Some choice quotes from Tom Barrack, head of Barrack’s Colony Capital (one of the largest private equity firms devoted to real estate and having provided returns of 21 percent annually since 1990):
“I feel totally safe playing polo on a field full of pros,” says the bronzed 58-year old. “But when amateurs are all over the field, someone can get killed. They have more guts than brains. They charge after every ball and don’t know when to hold back.”
It’s the same with U.S. real estate right now. “There’s too much money chasing too few good deals, with too much debt and too few brains.” The amateurs are going to get trampled, he explains, taking seasoned horsemen, who should get off the turf, down with them.
Says Barrack: “That’s why I’m getting out.”
Right now, Barrack’s view of the U.S. market couldn’t be clearer: It’s a great time to sell, and a terrible time to buy.
∙ The king of real estate’s cashing out [CNN/Money]