We all think that celebrities reached their million-dollar net worth because of their fame and talent. But some stars did their investment right. Here are some of them.
Celebrities are known for being famous, but some are very good business people. These celebrities work hard on the screen, but they work harder on their investments. These celebrities know specific industries inside and out. An industry that most of these celebrities are interested in is real estate.
Real estate is a multibillion-dollar industry in the U.S. It’s an essential industry, and many Americans want to be part of. For many celebrities, they get into this industry because it’s a lucrative sector and a glamorous one.
Let’s start with someone almost everybody in the U.S. knows: Ellen DeGeneres.
We all know Ellen for her hit show ‘The Ellen Show.’ It’s where many celebrities go if they want to promote themselves and their movies. Ellen has made millions out of this show, but it’s not the only reason why she’s one of the highest-paid celebrities in the world.
When we think of a business that Ellen would join, we’re likely to think of fashion or maybe cosmetics. But she does not own anything in those sectors. Instead, a majority of her investments go into house flipping, especially in the Los Angeles area.
Ellen loves designing homes, and she’s done it to over a dozen homes. She’s received a decent profit out of them too. The key is to buy cheap, redesign to make them look glamorous, and sell them to homebuyers looking at the area, preferably celebrities.
In one transaction, she was able to buy a $9 million home, refurbish it, and sell it for over $30 million. She stated that she always loved designing homes, and she would have gotten into that industry if her talk show gig didn’t work out for her.
Leonardo DiCaprio is one of the most talented celebrities of our generation. He’s a well-sought-out actor and a high-earner in his every role. However, little do people know that he is also a part-time real estate developer as well.
Leo is building an eco-resort on an island in Belize. He’s planning to restore the island to its beautiful form after years of deforestation and coastal erosion. The resort is planned to use sustainable forms of energy and also live off of the land itself. Aside from the eco-resort in Belize, Leo also owns other properties both on the East Coast and West Coast of the U.S.
He certainly has an eye for real estate deals, and once he has a target in mind, he wouldn’t let go of it until he gets it.
We all know of Jennifer Aniston from the hit show “Friends” and other well-known movies such as “50 First Dates” and “We’re the Millers.” However, much like Ellen DeGeneres, Jennifer enjoys doing part-time house flipping on the side when she’s not making her acting career.
One of her most outstanding achievements was featured in an architectural magazine called Architectural Magazine. She bought a home in Beverly Hills for about $13 million, worked on it with an architect friend of hers, and sold it to the market for over $30 million. This was only one of her many achievements in the field of home flipping.
What Makes Real Estate So Attractive?
You might ask yourself, why don’t these celebrities invest in other more stable industries instead? Real estate is a very glamorous sector that attracts many millionaires to spend their investment in it. However, it’s also the best place to do it for those looking to get something out of their investments.
The principle of real estate is simple. Buy land for sale or maybe a home for sale near your area. Do some redecoration and maybe renovation and sell it for a much higher price. If you’re planning to sell it to fellow celebrities, buy a mansion instead. Hold unto that mansion for a couple of years, and sell it to another celebrity who wants it.
The main reason why real estate is such an excellent investment for many celebrities is that they always know someone willing to buy it. So even if they might have bought a property at a loss, another millionaire is ready to buy it from them at a profit.
This principle works so well for famous people because millions out there look up to them. The moment they know they can buy a home from a celebrity, it’s one of the best stories they can tell their friends and family members.