#does she pay for all the mansions and islands and private jets and yachts????? or is that still stolen and laundered money????

[the-jam-to-the-unicorn]

Ah. Does Olena know she comes from a Ukrainian oligarch family? And does Ze know he's just a gold digger?

[andrewdburton]

Lifestyles of the Rich and Foolish

It's the first of April. You know what that means. Spring is here! Your friends and family are pulling April Fools' Day pranks. And my tree allergies are kicking my butt. Every year, tree pollen makes my life miserable. This year is no different.

Facebook kindly reminded me this morning that three years ago, Kim and I were in Asheville, North Carolina. After wintering in Savannah, Georgia, we'd resumed our tour of the U.S. by RV.

While in Asheville, we toured the Biltmore Estate, the largest home in the U.S. This 250-room chateau contains 179,000 square feet of floor space — including 35 bedrooms, 43 bathrooms, and 65 fireplaces — and originally sat on 195 square miles of land. (Today, the estate “only” contains 8000 acres.)

“This feels like Downton Abbey but in North Carolina,” I said as we walked the endless halls. Just as Downton Abbey documented the excesses of British upper class, so too the Biltmore sometimes feels like an example of how rich Americans indulged in decadence.

George Washington Vanderbilt II, the man who built Biltmore, was a member of one of the country's wealthiest families. His grandfather, Cornelius Vanderbilt, was born poor in 1794, but by the time he died in 1877 he had become one of the richest men in the world. During his lifetime, he built a fortune first from steamships and then as a prominent railroad tycoon.

By family standards, grandson George didn't have a lot of money. He inherited about $7 million, and drew income from a $5 million trust fund. He decided to use the bulk of his fortune to build a huge house high in the Appalachians. Work on the Biltmore Estate began in 1889, when George was 26 years old. Six years and $5 million later, he moved into his palace. (That $5 million would be roughly $90 million in today's dollars.)

Strolling the grounds of the Biltmore Estate got me thinking about the stories we hear of wealthy people who squander their riches. How and why do they do this? Are there lessons from their stories that you and I can put to use?

We hear all the time about the “lifestyles of the rich and famous”. Today, on April 1st, let's look at some lifestyles of the rich and foolish.

Lifestyles of the Rich and Foolish

There are so many stories of athletes and entertainers who have blown big fortunes that it's tough to know where to start. Who should we pick on first? Since I've never been a fan of Nicolas Cage — and since he seems to be especially bad with money — let's use him an example.

Over a period of fifteen years, Cage earned more than $150 million. He blew through that money buying things like:

Fifteen homes, including an $8 million English castle that he never stayed in once.

A private island.

Four luxury yachts.

A fleet of exotic cars, including a Lamborghini that used to belong to the Shah of Iran.

A dinosaur skull he won after a bidding contest with Leonardo DiCaprio.

A private jet.

It's not fair to characterize Cage as “broke” — he's still a bankable movie star — but his net worth is reportedly only about $25 million. (That's like someone with an average income having a net worth of roughly $25,000.) He could be worth ten times as much but his foolish financial habits have caused him woe.

Cage got in trouble with the IRS for failing to pay millions of dollars in taxes. He's been sued by multiple companies for failing to repay loans. His business manager says that he's tried to warn Cage that his lifestyle exceeds his means, but the actor won't listen.

Cage is but one of many celebrities who have done dumb things with money. Other prominent examples include:

MC Hammer sold the rights to his songs to raise money after being bankrupted by his lavish lifestyle. Hammer earned more than $33 million in the early nineties, but spent the money on a $12 million mansion (with gold-plated gates), a fleet of seventeen vehicles, two helicopters, and extravagant parties. [source, source]

Actress Kim Basinger paid $20 million to buy the town of Braselton, Georgia in 1989. When Basinger filed for bankruptcy just four years later, she was forced to sell the town. [source]

On the night of 01 February 1976, Elvis Presley decided he wanted a Fool's Gold Loaf, a special sandwich made of hollowed bread, a jar of peanut butter, a jar of jelly, and a pound of bacon. He and his entourage flew from Memphis to Denver. The group ate their sandwiches and then flew home. Price: $50,000 – $60,000. [source]

Even authors get in on the act. Writer Mark Twain made tons of money through his work, but he lost much of it to bad investments, mostly in new inventions: a bed clamp for infants, a new type of steam engine, and a machine designed to engrave printing plates. Twain was a sucker for get rich quick schemes. [source, source]

When it comes to frittering way fortunes, it's hard to compete with sports superstars. In a 2009 Sports Illustrated article about how and why athletes go broke, Pablo S. Torre wrote that after two years of retirement, “78% of former NFL players have gone bankrupt or are under financial stress.” Within five years of retirement, roughly 60% of former NBA players are in similar positions.

Some examples:

Boxer Mike Tyson earned over $300 million in his professional career. He lost it all, spending the money on cars, jewels, pet tigers, and more. He eventually filed for bankruptcy. [source]

When Yoenis Cespedes signed a new $75 million contract with the New York Mets, he drove a new vehicle each day during the first week of training camp, including a Lamborghini Aventador ($397,000) and an Alfa Romeo 8C Competizione ($299,000). [source]

Basketballer Vin Baker earned $100 million during his career. He's now worth $500,000. He manages a Starbucks store in a small town in Rhode Island. (To be fair, Baker sees to be turning his life around, which is awesome.) [source]

Hall-of-fame pitcher Curt Schilling earned $112 million during 20 years in the big leagues. It wasn't enough to keep up with his spending. Plus he lost $50 million through the collapse of a company he owned. In 2013, he held a “fire sale” to avoid bankruptcy.

It can be tough to sympathize with these folks. Used wisely, their immense fortunes could sustain them and their families for a long time. Instead, they squander their money on fleeting pleasures and the trappings of wealth.

Still, I believe it's best to keep the schadenfreude in check. “There but for the grace of God” and all that, right? I've seen plenty of examples of average folks who have wasted smaller windfalls. In fact, this sort of thing seem to be the rule rather than the exception.

But why does this happen? The answer might be Sudden-Wealth Syndrome.

Lottery winners have the same kinds of problems. A 2001 article in The American Economic Review found that after receiving half their jackpots, the typical lotto winner had only put about 16% of that money into savings. It's estimated that over a quarter of lottery winners go bankrupt.

Take Bud Post: He won $16.2 million in 1988. Within weeks of receiving his first annual payment of nearly half a million dollars, he'd spent $300,000. During the next few years, Post bought boats, mansions, and airplanes, but trouble followed him everywhere. “I was much happier when I was broke,” he's reported to have said. When he died in 2006, Post was living on a $450 monthly disability check.

Sudden-Wealth Syndrome

In 2012, ESPN released a documentary called Broke that explores the relationship between pro athletes and money. How does sudden wealth affect young men? What happens when highly-competitive athletes with high incomes hang out together? Lots of stupid stuff, as it turns out.

Here's a nine-minute montage from Broke in which wealth manager Ed Butowsky talks about why athletes get into trouble with money:

Broke is an interesting film. The players speak candidly about the mistakes they've made: buying 25 pairs of shoes at one time, buying fur coats they never wore, buying cars they never drove. They're not proud of their pasts — some are ashamed — but they're willing to talk about the problem in the hopes they can help others avoid doing the same dumb things in the future.

Curious how much your favorite actor or athlete earns? Check out Celebrity Net Worth, a website devoted to tracking the financial health of people in the public eye.

Broke does a good job of explaining why our sports heroes can't seem to make smart money moves. The problem is Sudden-Wealth Syndrome. Essentially, young folks who earn big bucks don't get a chance to “practice” with money before they're buried with wealth.

The typical person earns a little when they're young, but watches their salary grow slowly with time. Their income peaks during their forties and fifties. As a result, they get time to make mistakes with small amounts of money first which means (in theory) that they're less likely to blow big bucks down the road.

On the other hand, athletes (and entertainers) have a completely different earning pattern. They leave school to instant riches. For a few years, they earn great gobs of money. But usually their income declines sharply with time — until it stops altogether.

Here's a (pathetic) chart I created to help visualize this phenomenon:

Athletes and entertainers need to figure out how to make five years of income last for fifty years. This never occurs to most of them. “[A pro athlete] can't live like a king forever,” says Bart Scott in ESPN's Broke. “But you can live like a prince forever.”

Sudden-Wealth Syndrome doesn't just affect athletes and actors. Lottery winners experience it too. So do average folks who inherit a chunk of change or business owners who sell their companies.

The fundamental problem is that nobody ever teaches us how to handle a windfall. Windfalls are rare, and in most cases they can't be planned for. (Some folks might be able to plan for an inheritance or the sale of a business, but these situations are relatively uncommon.) As a result, when the average person happens into a chunk of change, they spend it.

Here's what you should do instead.

How NOT to Waste a Windfall

When you receive a windfall, whether it's a tax refund, an inheritance, a gift, or from any other source, it's like you've been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.

It can be tempting to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you'll be just as unhappy as you've always been.

If you receive a chunk of cash, I recommend that you:

Keep five percent to treat yourself and your family. Let's be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you're going to want to spend some of it. No problem. But don't spend all of it. I used to recommend spending one percent of a windfall on yourself, but from talking to people, that's not enough. Now I suggest spending five percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall.

Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.

Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It'll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that's $50 extra you'll have available each month. Most of all, repaying debt will relieve the psychological weight you've been carrying for so long.

Fix the things that are broken. After you've eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you've been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you've been putting off.

Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don't. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts — and then leave this money alone.

To successfully manage a windfall, you must allow the initial euphoria to pass, getting over the urge to spend the money today. Live as you were before. Meanwhile, calculate how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy.

In 2009, I received an enormous windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, and made measured moves designed to favor long-term happiness over short-term happiness.

Today, the bulk of my windfall remains in the same place it's been for the past five years: an investment account. That cash eases my mind. It helps me sleep easy at night. And that's more rewarding than spending it on new toys could ever be.

Setting a Good Example

Not everyone who gets rich quickly does dumb things with money. Especially as the plight of pro athletes becomes better known, there are prominent examples of young superstars making savvy money moves. They're learning from the lessons of those who came before.

