Sam Zell

Sam Zell, one of my personal real estate investing heroes, has put together a $625 million fund to buy distressed securities backed by assets including commercial real estate.

The 67-year-old billionaire filed a private-placement notice last month for Zell Credit Opportunities Fund LP, described as a private-equity fund that received its initial backing from a pair of unidentified investors.

The only thing I don’t like about this announcement is that the media is perpetuating the “vulture real estate investor” stereotype by calling what he’s doing grave dancing. But since he coined the term himself….

The point is when in doubt follow what the really rich, smart guys are doing. And Sam is raising private money to buy distressed commercial paper.  Opportunity!

Oh, and did you catch the part about the money coming from two private investors? That’s raising private money, guys. Even though Sam is a billionaire, he’s not using his own money.  So, have YOU started raising private money yet?

Read the article in its entirety here:

http://www.bloomberg.com/apps/news?pid=20601103&sid=aiM0qVKDpGP8