David Invest

Top 8 Celebrities Who Built Wealth Through Smart Property Investments

• David (Viacheslav) Davidenko

Share episode

Unlock the secrets of celebrity real estate investments and discover how you too can capitalize on these strategies. Ever wondered how stars like Jeremy Renner and Ellen DeGeneres turn their Hollywood earnings into substantial real estate empires? We break down their approaches, from Renner's savvy house flipping to DeGeneres' high-stakes property deals, showcasing the diverse methods celebrities use to grow their wealth. Learn how Rupert Grint is expanding his legacy with Evil Plan Properties, while Jessica Alba blends luxury living with astute investments. This episode offers insights into market dynamics and value addition, enlightening you on aligning property ventures with personal goals.

Join us as we dissect the fundamental principles that make real estate a lucrative avenue for both celebrities and everyday investors. By examining the successful paths of figures like Arnold Schwarzenegger and Lord Alan Sugar, we emphasize the importance of local expertise and long-term planning. Whether you're eyeing your first investment or looking to expand your portfolio, the wisdom shared in this episode empowers you to start small and think big. Real estate isn't just about accumulating wealth; it's a strategic journey towards securing a prosperous future, accessible to anyone willing to learn and take action.

📰 Read more about this topic in our latest article: https://sunrisecapitalgroup.com/top-8-celebrities-who-built-wealth-through-smart-property-investments/

🔗 Check out our website for more information and valuable resources: https://linkin.bio/davidinvest

📸 Follow us on Instagram for updates and behind-the-scenes content: https://www.instagram.com/davidinvestai/

🎥 Subscribe to my YouTube channel for more investment content: https://www.youtube.com/@DavidInvestAI

🔗 Network with me on LinkedIn for professional connections and advice: https://www.linkedin.com/in/vdavidenko/

📧 Subscribe to our newsletter for exclusive investment tips and insights: https://sunrisecapitalgroup.com/subscribe/

📚 Check out my course on Udemy - https://www.udemy.com/course/passive-real-estate-investing/

Disclaimer: The content provided on this channel is intended for educational and informational purposes only and does not constitute investment, financial, or tax advice. We strongly recommend that you consult with qualified professionals before making any financial decisions. Past performance of investments is not indicative of future results. The information presented here is not a solicitation or offer to buy or sell any securities or investments. Our firm m...

Speaker 1:

All right, so today we're going to deep dive into something pretty cool.

Speaker 2:

Yeah.

Speaker 1:

Celebrity real estate investments.

Speaker 2:

Yeah.

Speaker 1:

You sent me over this article. It was about eight celebrities.

Speaker 2:

Right.

Speaker 1:

Who have just crushed it in real estate and honestly I'm a little starstruck going into this.

Speaker 2:

Yeah, it's amazing.

Speaker 1:

Like I'm ready to take notes from these people.

Speaker 2:

I know it's really cool to see celebrities. I think in a different light. Right you know we always see them for their onscreen personas, but this is really about business acumen.

Speaker 1:

Yeah, totally.

Speaker 2:

A lot of these celebrities have it.

Speaker 1:

Yeah.

Speaker 2:

Especially when it comes to real estate.

Speaker 1:

Okay, so we've got eight celebrities in the mix here, yeah, and what I think is really interesting is that they haven't all followed the same playbook.

Speaker 2:

Right.

Speaker 1:

We've got early birds, we've got flipping masters, we've got people building empires. It's like a real estate all-star team here.

Speaker 2:

It is.

Speaker 1:

So where do we even begin with this?

Speaker 2:

Well, let's start with two Jeremy Renner and Arnold Schwarzenegger.

Speaker 1:

Okay.

Speaker 2:

They both saw the potential of real estate pretty early in their careers, but went about it in very differentger. Okay, they both saw the potential of real estate pretty early in their careers, but went about it in very different ways. Okay, so Renner, even before he was Hawkeye, was flipping houses.

Speaker 1:

Wow.

Speaker 2:

Okay, he had this knack for seeing which properties were, you know, right for renovation and then just selling them at the perfect time.

Speaker 1:

Okay.

Speaker 2:

This article mentions one flip. It was in Holmby Hills, right. He bought the house for $7 million.

Speaker 1:

Okay.

Speaker 2:

And sold it for $24 million.

Speaker 1:

Whoa Okay, so $17 million profit.

Speaker 2:

Yeah.

Speaker 1:

That's the kind of return on investment that makes headlines.