Take Toronto Raptors superstar Kawhi Leonard, for instance. This 27-year-old NBA MVP earns $23 million per year — but still clips coupons for his favorite restaurant. He drives a 1997 Chevy Tahoe. Sure, he bought himself a Porsche, but he's not interested in flash and bling. “I'm not gonna buy some fancy watch just to show people something fancy on my wrist,” he says. [source]

Jamal Mashburn has made wise use of his wealth. So has LeBron James, who takes his investment advice from Warren Buffett:

Here are other superstars who act as money bosses:

During his 12-year career in the NBA, Junior Bridgeman never earned more than $350,000. Unlike most players, however, he planned ahead. He recognized his basketball income would eventually vanish. He bought a Wendy's fast-food franchise and learned the business inside-out. He became a hands-on owner. He expanded from one store to three to six — and then to a small empire. Today, twenty-five years after retirement, Bridgeman owns more than 160 Wendy's restaurants and 120 Chili's franchises. His company employs 11,000 people and generates over half a billion in revenue every year. His personal net worth tops $400 million. [source]

Patriots tight end Rob Gronkowski — who just retired last week — is a shining example of how to handle sudden wealth correctly. The 29-year-old earned over $53 million for playing on the field — and hasn't spent any of it. Here are his own words: “To this day, I still haven't touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven't blown it on any big-money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school.” [source]

Oakland Raiders running back Marshawn Lynch has a similar story. During his twelve-year NFL career, Lynch has collected nearly 57 million from his contract. Reportedly, he hasn't spent a penny of that money. Instead, he's been cautious to live only off his endorsement earnings. Whether this is true or not, Lynch is known to be a good example to his teammates, helping them with their 401(k)s and other financial issues. [source]

Sometimes superstars who have been poor with money have a flash of insight and they're able to turn things around. Former NFL player Phillip Buchanon is a perfect example. After watching ESPN's Broke, he realized he was headed for trouble. He mended his ways and started managing his money wisely. Now he's written a book with advice for other folks who are fortunate enough to encounter a windfall. [source]

When people make a lot of money, they're able to spend a lot of money. Sometimes the super-rich can afford to build a place like the Biltmore Estate. The problem isn't a single extravagant purchase, but a lavish lifestyle in which they spend more than they earn. Real wealth isn't about earning money — it's about keeping money.

The post Lifestyles of the Rich and Foolish appeared first on Get Rich Slowly.

from Finance https://www.getrichslowly.org/lifestyles-of-the-rich-and-foolish/ via http://www.rssmix.com/

[michaeljtraylor]

Lifestyles of the Rich and Foolish

It’s the first of April. You know what that means. Spring is here! Your friends and family are pulling April Fools’ Day pranks. And my tree allergies are kicking my butt. Every year, tree pollen makes my life miserable. This year is no different.

Facebook kindly reminded me this morning that three years ago, Kim and I were in Asheville, North Carolina. After wintering in Savannah, Georgia, we’d resumed our tour of the U.S. by RV.

While in Asheville, we toured the Biltmore Estate, the largest home in the U.S. This 250-room chateau contains 179,000 square feet of floor space — including 35 bedrooms, 43 bathrooms, and 65 fireplaces — and originally sat on 195 square miles of land. (Today, the estate “only” contains 8000 acres.)

“This feels like Downton Abbey but in North Carolina,” I said as we walked the endless halls. Just as Downton Abbey documented the excesses of British upper class, so too the Biltmore sometimes feels like an example of how rich Americans indulged in decadence.

George Washington Vanderbilt II, the man who built Biltmore, was a member of one of the country’s wealthiest families. His grandfather, Cornelius Vanderbilt, was born poor in 1794, but by the time he died in 1877 he had become one of the richest men in the world. During his lifetime, he built a fortune first from steamships and then as a prominent railroad tycoon.

By family standards, grandson George didn’t have a lot of money. He inherited about $7 million, and drew income from a $5 million trust fund. He decided to use the bulk of his fortune to build a huge house high in the Appalachians. Work on the Biltmore Estate began in 1889, when George was 26 years old. Six years and $5 million later, he moved into his palace. (That $5 million would be roughly $90 million in today’s dollars.)

Strolling the grounds of the Biltmore Estate got me thinking about the stories we hear of wealthy people who squander their riches. How and why do they do this? Are there lessons from their stories that you and I can put to use?

We hear all the time about the “lifestyles of the rich and famous”. Today, on April 1st, let’s look at some lifestyles of the rich and foolish.

Lifestyles of the Rich and Foolish

There are so many stories of athletes and entertainers who have blown big fortunes that it’s tough to know where to start. Who should we pick on first? Since I’ve never been a fan of Nicolas Cage — and since he seems to be especially bad with money — let’s use him an example.

Over a period of fifteen years, Cage earned more than $150 million. He blew through that money buying things like:

Fifteen homes, including an $8 million English castle that he never stayed in once.

A private island.

Four luxury yachts.

A fleet of exotic cars, including a Lamborghini that used to belong to the Shah of Iran.

A dinosaur skull he won after a bidding contest with Leonardo DiCaprio.

A private jet.

It’s not fair to characterize Cage as “broke” — he’s still a bankable movie star — but his net worth is reportedly only about $25 million. (That’s like someone with an average income having a net worth of roughly $25,000.) He could be worth ten times as much but his foolish financial habits have caused him woe.

Cage got in trouble with the IRS for failing to pay millions of dollars in taxes. He’s been sued by multiple companies for failing to repay loans. His business manager says that he’s tried to warn Cage that his lifestyle exceeds his means, but the actor won’t listen.

Cage is but one of many celebrities who have done dumb things with money. Other prominent examples include:

MC Hammer sold the rights to his songs to raise money after being bankrupted by his lavish lifestyle. Hammer earned more than $33 million in the early nineties, but spent the money on a $12 million mansion (with gold-plated gates), a fleet of seventeen vehicles, two helicopters, and extravagant parties. [source, source]

Actress Kim Basinger paid $20 million to buy the town of Braselton, Georgia in 1989. When Basinger filed for bankruptcy just four years later, she was forced to sell the town. [source]

On the night of 01 February 1976, Elvis Presley decided he wanted a Fool’s Gold Loaf, a special sandwich made of hollowed bread, a jar of peanut butter, a jar of jelly, and a pound of bacon. He and his entourage flew from Memphis to Denver. The group ate their sandwiches and then flew home. Price: $50,000 – $60,000. [source]

Even authors get in on the act. Writer Mark Twain made tons of money through his work, but he lost much of it to bad investments, mostly in new inventions: a bed clamp for infants, a new type of steam engine, and a machine designed to engrave printing plates. Twain was a sucker for get rich quick schemes. [source, source]

When it comes to frittering way fortunes, it’s hard to compete with sports superstars. In a 2009 Sports Illustrated article about how and why athletes go broke, Pablo S. Torre wrote that after two years of retirement, “78% of former NFL players have gone bankrupt or are under financial stress.” Within five years of retirement, roughly 60% of former NBA players are in similar positions.

Some examples:

Boxer Mike Tyson earned over $300 million in his professional career. He lost it all, spending the money on cars, jewels, pet tigers, and more. He eventually filed for bankruptcy. [source]

When Yoenis Cespedes signed a new $75 million contract with the New York Mets, he drove a new vehicle each day during the first week of training camp, including a Lamborghini Aventador ($397,000) and an Alfa Romeo 8C Competizione ($299,000). [source]

Basketballer Vin Baker earned $100 million during his career. He’s now worth $500,000. He manages a Starbucks store in a small town in Rhode Island. (To be fair, Baker sees to be turning his life around, which is awesome.) [source]

Hall-of-fame pitcher Curt Schilling earned $112 million during 20 years in the big leagues. It wasn’t enough to keep up with his spending. Plus he lost $50 million through the collapse of a company he owned. In 2013, he held a “fire sale” to avoid bankruptcy.

It can be tough to sympathize with these folks. Used wisely, their immense fortunes could sustain them and their families for a long time. Instead, they squander their money on fleeting pleasures and the trappings of wealth.

Still, I believe it’s best to keep the schadenfreude in check. “There but for the grace of God” and all that, right? I’ve seen plenty of examples of average folks who have wasted smaller windfalls. In fact, this sort of thing seem to be the rule rather than the exception.

But why does this happen? The answer might be Sudden-Wealth Syndrome.

Lottery winners have the same kinds of problems. A 2001 article in The American Economic Review found that after receiving half their jackpots, the typical lotto winner had only put about 16% of that money into savings. It’s estimated that over a quarter of lottery winners go bankrupt.

Take Bud Post: He won $16.2 million in 1988. Within weeks of receiving his first annual payment of nearly half a million dollars, he’d spent $300,000. During the next few years, Post bought boats, mansions, and airplanes, but trouble followed him everywhere. “I was much happier when I was broke,” he’s reported to have said. When he died in 2006, Post was living on a $450 monthly disability check.

Sudden-Wealth Syndrome

In 2012, ESPN released a documentary called Broke that explores the relationship between pro athletes and money. How does sudden wealth affect young men? What happens when highly-competitive athletes with high incomes hang out together? Lots of stupid stuff, as it turns out.

Here’s a nine-minute montage from Broke in which wealth manager Ed Butowsky talks about why athletes get into trouble with money:

Broke is an interesting film. The players speak candidly about the mistakes they’ve made: buying 25 pairs of shoes at one time, buying fur coats they never wore, buying cars they never drove. They’re not proud of their pasts — some are ashamed — but they’re willing to talk about the problem in the hopes they can help others avoid doing the same dumb things in the future.

Curious how much your favorite actor or athlete earns? Check out Celebrity Net Worth, a website devoted to tracking the financial health of people in the public eye.

Broke does a good job of explaining why our sports heroes can’t seem to make smart money moves. The problem is Sudden-Wealth Syndrome. Essentially, young folks who earn big bucks don’t get a chance to “practice” with money before they’re buried with wealth.

The typical person earns a little when they’re young, but watches their salary grow slowly with time. Their income peaks during their forties and fifties. As a result, they get time to make mistakes with small amounts of money first which means (in theory) that they’re less likely to blow big bucks down the road.

On the other hand, athletes (and entertainers) have a completely different earning pattern. They leave school to instant riches. For a few years, they earn great gobs of money. But usually their income declines sharply with time — until it stops altogether.

Here’s a (pathetic) chart I created to help visualize this phenomenon:

Athletes and entertainers need to figure out how to make five years of income last for fifty years. This never occurs to most of them. “[A pro athlete] can’t live like a king forever,” says Bart Scott in ESPN’s Broke. “But you can live like a prince forever.”

Sudden-Wealth Syndrome doesn’t just affect athletes and actors. Lottery winners experience it too. So do average folks who inherit a chunk of change or business owners who sell their companies.

The fundamental problem is that nobody ever teaches us how to handle a windfall. Windfalls are rare, and in most cases they can’t be planned for. (Some folks might be able to plan for an inheritance or the sale of a business, but these situations are relatively uncommon.) As a result, when the average person happens into a chunk of change, they spend it.

Here’s what you should do instead.

How NOT to Waste a Windfall

When you receive a windfall, whether it’s a tax refund, an inheritance, a gift, or from any other source, it’s like you’ve been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.

It can be tempting to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you’ll be just as unhappy as you’ve always been.

