Several markets around the world may have hit a snag, but there's no slowing down these bunch of real estate billionaires as more and more individuals of their kind are joining the elite circle. The Forbes' list this year has counted 23 more of these property moguls making the cut.
Affluent men from the Asian-Pacific nations comprise more than half of the top 20 wealthiest in real estate. The total number of real estate billionaires in the world now stands at 157, according to the list. And, who wouldn't want to follow on their footsteps? Forbes offers some insights on how these elite bunch made their way to the pinnacle of financial success, and for us to learn a thing or four from them.
1. Follow The Money
You have to follow the trend. You have to be able to tell apart those places which are turning into hotspots for economic growth.
Jay Paul, with his company, did just that. He owns 4 million in square feet of upmarket real estate properties that he utilized for office space purposes, and leases it out to giant companies like Amazon and Google.
These multi-million dollar companies, together with other growing businesses, needed office and commercial spaces while the thousands of people they employ could use residential space near their work.
Jay Paul was able to capitalize on this dynamic that paves the way for high real estate demand. He was able to make the most out of San Francisco's economic boom where the capital seems to always chase growth, says Forbes. And just this 2015, the man via his Jay Paul Company made the billionaires list (#1,250) with a net worth of $1.5 billion.
2. Leapfrog Your Way to Success
Real estate billionaires who make it big are not just those savvy people who were able to predict the huge potential of one market, but they are also those who display firm resolve and are able to push through despite road bumps thrown at them on their way to the top.
David Walentas, who made the list last year, (#1,054 in 2015) is the founder of Two Trees Management Company. He was able to secure his billionaire status by transforming the previously rundown industrial Brooklyn neighborhood of Dumbo into one of New York City's hottest areas.
But, it wasn't before his partners and banking connections turned their backs on him with the seemingly bold and ludicrous investment he put in for two million square feet in Dumbo, to the tune of $12 million back then. He had his fair share of detractors, but he wasn't fazed. And today, a single unit in Walentas' Clock Tower building can sell for twice the amount of the entire original investment according to Forbes.
3. Heed the Demand Stemming from the Market Boom
Forbes cited the example of Levi Strauss who moved to the Bay Area during the California Gold Rush (1848-1855) but not to scramble for gold just like the many others. He created and sold rugged pants that could stand the test of hard manual labor. Today, Levi Strauss & Co. is included in Forbes list of top 100 Largest Private Companies in America with a revenue of $4.68 B.
Sanford Diller (#1,415), who is also a 2015 newcomer with a net worth of $1.3 billion, took the similar path. "His firm develops and manages high-end residential and commercial properties across the hubs of technology and entrepreneurship on the West Coast." He need not be a tech genius; he just needed to provide for the ensuing real estate demand.
4. Find Your Niche
Jeff Sutton, the founder and president of Wharton Properties, made the 2014 list and now ranks #557 in 2015. He owns around 130 NYC buildings which top fashion brands like Prada, Dolce & Gabbana, American Girl and Armani lease.
New York is such an immense but downright intimidating market; but, one needs not to conquer the whole market. Jeff Sutton found a niche and channeled his efforts and resources into it. He focused on the need for high-end retailers in Manhattan, and he created innovations to boost profitability for his investments like the concept of multi-floor retailing.
