Why Blackstone Likes Buying Existing Real Estate

Why Blackstone Likes Buying Existing Real Estate

Assessment

Interactive Video

Business

University

Hard

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The video discusses the strategic decision-making process in real estate investment, focusing on the choice between building new properties and purchasing existing ones. It highlights the preference for buying existing real estate at a discount, using the Cosmopolitan Hotel in Las Vegas as a case study. The video also addresses the challenges and risks associated with real estate development, such as economic fluctuations and the uncertainty of securing tenants and revenue.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary strategy discussed for acquiring real estate?

Building new properties from scratch

Leasing properties for short-term gains

Buying existing properties at a discount

Investing in undeveloped land

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What example is given to illustrate buying existing real estate at a discount?

An office building in Chicago

The Cosmopolitan Hotel and Casino

A residential apartment complex

A shopping mall in New York

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is buying existing real estate often preferred over building new properties?

It is less time-consuming

It allows for more creative design

It offers immediate income generation

It requires less initial investment

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk of developing new real estate?

Predictable economic conditions

Lack of tenants and revenue

Immediate income generation

High resale value

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a challenge mentioned about real estate development?

High initial costs

Uncertain future economic conditions

Limited design options

Immediate tenant availability