If you receive a chunk of cash, I recommend that you:

Keep five percent to treat yourself and your family. Let’s be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you’re going to want to spend some of it. No problem. But don’t spend all of it. I used to recommend spending one percent of a windfall on yourself, but from talking to people, that’s not enough. Now I suggest spending five percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall.

Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.

Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It’ll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that’s $50 extra you’ll have available each month. Most of all, repaying debt will relieve the psychological weight you’ve been carrying for so long.

Fix the things that are broken. After you’ve eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you’ve been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you’ve been putting off.

Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don’t. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts — and then leave this money alone.

To successfully manage a windfall, you must allow the initial euphoria to pass, getting over the urge to spend the money today. Live as you were before. Meanwhile, calculate how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy.

In 2009, I received an enormous windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, and made measured moves designed to favor long-term happiness over short-term happiness.

Today, the bulk of my windfall remains in the same place it’s been for the past five years: an investment account. That cash eases my mind. It helps me sleep easy at night. And that’s more rewarding than spending it on new toys could ever be.

Setting a Good Example

Not everyone who gets rich quickly does dumb things with money. Especially as the plight of pro athletes becomes better known, there are prominent examples of young superstars making savvy money moves. They’re learning from the lessons of those who came before.

Take Toronto Raptors superstar Kawhi Leonard, for instance. This 27-year-old NBA MVP earns $23 million per year — but still clips coupons for his favorite restaurant. He drives a 1997 Chevy Tahoe. Sure, he bought himself a Porsche, but he’s not interested in flash and bling. “I’m not gonna buy some fancy watch just to show people something fancy on my wrist,” he says. [source]

Jamal Mashburn has made wise use of his wealth. So has LeBron James, who takes his investment advice from Warren Buffett:

Here are other superstars who act as money bosses:

During his 12-year career in the NBA, Junior Bridgeman never earned more than $350,000. Unlike most players, however, he planned ahead. He recognized his basketball income would eventually vanish. He bought a Wendy’s fast-food franchise and learned the business inside-out. He became a hands-on owner. He expanded from one store to three to six — and then to a small empire. Today, twenty-five years after retirement, Bridgeman owns more than 160 Wendy’s restaurants and 120 Chili’s franchises. His company employs 11,000 people and generates over half a billion in revenue every year. His personal net worth tops $400 million. [source]

Patriots tight end Rob Gronkowski — who just retired last week — is a shining example of how to handle sudden wealth correctly. The 29-year-old earned over $53 million for playing on the field — and hasn’t spent any of it. Here are his own words: “To this day, I still haven’t touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven’t blown it on any big-money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school.” [source]

Oakland Raiders running back Marshawn Lynch has a similar story. During his twelve-year NFL career, Lynch has collected nearly 57 million from his contract. Reportedly, he hasn’t spent a penny of that money. Instead, he’s been cautious to live only off his endorsement earnings. Whether this is true or not, Lynch is known to be a good example to his teammates, helping them with their 401(k)s and other financial issues. [source]

Sometimes superstars who have been poor with money have a flash of insight and they’re able to turn things around. Former NFL player Phillip Buchanon is a perfect example. After watching ESPN’s Broke, he realized he was headed for trouble. He mended his ways and started managing his money wisely. Now he’s written a book with advice for other folks who are fortunate enough to encounter a windfall. [source]

When people make a lot of money, they’re able to spend a lot of money. Sometimes the super-rich can afford to build a place like the Biltmore Estate. The problem isn’t a single extravagant purchase, but a lavish lifestyle in which they spend more than they earn. Real wealth isn’t about earning money — it’s about keeping money.

The post Lifestyles of the Rich and Foolish appeared first on Get Rich Slowly.

* This article was originally published here

from RSSMix.com Mix ID 8312273 https://proshoppingservice.com/lifestyles-of-the-rich-and-foolish/ from Garko Media https://garkomedia1.tumblr.com/post/183874605274

[garkomedia1]

Lifestyles of the Rich and Foolish

It’s the first of April. You know what that means. Spring is here! Your friends and family are pulling April Fools’ Day pranks. And my tree allergies are kicking my butt. Every year, tree pollen makes my life miserable. This year is no different.

Facebook kindly reminded me this morning that three years ago, Kim and I were in Asheville, North Carolina. After wintering in Savannah, Georgia, we’d resumed our tour of the U.S. by RV.

While in Asheville, we toured the Biltmore Estate, the largest home in the U.S. This 250-room chateau contains 179,000 square feet of floor space — including 35 bedrooms, 43 bathrooms, and 65 fireplaces — and originally sat on 195 square miles of land. (Today, the estate “only” contains 8000 acres.)

“This feels like Downton Abbey but in North Carolina,” I said as we walked the endless halls. Just as Downton Abbey documented the excesses of British upper class, so too the Biltmore sometimes feels like an example of how rich Americans indulged in decadence.

George Washington Vanderbilt II, the man who built Biltmore, was a member of one of the country’s wealthiest families. His grandfather, Cornelius Vanderbilt, was born poor in 1794, but by the time he died in 1877 he had become one of the richest men in the world. During his lifetime, he built a fortune first from steamships and then as a prominent railroad tycoon.

By family standards, grandson George didn’t have a lot of money. He inherited about $7 million, and drew income from a $5 million trust fund. He decided to use the bulk of his fortune to build a huge house high in the Appalachians. Work on the Biltmore Estate began in 1889, when George was 26 years old. Six years and $5 million later, he moved into his palace. (That $5 million would be roughly $90 million in today’s dollars.)

Strolling the grounds of the Biltmore Estate got me thinking about the stories we hear of wealthy people who squander their riches. How and why do they do this? Are there lessons from their stories that you and I can put to use?

We hear all the time about the “lifestyles of the rich and famous”. Today, on April 1st, let’s look at some lifestyles of the rich and foolish.

Lifestyles of the Rich and Foolish

There are so many stories of athletes and entertainers who have blown big fortunes that it’s tough to know where to start. Who should we pick on first? Since I’ve never been a fan of Nicolas Cage — and since he seems to be especially bad with money — let’s use him an example.

Over a period of fifteen years, Cage earned more than $150 million. He blew through that money buying things like:

Fifteen homes, including an $8 million English castle that he never stayed in once.

A private island.

Four luxury yachts.

A fleet of exotic cars, including a Lamborghini that used to belong to the Shah of Iran.

A dinosaur skull he won after a bidding contest with Leonardo DiCaprio.

A private jet.

It’s not fair to characterize Cage as “broke” — he’s still a bankable movie star — but his net worth is reportedly only about $25 million. (That’s like someone with an average income having a net worth of roughly $25,000.) He could be worth ten times as much but his foolish financial habits have caused him woe.

Cage got in trouble with the IRS for failing to pay millions of dollars in taxes. He’s been sued by multiple companies for failing to repay loans. His business manager says that he’s tried to warn Cage that his lifestyle exceeds his means, but the actor won’t listen.

Cage is but one of many celebrities who have done dumb things with money. Other prominent examples include:

MC Hammer sold the rights to his songs to raise money after being bankrupted by his lavish lifestyle. Hammer earned more than $33 million in the early nineties, but spent the money on a $12 million mansion (with gold-plated gates), a fleet of seventeen vehicles, two helicopters, and extravagant parties. [source, source]

Actress Kim Basinger paid $20 million to buy the town of Braselton, Georgia in 1989. When Basinger filed for bankruptcy just four years later, she was forced to sell the town. [source]

On the night of 01 February 1976, Elvis Presley decided he wanted a Fool’s Gold Loaf, a special sandwich made of hollowed bread, a jar of peanut butter, a jar of jelly, and a pound of bacon. He and his entourage flew from Memphis to Denver. The group ate their sandwiches and then flew home. Price: $50,000 – $60,000. [source]

Even authors get in on the act. Writer Mark Twain made tons of money through his work, but he lost much of it to bad investments, mostly in new inventions: a bed clamp for infants, a new type of steam engine, and a machine designed to engrave printing plates. Twain was a sucker for get rich quick schemes. [source, source]

When it comes to frittering way fortunes, it’s hard to compete with sports superstars. In a 2009 Sports Illustrated article about how and why athletes go broke, Pablo S. Torre wrote that after two years of retirement, “78% of former NFL players have gone bankrupt or are under financial stress.” Within five years of retirement, roughly 60% of former NBA players are in similar positions.

Some examples:

Boxer Mike Tyson earned over $300 million in his professional career. He lost it all, spending the money on cars, jewels, pet tigers, and more. He eventually filed for bankruptcy. [source]

When Yoenis Cespedes signed a new $75 million contract with the New York Mets, he drove a new vehicle each day during the first week of training camp, including a Lamborghini Aventador ($397,000) and an Alfa Romeo 8C Competizione ($299,000). [source]

Basketballer Vin Baker earned $100 million during his career. He’s now worth $500,000. He manages a Starbucks store in a small town in Rhode Island. (To be fair, Baker sees to be turning his life around, which is awesome.) [source]

Hall-of-fame pitcher Curt Schilling earned $112 million during 20 years in the big leagues. It wasn’t enough to keep up with his spending. Plus he lost $50 million through the collapse of a company he owned. In 2013, he held a “fire sale” to avoid bankruptcy.

It can be tough to sympathize with these folks. Used wisely, their immense fortunes could sustain them and their families for a long time. Instead, they squander their money on fleeting pleasures and the trappings of wealth.

Still, I believe it’s best to keep the schadenfreude in check. “There but for the grace of God” and all that, right? I’ve seen plenty of examples of average folks who have wasted smaller windfalls. In fact, this sort of thing seem to be the rule rather than the exception.

But why does this happen? The answer might be Sudden-Wealth Syndrome.

Lottery winners have the same kinds of problems. A 2001 article in The American Economic Review found that after receiving half their jackpots, the typical lotto winner had only put about 16% of that money into savings. It’s estimated that over a quarter of lottery winners go bankrupt.

Take Bud Post: He won $16.2 million in 1988. Within weeks of receiving his first annual payment of nearly half a million dollars, he’d spent $300,000. During the next few years, Post bought boats, mansions, and airplanes, but trouble followed him everywhere. “I was much happier when I was broke,” he’s reported to have said. When he died in 2006, Post was living on a $450 monthly disability check.

Sudden-Wealth Syndrome

In 2012, ESPN released a documentary called Broke that explores the relationship between pro athletes and money. How does sudden wealth affect young men? What happens when highly-competitive athletes with high incomes hang out together? Lots of stupid stuff, as it turns out.

Here’s a nine-minute montage from Broke in which wealth manager Ed Butowsky talks about why athletes get into trouble with money:

Broke is an interesting film. The players speak candidly about the mistakes they’ve made: buying 25 pairs of shoes at one time, buying fur coats they never wore, buying cars they never drove. They’re not proud of their pasts — some are ashamed — but they’re willing to talk about the problem in the hopes they can help others avoid doing the same dumb things in the future.