Speaker 2:

Exactly.

Speaker 1:

Wow.

Speaker 2:

So Schwarzenegger, on the other hand, was more about building a foundation. Back in the 70s, long before his Hollywood breakthrough Right, he bought an apartment complex.

Speaker 1:

Okay.

Speaker 2:

And he didn't just buy it as an investment. He lived in one of the units.

Speaker 1:

Oh, wow.

Speaker 2:

And rented out the rest.

Speaker 1:

So he was living rent free.

Speaker 2:

Essentially yeah.

Speaker 1:

And then all the other units were generating cash flow Right.

Speaker 2:

Exactly. Wow, that's really clever.

Speaker 1:

And then using that to buy more properties, yeah, and grow his portfolio.

Speaker 2:

So it's like leveraging, it's like playing the long game.

Speaker 1:

Absolutely yeah.

Speaker 2:

Yeah, okay.

Speaker 1:

So question for you.

Speaker 2:

Okay.

Speaker 1:

Would you have done that early in your career? Oh, you know, lived in an investment property. Yeah To fuel further investments.

Speaker 2:

That's a good question.

Speaker 1:

Yeah.

Speaker 2:

I think it requires a certain level of comfort with you know, being a landlord and being hands-on, but the payoff could be huge, especially if you're playing that long game like Schwarzenegger.

Speaker 1:

Absolutely.

Speaker 2:

Yeah.

Speaker 1:

Let's move on to someone with a completely different style. Okay, ellen DeGeneres. She's known for her love of real estate especially in Southern California. So this article highlights her flip of the Brody house. Yeah, she bought it for $40 million.

Speaker 2:

Okay.

Speaker 1:

And then sold it for get this a $15 million profit.

Speaker 2:

So wait, she sold it for $55 million.

Speaker 1:

Yes.

Speaker 2:

Oh my God, yeah, flipping it at a completely different level than you know, Jeremy Renner.

Speaker 1:

Totally. It makes you wonder, like, what did she do to that house to make it worth that much more? Right, like, was it a gut renovation?

Speaker 2:

Yeah.

Speaker 1:

Was it a design overhaul or was it just like brilliant market timing?

Speaker 2:

It's probably a combination of all of those things.

Speaker 1:

Yeah.

Speaker 2:

I think she's just a very savvy investor, Right. She understands the market, but she also understands how to create a desirable space. You know the article doesn't really go into the specifics of the renovation, but you can bet that she made some strategic choices that resonated with high-end buyers.

Speaker 1:

So it's not just about buying and selling. It's about understanding how to add value and appeal to a specific market. That's something to keep in mind for us non-celebrity investors too, for sure, yeah, okay.

Speaker 2:

So let's shift gears a little bit to a different approach. Let's talk about building a real estate portfolio for long term wealth. Think of it as like building a legacy, brick by brick, and Rupert Grint, our favorite wizard, did just that.

Speaker 1:

Wait, Ron Weasley is a real estate mogul. Yes, he is I love that Tell me more.

Speaker 2:

So he and his dad actually formed this company called Evil Plan Properties. Amazing I know right, and they focused on properties in his hometown.

Speaker 1:

Okay.

Speaker 2:

Which is really interesting.

Speaker 1:

Yeah.

Speaker 2:

You know, it might not be as glamorous as you know flipping mansions in Beverly Hills, yeah but it's really smart, okay, because he's building a solid base Right In a market that he knows and understands.

Speaker 1:

Yeah, that makes sense. So that's a really interesting point. It's like diversifying your portfolio, right, but instead of diversifying by asset class, you're diversifying location, exactly and by property type. Yeah, I like that, okay, cool.

Speaker 2:

And speaking of diversification, jessica Alba yeah, she's the founder of the Honest Company, right? She's invested in multiple properties in Southern California, including her $10 million Beverly Hills home. Okay, so she's got a mix of personal use and investment properties.

Speaker 1:

So it's like the best of both worlds. Exactly, you get the luxury home and you get the investment. Okay, yeah, and it's almost like she's taking a page from Schwarzenegger's book too you know, absolutely Like building that financial security over the long term. But I have to ask do you think someone like Rupert Grint could have been as successful?

Speaker 2:

That's a good question.

Speaker 1:

Buying and flipping luxury properties.

Speaker 2:

I mean, it's tough to say we could speculate all day. But it depends on his skills, his risk tolerance.

Speaker 1:

Right.

