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<keyword id="19895142" type="General" weightage="100" keywordseo="Shah-Rukh-Khan" source="keywords">Shah Rukh Khan</keyword>, widely known as the "King of <keyword id="19897820" type="General" weightage="20" keywordseo="Bollywood" source="keywords">Bollywood</keyword>," has officially joined the ranks of India’s wealthiest, debuting on the 2024 <keyword id="21075617" type="General" weightage="20" keywordseo="Hurun-India-Rich-List" source="keywords">Hurun India Rich List</keyword> with an impressive wealth of Rs 7,300 crores. But how did a Delhi boy with dreams of making it big in Mumbai become one of India’s richest individuals? Let’s dive into the ventures that propelled King Khan into the billionaires' club. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;"><keyword id="20033371" type="General" weightage="20" keywordseo="Red-Chillies-Entertainment" source="keywords" meta.keywordsubtype="org" meta.entityname="Red Chillies Entertainment" meta.hostid="261" meta.entityid="Red Chillies Entertainment">Red Chillies Entertainment</keyword></h3>Shah Rukh Khan’s production company, Red Chillies Entertainment, has been a significant contributor to his wealth. Founded in 2002, Red Chillies has become a key player in Bollywood, producing blockbuster films and investing in high-quality visual effects. From chart-topping films like Chennai Express and Raees to the massive success of Pathaan in 2023, Red Chillies has consistently delivered box office hits. <div type="Article" hostid="261" msid="112412196" title="&amp;#39;Deadpool &amp;amp; Wolverine&amp;#39; screenwriters reveal secrets and spoilers, including the movie&amp;#39;s original villain and who wrote that Hugh Jackman divorce joke" mstype="2" mssubtype="0"></div>With an estimated revenue consistently in the hundreds of crores and a profit of Rs 85 crores last year, the company has not only cemented SRK’s position as a top actor but also as a successful producer. Furthermore, the company’s VFX division, Red Chillies VFX, has set new benchmarks in the <keyword id="20161413" type="General" weightage="20" keywordseo="Indian-film-industry" source="keywords">Indian film industry</keyword>, working on major projects that have earned critical and commercial acclaim, such as Ra.One, Fan, and Laal Singh Chaddha. These ventures have significantly bolstered SRK’s wealth, making Red Chillies Entertainment a cornerstone of his business empire. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;"><keyword id="19899758" type="General" weightage="20" keywordseo="Kolkata-Knight-Riders" source="keywords" meta.keywordsubtype="org" meta.entityname="Kolkata Knight Riders" meta.hostid="261" meta.entityid="Kolkata Knight Riders">Kolkata Knight Riders</keyword></h3>Shah Rukh Khan’s entry into the sports business with the IPL franchise Kolkata Knight Riders (KKR) has been a masterstroke. Co-owned by SRK, Juhi Chawla, and Jay Mehta, KKR has become one of the most successful and profitable franchises not just in the Indian Premier League, but also in the sporting world. The team’s consistent performance on the field has been matched by its financial success off it, with KKR’s brand value rising steadily over the years. As per Forbes, the cricket team was valued at over $1 billion in 2022. This surge in valuation played a crucial role in boosting SRK’s wealth, contributing significantly to his fortune. The success of KKR, coupled with its passionate fan base and strong marketing, has made it a jewel in SRK’s business portfolio, further solidifying his status as a businessman. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;">Brand SRK: The most followed Indian on social media</h3>More than just a business mogul, Shah Rukh Khan is also a brand unto himself. With 44.1 million followers on Twitter, SRK is the most followed individual from the 2024 Hurun India Rich List on Indian social media. His massive <keyword id="20462299" type="General" weightage="20" keywordseo="social-media-presence" source="keywords">social media presence</keyword> has translated into lucrative endorsement deals and collaborations with global brands. <div type="Article" hostid="261" msid="112249289" title="One of Singapore&amp;#39;s flashiest CEOs was planning to throw a Tomorrowland-style party for the books. Then the mirage started to fall apart." mstype="2" mssubtype="0"></div>Consistently being one of the most visible endorsers, SRK earns substantially from <keyword id="20004407" type="General" weightage="20" keywordseo="brand-endorsements" source="keywords">brand endorsements</keyword>, with an estimated fee of Rs 4-5 crores per endorsement. His portfolio includes major brands like Hyundai, Dubai Tourism, and BYJU'S, further adding to his immense wealth. His ability to leverage his celebrity status into profitable business ventures has undoubtedly been a key factor in his <keyword id="21015152" type="General" weightage="20" keywordseo="wealth-accumulation" source="keywords">wealth accumulation</keyword>. <h3 style="line-height:1.2;margin-top:14pt;margin-bottom:4pt;">Real estate</h3>Real estate has always been a key component of wealth building, and Shah Rukh Khan is no exception. Shah Rukh Khan’s <keyword id="22962036" type="General" weightage="20" keywordseo="real-estate-ventures" source="keywords">real estate ventures</keyword> extend far beyond his iconic Mumbai residence, Mannat. One of his lesser-known yet highly lucrative ventures is in Dubai, where he and his wife Gauri Khan launched a luxurious beachfront residential project, the "SRK Boulevard," located in the posh Dana Islands. This mega project, worth over Rs 18,000 crore, features 10 residential buildings with high-end facilities, including marine sports and leisure amenities. Designed by Los Angeles architect Tony Ashai, with interiors by Gauri Khan, this project highlights SRK’s foray into international real estate <h3>And of course, films</h3>Shah Rukh Khan’s earnings from films and endorsements are a significant part of his wealth. Known as one of the highest-paid actors in India, SRK reportedly charges over Rs 100 crores per film. This is certainly no small amount, but it is unlikely that filmmakers will find fault with it, considering how his films regularly break box office records. As per IMdB, both 2023 films Jawan and Pathaan grossed over Rs 1000 crores worldwide. All in all, King Khan’s entry into the Hurun India Rich List is significant not just for him, but for the entire entertainment industry. SRK’s success reflects the growing financial clout of Indian film stars and the increasing importance of entertainment in wealth creation. In 2024 alone, Hurun India Rich Listers from the entertainment industry added Rs 40,500 crores to their wealth, with SRK leading the charge. This trend highlights the expanding influence of Bollywood and the entertainment sector in India’s broader economic landscape.

