, 2019
InVinoVeritas:

This 100%. I think micro-homes/neighborhoods make the most sense. Imagine a curated gated neighborhood with ~1,200 sf lock-and-leave cottages for rent with tasteful landscaping and amenities. This works assuming the averaging millennial couple is only having one child and rent is $2psf or so on the economic side. This could be planned with a dedicated bike path to public transit.

Eh, gated communities aren't preferred, but the rest of this is spot on.

I'm struggling to find it now, but I read an article a week or two ago about "temp" cottage communities post Katrina that are still thriving. They look like this

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Sep 3, 2019

Matrix pods?

Funniest
Sep 3, 2019

the next billionaires in real estate will earn their fortunes by enabling short-term workstation rentals from dividing up long-term commercial leases. they may do this by incorporating a company to be the lessee of their own privately owned real estate. they will then list said company by slapping on a tech valuation.

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Sep 3, 2019

making your nut from IPO'ing a fraudulent company doesn't really count as making your nut in real estate

i understand this is a joke (and a funny one) but still

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  • Associate 2 in CorpDev
Sep 24, 2019

Guess this isn't happening anymore. Hee hee

Sep 25, 2019

Adam is still a billionaire.

Sep 3, 2019

Same way the last ones did - taking advantage of cheap land/valuations, delivering on time and on budget, adapting to changing market forces, and getting lucky on timing.

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Sep 3, 2019

I think the next billionaires in the sector are going to be on the construction side. Anyone who can use technology to reduce labor and time in the construction process will make a killing, especially as the labor pool of skilled tradesmen shrinks.

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Sep 3, 2019

I agree with this. There are a lot of opportunities in the prefab/manufactured construction space, though the industry is still young and has some kinks to figure out.

Sep 3, 2019

Yeah it will be tough. Most other companies that have blown up and created billionaires have done so where there has been a lack of regulation or by skirting regulations (airbnb). It is tough to do that with real estate.

Sep 3, 2019

The next real estate billionaires will come from emerging markets.

Sep 25, 2019
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