5 Celebrity Real Estate MistakesReal People Make
A friend of mine who is generally inclined towardintellectual pursuits recently took a trip out of townon her own. As she recounted her solo hotel stay,she exclaimed that the high point of her trip wasbeing able to watch reality television without herfamily’s judgment. I told her that when her familygives her guff, she should point out that beyond thepure (albeit debatable) entertainment value, thereare lots of lessons and takeaways that can begleaned from the stars of reality TV, film and themusic industry.
Celebrity Real Estate Mistake #1: Overspending. If you’dseen the episode of Real Housewives of New Jersey inwhich everyone’s favorite “Skinny Italian” table-flipperTeresa Giudice pulled out a fat bankroll of cash to pay forher four kidlets’ every little leopard printed, pink ruffled,pose-striking desire, it probably came to you as nosurprise that her home with husband Joe ended up withtheir home - and all its contents - on the bankruptcyauction block in 2009. (To be fair, Giudice has alwaysmaintained that her home was not in foreclosure.)Nevertheless, the auction listing confirmed the worstoverspending suspicions; the Giudice estate was ladenwith gilt rococo couches, faux marble chess sets, even asuit of armor!
Celebrity Real Estate Mistake #2: Assuming thebank will work with you. Here, again, the RealHousewives are our teachers, but this time, we’retalking about Lisa Wu Hartwell in the ATL andAlexis Bellino in the OC. From theblogosphere and their ownadmissions, it seems that theyboth were in loan workout talkswith their banks, having soughtassistance with their upside downmortgages, when things went south.
Celebrity Mistake #3: Knowing nothing aboutyour own finances. Real Housewife of OC LynnCurtin was shocked to tears when her teenagedaughter was handed an eviction notice. Shewas surprised, but her husband wasn’t - he’dbeen hiding their deteriorating financialsituation for a long, long time. The endresult? She and her kids had to move out oftheir luxury waterfront rental home - and intoGrandma’s condo.
Celebrity Real Estate Mistake #4: Flipping a house,expecting a fast fortune. In 2007, Ricky Martinpaid over $16 million for this house, then poured agood deal of cash (and some very good taste I mightadd) into it, preparing to flip it. He’s madebeaucoup bucks using this strategy in the past - butthis one was timed all wrong. The market tankedright around the time he listed the home for sale at$22.5 million in 2007 - and it’s still on the market at$18.5 million! Given the fact that a mortgage on$16 million would run a mere mortal a cool$100K/month, it’s a good bet he’s losing moneyfaster than his notorious hips can swivel.
Celebrity Real Estate Mistake #5: Not paying yourtaxes. In the face of tax liens in the millions ofdollars and allegations of fraud by his financialadvisor, Nicolas Cagelost at least 3 homes toforeclosure in 2009, andhas at least one more stillon the market. ComedianSinbad’s new reality seriesactually opens up with a stand-up routine devoted, in part, to losing his home dueto tax issues. Chris Tucker’s $11 million tax lien waspublicized right before his 6,000-plus square footFlorida home went on the market.
Randy BettInvestment Realtor/Author/InvestorReal Estate Professionals Inc.Better Group Real Estate202-5403 Crowchild Trail NWCalgary, AB T3B 4Z1Phone:403-774-7464 Ext:1Fax:403-208-0082Toll Free fax:888-711-6801