Baadshah of Bollywood Shah Rukh Khan debuts on India's richest list with Rs 7,300 cr — here's how the King made his wealth

<ul class="summary-list"><li>Mortgage rates stayed high despite rate cuts, attracting cash-heavy investors to the housing market.</li><li>Despite values dropping in some areas, those selling are still raking in gains.</li></ul>Despite the central bank cutting interest rates, mortgage rates haven't followed suit. The average <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/mortgages/average-mortgage-interest-rate">30-year term remains near 6.21%</a>.Still, there was an uptick in buyers during the second quarter, specifically those who are <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/how-to-invest-in-real-estate-make-money">investors</a>, according to the latest data available from Redfin. The share of investors who purchased property rose 3.4% from a year earlier. They were likely attracted by an opportunity to meet the growing demand of renters who face barriers to homeownership that a lack of affordability and elevated mortgage rates have brought on, read the note by Lily Katz.Home prices nationwide, including those that were <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/mortgages/how-to-buy-a-foreclosed-home">distressed sales</a>, increased by 4.3% in July from a year ago, according to CoreLogic. An investor purchased one out of every six properties sold within the second quarter and one of every four low-priced homes for a whopping $43 billion worth of real estate, Katz wrote.Investors, which the real estate data firm defines as buyers whose ownership code on a purchasing deed includes either association, corporate trustee, company, joint venture, or corporate trust, are less reliant on debt and are not as rate-sensitive as the average buyer. Most, or 69%, pay in cash or make bigger down payments. It means they can take advantage of the lack of competition.Some of the cities that have seen a rise in investor interest include San Jose, CA, Portland, OR, and Denver, CO. Meanwhile, there has been a drop in purchases in areas like Oakland, CA, and Providence, RI, where median capital gains have plunged by 20% and 37% respectively.The chart below demonstrates the change in investor purchases over the last two decades. It shows upticks following the housing bubble crash and in the years that followed the pandemic.<div type="image" title="Chart demonstrates eb and flow of real estate investor activity." height="834" width="1626" msid="114377796" hostid="261" sizebytes="34338"></div>But whether they're buying or selling, investors have been doing quite well regarding capital gains, says Elijah de la Campa, a senior economist at Redfin. This was not the case in the years leading up to the housing crisis, where property owners were losing from selling."I still see the opportunity for making money on my investments and making a considerable amount of money with 30%, 40% price increases relative to the prior year," de la Campa said. "While things might be more challenging in certain places, overall it looks like there are still lots of opportunities to make money at buying and selling homes as an investor. "He added that even the cities seeing a retreat in their capital gains from a year ago are still profitable at their sale; they're just not going for as much as they would have last June.Below is a list of the 39 major metro areas in descending order of median capital gains over the past year into June. What stands out most to de la Campa is that many areas with the highest capital gains are affordable, particularly Philadelphia and Warren, MI.<table style="minWidth: 50px"></colgroup></colgroup><tbody><tr><td>Region</td><td>Median % Capital Gain YoY (pps)</td></tr><tr><td colspan="1" rowspan="1">Philadelphia, PA</td><td colspan="1" rowspan="1">37.70%</td></tr><tr><td colspan="1" rowspan="1">Warren, MI</td><td colspan="1" rowspan="1">36.80%</td></tr><tr><td colspan="1" rowspan="1">San Jose, CA</td><td colspan="1" rowspan="1">24.50%</td></tr><tr><td colspan="1" rowspan="1">Newark, NJ</td><td colspan="1" rowspan="1">20.80%</td></tr><tr><td colspan="1" rowspan="1">San Francisco, CA</td><td colspan="1" rowspan="1">15.70%</td></tr><tr><td colspan="1" rowspan="1">Detroit, MI</td><td colspan="1" rowspan="1">15.00%</td></tr><tr><td colspan="1" rowspan="1">Baltimore, MD</td><td colspan="1" rowspan="1">6.60%</td></tr><tr><td colspan="1" rowspan="1">Portland, OR</td><td colspan="1" rowspan="1">6.40%</td></tr><tr><td colspan="1" rowspan="1">Anaheim, CA</td><td colspan="1" rowspan="1">5.60%</td></tr><tr><td colspan="1" rowspan="1">Chicago, IL</td><td colspan="1" rowspan="1">4.70%</td></tr><tr><td colspan="1" rowspan="1">Fort Lauderdale, FL</td><td colspan="1" rowspan="1">4.40%</td></tr><tr><td colspan="1" rowspan="1">Los Angeles, CA</td><td colspan="1" rowspan="1">4.30%</td></tr><tr><td colspan="1" rowspan="1">Seattle, WA</td><td colspan="1" rowspan="1">3.70%</td></tr><tr><td colspan="1" rowspan="1">Phoenix, AZ</td><td colspan="1" rowspan="1">-0.30%</td></tr><tr><td colspan="1" rowspan="1">Columbus, OH</td><td colspan="1" rowspan="1">-0.40%</td></tr><tr><td colspan="1" rowspan="1">Milwaukee, WI</td><td colspan="1" rowspan="1">-1.50%</td></tr><tr><td colspan="1" rowspan="1">Las Vegas, NV</td><td colspan="1" rowspan="1">-2.20%</td></tr><tr><td colspan="1" rowspan="1">New Brunswick, NJ</td><td colspan="1" rowspan="1">-3.10%</td></tr><tr><td colspan="1" rowspan="1">Tampa, FL</td><td colspan="1" rowspan="1">-4.00%</td></tr><tr><td colspan="1" rowspan="1">Cleveland, OH</td><td colspan="1" rowspan="1">-5.50%</td></tr><tr><td colspan="1" rowspan="1">Cincinnati, OH</td><td colspan="1" rowspan="1">-6.10%</td></tr><tr><td colspan="1" rowspan="1">Minneapolis, MN</td><td colspan="1" rowspan="1">-6.60%</td></tr><tr><td colspan="1" rowspan="1">Miami, FL</td><td colspan="1" rowspan="1">-7.70%</td></tr><tr><td colspan="1" rowspan="1">Orlando, FL</td><td colspan="1" rowspan="1">-8.60%</td></tr><tr><td colspan="1" rowspan="1">San Diego, CA</td><td colspan="1" rowspan="1">-9.70%</td></tr><tr><td colspan="1" rowspan="1">Sacramento, CA</td><td colspan="1" rowspan="1">-11.50%</td></tr><tr><td colspan="1" rowspan="1">West Palm Beach, FL</td><td colspan="1" rowspan="1">-11.50%</td></tr><tr><td colspan="1" rowspan="1">Atlanta, GA</td><td colspan="1" rowspan="1">-14.80%</td></tr><tr><td colspan="1" rowspan="1">Washington, DC</td><td colspan="1" rowspan="1">-15.00%</td></tr><tr><td colspan="1" rowspan="1">Denver, CO</td><td colspan="1" rowspan="1">-15.30%</td></tr><tr><td colspan="1" rowspan="1">Charlotte, NC</td><td colspan="1" rowspan="1">-16.00%</td></tr><tr><td colspan="1" rowspan="1">Nashville, TN</td><td colspan="1" rowspan="1">-17.90%</td></tr><tr><td colspan="1" rowspan="1">Riverside, CA</td><td colspan="1" rowspan="1">-18.20%</td></tr><tr><td colspan="1" rowspan="1">Jacksonville, FL</td><td colspan="1" rowspan="1">-18.70%</td></tr><tr><td colspan="1" rowspan="1">Oakland, CA</td><td colspan="1" rowspan="1">-20.10%</td></tr><tr><td colspan="1" rowspan="1">Montgomery County, PA</td><td colspan="1" rowspan="1">-26.60%</td></tr><tr><td colspan="1" rowspan="1">Virginia Beach, VA</td><td colspan="1" rowspan="1">-28.40%</td></tr><tr><td colspan="1" rowspan="1">New York, NY</td><td colspan="1" rowspan="1">-29.10%</td></tr><tr><td colspan="1" rowspan="1">Providence, RI</td><td colspan="1" rowspan="1">-37.30%</td></tr></tbody></table>

Investors are piling into real estate as values skyrocket by up to 38%. 13 metros with the highest gains, and 25 that are plunging.

