I recently read a periodical in Forbes about the richest tech billionaires, summarizing their net worth and the companies they were a part of to amass their wealth. The majority of these tech giants have been allocating significant amounts of their net worth to commercial real estate as a vehicle to protect and grow their wealth.This trend demonstrates the need to consider this asset class in our own investment portfolios.
The following is a quick summary of some of the world’s richest tech billionaires investing in real estate…
- Larry Ellison – America’s third richest man and the co-founder of Oracle is worth $43B. Larry has been on a real estate buying spree, purchasing over $600M in real estate over the last year, including two resort hotels and a housing development. He also owns a number of commercial assets in Malibu, California.
- Michael Dell $15.3B, Michael Dell uses MSD Capital to invest in commercial real estate assets. MSD has been actively acquiring commercial and multi-family properties, land development, and real estate-backed loan portfolios. MSD is where a good portion of Michael’s wealth is coming from, according to Forbes.
- Paul Allen, Microsoft’s co-founder, is worth $15B and owns Vulcan Real Estate actively manages and develops a diversified portfolio of $2.3 billion of commercial real estate investments.
- Jeff Bezos, Amazon CEO, is worth $25.2B and has recently been dubbed “America’s Land Baron with nearly 300,000 acres of land.
- Bill Gates – With a net worth of $67B, Bill Gates holds a diverse portfolio of investments. His personal fortune is managed under a company called Cascade Investment LLC. Cascade Investment LLC is a diversified investment company with an emphasis on commercial real estate private equity managed by a subsidiary, Los Arboles Management.
- Sergey Brin – Worth $22.8B, Google’s co-founder through his company Passerelle Investment Company has paid tens of millions of dollars to purchase a half-dozen commercial buildings in the last three years.
We know the benefits of commercial real estate, but we also know the significant amount of capital and expertise required are major barriers to entering this market. RealCrowd aims to bring this exciting asset class to even more investors by reducing the required capital and introducing investors to experienced operators, making commercial real estate investing easy. For a look at how investing in commercial real estate can provide a great return at any life stage, click here.
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