HOLLYWOOD celebrities are known for enjoying healthy bank balances, meaning they can often live in two or more luxury homes.
A Los Angeles real estate expert said savvy stars have been using renovation tactics and flipping their homes quickly to rake in more.
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Actress Sofia Vergara, 51, finally sold one of her Beverly Hills mansions in April after lowering the price.
Reduced from $19.6 million to less than $14 million, the Modern Family star received a cut.
Real estate expert Stacey Franklin claims that stars make more money when they “totally remodel” and include “high tech” in their new specs.
Sofia appeared to take her time with the renovation before listing her Mediterranean-style villa.
READ MORE about Ellen DeGeneres
The America’s Got Talent judge appears to have added hot tubs and a swim-up bar. She also developed a wine cellar.
“Successful attacks reshape the entire property. Some houses are demolished and rebuilt,” Franklin told The US Sun.
“Others carry out small projects, such as renovating just surfaces or changing tiles in the kitchen.
“Celebrities have realized that they can make even more money than their day jobs by flipping and creating extra wealth.
“The best celebrity flippers often remodel their entire home.”
Franklin stated that the success of change depends on high technology.
“Hollywood’s richest people like to have the latest smart features at home,” she said.
“This includes voice-activated features for sound, temperature and lighting, home theaters, pool features, heating and air conditioning.
“These smart homes include ‘welcome’ announcement systems.
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“The music settings are always on the speakers and they want state-of-the-art workout equipment in their gyms.
“Celebrities have multi-level garages and car lifts.
“Celebrity smart homes also have automatic opening doors.”
SOFIA SAVIVA
When they got engaged, model Sofia Richie, 25, and music executive Elliot Grainge bought their first Beverly Hills apartment for $17 million.
Before moving in, the couple completely renovated the Music Row mansion.
They added cool outdoor touches like a cabin and wet bar.
Sofia sold the 8,023-square-foot pile 10 months later for $21.8 million in 2021.
With profits of $5 million, when the couple married, they spent $26.9 million on a new apartment in Brentwood Park.
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Franklin said Sofia profited because she sold quickly and did a complete renovation.
“As far as Sofia Richie goes, I look at the old listing for $5,605,000 and it was an investor rehab,” she said.
“It sold for $21 million and it would have only the best smart features installed.
“From the celebrity circle, Sofia seems to be the best celebrity next to Ellen.”
EASY ELLEN
Since ending her talk show in 2022, Ellen DeGeneres, 66, has moved from house to house.
According to The river magazine, she has flipped more than 50 homes over the past 20 years.
In 2021, Ellen closed eight real estate deals. Her recent purchases included a three-bedroom apartment for $12 million.
Six months later, she exchanged the amount for US$13.5 million.
“I don’t really travel much. So moving house is my version of travel,” she told The Riv. “With moving house, the scenery changes, even though I stay in the same general area,” she said.
“Just in a new place and from a new perspective,” she added.
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“Ellen just took another turn,” Franklin added.
“She sold her Montecito home for $32 million – about $10 million more than she paid a year ago.
“Ellen initially listed it for sale for $46.5 million after fully restoring the property, which was a historic mansion.
“This was a less profitable sale than she probably would have liked.
“Ellen is the biggest household celebrity, but it doesn’t always work out for her.”
MILEY’S MILLION
Singing sensation Miley Cyrus, 31, sold her six-bedroom Hidden Hills apartment a year after purchasing it for around $5 million.
She renovated the 6,800-square-foot space with the help of her mother, interior designer Tish.
Miley and Tish decorated and added leopard print and Gucci wallpaper, a black seating area, and created a multicolored music studio.
She sold the pile for $7.2 million.
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“Miley Cyrus’ Hidden Hills house was a twist,” Franklyn said.
“A less intensive remodel like this would cost about $600,000 or so, so she would only have made about a million.
“Miley’s purchase price was $4,953,500 in 2020, and the buyer’s sale price was $7,220,000 in 2021.
“Miley’s result was the lowest, but not bad considering she still made over a million in profit.”
WENT WEST
Kanye West’s Malibu home relisted at $43.3 million, down from $57.3 million. The rapper had purchased the place in 2022.
Kanye, 45, is said to have gutted the house and started the basics but never completed the work.
“It will take several million dollars for the house to be ready,” said real estate agent Jason Oppenheim Wall Street Journal.
“Much of the architectural integrity and architectural value of the house is there.”
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“Kanye would be taking a considerable loss,” Franklin suggested.
“He purchased the Malibu beachfront property for a high market value in 2021.
“This was to try to, at the very least, recoup the money he invested in the property – if or when he renovated it.
“No previous listing photos show if he did any proper construction.
If celebrities are smart, in areas like Montecito and Santa Barbara the sky is the limit on value and there is room to make millions.
Stacy Franklin
“If the property sells for today’s listing price, he will lose millions.
“This does not include any money he has potentially spent on upgrades or work to date.
“If Kanye intended this to be a turnaround, it was a risky venture that didn’t pan out and he will likely have lost more money.”
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“Flipping is a lot of work,” Franklin added.
“It is a risky venture that you must be financially prepared for.
“Some properties have significant problems that can be costly and go beyond replacing cosmetic items.
“This could have happened to Kanye.
“It is also an undertaking that we must take seriously.
Flipping the house is my version of travel. With moving house, the scenery changes, although I remain in the same general area. Only in a new place and from a new perspective.
Ellen Degeneres
“The financial losses that someone can suffer if they are not properly investigated before purchasing the property can be devastating.
“If celebrities are smart, the sky is the limit on value in areas like Montecito and Santa Barbara.
“There is space and opportunity to make millions.
“Celebrities just need to know where to look and then do a complete makeover at the right pace to make it worth it.”
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This story originally appeared on The-sun.com read the full story