<ul class="summary-list"><li>Kerri Gibson quit her tech job in 2017 and started her real estate investment journey.</li><li>Alongside her partner Philippe, she now has six short-term rental properties.</li></ul>This as-told-to essay is based on a transcribed conversation with Kerri Gibson, 48, based in Orford, Quebec, about her short-term rental business, Chalets Hygge. The following has been edited for length and clarity.I'm a <a target="_blank" class="" href="https://www.businessinsider.com/accountant-shortage-sexy-taxes-business-school-pwc-kpmg-2024-8">CPA</a> by training and spent roughly two decades working primarily in tax and accounting technology.It was a high-paced, high-stress career, and in 2017, when I was on the brink of <a target="_blank" class="" href="https://www.businessinsider.com/burnout-work-boss-left-office-on-stretcher-2024-4">burnout</a>, I decided to resign.During my time off, my partner and I decided to buy a house in our neighborhood and flip it. We'd previously renovated our home and really enjoyed it, and we talked about doing it again.While renovating it, we found we had a knack for architecture and design. A friend advised me to keep the house because it was in an area zoned for <a target="_blank" class="" href="https://www.businessinsider.com/quit-job-real-estate-investing-house-hacking-heloc-2024-7">short-term rentals</a>.We started <a target="_blank" class="" href="https://www.businessinsider.com/renting-airbnb-not-passive-wont-do-it-again-2024-7">renting out the house on Airbnb</a>. We became passionate about buying and renovating properties and turned this investment into a full-time venture for both of us.As owners and operators of our short-term rental business, we put a lot of work into creating a good experience for our guests. Some people consider <a target="_blank" class="" href="https://www.businessinsider.com/beginner-friendly-real-estate-investing-strategy-buy-condos-rookie-investors-2024-9">getting into real estate</a> as a source of passive income, but I wouldn't say it's passive at all.<h2 id="1228fda7-fac2-493d-8d2b-254b9024e6a4">I transitioned into full-time real estate first. My partner joined me years later.</h2>We closed on our first <a target="_blank" class="" href="https://www.businessinsider.com/how-to-profit-from-short-term-rentals-during-airbnb-downturns-2024-7">short-term rental property</a> in December 2017. The price was 129,000 Canadian dollars. We used savings to make a 20% downpayment and secured the rest with a mortgage.We paid for renovations, which took 11 months, out of pocket, too. It was really torn up, so cost us around CA75,000. This included a contractor who taught me a lot about things like laying tile and grouting. My partner, Philippe, also helped on evenings and weekends when he wasn't working.I was so <a target="_blank" class="" href="https://www.businessinsider.com/quit-amazon-manager-burned-out-from-employees-2024-10">burned out</a> from my old job. I found working with my hands on the house very fulfilling.In June 2018, we bought a second house for <a target="_blank" class="" href="https://www.businessinsider.com/buy-short-term-rental-property-investing-strategy-markets-good-investment-2023-12">short-term rental opportunities</a> while renovating the first one. I was nervous, but Philippe convinced me, saying the price was good and it was low-risk because we could always resell it. It was in much better shape than the first one, so it was ready for renting in two months.It cost around CA188,000. We used savings to make a 20% down payment and mortgaged the rest. We did the renovations ourselves and paid for the furniture out of pocket.Philippe and I decided I'd pursue the <a target="_blank" class="" href="https://www.businessinsider.com/daniel-daggers-selling-london-super-prime-real-estate-netflix-2024-8">real estate</a> full-time, and we'd live off his income until he joined me.<div type="image" title="Gibson with her partner, Philippe." height="1126" width="772" msid="114251054" hostid="261" sizebytes="60124"></div>Philippe took a job in Vancouver, so we moved away in May 2018. We also turned the property we were living in into a short-term rental. By March 2019, we had three rental properties generating income, but we were investing all the money coming back into renovations.That March, we bought a third property for CA129,500 with a 20% downpayment and mortgage. It took nine months to renovate, and I worked with a contractor because it needed a lot of work.We moved back to Quebec in August 2019 and bought another condo in Montreal. We funded the downpayment through an equity release in the form of a mortgage on our personal home turned short-term rental.In October 2019, we bought another house. It was CA220,000 with a 20% downpayment, which we financed using income from the other rental properties and personal savings.Then, in July 2020, we purchased a neighboring property. However, because our bank had a limit on the number of short-term rental properties you could take out personal loans for, we <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/personal-loans/how-to-borrow-money">borrowed money</a> from family to pay the full price of CA277,000 for it.We paid them back after selling our condo in Montreal and still have mortgages on five out of six short-term rentals. We now live in another house we bought and renovated in Orford.<h2 id="7622e5ee-c1f1-429d-854b-e89e5af4b219">We've been trying to rely less on third-party booking platforms like Airbnb</h2>We lived on Philippe's salary until 2020. For the first couple of years renting out properties, we ran at a loss due to the cost of getting started and reinvesting money back into buying properties. Upfront expenses of investment properties are significant. But the time it takes to be cash flowing is shrinking now we have formula that helps us execute faster.I was able to build income and wealth for our future, while Philippe's salary more than covered our daily expenses. He left his job in the legal software space in February 2020, and his severance package covered our living expenses for a while.When the COVID-19 pandemic hit, it disrupted our business, and we had to flip all our properties into monthly rentals to comply with government regulations. After COVID, the market exploded because everyone wanted to get away.Guests loved us and were referring their friends, and we were featured in some <a target="_blank" href="https://www.tvanouvelles.ca/2020/08/19/reservez-deja-votre-chalet-pour-noel">media</a> <a target="_blank" href="https://www.ledevoir.com/plaisirs/voyage/584434/quoi-faire-au-quebec-chalets-branches-routes-et-cartes-postales-a-explorer">outlets</a>.At that point, I realized that if we could keep occupancy up, we could live off of our six properties.I focused on our direct booking strategy. Third-party online travel agencies like Airbnb and Expedia hold too many cards — they decide whether you're on page one or page 25 of their website and how to handle complaints. I worked hard to build our social media presence and website. I pay for a property management software called Lodgify, which allows me to see every reservation across the different OTAs and our website and what days are open on our calendar.In 2019, I'd say all of our bookings were coming from OTAs like Airbnb, but in 2023, my calculations suggest that out of the CA340,000 we made in revenue, roughly 70% came from direct bookings.