Kanye West reportedly takes out a huge loan to buy $35m mansion
Kanye West bought a $35million mansion in Beverly Hills last month, and it’s now being reported that he took out a major loan in order to purchase the property.
According to a report by the Daily Mail, Ye and his wife, Bianca Censori, borrowed $15.5m to secure the luxury California home.
The mansion, which is neighbouring Adele and Justin Bieber, is located in an exclusive Beverly Park gated community. It has 11 bedrooms and 18 bathrooms. However, the property was reportedly only purchased for investment purposes and will likely be rented out.
The couple used several lenders to finance the purchase, including a private money lender, a firm that offers risky mortgages, and another that offers bridging loans for investment properties.
$2.7m of the amount came from RGGL, a company owned by fitness entrepreneurs Richard and Lucy Glassman, who live in Albuquerque, New Mexico. The deal went through using a “hard money lender” called PMS that involves individuals willing to invest huge sums as short-term loans secured by real property.
“When you have a total of 40 per cent loan to value, it’s a good investment,” Richard said. “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.”
He continued: “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 Glassman stated that Kanye West was able to put up over $21m of his own money by using the capital from selling his Malibu home earlier this year.
“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 said. “He didn’t want to use his cash, it’s not like he lives in this property. I 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.”