Curious how much your favorite actor or athlete earns? Check out Celebrity Net Worth, a website devoted to tracking the financial health of people in the public eye.

Broke does a good job of explaining why our sports heroes can’t seem to make smart money moves. The problem is Sudden-Wealth Syndrome. Essentially, young folks who earn big bucks don’t get a chance to “practice” with money before they’re buried with wealth.

The typical person earns a little when they’re young, but watches their salary grow slowly with time. Their income peaks during their forties and fifties. As a result, they get time to make mistakes with small amounts of money first which means (in theory) that they’re less likely to blow big bucks down the road.

On the other hand, athletes (and entertainers) have a completely different earning pattern. They leave school to instant riches. For a few years, they earn great gobs of money. But usually their income declines sharply with time — until it stops altogether.

Here’s a (pathetic) chart I created to help visualize this phenomenon:

Athletes and entertainers need to figure out how to make five years of income last for fifty years. This never occurs to most of them. “[A pro athlete] can’t live like a king forever,” says Bart Scott in ESPN’s Broke. “But you can live like a prince forever.”

Sudden-Wealth Syndrome doesn’t just affect athletes and actors. Lottery winners experience it too. So do average folks who inherit a chunk of change or business owners who sell their companies.

The fundamental problem is that nobody ever teaches us how to handle a windfall. Windfalls are rare, and in most cases they can’t be planned for. (Some folks might be able to plan for an inheritance or the sale of a business, but these situations are relatively uncommon.) As a result, when the average person happens into a chunk of change, they spend it.

Here’s what you should do instead.

How NOT to Waste a Windfall

When you receive a windfall, whether it’s a tax refund, an inheritance, a gift, or from any other source, it’s like you’ve been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.

It can be tempting to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you’ll be just as unhappy as you’ve always been.

If you receive a chunk of cash, I recommend that you:

Keep five percent to treat yourself and your family. Let’s be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you’re going to want to spend some of it. No problem. But don’t spend all of it. I used to recommend spending one percent of a windfall on yourself, but from talking to people, that’s not enough. Now I suggest spending five percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall.

Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.

Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It’ll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that’s $50 extra you’ll have available each month. Most of all, repaying debt will relieve the psychological weight you’ve been carrying for so long.

Fix the things that are broken. After you’ve eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you’ve been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you’ve been putting off.

Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don’t. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts — and then leave this money alone.

To successfully manage a windfall, you must allow the initial euphoria to pass, getting over the urge to spend the money today. Live as you were before. Meanwhile, calculate how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy.

In 2009, I received an enormous windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, and made measured moves designed to favor long-term happiness over short-term happiness.

Today, the bulk of my windfall remains in the same place it’s been for the past five years: an investment account. That cash eases my mind. It helps me sleep easy at night. And that’s more rewarding than spending it on new toys could ever be.

Setting a Good Example

Not everyone who gets rich quickly does dumb things with money. Especially as the plight of pro athletes becomes better known, there are prominent examples of young superstars making savvy money moves. They’re learning from the lessons of those who came before.

Take Toronto Raptors superstar Kawhi Leonard, for instance. This 27-year-old NBA MVP earns $23 million per year — but still clips coupons for his favorite restaurant. He drives a 1997 Chevy Tahoe. Sure, he bought himself a Porsche, but he’s not interested in flash and bling. “I’m not gonna buy some fancy watch just to show people something fancy on my wrist,” he says. [source]

Jamal Mashburn has made wise use of his wealth. So has LeBron James, who takes his investment advice from Warren Buffett:

Here are other superstars who act as money bosses:

During his 12-year career in the NBA, Junior Bridgeman never earned more than $350,000. Unlike most players, however, he planned ahead. He recognized his basketball income would eventually vanish. He bought a Wendy’s fast-food franchise and learned the business inside-out. He became a hands-on owner. He expanded from one store to three to six — and then to a small empire. Today, twenty-five years after retirement, Bridgeman owns more than 160 Wendy’s restaurants and 120 Chili’s franchises. His company employs 11,000 people and generates over half a billion in revenue every year. His personal net worth tops $400 million. [source]

Patriots tight end Rob Gronkowski — who just retired last week — is a shining example of how to handle sudden wealth correctly. The 29-year-old earned over $53 million for playing on the field — and hasn’t spent any of it. Here are his own words: “To this day, I still haven’t touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven’t blown it on any big-money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school.” [source]

Oakland Raiders running back Marshawn Lynch has a similar story. During his twelve-year NFL career, Lynch has collected nearly 57 million from his contract. Reportedly, he hasn’t spent a penny of that money. Instead, he’s been cautious to live only off his endorsement earnings. Whether this is true or not, Lynch is known to be a good example to his teammates, helping them with their 401(k)s and other financial issues. [source]

Sometimes superstars who have been poor with money have a flash of insight and they’re able to turn things around. Former NFL player Phillip Buchanon is a perfect example. After watching ESPN’s Broke, he realized he was headed for trouble. He mended his ways and started managing his money wisely. Now he’s written a book with advice for other folks who are fortunate enough to encounter a windfall. [source]

When people make a lot of money, they’re able to spend a lot of money. Sometimes the super-rich can afford to build a place like the Biltmore Estate. The problem isn’t a single extravagant purchase, but a lavish lifestyle in which they spend more than they earn. Real wealth isn’t about earning money — it’s about keeping money.

The post Lifestyles of the Rich and Foolish appeared first on Get Rich Slowly.

* This article was originally published here

from RSSMix.com Mix ID 8312273 https://proshoppingservice.com/lifestyles-of-the-rich-and-foolish/

[garkodigitalmedia]

Lifestyles of the Rich and Foolish

It’s the first of April. You know what that means. Spring is here! Your friends and family are pulling April Fools’ Day pranks. And my tree allergies are kicking my butt. Every year, tree pollen makes my life miserable. This year is no different.

Facebook kindly reminded me this morning that three years ago, Kim and I were in Asheville, North Carolina. After wintering in Savannah, Georgia, we’d resumed our tour of the U.S. by RV.

While in Asheville, we toured the Biltmore Estate, the largest home in the U.S. This 250-room chateau contains 179,000 square feet of floor space — including 35 bedrooms, 43 bathrooms, and 65 fireplaces — and originally sat on 195 square miles of land. (Today, the estate “only” contains 8000 acres.)

“This feels like Downton Abbey but in North Carolina,” I said as we walked the endless halls. Just as Downton Abbey documented the excesses of British upper class, so too the Biltmore sometimes feels like an example of how rich Americans indulged in decadence.

George Washington Vanderbilt II, the man who built Biltmore, was a member of one of the country’s wealthiest families. His grandfather, Cornelius Vanderbilt, was born poor in 1794, but by the time he died in 1877 he had become one of the richest men in the world. During his lifetime, he built a fortune first from steamships and then as a prominent railroad tycoon.

By family standards, grandson George didn’t have a lot of money. He inherited about $7 million, and drew income from a $5 million trust fund. He decided to use the bulk of his fortune to build a huge house high in the Appalachians. Work on the Biltmore Estate began in 1889, when George was 26 years old. Six years and $5 million later, he moved into his palace. (That $5 million would be roughly $90 million in today’s dollars.)

Strolling the grounds of the Biltmore Estate got me thinking about the stories we hear of wealthy people who squander their riches. How and why do they do this? Are there lessons from their stories that you and I can put to use?

We hear all the time about the “lifestyles of the rich and famous”. Today, on April 1st, let’s look at some lifestyles of the rich and foolish.

Lifestyles of the Rich and Foolish

There are so many stories of athletes and entertainers who have blown big fortunes that it’s tough to know where to start. Who should we pick on first? Since I’ve never been a fan of Nicolas Cage — and since he seems to be especially bad with money — let’s use him an example.

Over a period of fifteen years, Cage earned more than $150 million. He blew through that money buying things like:

Fifteen homes, including an $8 million English castle that he never stayed in once.

A private island.

Four luxury yachts.

A fleet of exotic cars, including a Lamborghini that used to belong to the Shah of Iran.

A dinosaur skull he won after a bidding contest with Leonardo DiCaprio.

A private jet.

It’s not fair to characterize Cage as “broke” — he’s still a bankable movie star — but his net worth is reportedly only about $25 million. (That’s like someone with an average income having a net worth of roughly $25,000.) He could be worth ten times as much but his foolish financial habits have caused him woe.

Cage got in trouble with the IRS for failing to pay millions of dollars in taxes. He’s been sued by multiple companies for failing to repay loans. His business manager says that he’s tried to warn Cage that his lifestyle exceeds his means, but the actor won’t listen.

Cage is but one of many celebrities who have done dumb things with money. Other prominent examples include:

MC Hammer sold the rights to his songs to raise money after being bankrupted by his lavish lifestyle. Hammer earned more than $33 million in the early nineties, but spent the money on a $12 million mansion (with gold-plated gates), a fleet of seventeen vehicles, two helicopters, and extravagant parties. [source, source]

Actress Kim Basinger paid $20 million to buy the town of Braselton, Georgia in 1989. When Basinger filed for bankruptcy just four years later, she was forced to sell the town. [source]

On the night of 01 February 1976, Elvis Presley decided he wanted a Fool’s Gold Loaf, a special sandwich made of hollowed bread, a jar of peanut butter, a jar of jelly, and a pound of bacon. He and his entourage flew from Memphis to Denver. The group ate their sandwiches and then flew home. Price: $50,000 – $60,000. [source]

Even authors get in on the act. Writer Mark Twain made tons of money through his work, but he lost much of it to bad investments, mostly in new inventions: a bed clamp for infants, a new type of steam engine, and a machine designed to engrave printing plates. Twain was a sucker for get rich quick schemes. [source, source]

When it comes to frittering way fortunes, it’s hard to compete with sports superstars. In a 2009 Sports Illustrated article about how and why athletes go broke, Pablo S. Torre wrote that after two years of retirement, “78% of former NFL players have gone bankrupt or are under financial stress.” Within five years of retirement, roughly 60% of former NBA players are in similar positions.

Some examples:

Boxer Mike Tyson earned over $300 million in his professional career. He lost it all, spending the money on cars, jewels, pet tigers, and more. He eventually filed for bankruptcy. [source]

When Yoenis Cespedes signed a new $75 million contract with the New York Mets, he drove a new vehicle each day during the first week of training camp, including a Lamborghini Aventador ($397,000) and an Alfa Romeo 8C Competizione ($299,000). [source]

Basketballer Vin Baker earned $100 million during his career. He’s now worth $500,000. He manages a Starbucks store in a small town in Rhode Island. (To be fair, Baker sees to be turning his life around, which is awesome.) [source]

Hall-of-fame pitcher Curt Schilling earned $112 million during 20 years in the big leagues. It wasn’t enough to keep up with his spending. Plus he lost $50 million through the collapse of a company he owned. In 2013, he held a “fire sale” to avoid bankruptcy.