Speaker 2:

But he chose a path that you know seems to really reflect his values and priorities. And I think it highlights that real estate isn't one size fits all right.

Speaker 1:

That's a really good point.

Speaker 2:

Yeah.

Speaker 1:

There's no magic formula. It's about finding what works for you.

Speaker 2:

Exactly.

Speaker 1:

For your risk tolerance and what you see for your future.

Speaker 2:

For sure. Yeah, OK cool, so now let's talk about two figures who really leveraged their fame, ok and their resources LeBron James and.

Speaker 1:

Donald Trump. Ok, I'm ready for this one.

Speaker 2:

Yeah, so two very different figures Totally, but both known for their high profile moves in real estate.

Speaker 1:

Right.

Speaker 2:

What makes their approaches so unique?

Speaker 1:

OK.

Speaker 2:

LeBron James. He owns this thirty six point eight million dollar mansion in Beverly Hills.

Speaker 1:

OK.

Speaker 2:

And he's also invested in the Blaze Pizza chain.

Speaker 1:

Wow OK.

Speaker 2:

So he's not just buying luxury properties.

Speaker 1:

Right.

Speaker 2:

He's investing in brands and businesses that align with his interests.

Speaker 1:

Yeah.

Speaker 2:

And have, you know, potential for growth.

Speaker 1:

So he's building an empire.

Speaker 2:

Exactly.

Speaker 1:

Personally and professionally, and real estate is a key part of that. Yeah, he's thinking beyond just the houses, absolutely Okay.

Speaker 2:

Now Donald Trump's real estate ventures Right Are, I mean very well documented.

Speaker 1:

Yeah.

Speaker 2:

He built his empire on iconic properties like Trump Tower and then all these golf resorts. His portfolio was valued at one point at $3 billion, wow, which really shows how much you can do with strategic property acquisition and branding.

Speaker 1:

It's a controversial example. Oh, for sure, but it is a powerful one.

Speaker 2:

Absolutely yeah. It shows how real estate can be used.

Speaker 1:

Yeah.

Speaker 2:

Not just to build wealth.

Speaker 1:

Yeah.

Speaker 2:

But to establish a brand.

Speaker 1:

And a legacy, and a legacy, exactly yeah.

Speaker 2:

Now, here's a thought.

Speaker 1:

Okay.

Speaker 2:

Do you think James's approach of diversifying into businesses like Blaze Pizza could be more sustainable long term?

Speaker 1:

Okay.

Speaker 2:

Compared to, you know, building a brand around a single name.

Speaker 1:

Like Trump did.

Speaker 2:

Yeah, like Trump did.

Speaker 1:

That's a really interesting question. Yeah, I think it speaks to the evolving nature of branding Right Wealth building you know yeah. James is building a much more diversified portfolio Right, and that could be more resilient.

Speaker 2:

Exactly, you know, to changing market trends. Exactly, yeah.

Speaker 1:

Yeah, okay, this is already so insightful Before we move on to our last celebrity. Yeah, what's resonating with you the most so far?

Speaker 2:

Oh, that's a good question.

Speaker 1:

What's standing out to you.

Speaker 2:

I think what. I'm taking away from this is that, even though they're celebrities and they have all this money, they're still using the same principles of real estate investing that you know.

Speaker 1:

That anyone can use.

Speaker 2:

That anyone can use, exactly Like you know. You don't need millions of dollars to throw around.

Speaker 1:

Totally.

Speaker 2:

You just need to have a good strategy.

Speaker 1:

Yeah.

Speaker 2:

Good timing, and you know.

Speaker 1:

Understand the market.

Speaker 2:

Understand the market Exactly and like take Grint's focus on local investment.

Speaker 1:

Right.

Speaker 2:

That resonates with me a lot, you know. Become an expert in a specific niche. Understand the nuances of a specific market.

Speaker 1:

Yeah, you don't have to be flipping mansions in Beverly Hills to be successful.

Speaker 2:

Sometimes the best opportunities are right in your backyard, right, you know.

Speaker 1:

It's like that, saying invest in what you know.

Speaker 2:

Exactly.

Speaker 1:

But it's not even just about familiarity. It's about understanding the dynamics of that market the trends, the demographics the potential for growth.

Speaker 2:

All of that, yeah. So that leads us to our final celebrity in this article.

Speaker 1:

Okay.

Speaker 2:

Lord Alan Sugar.

Speaker 1:

Okay.

Speaker 2:

He took a bit of a different path. All right, he established a private real estate company back in 1985.

