Retail Celebrity Turns to House Flipping for a Living
When markets change the savvy change with it.
Celebrities have been flipping houses as a side gig for a while. Some may make even more from their real estate investments than the work that made them famous in the first place.
Celebrity House Flipping
It’s no secret that 2020 has really thrown a curveball at physical retail and office buildings. All of the events of this year and fear of more of the same has sent some big brands running and contracting. Yet, some will always find a way to make the most of their circumstances.
That certainly seems to be true of fashion mogul Tommy Hilfiger. While retail shopping may be facing a lot of challenges, you shouldn’t feel bad for Tommy. He just listed his latest house flip in the northeast. A $47.5M estate that he and his model wife purchase for just $31.37M.
It’s not his only real estate deal either. The New York Post counts this as his eight luxury house flip.
This certainly won’t be the biggest flip of the year either. Another unnamed flipper just listed a pad in East Hampton for $75M. And this just six months after combining two properties acquired for $45M. $30M a deal, or just two of those a year is still a pretty celebrity worthy income for most.
We’ll also probably see a good number of other celebrities, actors and artists recording notable house flips this year. Especially with all of the interruptions sports and Hollywood has been dealing with in 2020. Some of those who’ve been credited with house flipping in the past include Jennifer Anniston, Ellen, Adam Levine, Kim Kardashian and Kanye West.
Jeff Bezos has of course become a major real estate investor. And big hedge fund managers, like Bill Ackman, are shooting for massive flips with their own money.
Why House Flipping?
The celebrity worthy paydays are certainly part of the appeal. House flipping has also come a long way from those hand written “we buy ugly houses” signs to being fashionable and respected.
As a fashion designer, CEO, movie star, music artist or athlete, intelligent celebrities and those with wise advisors get that they may not be able to rely on their talent and career forever. They can certainly run into many ruts.
House flipping profits can definitely help fill in these income gaps and continue to support their lifestyles. It’s also a great way to diversify investments. It’s tangible and consistent. The opposite of what they are dealing with in their careers and stock market.
How Can You Do it Too?
In reality few celebrities are real hands on house flippers. Most probably aren’t treating it as a disciplined investment which can reap the maximum profits. As Warren Buffett says, “Investment is best when it is most businesslike.”
Fortunately, even if you don’t have $40M to throw down on your first house flip, and don’t want to have to wear a toolbelt all weekend, there are ways you can profit from real estate too. There are managed options, as with a fund that can give you the ability to participate in profitable deals, while everything is done for you, and you can stay focused on your other gig and living life.
Find out more about investing in secured debt and real estate, go to NNG Capital Fund