It can be tough to sympathize with these folks. Used wisely, their immense fortunes could sustain them and their families for a long time. Instead, they squander their money on fleeting pleasures and the trappings of wealth.

Still, I believe it’s best to keep the schadenfreude in check. “There but for the grace of God” and all that, right? I’ve seen plenty of examples of average folks who have wasted smaller windfalls. In fact, this sort of thing seem to be the rule rather than the exception.

But why does this happen? The answer might be Sudden-Wealth Syndrome.

Lottery winners have the same kinds of problems. A 2001 article in The American Economic Review found that after receiving half their jackpots, the typical lotto winner had only put about 16% of that money into savings. It’s estimated that over a quarter of lottery winners go bankrupt.

Take Bud Post: He won $16.2 million in 1988. Within weeks of receiving his first annual payment of nearly half a million dollars, he’d spent $300,000. During the next few years, Post bought boats, mansions, and airplanes, but trouble followed him everywhere. “I was much happier when I was broke,” he’s reported to have said. When he died in 2006, Post was living on a $450 monthly disability check.

Sudden-Wealth Syndrome

In 2012, ESPN released a documentary called Broke that explores the relationship between pro athletes and money. How does sudden wealth affect young men? What happens when highly-competitive athletes with high incomes hang out together? Lots of stupid stuff, as it turns out.

Here’s a nine-minute montage from Broke in which wealth manager Ed Butowsky talks about why athletes get into trouble with money:

Broke is an interesting film. The players speak candidly about the mistakes they’ve made: buying 25 pairs of shoes at one time, buying fur coats they never wore, buying cars they never drove. They’re not proud of their pasts — some are ashamed — but they’re willing to talk about the problem in the hopes they can help others avoid doing the same dumb things in the future.

Curious how much your favorite actor or athlete earns? Check out Celebrity Net Worth, a website devoted to tracking the financial health of people in the public eye.

Broke does a good job of explaining why our sports heroes can’t seem to make smart money moves. The problem is Sudden-Wealth Syndrome. Essentially, young folks who earn big bucks don’t get a chance to “practice” with money before they’re buried with wealth.

The typical person earns a little when they’re young, but watches their salary grow slowly with time. Their income peaks during their forties and fifties. As a result, they get time to make mistakes with small amounts of money first which means (in theory) that they’re less likely to blow big bucks down the road.

On the other hand, athletes (and entertainers) have a completely different earning pattern. They leave school to instant riches. For a few years, they earn great gobs of money. But usually their income declines sharply with time — until it stops altogether.

Here’s a (pathetic) chart I created to help visualize this phenomenon:

Athletes and entertainers need to figure out how to make five years of income last for fifty years. This never occurs to most of them. “[A pro athlete] can’t live like a king forever,” says Bart Scott in ESPN’s Broke. “But you can live like a prince forever.”

Sudden-Wealth Syndrome doesn’t just affect athletes and actors. Lottery winners experience it too. So do average folks who inherit a chunk of change or business owners who sell their companies.

The fundamental problem is that nobody ever teaches us how to handle a windfall. Windfalls are rare, and in most cases they can’t be planned for. (Some folks might be able to plan for an inheritance or the sale of a business, but these situations are relatively uncommon.) As a result, when the average person happens into a chunk of change, they spend it.

Here’s what you should do instead.

How NOT to Waste a Windfall

When you receive a windfall, whether it’s a tax refund, an inheritance, a gift, or from any other source, it’s like you’ve been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.

It can be tempting to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you’ll be just as unhappy as you’ve always been.

If you receive a chunk of cash, I recommend that you:

Keep five percent to treat yourself and your family. Let’s be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you’re going to want to spend some of it. No problem. But don’t spend all of it. I used to recommend spending one percent of a windfall on yourself, but from talking to people, that’s not enough. Now I suggest spending five percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall.

Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.

Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It’ll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that’s $50 extra you’ll have available each month. Most of all, repaying debt will relieve the psychological weight you’ve been carrying for so long.

Fix the things that are broken. After you’ve eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you’ve been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you’ve been putting off.

Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don’t. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts — and then leave this money alone.

To successfully manage a windfall, you must allow the initial euphoria to pass, getting over the urge to spend the money today. Live as you were before. Meanwhile, calculate how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy.

In 2009, I received an enormous windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, and made measured moves designed to favor long-term happiness over short-term happiness.

Today, the bulk of my windfall remains in the same place it’s been for the past five years: an investment account. That cash eases my mind. It helps me sleep easy at night. And that’s more rewarding than spending it on new toys could ever be.

Setting a Good Example

Not everyone who gets rich quickly does dumb things with money. Especially as the plight of pro athletes becomes better known, there are prominent examples of young superstars making savvy money moves. They’re learning from the lessons of those who came before.

Take Toronto Raptors superstar Kawhi Leonard, for instance. This 27-year-old NBA MVP earns $23 million per year — but still clips coupons for his favorite restaurant. He drives a 1997 Chevy Tahoe. Sure, he bought himself a Porsche, but he’s not interested in flash and bling. “I’m not gonna buy some fancy watch just to show people something fancy on my wrist,” he says. [source]

Jamal Mashburn has made wise use of his wealth. So has LeBron James, who takes his investment advice from Warren Buffett:

Here are other superstars who act as money bosses:

During his 12-year career in the NBA, Junior Bridgeman never earned more than $350,000. Unlike most players, however, he planned ahead. He recognized his basketball income would eventually vanish. He bought a Wendy’s fast-food franchise and learned the business inside-out. He became a hands-on owner. He expanded from one store to three to six — and then to a small empire. Today, twenty-five years after retirement, Bridgeman owns more than 160 Wendy’s restaurants and 120 Chili’s franchises. His company employs 11,000 people and generates over half a billion in revenue every year. His personal net worth tops $400 million. [source]

Patriots tight end Rob Gronkowski — who just retired last week — is a shining example of how to handle sudden wealth correctly. The 29-year-old earned over $53 million for playing on the field — and hasn’t spent any of it. Here are his own words: “To this day, I still haven’t touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven’t blown it on any big-money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school.” [source]

Oakland Raiders running back Marshawn Lynch has a similar story. During his twelve-year NFL career, Lynch has collected nearly 57 million from his contract. Reportedly, he hasn’t spent a penny of that money. Instead, he’s been cautious to live only off his endorsement earnings. Whether this is true or not, Lynch is known to be a good example to his teammates, helping them with their 401(k)s and other financial issues. [source]

Sometimes superstars who have been poor with money have a flash of insight and they’re able to turn things around. Former NFL player Phillip Buchanon is a perfect example. After watching ESPN’s Broke, he realized he was headed for trouble. He mended his ways and started managing his money wisely. Now he’s written a book with advice for other folks who are fortunate enough to encounter a windfall. [source]

When people make a lot of money, they’re able to spend a lot of money. Sometimes the super-rich can afford to build a place like the Biltmore Estate. The problem isn’t a single extravagant purchase, but a lavish lifestyle in which they spend more than they earn. Real wealth isn’t about earning money — it’s about keeping money.

The post Lifestyles of the Rich and Foolish appeared first on Get Rich Slowly.

* This article was originally published here

from RSSMix.com Mix ID 8312273 https://proshoppingservice.com/lifestyles-of-the-rich-and-foolish/

[nicholerestrada]

Lifestyles of the Rich and Foolish

It’s the first of April. You know what that means. Spring is here! Your friends and family are pulling April Fools’ Day pranks. And my tree allergies are kicking my butt. Every year, tree pollen makes my life miserable. This year is no different.

Facebook kindly reminded me this morning that three years ago, Kim and I were in Asheville, North Carolina. After wintering in Savannah, Georgia, we’d resumed our tour of the U.S. by RV.

While in Asheville, we toured the Biltmore Estate, the largest home in the U.S. This 250-room chateau contains 179,000 square feet of floor space — including 35 bedrooms, 43 bathrooms, and 65 fireplaces — and originally sat on 195 square miles of land. (Today, the estate “only” contains 8000 acres.)

“This feels like Downton Abbey but in North Carolina,” I said as we walked the endless halls. Just as Downton Abbey documented the excesses of British upper class, so too the Biltmore sometimes feels like an example of how rich Americans indulged in decadence.

George Washington Vanderbilt II, the man who built Biltmore, was a member of one of the country’s wealthiest families. His grandfather, Cornelius Vanderbilt, was born poor in 1794, but by the time he died in 1877 he had become one of the richest men in the world. During his lifetime, he built a fortune first from steamships and then as a prominent railroad tycoon.

By family standards, grandson George didn’t have a lot of money. He inherited about $7 million, and drew income from a $5 million trust fund. He decided to use the bulk of his fortune to build a huge house high in the Appalachians. Work on the Biltmore Estate began in 1889, when George was 26 years old. Six years and $5 million later, he moved into his palace. (That $5 million would be roughly $90 million in today’s dollars.)

Strolling the grounds of the Biltmore Estate got me thinking about the stories we hear of wealthy people who squander their riches. How and why do they do this? Are there lessons from their stories that you and I can put to use?

We hear all the time about the “lifestyles of the rich and famous”. Today, on April 1st, let’s look at some lifestyles of the rich and foolish.

Lifestyles of the Rich and Foolish

There are so many stories of athletes and entertainers who have blown big fortunes that it’s tough to know where to start. Who should we pick on first? Since I’ve never been a fan of Nicolas Cage — and since he seems to be especially bad with money — let’s use him an example.

Over a period of fifteen years, Cage earned more than $150 million. He blew through that money buying things like:

Fifteen homes, including an $8 million English castle that he never stayed in once.

A private island.

Four luxury yachts.

A fleet of exotic cars, including a Lamborghini that used to belong to the Shah of Iran.

A dinosaur skull he won after a bidding contest with Leonardo DiCaprio.

A private jet.

It’s not fair to characterize Cage as “broke” — he’s still a bankable movie star — but his net worth is reportedly only about $25 million. (That’s like someone with an average income having a net worth of roughly $25,000.) He could be worth ten times as much but his foolish financial habits have caused him woe.

Cage got in trouble with the IRS for failing to pay millions of dollars in taxes. He’s been sued by multiple companies for failing to repay loans. His business manager says that he’s tried to warn Cage that his lifestyle exceeds his means, but the actor won’t listen.