Speaker 1:

Okay, okay.

Speaker 2:

And focused primarily on London and Essex.

Speaker 1:

Okay.

Speaker 2:

And this company has been a gold mine. Okay In 2017. It generated a 180 million dividend payout.

Speaker 1:

Okay, hold on. 180 million. Yes, that's an insane amount of money.

Speaker 2:

It is a lot of money.

Speaker 1:

yes, I have to admit, I don't really understand what a dividend payout means.

Speaker 2:

Oh, yeah, okay.

Speaker 1:

In the context of real estate.

Speaker 2:

Sure. So when you invest in a company that owns properties, like Lord Sugar's company, you're essentially becoming a shareholder Right. As the company makes money from those properties. Ok, that money is distributed to the shareholders.

Speaker 1:

OK.

Speaker 2:

As dividends.

Speaker 1:

Got it.

Speaker 2:

So that one hundred and eighty million.

Speaker 1:

OK.

Speaker 2:

Was a share of the profits OK From his real estate holdings.

Speaker 1:

That makes a lot of sense.

Speaker 2:

Yeah.

Speaker 1:

OK, so it's not just about buying and selling property. It's about, like, understanding the different ways to invest Absolutely and participate in the growth of the market.

Speaker 2:

Exactly.

Speaker 1:

OK, cool.

Speaker 2:

And Sugar's story shows the power of again playing the long game.

Speaker 1:

Right yeah.

Speaker 2:

He didn't get rich quick, right, he built this business over decades.

Speaker 1:

Yeah.

Speaker 2:

And capitalized on the steady growth Right Of real estate.

Speaker 1:

It's a good reminder that patience is key in real estate. It's not a sprint, it's a marathon.

Speaker 2:

A hundred percent.

Speaker 1:

But I have to wonder.

Speaker 2:

Yeah.

Speaker 1:

Is that? Approach you know, building a real estate company. Is that something that everyday investors can do? It might seem daunting, but the underlying principles I think can apply at any scale Building expertise and managing your investment strategically.

Speaker 2:

Right.

Speaker 1:

You might not start with a multi-million pound company, right, but you can use those principles to build a portfolio that generates, you know, consistent income over time.

Speaker 2:

So it's not about like replicating his exact model Right, it's about understanding the core principles.

Speaker 1:

Exactly.

Speaker 2:

Behind his success Yep, and adapting it Okay, cool, God. This is so eye-opening. We've seen how these celebrities approach real estate from all these different angles flipping long-term investments, building companies, leveraging their brand, but what I think is so valuable are the underlying principles that connect all these different approaches.

Speaker 1:

A hundred percent agree, and I think that's what makes it so great. Right Is that it's not just celebrity anecdotes.

Speaker 2:

Right.

Speaker 1:

It's real world strategies that anyone can learn from.

Speaker 2:

Yeah.

Speaker 1:

And apply. It's just about understanding the market, being strategic, making informed decisions.

Speaker 2:

Yeah, you know, and it's not about, like, following a rigid formula. It's about finding what works for you.

Speaker 1:

Exactly.

Speaker 2:

And you know for your risk tolerance and what your vision is for the future.

Speaker 1:

For sure.

Speaker 2:

Okay, before we wrap up this part of our deep dive.

Speaker 1:

Yeah.

Speaker 2:

I want to put you on the spot a little bit. What's like the one piece of advice?

Speaker 1:

Oh, good question.

Speaker 2:

What's the golden nugget that you would give to our listener, based on everything we've discussed today?

Speaker 1:

That is a good question. If I had to boil it down to one thing. I would say don't be afraid to start. Small Real estate can seem intimidating.

Speaker 2:

You see all these celebrities. They're making these. You know big deals, multi-million dollar deal. Making these. You know Big deals, multi-million dollar deals.

Speaker 1:

Yeah.

Speaker 2:

But you know, they all started somewhere.

Speaker 1:

Right, you know yeah.

Speaker 2:

So focus on building your knowledge, understanding your local market Right and making smart decisions that are aligned with your goals. Yeah, you know.

Speaker 1:

That's such a powerful message.

Speaker 2:

Good.

Speaker 1:

It's a reminder that you know anyone can do this. Right Anyone can find success in real estate Exactly If they just put in the work. Yeah, yeah, awesome. You know it's funny, we started this deep dive.

Speaker 2:

Right.

Speaker 1:

Thinking about celebrity real estate. It was this whole other world, yeah, but what we've really learned?

