Kanye West and Bianca Censori‘s latest business venture lies in real estate as the rapper reportedly sought after less traditional funding options
The rapper secured financing for a $35 million Beverly Hills mansion as they seemingly weren’t look to pay for the building in full.
As a result, they reportedly took out a few loans, financing the property from a mix of investors, including getting wrapped up in assignment of rents and leases’ trust deed.
Since the plan for the property is to likely rent it out, this deal would allow the investment company to retain the revenue from the rent if Kanye defaults on his loan.
Fitness entrepreneurs Richard and Lucy Glassman were a part of the deal, according to the DailyMail, as they loaned Kanye $2,693,000 through their broker Private Money Solutions. Richard explained to the publication: “When you have a total of 40 percent loan to value, it’s a good investment. This is the great creativity of the broker, it’s not the creativity of Kanye West, they do all the due diligence, I’m just the little guy.
“To be totally honest, sometimes when investors look at celebrities, they don’t want to do it. Well, it definitely is, because if they don’t pay, we get a $35 million property. But we would prefer they just pay, we don’t want to hurt nobody, we’re just investors. We want to get a return on our money.”
Richard noted that his motto is “when the banks say no, private money is the only way to go.” However, the private financing only made up a small amount of the total loans which stacked up to $15.5 million. The additional $12.5 million was loaned out from Lone Oak Fund, according to DailyMail.com.
As for the additional money needed for the purchase, Richard explained it came from Kanye’s recent sale of a different property. “He just sold a $57 million property for $21 million – what happened was, he took the $21 million to buy this property. So we financed the difference. He didn’t want to use his cash, it’s not like he lives in this propertyI mean, the guy’s got tons of properties, I guess properties to him are like you and I would have a car, or a watch, or a pair of pants,” he explained.
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He will pay naw
Whatever!!!