Fannie & Freddie IS Real Estate -- The $7 Trillion Play
Most people think of real estate investing as buying buildings. But every building in America with a mortgage is financed through a system that runs through two companies: Fannie Mae and Freddie Mac. Together, they guarantee over $7 trillion in residential mortgages. They ARE the American real estate market.
When their preferred shares traded at pennies on the dollar during conservatorship, that was not a financial crisis play -- it was a real estate play. The biggest one in history. If you believe in American homeownership, you believe in Fannie and Freddie. And if you believe in Fannie and Freddie, their preferred stock is the most asymmetric way to express that belief.
That is why this list ends where it does. The greatest real estate investors build buildings, develop land, and create empires. But the single largest real estate investment opportunity in history is not a building. It is the financial infrastructure that makes every building possible. You can read about Fanniegate, see my current positions, and judge the thesis for yourself.
25
Real Estate Legends
$7T+
GSE Guarantees
100+
Years of History
Trillions
In Real Estate Value
The Rankings
25 investors. From trophy towers to the $7 trillion mortgage market.
Sam Zell
Equity Group Investments, Equity Residential, Equity LifeStyle Properties · b. 1941 · d. 2023
The Grave Dancer. Zell built the largest apartment REIT in America by buying distressed real estate when no one else would touch it. He sold Equity Office Properties at the absolute peak in 2007 for $39 billion -- the largest leveraged buyout in history at the time. His contrarian instincts were unmatched in the real estate world.
“If everyone is going left, look right.”
Stephen Ross
Related Companies, Hudson Yards, Time Warner Center · b. 1940
Think bigger than anyone else. Ross built Related Companies into the most powerful private real estate developer in America and then bet everything on Hudson Yards, the largest private real estate development in U.S. history. He also owns the Miami Dolphins and turned Hard Rock Stadium into a global venue.
“I've never done a deal where I didn't think it could be bigger.”
Donald Bren
Irvine Company · b. 1932
Own the land. Bren controls the Irvine Company, which owns over 126,000 acres in Southern California -- one-fifth of Orange County. He is the wealthiest real estate developer in America because he never sold. He master-planned entire communities, held the assets, and let decades of California appreciation do the compounding.
“We are not developers. We are long-term owners. We build to own.”
Harry Macklowe
432 Park Avenue, GM Building, One Wall Street · b. 1937
Trophy properties in Manhattan. Macklowe is the developer behind 432 Park Avenue, the tallest residential building in the Western Hemisphere when completed. He has been buying, selling, and developing iconic New York City real estate for over fifty years, surviving multiple cycles through sheer conviction.
“Real estate is about creating something that wasn't there before.”
Blackstone Real Estate, Hilton Hotels acquisition · b. 1947
Institutionalize real estate investing at global scale. Schwarzman built Blackstone Real Estate into the largest commercial real estate owner in the world, with over $300 billion in assets. The 2007 Hilton acquisition -- $26 billion, doubled to $52 billion by exit -- may be the greatest private equity real estate deal ever made.
“I want war -- not a series of skirmishes. I always think about what is the biggest thing I can accomplish.”Read full profile
Barry Sternlicht
Starwood Capital Group, W Hotels, 1 Hotels · b. 1960
Brands create value in real estate. Sternlicht founded Starwood Capital and created the W Hotel brand, which revolutionized luxury hospitality. He later created 1 Hotels, the first major sustainable luxury hotel brand. He sees real estate not just as bricks and mortar but as lifestyle and brand experiences.
“Real estate is the most creative industry in the world. You start with nothing and create something people love.”
Tom Barrack
Colony Capital (now DigitalBridge) · b. 1947
Global opportunistic investing. Barrack founded Colony Capital and made his name buying distressed assets worldwide -- from French vineyards to Miramax to Raffles Hotel. He pioneered the concept of applying private equity discipline to real estate on a global scale.
“Be a contrarian. When everyone is buying, sell. When everyone is selling, buy.”
Richard LeFrak
LeFrak Organization, Newport, Jersey City · b. 1945
Multi-generational wealth through development and ownership. The LeFrak family has been building and owning residential real estate in New York since the 1880s. Richard LeFrak expanded the empire, most notably developing Newport in Jersey City -- a $10 billion, 600-acre waterfront community that transformed the entire city.
“We build cities. That is what we do.”
Jeff Sutton
Wharton Properties, Fifth Avenue retail · b. 1960
Own the best retail corners in the world. Sutton quietly assembled one of the most valuable retail real estate portfolios ever created, buying prime storefronts on Fifth Avenue, Madison Avenue, and Times Square. He is one of the wealthiest people in New York real estate and one of the least known.