<h2 id="f9c05698-69b4-496a-8745-68df540a817e">Having a hospitality business is a full-time job, not a 'passive' income stream.</h2><a target="_blank" class="" href="https://www.businessinsider.com/housing-market-ice-age-homebuyers-mortgage-rates-spring-real-estate-2024-10">Real estate</a> has historically been thought of as <a target="_blank" class="" href="https://www.businessinsider.com/how-to-make-rental-property-truly-passive-investment-2024-8">passive income</a>, running short-term rentals is not passive.Providing the necessary level of hospitality is more of a full-time job. We're owner-operators who put a lot of work into the guest experience.We're available seven days a week. I work 50 hours a week doing marketing, bookkeeping, and maintenance. We also have an operations manager who handles day-to-day cleaning and inventory. Depending on the season, there'll also be two to three part-time cleaners.We love what we do and find it so fulfilling, so the good far outweighs the stress.The <a target="_blank" class="" href="https://www.businessinsider.com/how-hospitality-industry-capitalizing-solo-female-travelers-2022-12">hospitality industry</a> is flexible, and I do think there are ways people can do this in addition to another job, but I worry about the quality of service provided.You hear horror stories about people arriving at properties that aren't clean or where things are broken, and it has a negative impact on the industry.Side-hustling with short-term rentals needs to be done in a way that honors the industry.Even those who say they work four hours a day from a beach on their real estate business will have had to put a lot of work into their support and team structure to be successful.Do you have a real estate story you want to share with Business Insider? Email <a target="_blank" href="mailto:ccheong@businessinsider.com">ccheong@businessinsider.com</a>

I have 6 short-term rental properties. People think real estate is passive income, but I disagree.

<ul class="summary-list"><li>After six years of hard work, 29-year-old Jesse Singh said his real estate side hustle paid off.</li><li>Singh balanced two nursing jobs while building a real estate company with his father and uncle.</li></ul>29-year-old Jesse Singh grew up watching his immigrant family juggle multiple jobs while <a target="_blank" class="" href="https://www.businessinsider.com/couple-moved-united-states-from-india-adjustment-corporate-culture-lifestyle-2024-7">creating a new life in the US</a>.He grew up working at his father's convenience store, who also worked as a full-time nurse. The experience taught Singh to appreciate the entrepreneurial spirit early on."I've seen a lot of struggle," Singh said. "My dad and his brother were living two whole families in a two-bedroom unit."When Singh graduated from high school, he compromised on his parent's wishes for him to become a doctor and agreed to become a nurse. He also decided to start a <a target="_blank" class="" href="https://www.businessinsider.com/self-made-real-estate-investor-shares-top-advice-getting-started-2024-6">side hustle in real estate development</a> — and convinced his father and uncle to join in.A few years later, that side hustle turned into a luxury real estate company called <a target="_blank" class="" href="https://www.instagram.com/bespoke_developers/">Bespoke Developers</a>.<h2 id="5d3782c3-37eb-420c-aba4-54287643554e">70+ hour workweeks</h2>Singh worked two separate nursing jobs out of college to help fund his real estate ventures.In his busiest year, he made over $200,000 before taxes combined from both nursing jobs. He said almost all of the money went toward paying off the mortgages for the properties he purchased with his dad and uncle. Singh's employment history and real estate transactions were verified by Business Insider.Some days, Singh said he would arrive at the hospital at 7 p.m. to work a 12-hour shift. Then, he would go home and sleep for five or six hours before arriving at his 3 p.m. shift at the second hospital the following day."I used to like, ping pong from one job to the next," Singh said.In between shifts, Singh said he worked on <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-investor-make-6500-month-side-hustle-heloc-2022-8">developing his real estate projects</a> with his dad and uncle.<div type="image" title="806 Wolfs Lane Pelham, New York" height="3000" width="3000" msid="112574370" hostid="261" sizebytes="391948"></div>After a couple of purchases, one of which turned into a part-time rental and another which sold as a flip, Singh started a construction project that involved knocking down a property and building a new one. It ended up selling for around $2.2 million in May 2023, producing $1 million in revenue, which was divided between him and his partners.Singh said the milestone of hitting $1 million in revenue finally made it feel like a real business.<h2 id="be0a4779-2422-446e-9765-72e71fd500db">It came with a lot of sacrifice</h2>Singh said the last few years were worth it, but he wouldn't recommend the lifestyle to others.Up until a few months ago when he got married, Singh lived at home with his family to save money. He also spent his 20s sacrificing his social life and other important moments like Thanksgiving and Christmas."I sacrificed relationships. I sacrificed my own health," Singh said. "I got sick pretty badly during these years just because I was not paying attention to anything other than my goals."<h2 id="6d7210ae-1777-43c3-97f6-b9eaea1b3d04">Adjusting to a new lifestyle</h2>After selling the $2.2 million home, Singh <a target="_blank" class="" href="https://www.businessinsider.com/quit-job-real-estate-investing-house-hacking-heloc-2024-7">cut down his nursing hours to about one shift per week</a>. He said it's enough to keep him on the payroll, although he doesn't qualify for benefits.Singh went from working around 75 hours a week to 35 hours during a busy week with real estate — and he admits the transition made him feel a little "lost."In addition to working on a new real estate project, Singh started using <a target="_blank" class="" href="https://www.linkedin.com/in/jesse-singh-rn-8a8823209/">LinkedIn</a> to talk about his experiences. He also said he's considering starting an AI venture.Instead of using the money to buy new things though, Singh said he plans to reinvest his earnings into real estate. But his first and foremost concern is providing for his future family with his wife."My first goal right now is to secure the future for the family that I will create," Singh said. "So that's number one priority."