Cage is but one of many celebrities who have done dumb things with money. Other prominent examples include:

MC Hammer sold the rights to his songs to raise money after being bankrupted by his lavish lifestyle. Hammer earned more than $33 million in the early nineties, but spent the money on a $12 million mansion (with gold-plated gates), a fleet of seventeen vehicles, two helicopters, and extravagant parties. [source, source]

Actress Kim Basinger paid $20 million to buy the town of Braselton, Georgia in 1989. When Basinger filed for bankruptcy just four years later, she was forced to sell the town. [source]

On the night of 01 February 1976, Elvis Presley decided he wanted a Fool’s Gold Loaf, a special sandwich made of hollowed bread, a jar of peanut butter, a jar of jelly, and a pound of bacon. He and his entourage flew from Memphis to Denver. The group ate their sandwiches and then flew home. Price: $50,000 – $60,000. [source]

Even authors get in on the act. Writer Mark Twain made tons of money through his work, but he lost much of it to bad investments, mostly in new inventions: a bed clamp for infants, a new type of steam engine, and a machine designed to engrave printing plates. Twain was a sucker for get rich quick schemes. [source, source]

When it comes to frittering way fortunes, it’s hard to compete with sports superstars. In a 2009 Sports Illustrated article about how and why athletes go broke, Pablo S. Torre wrote that after two years of retirement, “78% of former NFL players have gone bankrupt or are under financial stress.” Within five years of retirement, roughly 60% of former NBA players are in similar positions.

Some examples:

Boxer Mike Tyson earned over $300 million in his professional career. He lost it all, spending the money on cars, jewels, pet tigers, and more. He eventually filed for bankruptcy. [source]

When Yoenis Cespedes signed a new $75 million contract with the New York Mets, he drove a new vehicle each day during the first week of training camp, including a Lamborghini Aventador ($397,000) and an Alfa Romeo 8C Competizione ($299,000). [source]

Basketballer Vin Baker earned $100 million during his career. He’s now worth $500,000. He manages a Starbucks store in a small town in Rhode Island. (To be fair, Baker sees to be turning his life around, which is awesome.) [source]

Hall-of-fame pitcher Curt Schilling earned $112 million during 20 years in the big leagues. It wasn’t enough to keep up with his spending. Plus he lost $50 million through the collapse of a company he owned. In 2013, he held a “fire sale” to avoid bankruptcy.

It can be tough to sympathize with these folks. Used wisely, their immense fortunes could sustain them and their families for a long time. Instead, they squander their money on fleeting pleasures and the trappings of wealth.

Still, I believe it’s best to keep the schadenfreude in check. “There but for the grace of God” and all that, right? I’ve seen plenty of examples of average folks who have wasted smaller windfalls. In fact, this sort of thing seem to be the rule rather than the exception.

But why does this happen? The answer might be Sudden-Wealth Syndrome.

Lottery winners have the same kinds of problems. A 2001 article in The American Economic Review found that after receiving half their jackpots, the typical lotto winner had only put about 16% of that money into savings. It’s estimated that over a quarter of lottery winners go bankrupt.

Take Bud Post: He won $16.2 million in 1988. Within weeks of receiving his first annual payment of nearly half a million dollars, he’d spent $300,000. During the next few years, Post bought boats, mansions, and airplanes, but trouble followed him everywhere. “I was much happier when I was broke,” he’s reported to have said. When he died in 2006, Post was living on a $450 monthly disability check.

Sudden-Wealth Syndrome

In 2012, ESPN released a documentary called Broke that explores the relationship between pro athletes and money. How does sudden wealth affect young men? What happens when highly-competitive athletes with high incomes hang out together? Lots of stupid stuff, as it turns out.

Here’s a nine-minute montage from Broke in which wealth manager Ed Butowsky talks about why athletes get into trouble with money:

Broke is an interesting film. The players speak candidly about the mistakes they’ve made: buying 25 pairs of shoes at one time, buying fur coats they never wore, buying cars they never drove. They’re not proud of their pasts — some are ashamed — but they’re willing to talk about the problem in the hopes they can help others avoid doing the same dumb things in the future.

Curious how much your favorite actor or athlete earns? Check out Celebrity Net Worth, a website devoted to tracking the financial health of people in the public eye.

Broke does a good job of explaining why our sports heroes can’t seem to make smart money moves. The problem is Sudden-Wealth Syndrome. Essentially, young folks who earn big bucks don’t get a chance to “practice” with money before they’re buried with wealth.

The typical person earns a little when they’re young, but watches their salary grow slowly with time. Their income peaks during their forties and fifties. As a result, they get time to make mistakes with small amounts of money first which means (in theory) that they’re less likely to blow big bucks down the road.

On the other hand, athletes (and entertainers) have a completely different earning pattern. They leave school to instant riches. For a few years, they earn great gobs of money. But usually their income declines sharply with time — until it stops altogether.

Here’s a (pathetic) chart I created to help visualize this phenomenon:

Athletes and entertainers need to figure out how to make five years of income last for fifty years. This never occurs to most of them. “[A pro athlete] can’t live like a king forever,” says Bart Scott in ESPN’s Broke. “But you can live like a prince forever.”

Sudden-Wealth Syndrome doesn’t just affect athletes and actors. Lottery winners experience it too. So do average folks who inherit a chunk of change or business owners who sell their companies.

The fundamental problem is that nobody ever teaches us how to handle a windfall. Windfalls are rare, and in most cases they can’t be planned for. (Some folks might be able to plan for an inheritance or the sale of a business, but these situations are relatively uncommon.) As a result, when the average person happens into a chunk of change, they spend it.

Here’s what you should do instead.

How NOT to Waste a Windfall

When you receive a windfall, whether it’s a tax refund, an inheritance, a gift, or from any other source, it’s like you’ve been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.

It can be tempting to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you’ll be just as unhappy as you’ve always been.

If you receive a chunk of cash, I recommend that you:

Keep five percent to treat yourself and your family. Let’s be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you’re going to want to spend some of it. No problem. But don’t spend all of it. I used to recommend spending one percent of a windfall on yourself, but from talking to people, that’s not enough. Now I suggest spending five percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall.

Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.

Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It’ll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that’s $50 extra you’ll have available each month. Most of all, repaying debt will relieve the psychological weight you’ve been carrying for so long.

Fix the things that are broken. After you’ve eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you’ve been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you’ve been putting off.

Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don’t. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts — and then leave this money alone.

To successfully manage a windfall, you must allow the initial euphoria to pass, getting over the urge to spend the money today. Live as you were before. Meanwhile, calculate how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy.

In 2009, I received an enormous windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, and made measured moves designed to favor long-term happiness over short-term happiness.

Today, the bulk of my windfall remains in the same place it’s been for the past five years: an investment account. That cash eases my mind. It helps me sleep easy at night. And that’s more rewarding than spending it on new toys could ever be.

Setting a Good Example

Not everyone who gets rich quickly does dumb things with money. Especially as the plight of pro athletes becomes better known, there are prominent examples of young superstars making savvy money moves. They’re learning from the lessons of those who came before.

Take Toronto Raptors superstar Kawhi Leonard, for instance. This 27-year-old NBA MVP earns $23 million per year — but still clips coupons for his favorite restaurant. He drives a 1997 Chevy Tahoe. Sure, he bought himself a Porsche, but he’s not interested in flash and bling. “I’m not gonna buy some fancy watch just to show people something fancy on my wrist,” he says. [source]

Jamal Mashburn has made wise use of his wealth. So has LeBron James, who takes his investment advice from Warren Buffett:

Here are other superstars who act as money bosses:

During his 12-year career in the NBA, Junior Bridgeman never earned more than $350,000. Unlike most players, however, he planned ahead. He recognized his basketball income would eventually vanish. He bought a Wendy’s fast-food franchise and learned the business inside-out. He became a hands-on owner. He expanded from one store to three to six — and then to a small empire. Today, twenty-five years after retirement, Bridgeman owns more than 160 Wendy’s restaurants and 120 Chili’s franchises. His company employs 11,000 people and generates over half a billion in revenue every year. His personal net worth tops $400 million. [source]

Patriots tight end Rob Gronkowski — who just retired last week — is a shining example of how to handle sudden wealth correctly. The 29-year-old earned over $53 million for playing on the field — and hasn’t spent any of it. Here are his own words: “To this day, I still haven’t touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven’t blown it on any big-money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school.” [source]

Oakland Raiders running back Marshawn Lynch has a similar story. During his twelve-year NFL career, Lynch has collected nearly 57 million from his contract. Reportedly, he hasn’t spent a penny of that money. Instead, he’s been cautious to live only off his endorsement earnings. Whether this is true or not, Lynch is known to be a good example to his teammates, helping them with their 401(k)s and other financial issues. [source]

Sometimes superstars who have been poor with money have a flash of insight and they’re able to turn things around. Former NFL player Phillip Buchanon is a perfect example. After watching ESPN’s Broke, he realized he was headed for trouble. He mended his ways and started managing his money wisely. Now he’s written a book with advice for other folks who are fortunate enough to encounter a windfall. [source]

When people make a lot of money, they’re able to spend a lot of money. Sometimes the super-rich can afford to build a place like the Biltmore Estate. The problem isn’t a single extravagant purchase, but a lavish lifestyle in which they spend more than they earn. Real wealth isn’t about earning money — it’s about keeping money.

The post Lifestyles of the Rich and Foolish appeared first on Get Rich Slowly.

* This article was originally published here

Source: https://proshoppingservice.com/lifestyles-of-the-rich-and-foolish/

from Garko Media https://garkomedia1.wordpress.com/2019/04/01/lifestyles-of-the-rich-and-foolish/

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT

[andrewdburton]

Lifestyles of the Rich and Foolish

It's the first of April. You know what that means. Spring is here! Your friends and family are pulling April Fools' Day pranks. And my tree allergies are kicking my butt. Every year, tree pollen makes my life miserable. This year is no different.

Facebook kindly reminded me this morning that three years ago, Kim and I were in Asheville, North Carolina. After wintering in Savannah, Georgia, we'd resumed our tour of the U.S. by RV.

While in Asheville, we toured the Biltmore Estate, the largest home in the U.S. This 250-room chateau contains 179,000 square feet of floor space — including 35 bedrooms, 43 bathrooms, and 65 fireplaces — and originally sat on 195 square miles of land. (Today, the estate “only” contains 8000 acres.)

“This feels like Downton Abbey but in North Carolina,” I said as we walked the endless halls. Just as Downton Abbey documented the excesses of British upper class, so too the Biltmore sometimes feels like an example of how rich Americans indulged in decadence.

George Washington Vanderbilt II, the man who built Biltmore, was a member of one of the country's wealthiest families. His grandfather, Cornelius Vanderbilt, was born poor in 1794, but by the time he died in 1877 he had become one of the richest men in the world. During his lifetime, he built a fortune first from steamships and then as a prominent railroad tycoon.

By family standards, grandson George didn't have a lot of money. He inherited about $7 million, and drew income from a $5 million trust fund. He decided to use the bulk of his fortune to build a huge house high in the Appalachians. Work on the Biltmore Estate began in 1889, when George was 26 years old. Six years and $5 million later, he moved into his palace. (That $5 million would be roughly $90 million in today's dollars.)

