"Not to be a Nosy Nelly, but in this investment environment, I have my MBA accounting and finance students watching investments that have motion. The age-old expression that accounting and finance students can quote in their sleep is that cash is king. And from the looks of things, Paris Hilton is proving that saying to be right. It's not uncommon for homeowners, whether high-net-worth or not, to refinance their homes for liquidity or investment flexibility."
"But Paris and her household likely intended all along to pull out the home value in order to leverage it for another venture. From a distance, it seems Paris is a savvy businessperson, despite a few scandalous moments in the media that may still cloud her reputation for some. And clearly, lenders agree, at least as far as her creditworthiness is concerned, in order for her to secure a $40+ million loan in as little as a month."
Paris Hilton purchased Mark Wahlberg's Beverly Hills home for $63 million in June and obtained a $43.75 million home loan slightly more than a month later. Paris reportedly was excluded from her grandfather's $15 billion will, raising questions about liquidity. Refinancing shortly after purchase commonly serves to extract equity for liquidity, leverage into new investments, or for tax and estate planning, and negotiating loan terms can take time. The rapid approval indicates lender confidence in Paris's creditworthiness. A personal example recounts buying a first apartment building by tapping equity from an initial condo purchase.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]