He worked 2 nursing jobs to help fund his real estate side hustle. Now, at 29, it's his main focus. 

<ul class="summary-list"><li>WeWork filed for bankruptcy on Monday.</li><li>Earlier in the day, WeWork's stock trading was halted ahead of the opening bell.</li></ul>Embattled real estate giant WeWork filed for <a target="_blank" href="https://investors.wework.com/news-and-events/press-releases/financial-releases-details/2023/WeWork-Takes-Strategic-Action-to-Significantly-Strengthen-Balance-Sheet-and-Further-Streamline-Real-Estate-Footprint/default.aspx">Chapter 11 bankruptcy </a>on Monday.Trading was halted for WeWork shares ahead of the opening bell on Monday morning. At the time, the stock was trading at about 84 cents per share.The bankruptcy filing was expected following an October 31 <a target="_blank" href="https://www.wsj.com/articles/wework-plans-to-file-for-bankruptcy-as-early-as-next-week-1fdcb6a5">report</a> from The Wall Street Journal that said the company was planning to file for Chapter 11. At the time, WeWork said that it had come to an agreement with creditors to extend a 30-day grace period on some of its debt to November 6.WeWork said in its Monday announcement it has entered into a restructuring support agreement with holders representing around 92% of its secured notes. Monday's bankruptcy filing will not affect WeWork's operations outside the US and Canada.The company also said that its spaces remain open and operational.However, the company added it will "further rationalize its commercial office lease portfolio" during its restructuring — part of an ongoing effort to get out of some long-term leases.Its <a target="_blank" href="https://www.sec.gov/Archives/edgar/data/1813756/000181375623000061/wework2023q2pressrelease.htm">real-estate portfolio</a> spanned 777 locations across 39 countries as of June 30."Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet," David Tolley, the CEO of WeWork, said in the Monday announcement.Also on Monday, WeWork cofounder and ex-CEO Adam Neumann — who stepped down in 2019 amidst the company's SoftBank-led reorganization — said that he found news about the impending bankruptcy to be "disappointing.""It has been challenging for me to watch from the sidelines since 2019 as WeWork has failed to take advantage of a product that is more relevant today than ever before," he said in a <a target="_blank" href="https://www.businesswire.com/news/home/20231106843900/en/Statement-From-WeWork-Co-Founder-Adam-Neumann#:~:text=It%20has%20been%20challenging%20for,enable%20WeWork%20to%20emerge%20successfully">press release</a>. "I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully."During its peak, the company was valued at $47 billion as a private company. But the startup has been in turmoil ever since its <a target="_blank" href="https://www.businessinsider.com/weworks-nightmare-ipo">plans to go public in 2019 fell apart</a> amid concerns about the company's profitability and some of Neumann's <a target="_blank" href="https://www.businessinsider.com/employees-inside-adam-neumanns-wework-reveal-a-wild-culture-2019-9">inappropriate antics</a>.Japanese investor SoftBank has dropped billions of dollars into the real estate startup and remains its majority shareholder, owning more than 70% of the company. Yet, WeWork has never turned a profit. In the first half of the year, the company lost $696 million, per its most recent earnings.Since 2019, the company's valuation has continued to fall. In April, prices dropped below $1 per share and it faced the potential of being <a target="_blank" href="https://www.businessinsider.com/wework-startup-failure-benchmark-insight-partners-venture-capitalists-learned-nothing-2023-4">delisted from the New York Stock Exchange</a>. And in August, WeWork said it had "substantial doubt" it would be able to<a target="_blank" href="https://www.businessinsider.com/wework-has-substantial-doubt-about-continue-to-operate-going-concern-2023-8"> stay in business much longer</a>.WeWork's bankruptcy comes amidst a years-long reorientation for the office industry. Commercial real estate companies have struggled to recover from the pandemic's seismic shift to remote work that weakened office demand worldwide, even in the wake of many companies shifting to a hybrid model or demanding employees return to the office full-time.Bankruptcy might not be the end for WeWork, which currently operates over 300 locations worldwide. The Chapter 11 process allows companies to shed some debt and reorganize. (WeWork competitor Regus <a target="_blank" href="https://www.globest.com/sites/globest/2003/01/15/regus-us-files-for-chapter-11-protection/?slreturn=20231006152739">filed for bankruptcy</a> in the US in 2003 and has continued to operate successfully.)WeWork had $15.1 million in assets and $18.7 million of debt as of June 30, per the bankruptcy <a target="_blank" href="https://document.epiq11.com/document/getdocumentbycode?docId=4244144&amp;projectCode=WWK&amp;source=DM">filing</a>. Its two biggest unsecured debts are $170.7 million in senior notes owned by U.S. Bank Trust Company and $11.9 million in lease termination fees and litigation to the Alter Group, an Illinois-based real estate company.<h2>Wait, wasn't WeWork already in trouble?</h2>The company's failed attempt to go public in 2019 made it the laughing stock of the business world — and led to a big financial life raft from SoftBank.SoftBank needed WeWork to survive. At the time, the Japanese firm was raising money for a second mega-venture capital fund (the first had collected $100 billion) and WeWork's spiral didn't inspire confidence for potential investors. To save WeWork, the Japanese tech giant invested billions into the company and installed a seasoned executive team tasked with turning it around. In 2019 and early 2020, WeWork cut thousands of employees, dozens of office leases, and perks like <a target="_blank" href="https://www.businessinsider.com/wework-cutting-free-beer-and-wine-tap-us-canada-2020-1">free beer</a>, all as it faced multiple government investigations."We made a failure on investing in WeWork and I've been admitting that several times I was foolish," SoftBank founder Masayoshi Son said on a May 2020 earnings call. At the time, SoftBank had written down its WeWork valuation to $2.9 billion.