“Location is not a strategy. It is the strategy.”
Don Peebles
Peebles Corporation · b. 1960
Break barriers and build landmarks. Peebles is the most successful African American real estate developer in U.S. history. He built a multi-billion dollar portfolio from scratch, developing landmark properties in Miami Beach, Washington D.C., and New York. He proved that world-class development has no ceiling.
“Do not let anyone define your limits. That is your job.”
Jorge Perez
Related Group, Miami condo towers · b. 1949
Build where the growth is. Known as the Condo King of Miami, Perez and Related Group have developed over 100,000 residential units in South Florida. He transformed the Miami skyline and proved that luxury condo development could be a repeatable business model at massive scale.
“I build for the way people want to live, not the way they have to.”
Howard Hughes
Hughes Aircraft, Las Vegas real estate empire · b. 1905 · d. 1976
Buy entire markets. Hughes did not just invest in real estate -- he bought entire swaths of Las Vegas, including casinos, hotels, and land that would become some of the most valuable acreage in America. His vision for what Las Vegas could become was decades ahead of its time. The Howard Hughes Corporation still develops master-planned communities today.
“I am not a paranoid deranged millionaire. Goddammit, I am a billionaire.”
William Zeckendorf
Webb & Knapp, United Nations headquarters site · b. 1905 · d. 1976
Visionary development, audacious scale. Zeckendorf assembled the land for the United Nations headquarters, developed Place Ville Marie in Montreal, and pioneered the use of complex financial engineering in real estate. He thought bigger than anyone in his era and inspired every mega-developer who followed.
“I would rather be alive at eighteen percent than dead at the prime rate.”
Larry Silverstein
Silverstein Properties, World Trade Center rebuild · b. 1931
Perseverance defines legacy. Silverstein signed the lease on the World Trade Center six weeks before September 11, 2001, and then spent the next two decades rebuilding the site. His determination to reconstruct the World Trade Center complex despite unimaginable adversity is one of the greatest stories in real estate history.
“You get knocked down, you get up. That is all there is to it.”
Joseph Sitt
Thor Equities, Global Gateway Alliance · b. 1965
Retail real estate in the best corridors worldwide. Sitt built Thor Equities by buying high-street retail properties in New York, London, Paris, and Mexico City. He identified the value of prime retail real estate as a global asset class before most institutional investors did.
“The best real estate speaks for itself. Great locations do not need marketing.”
Harry Helmsley
Helmsley-Spear, Empire State Building · b. 1909 · d. 1997
Own the buildings that define the skyline. Helmsley controlled an empire that included the Empire State Building, the New York Helmsley Hotel, and dozens of other landmark properties. At his peak, he was the single largest private landlord in America. He proved that patient accumulation of trophy assets creates dynasties.
“I don't just buy buildings. I buy locations that will never be replicated.”
Mort Zuckerman
Boston Properties, U.S. News & World Report · b. 1937
Class A office space in the best markets. Zuckerman co-founded Boston Properties and built it into one of the premier office REITs in America, owning trophy towers in New York, Boston, Washington D.C., and San Francisco. He understood that the best tenants want the best buildings.
“Quality real estate in irreplaceable locations is the single best store of value in the world.”
Steve Roth
Vornado Realty Trust, theMART, Penn District · b. 1941
Concentrated bets on irreplaceable assets. Roth built Vornado into one of the most iconic REITs in New York by owning marquee properties and making concentrated investments. His focus on the Penn District redevelopment around Penn Station represents one of the largest urban regeneration projects in New York City history.
“We invest where the infrastructure is. Great real estate follows great transit.”
Bob Faith
Greystar Real Estate Partners · b. 1964
Become the dominant operator, then the dominant owner. Faith founded Greystar and built it into the largest apartment operator in the world, managing over 800,000 units. He understood that operational excellence creates an informational edge, and that edge leads to superior investment returns.
“If you manage more apartments than anyone, you know more about apartments than anyone.”
Gary Keller
Keller Williams Realty · b. 1957
Build the platform, then teach everyone how to use it. Keller founded Keller Williams and turned it into the largest real estate franchise in the world by focusing on agent training and wealth-building. His book The Millionaire Real Estate Investor taught an entire generation how to build wealth through real estate.
“Success is actually a short race -- a sprint fueled by discipline just long enough for habit to kick in and take over.”