Strolling the grounds of the Biltmore Estate got me thinking about the stories we hear of wealthy people who squander their riches. How and why do they do this? Are there lessons from their stories that you and I can put to use?

We hear all the time about the “lifestyles of the rich and famous”. Today, on April 1st, let's look at some lifestyles of the rich and foolish.

Lifestyles of the Rich and Foolish

There are so many stories of athletes and entertainers who have blown big fortunes that it's tough to know where to start. Who should we pick on first? Since I've never been a fan of Nicolas Cage — and since he seems to be especially bad with money — let's use him an example.

Over a period of fifteen years, Cage earned more than $150 million. He blew through that money buying things like:

Fifteen homes, including an $8 million English castle that he never stayed in once.

A private island.

Four luxury yachts.

A fleet of exotic cars, including a Lamborghini that used to belong to the Shah of Iran.

A dinosaur skull he won after a bidding contest with Leonardo DiCaprio.

A private jet.

It's not fair to characterize Cage as “broke” — he's still a bankable movie star — but his net worth is reportedly only about $25 million. (That's like someone with an average income having a net worth of roughly $25,000.) He could be worth ten times as much but his foolish financial habits have caused him woe.

Cage got in trouble with the IRS for failing to pay millions of dollars in taxes. He's been sued by multiple companies for failing to repay loans. His business manager says that he's tried to warn Cage that his lifestyle exceeds his means, but the actor won't listen.

Cage is but one of many celebrities who have done dumb things with money. Other prominent examples include:

MC Hammer sold the rights to his songs to raise money after being bankrupted by his lavish lifestyle. Hammer earned more than $33 million in the early nineties, but spent the money on a $12 million mansion (with gold-plated gates), a fleet of seventeen vehicles, two helicopters, and extravagant parties. [source, source]

Actress Kim Basinger paid $20 million to buy the town of Braselton, Georgia in 1989. When Basinger filed for bankruptcy just four years later, she was forced to sell the town. [source]

On the night of 01 February 1976, Elvis Presley decided he wanted a Fool's Gold Loaf, a special sandwich made of hollowed bread, a jar of peanut butter, a jar of jelly, and a pound of bacon. He and his entourage flew from Memphis to Denver. The group ate their sandwiches and then flew home. Price: $50,000 – $60,000. [source]

Even authors get in on the act. Writer Mark Twain made tons of money through his work, but he lost much of it to bad investments, mostly in new inventions: a bed clamp for infants, a new type of steam engine, and a machine designed to engrave printing plates. Twain was a sucker for get rich quick schemes. [source, source]

When it comes to frittering way fortunes, it's hard to compete with sports superstars. In a 2009 Sports Illustrated article about how and why athletes go broke, Pablo S. Torre wrote that after two years of retirement, “78% of former NFL players have gone bankrupt or are under financial stress.” Within five years of retirement, roughly 60% of former NBA players are in similar positions.

Some examples:

Boxer Mike Tyson earned over $300 million in his professional career. He lost it all, spending the money on cars, jewels, pet tigers, and more. He eventually filed for bankruptcy. [source]

When Yoenis Cespedes signed a new $75 million contract with the New York Mets, he drove a new vehicle each day during the first week of training camp, including a Lamborghini Aventador ($397,000) and an Alfa Romeo 8C Competizione ($299,000). [source]

Basketballer Vin Baker earned $100 million during his career. He's now worth $500,000. He manages a Starbucks store in a small town in Rhode Island. (To be fair, Baker sees to be turning his life around, which is awesome.) [source]

Hall-of-fame pitcher Curt Schilling earned $112 million during 20 years in the big leagues. It wasn't enough to keep up with his spending. Plus he lost $50 million through the collapse of a company he owned. In 2013, he held a “fire sale” to avoid bankruptcy.

It can be tough to sympathize with these folks. Used wisely, their immense fortunes could sustain them and their families for a long time. Instead, they squander their money on fleeting pleasures and the trappings of wealth.

Still, I believe it's best to keep the schadenfreude in check. “There but for the grace of God” and all that, right? I've seen plenty of examples of average folks who have wasted smaller windfalls. In fact, this sort of thing seem to be the rule rather than the exception.

But why does this happen? The answer might be Sudden-Wealth Syndrome.

Lottery winners have the same kinds of problems. A 2001 article in The American Economic Review found that after receiving half their jackpots, the typical lotto winner had only put about 16% of that money into savings. It's estimated that over a quarter of lottery winners go bankrupt.

Take Bud Post: He won $16.2 million in 1988. Within weeks of receiving his first annual payment of nearly half a million dollars, he'd spent $300,000. During the next few years, Post bought boats, mansions, and airplanes, but trouble followed him everywhere. “I was much happier when I was broke,” he's reported to have said. When he died in 2006, Post was living on a $450 monthly disability check.

Sudden-Wealth Syndrome

In 2012, ESPN released a documentary called Broke that explores the relationship between pro athletes and money. How does sudden wealth affect young men? What happens when highly-competitive athletes with high incomes hang out together? Lots of stupid stuff, as it turns out.

Here's a nine-minute montage from Broke in which wealth manager Ed Butowsky talks about why athletes get into trouble with money:

Broke is an interesting film. The players speak candidly about the mistakes they've made: buying 25 pairs of shoes at one time, buying fur coats they never wore, buying cars they never drove. They're not proud of their pasts — some are ashamed — but they're willing to talk about the problem in the hopes they can help others avoid doing the same dumb things in the future.

Curious how much your favorite actor or athlete earns? Check out Celebrity Net Worth, a website devoted to tracking the financial health of people in the public eye.

Broke does a good job of explaining why our sports heroes can't seem to make smart money moves. The problem is Sudden-Wealth Syndrome. Essentially, young folks who earn big bucks don't get a chance to “practice” with money before they're buried with wealth.

The typical person earns a little when they're young, but watches their salary grow slowly with time. Their income peaks during their forties and fifties. As a result, they get time to make mistakes with small amounts of money first which means (in theory) that they're less likely to blow big bucks down the road.

On the other hand, athletes (and entertainers) have a completely different earning pattern. They leave school to instant riches. For a few years, they earn great gobs of money. But usually their income declines sharply with time — until it stops altogether.

Here's a (pathetic) chart I created to help visualize this phenomenon:

Athletes and entertainers need to figure out how to make five years of income last for fifty years. This never occurs to most of them. “[A pro athlete] can't live like a king forever,” says Bart Scott in ESPN's Broke. “But you can live like a prince forever.”

Sudden-Wealth Syndrome doesn't just affect athletes and actors. Lottery winners experience it too. So do average folks who inherit a chunk of change or business owners who sell their companies.

The fundamental problem is that nobody ever teaches us how to handle a windfall. Windfalls are rare, and in most cases they can't be planned for. (Some folks might be able to plan for an inheritance or the sale of a business, but these situations are relatively uncommon.) As a result, when the average person happens into a chunk of change, they spend it.

Here's what you should do instead.

How NOT to Waste a Windfall

When you receive a windfall, whether it's a tax refund, an inheritance, a gift, or from any other source, it's like you've been given a second chance. Although you may have made money mistakes in the past, you now have a chance to fix those mistakes (or some of them, anyhow) and start down the path of smart money management.

It can be tempting to spend your windfall on toys, trips, and other things that you “deserve,” but doing so will leave you in the same place you were before you received the windfall. And if that place was chained to debt, you'll be just as unhappy as you've always been.

If you receive a chunk of cash, I recommend that you:

Keep five percent to treat yourself and your family. Let's be realistic. If you receive $1,000 or $10,000 or $100,000 unexpectedly, you're going to want to spend some of it. No problem. But don't spend all of it. I used to recommend spending one percent of a windfall on yourself, but from talking to people, that's not enough. Now I suggest spending five percent on fun. That means $50 of a $1,000 windfall, $500 of a $10,000 windfall, or $5,000 of a $100,000 windfall.

Pay any taxes due. Depending on the source of your money, you might owe taxes on it at the end of the year. If you forget this fact and spend the money, you can end up in a bind when the taxes come due. Consult a tax professional. If needed, set aside enough to pay your taxes before you do anything else.

Pay off debt. Doing so will generally provide the greatest possible return on your investment (a 20 percent return if your credit cards charge you 20 percent). It'll also free up cash flow; if you pay off a card with a $50 minimum monthly payment, that's $50 extra you'll have available each month. Most of all, repaying debt will relieve the psychological weight you've been carrying for so long.

Fix the things that are broken. After you've eliminated any existing debt, use your windfall to repair whatever is broken in your life. Start with your own health. If you've been putting off a trip to the dentist or a medical procedure, take care of it. Do the same for your family. Next, fix your car or the roof or the sidewalk. Use this opportunity to patch up the things you've been putting off.

Deposit the rest of the money in a safe account. It can be tempting to spend the rest of your windfall on a new motorcycle or new furniture or new house. Don't. After attending to your immediate needs, deposit the remaining money in a new savings account separate from the rest of your bank accounts — and then leave this money alone.

To successfully manage a windfall, you must allow the initial euphoria to pass, getting over the urge to spend the money today. Live as you were before. Meanwhile, calculate how far your windfall could go. Most people have unrealistic expectations about how much $10,000 or $100,000 can buy.

In 2009, I received an enormous windfall. The old J.D. would have gone crazy with the money. The new, improved model of me was prepared, and made measured moves designed to favor long-term happiness over short-term happiness.

Today, the bulk of my windfall remains in the same place it's been for the past five years: an investment account. That cash eases my mind. It helps me sleep easy at night. And that's more rewarding than spending it on new toys could ever be.

Setting a Good Example

Not everyone who gets rich quickly does dumb things with money. Especially as the plight of pro athletes becomes better known, there are prominent examples of young superstars making savvy money moves. They're learning from the lessons of those who came before.