<div type="image" title="adam neumann" height="1335" width="2000" msid="105026383" hostid="261"></div>WeWork's woes continued. Less than a month after its <a target="_blank" href="https://www.businessinsider.com/profile-of-new-wework-ceo-sandeep-mathrani-2020-2">new CEO</a> started in 2020, the pandemic hit (one of the first public New York coronavirus cases was traced back to a man <a target="_blank" href="https://www.businessinsider.com/tiaa-employee-gets-coronavirus-wework-office-shutters-2020-3">who worked</a> out of a WeWork location). Offices globally emptied, and the once-stable commercial real estate sector was thrown into unprecedented chaos, from which it has not fully recovered. WeWork's new leadership team spun the pandemic as an opportunity: Companies rethinking their office needs would flock to more flexible arrangements than decades-long leases, and remote workers would crave workspaces outside their homes.As the world reopened, some WeWorks bounced back — but the company still had too many locations. CEO Sandeep Mathrani continued cutting leases signed under Neumann and found fresh financing. In 2021, WeWork started trading publicly through a special purpose acquisition company, a common way at the time for startups to enter the public markets outside the traditional IPO process. The deal valued the company at $9 billion."Sure, this is a story where a lot of people wrote documentaries that it was the end of WeWork," the company's chairman at the time, Marcelo Claure, told CNBC on the first trading day. "The persistence of these people is incredible. This company is here, is stronger than ever, and no doubt that we're going to be celebrating many more milestones."

WeWork files for bankruptcy in latest sign of commercial real estate reckoning

<ul class="summary-list"><li>The Titanic wreckage site continues to be a big draw for the wealthy and adventurous.</li><li>But experienced deep-sea explorers tell Business Insider there's nothing more to see there.</li></ul>The <a target="_blank" href="https://www.businessinsider.com/titanic-secrets-facts-2018-4">Titanic</a> may be one of the most popular and identifiable wreckage sites in the history of sea travel.It also may be one of the most overrated, deep-sea explorers told Business Insider.More than a century after the ocean liner sank to the bottom of the Atlantic, the Titanic has proven the staying power of its lore, not least in part due to <a target="_blank" href="https://www.businessinsider.com/titanic-fun-facts-movie-2018-11">James Cameron's 1997 film</a>, which became the first billion-dollar box office success. The film reignited interest in the ship and created a <a target="_blank" href="https://www.latimes.com/entertainment-arts/movies/story/2023-12-05/titanic-4k-james-cameron-25th-anniversary-adele-the-abyss">fandom</a> that lives strong to this day. <a target="_blank" href="https://www.businessinsider.com/adele-had-a-titanic-themed-birthday-party-because-yes-shes-the-queen-of-the-world-2018-5">Titanic-themed birthday,</a> anyone?Then, in 2023, five people died in <a target="_blank" href="https://www.businessinsider.com/seven-reasons-why-going-on-titan-sub-bad-idea-oceangate-2023-7">OceanGate's Titan submersible</a> during a dive to the wreckage site, once again placing the iconic ship at the forefront of the news cycle.Despite the <a target="_blank" href="https://www.businessinsider.com/titanic-shipwreck-disappearing-dive-reveals-2019-9">wreckage's thorough documentation</a> and the recent fate of the OceanGate submersible, the <a target="_blank" href="https://www.businessinsider.com/titan-submersible-year-anniversary-tragedy-investigation-oceangate-investor-safer-triton-2024-6">wealthy and well-resourced</a> continue to pour efforts to venture 12,500 feet into the ocean just to see the site of the 1912 sinking.Passengers on the Titan paid up to <a target="_blank" href="https://www.businessinsider.com/titan-sub-ceo-offered-cut-price-tickets-millionaire-doomed-trip-2023-6">$250,000 for a seat</a> inside the submersible. Now, billionaire real estate investor <a target="_blank" href="https://www.businessinsider.com/larry-connor-billionaire-titanic-wreck-submersible-oceangate-2024-6#connor-is-a-real-estate-investor-who-founded-the-connor-group-which-has-5-billion-in-assets-1">Larry</a> <a target="_blank" href="https://www.businessinsider.com/larry-connor-billionaire-titanic-wreck-submersible-oceangate-2024-6#connor-is-a-real-estate-investor-who-founded-the-connor-group-which-has-5-billion-in-assets-1">Connor</a> said he will voyage to the Titanic.Deep-sea explorers are left wondering: Why?<h2 id="4ea5ef85-292a-40c7-b69a-4684d4c1a458">'People are trying to impress people'</h2>"The wreck is well-documented," <a target="_blank" href="https://www.businessinsider.com/oceangate-titan-submersible-survivor-karl-stanley-titantic-exploration-2024-6">Karl Stanley</a>, a submersible expert, told BI in a recent interview. "That's probably the best documented deep-water wreck there is."Stanley, who owns a submersible tourism company, Stanley Submarines, was one of many colleagues who <a target="_blank" href="https://www.businessinsider.com/stockton-rush-friend-warned-titan-sub-customers-panic-breaking-sounds-2023-6">warned OceanGate's CEO Stockton Rush</a> about the dangers of rushing to produce a vessel that could take people to the Titanic.For him, the wealthy's desire to visit the shipwreck has less to do with a genuine passion for deep-sea exploration and more to do with namesake recognition."I think whatever market exists for tourism to the Titanic is extremely analogous to the kind of clientele that pays <a target="_blank" href="https://www.businessinsider.com/mount-everest-sherpas-mountain-guide-jobs-not-worth-it-2024-6">Sherpas</a> to drag them up <a target="_blank" href="https://www.businessinsider.com/mt-everest-so-expensive-2024-2">Mt. Everest</a>," Stanley said, referring to the Nepalese ethnic group that dwells in the Himalayan mountains. Some climbers pay up to $15,000 per expedition to have a Sherpa guide, BI previously reported.Since the early 1900s, more than 330 people have died on the mountain, and 107 of them were Sherpas, according to The Himalayan Database.Stanley said there are more dangerous but less traveled mountains and shipwrecks that are less deep but better preserved, such as the <a target="_blank" href="https://www.businessinsider.com/titanic-survivor-violet-jessop-britannic-wreck-2023-7">HMHS Britannic</a>, Titanic's sister ship, which lies in a relatively shallow grave of about 400 feet, near the Greek island of Kea."People are trying to impress people," he said.