Frankly, there’s no substitute for limited competition. You can be a genius, but if there’s a lot of competition, it won’t matter. I’ve spent my care… - Sam Zell

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Frankly, there’s no substitute for limited competition. You can be a genius, but if there’s a lot of competition, it won’t matter. I’ve spent my career trying to avoid its destructive consequences. Competition skews people’s assessments; as buyers get competitive, the demand for assets inflates pricing, often beyond reason.

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I looked at each property and figured out how much debt service it could handle based on its existing cash flow. I’d restructure the debt at a lower interest rate and put $1 down on the property along with a limited cash-flow guarantee to ensure the institution would not go into default while waiting for the market to recover.

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