We believed the real money in real estate came from borrowing long-term, fixed-rate debt in an inflationary scenario that ultimately depreciated the … - Sam Zell

Up until then, our investment decisions had been based on buying broken companies on the cheap, below replacement cost, and building them from there.

The third acquisition was a big single-family house. I found an architect, a small local general contractor, and we created a design for four separate units. Then I went to the bank and got loans to do the renovation. I was twenty-three, with a BA in political science. I didn’t know anything about financing. But it never crossed my mind that I might be too young to start an investment business or that I couldn’t do it. I didn’t know any better, but was able to sell the banks on my ability to get it done. Our management company took over the property, did the renovation, and rented the units. The asset did very well.

So I wrote an article titled “From Cassandra, With Love” and it ran in the March 1988 Real Estate Issues. Cassandra was a character in Greek legend cursed by Apollo with the ability to make accurate predictions that no one believed.