Take Toronto Raptors superstar Kawhi Leonard, for instance. This 27-year-old NBA MVP earns $23 million per year — but still clips coupons for his favorite restaurant. He drives a 1997 Chevy Tahoe. Sure, he bought himself a Porsche, but he's not interested in flash and bling. “I'm not gonna buy some fancy watch just to show people something fancy on my wrist,” he says. [source]

Jamal Mashburn has made wise use of his wealth. So has LeBron James, who takes his investment advice from Warren Buffett:

Here are other superstars who act as money bosses:

During his 12-year career in the NBA, Junior Bridgeman never earned more than $350,000. Unlike most players, however, he planned ahead. He recognized his basketball income would eventually vanish. He bought a Wendy's fast-food franchise and learned the business inside-out. He became a hands-on owner. He expanded from one store to three to six — and then to a small empire. Today, twenty-five years after retirement, Bridgeman owns more than 160 Wendy's restaurants and 120 Chili's franchises. His company employs 11,000 people and generates over half a billion in revenue every year. His personal net worth tops $400 million. [source]

Patriots tight end Rob Gronkowski — who just retired last week — is a shining example of how to handle sudden wealth correctly. The 29-year-old earned over $53 million for playing on the field — and hasn't spent any of it. Here are his own words: “To this day, I still haven't touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven't blown it on any big-money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school.” [source]

Oakland Raiders running back Marshawn Lynch has a similar story. During his twelve-year NFL career, Lynch has collected nearly 57 million from his contract. Reportedly, he hasn't spent a penny of that money. Instead, he's been cautious to live only off his endorsement earnings. Whether this is true or not, Lynch is known to be a good example to his teammates, helping them with their 401(k)s and other financial issues. [source]

Sometimes superstars who have been poor with money have a flash of insight and they're able to turn things around. Former NFL player Phillip Buchanon is a perfect example. After watching ESPN's Broke, he realized he was headed for trouble. He mended his ways and started managing his money wisely. Now he's written a book with advice for other folks who are fortunate enough to encounter a windfall. [source]

When people make a lot of money, they're able to spend a lot of money. Sometimes the super-rich can afford to build a place like the Biltmore Estate. The problem isn't a single extravagant purchase, but a lavish lifestyle in which they spend more than they earn. Real wealth isn't about earning money — it's about keeping money.

The post Lifestyles of the Rich and Foolish appeared first on Get Rich Slowly.

from Finance https://www.getrichslowly.org/lifestyles-of-the-rich-and-foolish/ via http://www.rssmix.com/

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT

[juditmiltz]

Planes, frames and automobiles: Miami’s real estate elite play hard

From the fall issue: When it comes to partying, Miami gives Vegas a real run for its money. And when it comes to showing off wealth in grand fashion, Miami’s top real estate players surely do it best. Despite the manic ups and downs of the past couple of real estate cycles — the current one being no exception — the bravado of these bigwigs has never faltered.

The personal residences of Miami’s real estate moguls are as over the top as their fortunes will allow. Russell Galbut, CEO of development company Crescent Heights, believes in putting his money where his mouth is. He made his fortune in South Beach real estate. His mammoth 17,000-square-foot personal residence, which was completed in the summer of 2016 on Alton Road in the South of Fifth neighborhood, sits atop a robotic parking garage where cars are hydraulically lifted to their respective spaces. Galbut’s residence begins on the third floor, going up four floors in a configuration that includes rooftop terraces, an infinity edge pool, a waterfall and a racquetball court.

Over on Star Island, Stuart Miller, CEO of homebuilder Lennar, is building big. He owns 22 Star Island, which includes a mansion dating back to 1931 that he moved elsewhere on the property to make room for a new structure. He is also in the midst of construction at 11 Star Island, where a mammoth 120,000-square-foot property is taking shape. It will include a lagoon and waterfall in addition to underground parking that will accommodate 32 cars. The homes are reportedly for his personal use.

Jill Hertzberg, one half of Coldwell Banker’s power broker team the Jills, said many of her high-net-worth clients have homes that include the kind of over-the-top amenities that cost way more to build than they actually add in value to the properties. She pointed specifically to the trend of amped-up garages that feature hydraulic lifts for sports cars in “huge glass enclosures.” Hertzberg added that these well-heeled clients rarely spend an entire year in their South Florida residences.

Luis Navas, managing partner of Global Governance Advisors, a Miami-based company advising on executive compensation, said, “The usual big expenses for some of my real estate clients are second, third and fourth homes in New York or out west. Many of them live in Florida for six months and one day so they are taxed as a Florida resident.”

But that isn’t the case for homegrown Turnberry Associates co-CEO Jeffrey Soffer. His home at 27 Indian Creek Island Road, which until recently he shared with his then-wife, former supermodel Elle Macpherson, is a spectacular 25,600-square-foot oceanfront property and his primary residence. The Mediterranean-style estate has nine bedrooms, 11 bathrooms and a private dock. There are only about three dozen other homes on Indian Creek Island, and they’re owned by some of America’s wealthiest people, including activist investor Carl Icahn and car dealership mogul Norman Braman.

In addition to his opulent home, Soffer can claim the prize for coolest private celebration. He hired Prince to perform at his 40th birthday party 10 years ago. It was a considerable coup for quite a few reasons, the first being that the late rock star was hardly a regular fixture on the private-party-for-hire circuit, and his $2 million asking price was just part of the cost for the show, which opened with KC & the Sunshine Band and re-created an entire nightclub at Turnberry Aviation’s hangar at the Opa-locka Executive Airport.

Artistic sensibilities

While some real estate billionaires may choose costly blowouts with no appreciable return, others spend their cash on expensive interests in which the returns are measured in legacy value rather than dollar amounts.

Jorge Pérez, developer and co-founder of the Related Group, is often referred to as Miami’s condo king, with a net worth estimated at $3 billion. He was born to Cuban parents living in exile in Argentina and grew up there and in Colombia. Pérez told Forbes: “In America you are judged by what you accomplish. In Latin America you are judged by who your family is.” That sentiment might explain why he made a $40 million donation to the Miami Art Museum ($20 million worth of art from his own collection and $20 million in cash), which now bears his name.

Since the financial crash of 2008 and a cancer scare, Pérez says, he has dedicated his life to his art and philanthropy. In contrast to his billionaire real estate pals, Pérez told Architectural Digest in 2014, referring to his collection: “I don’t buy boats or planes. This is my passion.”

Russian developer Vlad Doronin, who owns a personal residence on Star Island, may be known to most as the billionaire former boyfriend of supermodel Naomi Campbell. He is also, according to the Miami Herald, an avid art collector. Works he owns include Russian avant-garde paintings from Kazimir Malevich and El Lissitzky as well as art by contemporary masters including Jean-Michel Basquiat, Ed Ruscha and Anish Kapoor. In 2011, he paid $3.3 million for Andy Warhol’s 1984 painting “Reel Basquiat.” Doronin’s advisors reportedly include New York gallerist Tony Shafrazi.

Staying afloat

It would be impossible to mention Miami’s well-heeled without talking about their yachts.

Only serious players can get into the game on the upper end. Often docked at One Island Park Marina, on Terminal Island off the MacArthur Causeway, is the 217-foot boat Vanish. It’s owned by billionaire Larry Van Tuyl, a board member of VanTrust Real Estate and owner of industrial real estate in Florida and throughout the U.S. The vessel is valued at around $125 million and is equipped with two helipads, an outdoor cinema, a gym, a sauna, a massage room and a freestanding staircase flanked by a glass wall over three decks.

Docked over at Watson Island Gardens Marina off the MacArthur Causeway in Miami is the 377-foot-long Luna, sold by Russian billionaire investor Roman Abramovich to his friend Farkhad Akhmedov. The boat was last valued at $545 million and features two helipads and anti-drone technology, which renders drones flightless from 2 kilometers away.

Plane to see

Along with yachts come the obligatory personal jets. Kevin Maloney, the founder and principal of Property Markets Group, lives in Miami, though he does much of his development in New York. He flies his private jet to and from the two cities, telling TRD that he first got into piloting to get over his fear of flying.

What is a private jet with gold-plated fixtures, estimated by some to be worth $60 million, really worth when it belongs to Phillip Frost, a man who made billions selling pharmaceutical companies? The largest shareholder in Vector Group, the parent company of Douglas Elliman, also has a 6-acre residence at 21 Star Island, last valued at $52 million.

They’ve got game

As well as being a party town, Miami is a sports town, and owning franchises appears to be the Achilles’ heel of many billionaires. They are particularly risky ventures because of the costs of recruiting players and paying their multimillion-dollar salaries along with loans and upkeep of stadiums. It’s a money pit unless the team is offsetting costs by constantly winning and selling enough merchandise, TV rights and advertising, experts said.

But many billionaires are, by nature, risk takers. Thus, the chairman of the Related Companies, Stephen Ross, in between overseeing the development of the $15 billion Hudson Yards project in New York, has committed $400 million of his own money to renovating Hard Rock Stadium, home to his NFL team, the Miami Dolphins.

The most valuable sports franchise in the world is the Manchester United soccer team, which plays in the English Premier League and is reportedly worth over $1 billion. It is owned by the Glazer family, whose deceased patriarch, Malcolm Glazer, made his fortune in Palm Beach real estate before investing in sports teams. He paid $192 million for the Tampa Bay Buccaneers in 1995. Today, First Allied Corporation, the real estate holding company owned and run by his children, has 6.7 million square feet of real estate, according to its website.

  Fast car

Some say no South Florida developer exemplifies opulence and extravagance more than Gil Dezer. His firm Dezer Development has built high-rises in Sunny Isles Beach including the 60-story Porsche Design Tower with its “Dezervator,” a patented car elevator carrying the developer’s name. It takes vehicles and their owners up to any of the building’s 132 condos. Dezer’s own car collection, with a value estimated to be in the region of $20 million, includes a $1.5 million Bugatti Veyron, only one of 450 that exist. However, each of his cars pales in comparison to the developer’s $17 million Gulfstream IV private jet. All the cars and jets are finished in Dezer’s favorite color, silver. And his plane was custom-fitted with seats similar to those in his Ferrari 458 Italia, at a cost of $55,000 each.

As with his start in real estate, Gil Dezer got his love of cars from his father, developer Michael Dezer. The elder Dezer has his own museum (the Dezer Collection Museum and Pavilion) dedicated to his pricey cars in North Miami. Amongst the vintage rides are Chryslers and Mustangs along with microcars not often associated with real estate tycoons, including Citroëns, Fiats, DAFs and Sabras. The museum has an indoor drive-in movie theater and a Hollywood wing that includes the 1948 Ford from “Grease,” the 1959 Cadillac Ecto-1 from “Ghostbusters” and, of course, the 1981 DeLorean from “Back to the Future.” There are numerous Batmobiles “from all eras, including one built by George Barris,” claims the website. There’s also a James Bond collection including cars from recent 007 films, like a shot-up Land Rover from ‘Skyfall,” as well as Aston Martins that date back to ’60s-era Bond films.

Forbes estimates the 1,000-car collection to be worth around $30 million. The museum is a pure vanity project and doesn’t turn a profit, although tickets are priced at $40 for adults and $15 for children. Michael Dezer started his real estate career buying and selling properties in Chelsea in Manhattan in the 1980s before developing ocean-front properties with Donald Trump bearing the now-president’s name. He characterized his collecting ethos by simply saying: “If I see something I like, I buy it.” 

from The Real Deal Miami https://therealdeal.com/miami/issues_articles/planes-frames-and-automobiles/#new_tab via IFTTT