Speaker 2:

Right.

Speaker 1:

Are these principles?

Speaker 2:

that apply to everyone.

Speaker 1:

It's not about being a celebrity. It's about strategy and vision.

Speaker 2:

It's about the mindset. Yeah, totally. You know, real estate is more than just bricks and mortar. Right, it's a way to build wealth security and even a legacy.

Speaker 1:

And those opportunities are there for all of us.

Speaker 2:

They are.

Speaker 1:

Yeah, it doesn't matter how much money you make or where you come from.

Speaker 2:

Doesn't matter.

Speaker 1:

Yeah, that's what I think makes this so valuable.

Speaker 2:

Yeah.

Speaker 1:

It's not just about celebrity mansions.

Speaker 2:

Right.

Speaker 1:

It's about taking these insights and using them in our own lives 100%. Yeah, what really struck me was how these celebrities they all had a vision. Yes, what really struck me was how these celebrities.

Speaker 2:

They all had a vision. Yes, they did. They knew what they wanted, whether it was flipping for profit, building long term wealth or establishing a brand.

Speaker 1:

Yeah, they had a plan.

Speaker 2:

They did.

Speaker 1:

They knew what they wanted to achieve.

Speaker 2:

Absolutely.

Speaker 1:

OK. So it's not just about jumping into the market, right, it's about having a strategy, yeah, knowing your goals, having that vision. Right, it's about having a strategy, yeah, knowing your goals.

Speaker 2:

Having that vision.

Speaker 1:

Yeah, and like aligning your investments with those goals. Do you think that's something that like regular investors overlook sometimes?

Speaker 2:

I think it's easy to get caught up in the excitement you know. Totally Real estate can be exciting.

Speaker 1:

Yeah.

Speaker 2:

But if you don't have a clear vision, Right. It's like setting sail without a destination. Oh, I like that, you know you might end up somewhere, but is it where you really wanted to go, right?

Speaker 1:

Okay, before we wrap up this deep dive, I have a question.

Speaker 2:

Okay.

Speaker 1:

We've talked about all the strategies and the vision and everything, but what about the emotional side of real estate?

Speaker 2:

Oh, that's interesting.

Speaker 1:

Like it's not just a transaction.

Speaker 2:

Right.

Speaker 1:

It's about creating homes.

Speaker 2:

Yeah, and building communities as like a legacy.

Speaker 1:

Yeah, leaving an impact For sure. You know what I mean.

Speaker 2:

I do and I think these celebrities.

Speaker 1:

Yeah, in their own ways have shown that.

Speaker 2:

Okay, you know, like Rupert Grint investing in his hometown. Right, that's about more than profit.

Speaker 1:

Yeah, he's giving back.

Speaker 2:

Yeah.

Speaker 1:

And even LeBron James with. Blaze Pizza.

Speaker 2:

Yeah, he's creating jobs, he's creating opportunity, exactly.

Speaker 1:

It adds a whole other layer to it.

Speaker 2:

It does.

Speaker 1:

It's not just personal gain Right. It can be a force for good.

Speaker 2:

Absolutely.

Speaker 1:

All right, so as we wrap up, yeah. What's the final thought you want to leave our listener with?

Speaker 2:

Good question.

Speaker 1:

What's that?

Speaker 2:

like one piece of wisdom that you want them to remember. I think what we've seen is that real estate success isn't about copying these celebrities.

Speaker 1:

Right.

Speaker 2:

It's about understanding their mindset.

Speaker 1:

Yeah, their strategy.

Speaker 2:

Your vision, their vision, exactly yeah. So my challenge to the listener is this Okay. What if you took just one idea from these celebrities Okay, and applied it to your own financial planning? I love that. You know it could be anything. Yeah, researching your market Right, maybe exploring a rental property or talking to a financial advisor Okay, even the biggest journeys yeah, a financial advisor Okay. Even the biggest journeys. Yeah, start with just one step.

Speaker 1:

That's a really great takeaway.

Speaker 2:

Thanks.

Speaker 1:

It's a reminder that we can all achieve this. We can, yeah, if we just put in the effort For sure. So to our listener, thank you so much for joining us. Yes, Thank you On this deep dive into celebrity real estate. We hope you learned a lot.

Speaker 2:

Yeah.

Speaker 1:

And feel inspired to take action.

Speaker 2:

Absolutely.

Speaker 1:

Until next time, happy investing.

People on this episode

Head Shot

David (Viacheslav) Davidenko

Host