How Business Works in the Real Estate World
Business surely is an interesting concept.
It is more likely to be what you least would think it is like. And that’s the beauty of it because the biggest element of a business will always remain unknown to the public.
Let’s talk about a couple of business concepts that aren’t what they seem, and discuss just how much impact they have on the overall profit.
McDonald’s As One of the Biggest Real Estate Companies in the World
If you’re thinking that McDonald’s is thriving in business because they’re the most popular fast food chain worldwide, you couldn’t be more wrong.
Although this may be one of the biggest sources of their income, it surely isn’t the primary.
In one of his interviews, the former McDonald’s co-founder Harry J. Sonneborn straightforwardly stated that McDonald’s is not in the food business field. Rather, it’s in the real estate field.
And just how may that work?
Well, all of their chains act as real estate investments; that’s why there are so many of them. They make passive income and receive tax benefits from these fast food chains they own day by day.
So why do they bother selling food?
According to Sonneborn, the sole reason McDonald’s runs as a food business is to produce revenue. That’s double income if you think about it.
Basically, the McDonald’s corporation does not only make money by selling its supplies to the franchisers but also by being landlords.
A scheme? Not really, just a great mind in business.
Mark Zuckerberg Owns a Good Portion of Hawaii’s Island (and one of the Best Casinos as well)
Who would purchase more than 1,300 acres of an island?
Well, no one else but Facebook’s CEO, Mark Zuckerberg.
Now, although real estate is a good investment, coming back to a single location to purchase more and more parts of it surely is strange behavior.
Mark and his wife, Priscilla, seem to have an obsession with the Hawaiian island of Kauai. They’re seemingly willing to pay massive amounts of money just to buy more.
Although the couple has stated their intentions to be an act of promoting conservation, sustainability, and wildlife protection, they haven’t been quite a pleasure to the residents of Hawaii.
In 2016, Zuckerberg began the construction of a 6-foot wall around his property. He stated that this was done to reduce highway and road noise, but regardless of the reason, his Hawaiian neighbors were angry at this decision.
Then, in 2017, he filed a lawsuit against the Hawaiian families who held legal ownership claims of lands within his property. Many people consider this act as neocolonialism. It surely is strange just how far he’ll go for his properties on this island.
Zuckerberg eventually tried to make things right by dropping the lawsuit and putting the parcels of land for auction. However, three out of four of the auction winners were believed to be backed by him anyway.
And regardless of how much disturbance he and his family may cause to these native residents of Hawaii, there is not much to do about it.
A Canadian Company Ironically Owns The Mall of America
The famous Mall of America is one of the must-visit places on tourists’ lists. It is in Minnesota and has a reputation for being the biggest mall in the United States.
With 520 stores, the mall has approximately 40 million visitors every year.
But would you believe me if I said that the Mall of America, the pride of the United States, is owned by a Canadian company?
Although this is rather an unlikely situation, the Triple Five Group owns this mall, and there’s just no changing it.
The Triple Five Group is a Canadian multi-industry company that specializes in shopping centers. They also own America’s West Edmonton Mall and the American Dream Meadowlands.