NYC billionaire Charles Cohen is sued for a bad loan of $535 million – how to build real estate wealth without debt
Jared Siskin/Patrick McMullan via Getty Images
MoneyWise and Yahoo Finance LLC may earn fees or revenue through links to the content below.
New York City real estate tycoon Charles Cohen has lived a life that most people dream of. Now some of his valuable possessions are under threat as large business loans have begun as large business loans have very personal consequences.
Cohen, 73, is sued by a fortress investment group that has exceeded $535 million loans extended to his company Cohen Realty Enterprises in 2022. Citing New York’s Supreme Court records, the collateral included the Office Tower in Manhattan, the Le Meridi Endania Beach Hotel in Fort Lauderdale, Florida, and four other properties.
But that’s not all. Cohen personally secured $187.2 million on that loan. His net worth is nearly $2 billion, according to financial statements filed in court.
His business was defaulted last year, and the fortress has since seized much of its collateral. Still, the company claims that these assets are far below what Cohen owes, the Journal reports. That shortage has led to the fortress, an investment giant partly owned by Abu Dhabi’s Mubadara capital, chasing Cohen’s personal wealth.
And that’s exactly what it’s doing.
Fortress is about to confiscate Cohen’s home in Provence, France, France and Greenwich, Connecticut, and reports five yachts, including a 220-foot superyacht, along with a fleet of 25 luxury cars and five yachts.
Following a French court order, debt collectors have already seized hundreds of thousands of dollars worth of Cohen’s belongings from 138 acres of Provence and vineyards, according to the Journal. The haul included obviously high-end furniture, valuable artwork and a high-end wine collection.
“They keep peeking at us like the birds peck at something,” Cohen said of the fortress of the February deposit, according to the journal. “As ample enough, it wasn’t enough.”
Real estate has long been one of the most powerful tools for building wealth, and for good reason. It can generate stable rental income, be grateful over time and offer valuable tax benefits.
But, as Cohen’s case shows, its success is not guaranteed – especially when there is a large amount of debt involved.
Leverage is a common part of real estate investment, even for everyday investors. When home prices rise, most people will need to take out a mortgage to buy income assets. Also, as interest rates rose, borrowing became more expensive. Assume you can save enough for your down payment.
Good news? You no longer have to undertake traditional debts to start your property.
Crowdfunding platforms like It’s arrived It has never been easier for everyday investors to be exposed to the American real estate market.
With the support of world-class investors like Jeff Bezos, you can Invest in rental home stocks worth just $100it can’t all be a pain in the lawn, secure leaky faucets, or handle difficult tenants.
This process is simple. Browse carefully selected selections of homes that have been screened for gratitude and potential income. Once you find a property you like, select the number of shares you want to buy, then sit down like you Start receiving positive rental income distributions From your investment.
While rising home prices have helped Americans build substantial wealth through homeownership, over the years the $35 trillion US home equity market has been an exclusive playground for large institutions.
Home Share It’s changing the game by allowing certified investors to gain hundreds of direct exposures Houses occupied by American city owners Headache-free of buying, owning or managing property through a US home equity fund.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective method of handoff Invest in a home occupied by the owner The whole regional market.
If you’ve been a landlord, you know how important it is to have a reliable tenant.
How does grocery stores sound?
That’s here First National Realty Partner (FNRP) The platform allows certified investors to diversify their portfolios through grocery-anchored commercial real estate without the responsibility of being a landlord.
