JERMAINE DUPRI’S HOUSE AUCTIONED BECAUSE HE CAN’T MAKE THE PAYMENTS By now, stories about celebrities going broke are pretty common in the media. Tax problems, “balling” out of control, and living the lives of rap stars often leave many of these celebs to be tired, uninteresting old men with more problems and addictions than money. Jermaine Dupri can be added to the list of celebs who appear to have lost it all, as his house is now being auctioned off because he can no longer afford it. According to theJasmineBrand, Dupri has lived in the house for more than a decade and is now forced to move out of it. So, the man who once bragged about his fancy sports cars now has to downsize his life due to continuous overspending. According to the bank, Dupri owed $200,000 in mortgage payments in 2012. He claimed that this number wasn’t accurate, and took the matter to court. This bought him a bit of time, as the bank was forced by the judge to recalculate the amount that he owed. He was able to make the monthly payments for a while, but then things took a turn for the worse. Dupri borrowed $2.5 million to purchase the home back in 2005, and now that home will be back in the hands of the bank. Dupri was once known as a hit-making producer, being the driving force behind artists such as Kris Kross, Usher, Mariah Carey, Da Brat, Jagged Edge, and many others. In fact, he was once the greatest force in all of Atlanta hip-hop. Financial Juneteenth lessons from this story: 1) One person’s foreclosure is another person’s profit opportunity. When Dupri’s home hits the auction block, there is a very good chance that it will sell for far below the market value. Assuming the bank doesn’t retain ownership, this could be a huge opportunity for another person who was smarter with his/her money than Dupri. As Warren Buffett once said, you should do the opposite of what everyone else is doing: When they are spending, you should remain frugal. When they are frugal, you should spend. In this case, other entertainers who avoided the ridiculous spending in the music industry are able to buy major property for bargain basement prices. One example might be the rapper Rick Ross, who was able to buy the mansion that Evander Holyfield was no longer able to afford. 2) After managing some of the most successful artists in the industry, there is absolutely no reason that Dupri should be getting evicted at the age of 40. He’s easily run through hundreds of millions of dollars throughout his career. Had he engaged in even a modest investment strategy, he could be worth $250 million by now. This is where the hip-hop lifestyle and it’s marketing of excessive consumerism can often make many men and women victims of their own so-called success.
Posted on: Thu, 11 Dec 2014 12:47:45 +0000
Trending Topics
Recently Viewed Topics
© 2015