<a target="_blank" href="https://www.businessinsider.com/oceangate-cofounder-guillermo-sohnlein-titan-submersible-one-year-later-2024-6">Guillermo Söhnlein</a>, the cofounder of OceanGate who left the company in 2013, agreed with Stanley.While he doesn't want to discourage anyone's genuine passion for the iconic ocean liner, <a target="_blank" href="https://www.businessinsider.com/oceangate-cofounder-send-humans-live-venus-atmosphere-2050-titan-sohnlein-2023-7">Söhnlein</a> told BI in an interview that the Titanic "holds no interest for me whatsoever.""One of the reasons I talked with Stockton all the time in the recent years is he would always call me before the expedition to see if I wanted to come to the Titanic," he said."And honestly, I never had any desire to go to the Titanic. I just don't see the appeal of it," Söhnlein said, "For me, personally, I think a big part of that is because I prefer exploration. And the Titanic has already been visited, it's been documented, its been filmed. James Cameron has done a phenomenal job on it."<h2 id="755b8c77-1198-49d8-82fe-55f4fd8caab1">Brine pools and unexplored blue holes</h2>Stanley and Söhnlein said they're less interested in shipwreck sites overall and more keen on exploring the <a target="_blank" href="https://www.businessinsider.com/marine-biodiscovery-could-unlock-answers-health-climate-crises-2023-7">ocean's ecosystem</a>."Hot sea vents, brine pools, and deep-water coral reefs would all be more interesting than a shipwreck and can be accessed by going 2,000-5,000 feet, not the 13,000 feet it takes to get to the Titanic," Stanley said.Similarly, Söhnlein is interested in deep trenches and <a target="_blank" href="https://www.businessinsider.com/mining-companies-extracting-resources-from-hydrothermal-vents-2015-10">hydrothermal vents</a> — something Rush was also passionate about, he said.Söhnlein explained that they're "almost completely unexplored," "play key roles in our planetary dynamics," and "they likely hold thousands of undiscovered and unknown life forms."Söhnlein's company, Blue Marble Exploration, recently announced it would venture into Dean's Blue Hole, a site in the <a target="_blank" href="https://www.businessinsider.com/the-bahamas-things-to-never-do-according-to-local-photos-2022-7">Bahamas</a> about 660 feet from the surface.<div type="image" title="A picture of the ocean with a hole in the middle." height="2982" width="4505" msid="111200411" hostid="261" sizebytes="1655198"></div>"Dean's Blue Hole is an enigma for geologists studying underwater caverns," <a target="_blank" href="https://bluemarbleexploration.com/abyss/">Blue Marble Exploration's website</a> says. "It is the largest of its kind in the world, and yet very little is known about it, including how it formed more than 15,000 years ago."The company adds that it expects to find "human remains" of people who drowned in the blue hole "due to a variety of misfortunes."It's unclear how many people died at the site. The most notable case occurred in 2013 when American freediver Nicholas Mevoli attempted to break a freediving record by reaching 72 meters in a single breath, The New York Times reported. Mevoli surfaced but died shortly after.

The Titanic is overrated, deep-sea explorers say. The wealthy keep venturing to it anyway.

<ul class="summary-list"><li>OpenAI CEO Sam Altman owns multimillion-dollar properties in San Francisco, Napa, and Hawaii.</li><li>Altman, fired then reinstated as OpenAI's CEO this month, has tried to keep a relatively low profile.</li></ul>Years before the recent drama at OpenAI turned CEO Sam Altman into a household name, the former Y Combinator president went on an extraordinary 18-month, $85 million real-estate shopping spree, according to records reviewed by Business Insider — including a previously unreported $43 million Hawaii estate on land that locals describe as historically significant.The purchases, which also include multimillion-dollar residences in San Francisco and Napa, California, took place between early 2020 and mid-2021, when Altman was ginning up support for his eyeball-scanning crypto startup, <a target="_blank" href="https://markets.businessinsider.com/news/currencies/worldcoin-orb-scan-eyes-iris-sam-altman-y-combinator-cryptocurrency-2021-10">Worldcoin</a>, and releasing OpenAI products in <a target="_blank" href="https://www.businessinsider.com/elon-musk-openai-sell-text-tool-it-said-was-dangerous-2020-6">private beta</a>, BI's review of business and real-estate filings found.A spokesperson for Altman declined to comment.Altman's precise net worth isn't known. As the CEO of OpenAI, his salary is just $58,333, according to IRS filings, and his equity stake in the company is so small that it's "immaterial," he's said. He's made more than 400 investments in nine years, BI previously reported, in companies across diverse fields such as commercial flights and brain implants.Earlier this year, Altman seemed to take a subtle dig at his fellow tech executives for amassing too much wealth."This concept of having enough money is not something that is easy to get across to other people," Altman said at the Bloomberg Technology Summit in San Francisco.But as Altman's wealth has grown, he's become increasingly removed from the daily life of the non-ultra-ultra-rich. His mother told <a target="_blank" href="https://www.wsj.com/tech/ai/chatgpt-sam-altman-artificial-intelligence-openai-b0e1c8c9">The Wall Street Journal</a> in March that Altman hadn't been to a grocery store in four or five years. In 2021, he hired his cousin to manage his family office.Here's where Altman spends his time.<div type="image" title="Satellite image of a Hawaii property" height="2983" width="4800" msid="105624017" hostid="261"></div><h2>A $43 million estate in Hawaii</h2>In July 2021, Altman bought a 12-bedroom estate in Kailua-Kona, on the Big Island of Hawaii, for $43 million. Judging by listing photos, the property has a private inlet and several houses. The estate is adjacent to a <a target="_blank" href="https://www.nps.gov/places/kamakahonu.htm#:~:text=Kamakahonu%2C%20the%20residence%20of%20Kamehameha,the%20Island%20of%20Hawai'i.">national landmark</a>, a <a target="_blank" href="https://ahuena-heiau.org/history.html">reconstruction of the royal temple of King Kamehameha I</a>, the first ruler of the unified Hawaiian islands."This land here is very sacred," the security manager of the property said in a recent video posted on YouTube about the estate urging visitors to be respectful. The property, he said, "is presently on the platform that the original house of King Kamehameha I resided." He added that the land was "one of the most historical places here in Hawaii."A