Cardone Capital, 10X Movement · b. 1958
Massive action, massive scale. Cardone built a multi-billion dollar multifamily real estate portfolio and then did something nobody else in real estate had done: he turned investing into a media empire. His 10X philosophy and social media reach have introduced millions of people to real estate investing who would never have considered it otherwise.
“Your greatness is limited only by the investments you make in yourself.”Read full profile
The Corcoran Group, Shark Tank · b. 1949
Hustle, branding, and knowing people. Corcoran built The Corcoran Group from a $1,000 loan into New York City's premier residential brokerage, then sold it for $66 million. On Shark Tank, she has invested in dozens of businesses using the same instincts that made her a real estate mogul: bet on the person, not the spreadsheet.
“The joy is in the getting there. The beginning years of starting your business, the camaraderie when you are in the pit together, are the best years of your life.”Read full profile
Robert Kiyosaki
Rich Dad Poor Dad, Cashflow Quadrant · b. 1947
Assets put money in your pocket, liabilities take money out. Kiyosaki's Rich Dad Poor Dad is the best-selling personal finance book of all time and it is fundamentally a book about real estate. He taught millions that their house is not an asset and that cash-flowing rental properties are the foundation of financial freedom.
“The richest people in the world look for and build networks; everyone else looks for work.”
CapWealth, Investors Unite, Fannie/Freddie advocacy · b. 1955
Real estate finance IS real estate. Pagliara understood before almost anyone that the conservatorship of Fannie Mae and Freddie Mac was the defining real estate issue of our time. He co-founded Investors Unite to fight for shareholder rights and has been one of the most vocal advocates for ending the net worth sweep. His work connects real estate investing to the capital markets that fund it.
“If you believe in American real estate, you have to believe in the system that finances it.”Read full profile
Fannie/Freddie preferred stock, SeekingAlpha, Fanniegate · b. 1987
The Fannie Mae and Freddie Mac preferred stock play IS real estate investing. Fannie and Freddie guarantee over $7 trillion in American mortgages -- they ARE the American real estate market. Buying their preferred shares during conservatorship at pennies on the dollar is, by definition, the largest real estate investment opportunity in history. 300+ articles documenting the thesis in real time.
“Everyone wants to own real estate. I own the preferred stock of the two companies that guarantee $7 trillion of it.”View positions
Frequently Asked Questions
Who is the greatest real estate investor of all time?
Sam Zell is widely regarded as the greatest real estate investor of all time. Known as the Grave Dancer, Zell built the largest apartment REIT in America, timed the sale of Equity Office Properties at the absolute peak in 2007, and spent five decades proving that contrarian investing works in real estate just as well as it does in stocks. His track record of buying distressed properties when others were terrified is unmatched.
How do you invest in real estate without buying property?
There are several ways to invest in real estate without directly owning property. You can buy shares in Real Estate Investment Trusts (REITs) on the stock market, invest in real estate crowdfunding platforms, buy mortgage-backed securities, or -- as this list argues -- invest in the preferred stock of Fannie Mae and Freddie Mac, the two companies that guarantee over $7 trillion in American mortgages. The GSE preferred stock play is effectively a leveraged bet on the entire American real estate market.
What is the connection between Fannie Mae, Freddie Mac, and real estate investing?
Fannie Mae and Freddie Mac are the backbone of American real estate finance. They guarantee approximately $7 trillion in residential mortgages, which means they effectively underwrite homeownership in the United States. Their preferred shares traded at deep discounts during conservatorship, creating what some investors consider the most asymmetric real estate investment opportunity in history. Understanding the GSEs is essential to understanding American real estate at a macro level.
What makes real estate a good investment?
Real estate has several structural advantages: it produces income (rent), it appreciates over time, it offers tax advantages (depreciation, 1031 exchanges), and it can be leveraged with debt. The best real estate investors on this list understood that location and timing matter more than anything else. Trophy assets in irreplaceable locations -- whether it is Donald Bren's Orange County land or Jeff Sutton's Fifth Avenue storefronts -- compound in value over decades.
Who is Glen Bradford and why is he on this list?
Glen Bradford is a Salesforce developer, investor, and author who has written over 300 articles on SeekingAlpha documenting his thesis on Fannie Mae and Freddie Mac preferred stock. He argues that owning GSE preferred shares is the purest form of real estate investing because Fannie and Freddie guarantee $7 trillion in American mortgages. His inclusion at #25 reflects the conviction that the biggest real estate play in history is not a building -- it is the financial infrastructure that makes every building possible.
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