You don’t get to be one of the 400 wealthiest people in the United States by making poor business and investment decisions. And you certainly don’t stay on the list by refusing to learn from your mistakes or refusing to change with the times. Jorge Perez – with his net worth estimated at around $1.6 billion – is no fool, and he doesn’t plan on letting his wealth dwindle away.
CEO of the Related Group, Perez is a serious Miami real estate mogul, and what does a man who’s spent (and made) as much money on real estate as he has do when the bubble bursts? Since 2008, Related has moved its focus away from condominiums. In fact, the group has only just completed construction on its first condo building since the crash six years ago. Now that the housing market is starting to bounce back, what will Perez do with his company to sustain profits?
Attracting Tourists, Business, and Residents
Perez donated $40 million in art pieces and cash to Miami’s new museum, which was then christened the Perez Art Museum Miami (PAMM) . This kind of philanthropy is great for the city, but it’s also great for Perez. A new and beautiful art museum will attract more culture, which will attract tourists, business, and residents. Attracting these three groups will drive a need for more buildings, which Related Group will be happy to break ground on.
Looking at the Long Term
Perez has lost over $1 billion since the real estate crash. That’s more than most of us can imagine making in a lifetime, let alone losing and bouncing back from, but that’s just what Perez has done. Not only that, but he’s bounced back from a serious health scare, having discovered what turned out to be a benign growth on his pancreas that had been thought to be life-threatening.
In the years leading up to the crash in ’08, Perez admits he was terrible about micromanaging his company. He also fell victim to several speculators who were really only looking at short-term gain. As a result, Related flooded the market with condos. They overbuilt and actually contributed to bursting the bubble.
Perez has reevaluated his entire stance on his company and how he and Related should do business. He’s disconnected himself a lot from running everything and worked on delegating, rather than micromanaging. He’s also vowed to give a large portion of his wealth to charities and philanthropic ventures. As he gives back to the community, the community thrives and gives back to him and Related. As Perez looks to improving and building Miami, he’s actually improving and building the future of his own company and of real estate in southern Florida.
For more information on Miami real estate, READ MORE at the Sunny Isles Miami Real Estate Blog.
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