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Rapper and entrepreneur 50 Cent hit the cover of U.S. Weekly this summer, sharing his financial success. He declined to say if he was a billionaire but mentioned that he was very rich. The entertainer, whose real name is Curtis Jackson III, earns income through record sales and concerts and through his G-Unit Film and Television, which works with Netflix, Hulu, Peacock, Paramount, BET and other networks. He has also profited from the Bitcoin boom.
He is also building out G-Unit Studios, a production facility in Shreveport, LA. In June, Jackson’s real estate agent, Gerod Durden, owner of Durden Property Group, said he has paid cash for at least ten properties and has more under contract. Jackson is focusing on the downtown area of Shreveport, and Durden told KSLA News that he is paying market value for the properties. Some of the properties will be nightclubs, and Jackson is looking to develop new buildings in the Spring Street area. "I will say something where it can be a multiuse, deal with swimming pools and dance floors," Durden said.
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The cardinal rule of real estate is to buy low and sell high. While he may be doing that in Shreveport, one part of Jackson's investment history that he might regret is his purchase of Mike Tyson's former home in Farmington, Connecticut. Jackson bought the 51,657-square-foot home on 17 acres from Tyson in 2003 for $4.1 million. The rapper then spent millions of dollars remodeling and updating the 50-room house, expanding the nightclub that Tyson originally put in, and adding a conference room as well as over-the-top details like a Philippe Starck Baccarat chandelier in the dining room. As experienced real estate investors and remodelers know, one of the pitfalls of renovating a home is over-customization. It appears that this was Jackson’s second mistake.
When it came time to sell in 2007, Jackson had big ambitions for the property, listing it at $18.7 million. It sat on the market for years, occasionally going off-market and relisting at a lower price. In 2018, the home appeared on Million Dollar Listing NY with celebrity real estate agent Fredrik Eklund, who was taking on the job of selling the property. At that time, Jackson said he loved the house but that "it's too much space for me by myself."
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It received an offer of $4.2 million, which Jackson turned down, saying he'd rather give it to charity as a summer camp house for children from the city. It was last listed for $4.95 million but eventually sold for just $2.9 million, representing an 84% discount from his original asking price. The money did go to his G-Unity Foundation. In 2020, the new owner put it up for rent for $50,000 a month. It has not appeared on the market since.
The Connecticut estate was Jackson’s first property, and he said he invested in real estate to avoid losing money to taxes. Given his success since those early days, he seems to have taken the poor investment in stride. In an interview with radio DJ Big Boy, Jackson said he spent around $700,000 a year on upkeep when he owned the home. Wherever he invests next, a lavish mansion is probably not on his shopping list. He told Stephen Colbert he no longer wants a large house because he experienced that with the Tyson property, which was simply too big.
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This article 50 Cent Could Reach Billionaire Status, But He Once Made A Very Big Real Estate Mistake originally appeared on Benzinga.com