Celebrities are usually seen by fans as demigods of sorts, the kind you put on a pedestal and admire from afar. They can’t be blamed considering these public personalities lead very different lifestyles and careers, which mostly put them in the world spotlight. That being said, some of the normal things we do are also taken to a different level with celebrities.
Buying property, for example, is not a simple matter of them visiting one and closing the sale right there and then or after some deliberation. Celebrities typically enlist the help of a team of people to make a real estate acquisition happen. And they also tend to make the purchase under a company name or that of their liaisons. This is mainly due to the fact that these famous and rich people want to preserve their privacy as much as possible.
“Many of show business’ finest purchase and sell real estate through trusts and/or straw buyers,” one real estate pundit noted.
“First the celebrity buyer finds a non-traditional source of capital other than a mortgage,” she went on. “Copious amounts of cash work but some ultra wealthy buyers choose to borrow their own money from their bank in a bank loan.”
“Then they create an LLC or similar entity that can control the property, appointing a trustee to publicly oversee the transaction,” the pundit continued to explain.
“Brokers describe signing confidentiality agreements, taking high-profile clients to tour properties in the middle of the night, and employing code language,” said a New York Times reporter of the buying strategy of celebrities in New York. “And they say clients are increasingly using the cover of trusts or limited liability companies to buy Manhattan property anonymously.”
The columnist also noted that another benefit to this real estate acquisition strategy is that it helps celebrities preserve their assets in case their marriages hit a snag and end in divorce. It will also help reduce liability costs in case an accident happens involving the property.
Some celebrities, however, do not resort to this kind of property buying scheme. One example is Courtney Love, who tweeted with a publication while on a property hunt.
Also, a number of celebrities find it more convenient to buy each other’s homes as their property tend to already have the features that high-profile persons typically require for their residences.
“Stars and other high-net-worth people have special real estate needs regular people don’t, needs probably already addressed in a home owned by a celebrity: high walls to act as looky-loo buffers, remote-control access and badass alarm systems are inviolable requirements,” said The Real Estalker. “They need Kardashian-sized closets for all their swag and a home office to house their squadron of personal assistants.”
Some celebrities also pick a celebrity home for the simple reason that they’re a fan of the original owner. Yep, celebrities also can get starstruck.
So there you have it. Indeed, home acquisition is no linear matter when you’re rich and famous. Your thoughts on this matter?