second video highlighted the estate's adventurous amenities, including cliff jumping, motorboating, wakesurfing, jet skiing, and scuba diving. A person who worked on the second video said the intent was to produce something that friends and family could watch to remember their trips to the residence. (Both videos were removed from YouTube after BI requested comment for this article.)Altman's purchase of the Hawaii property has not been previously reported. BI linked the property to Altman by examining business and real estate filings that show the land is owned by an LLC managed by Jennifer Serralta, whose name appears as a manager on paperwork for other businesses known to be owned by Altman. Serralta, who previously worked in the automotive industry, <a target="_blank" href="https://www.linkedin.com/in/jennifer-serralta-339a1910/">describes herself</a> on LinkedIn as the COO of a family office — presumably Altman's — and is his cousin, according to an obituary for their grandmother. Reached by phone, Serralta declined to comment.Family offices are entities established to manage the finances and investments of wealthy individuals, wrangling everything from real estate to yachts and philanthropy. Altman's, like those of many Silicon Valley tech CEOs, is intensely private. Altman has launched several investment vehicles over the years, including one with his brothers Jack and Max named <a target="_blank" href="https://www.forbes.com/sites/alexkonrad/2020/06/17/altman-brothers-launch-apollo-fund-to-back-startup-moonshots/?sh=5978d77f41eb">Apollo Projects</a>, and another entity titled Altman Family LLC.In a March post on her personal blog, Serralta wrote that she stayed at a Kailua-Kona property owned by "a friend" while vacationing in Hawaii. Last year, Altman tweeted a <a target="_blank" href="https://web.archive.org/web/20220409060534/https://twitter.com/sama/status/1512111914939154434">photo of himself</a> wakesurfing in Hawaii; the view of the Big Island in the background of the photo matches precisely the view from the Kailua-Kona compound. And in 2021, Altman registered a business, the Sam Altman Qualified Opportunity Fund, at an address adjacent to the property. (It's possible that Altman wanted to register the business to his address but made a mistake; the address he used differs from his own by just one digit and has been owned by the same person since 2007.)Altman joins a roster of Silicon Valley titans with Hawaii estates, including Mark Zuckerberg, whose property purchases on the island of Kauai have <a target="_blank" href="https://www.businessinsider.com/mark-zuckerberg-family-office-weststreet-misconduct-allegations-2020-2">sparked controversy</a>, and Larry Ellison, who owns <a target="_blank" href="https://www.businessinsider.com/oracle-larry-ellison-lanai-hawaii-plans-sustainability-tourism-2020-12">most of the island of Lanai</a>. Marc Benioff, Jeff Bezos, and Peter Thiel have also scooped up sizable properties on the islands.Altman has one family connection to Hawaii: His youngest sibling, sister <a target="_blank" href="https://allhumansarehuman.medium.com/how-we-do-anything-is-how-we-do-everything-d2e5ca024a38">Annie Altman</a>, has lived on the islands on and off since 2017. Annie, an artist and entertainer who has supported herself through in-person and virtual sex work, lives a much different life than her brother. Annie is teetering on financial insolvency, she told BI, after a lengthy stretch of illnesses. She has not spoken to her brother since 2021, when Annie refused Sam's offer to buy her a home after learning that a lawyer would control the property, she said.Annie had been unaware that her oldest brother owned property in Hawaii until BI asked her about it, she said.<h2>A $27 million San Francisco home</h2>Altman's weekday residence is a home on San Francisco's Russian Hill that was once described — inaccurately — as the most expensive home in San Francisco. He purchased it through an LLC in March 2020 for $27 million, according to property and business records.The compound, with sweeping views over San Francisco, includes a main residence, a wellness center, a cantilevered infinity pool, and an underground garage with a car turntable, <a target="_blank" href="https://www.businessinsider.com/sam-altman-openai-chatgpt-worldcoin-helion-future-tech-2023-4">BI reported</a> earlier this year.The property is the home base for a number of Altman's investment vehicles, according to business and SEC filings, including venture firm Apollo Projects, 9Point Ventures, and Uncommon Ventures. In recent weeks, the property functioned as a war room for Altman and his closest allies as he planned his return to OpenAI.<h2>A $15.7 million ranch in Napa</h2>Altman took a New York Times reporter to his weekend home, a working ranch in Napa, earlier this year. The reporter, Cade Metz, <a target="_blank" href="https://www.nytimes.com/2023/03/31/technology/sam-altman-open-ai-chatgpt.html">described</a> the estate as "both folksy and contemporary. The Cor-Ten steel that covers the outside walls is rusted to perfection."Altman purchased the 950-acre property in late 2020 for $15.7 million through an LLC, according to real estate records reviewed by BI. The estate comprises five homes and vineyards in a picturesque northern California landscape.Several Altman companies are or have been registered to the address, including the opaquely-named Project 2024 LLC, as well as another Altman venture firm, Hydrazine Capital Management.At the time of purchase, one of the property's former owners described the buyer, who he did not name, as having "complete passion for the land.""It's hard to explain how marvelous it is to live where there are still river otters on your property and oaks that are centuries old. He gets it. He's enthusiastic about it," the former owner, Hollywood lighting designer Bob Dickinson told the San Francisco Chronicle. "He has a very close family and I think his motivation is to make it the same kind of community experience with his family and friends."Altman <a target="_blank" href="https://www.businessinsider.com/sam-altman-openai-chatgpt-worldcoin-helion-future-tech-2023-4">flies</a> groups of friends and colleagues up to the property frequently.<h2>A 'big patch of land' in Big Sur, cars, and planes</h2>In 2016, Altman <a target="_blank" href="https://www.newyorker.com/magazine/2016/10/10/sam-altmans-manifest-destiny">told the New Yorker</a> that he owns a getaway in Big Sur that he can "fly to" if a super-powerful AI attack leads to "nations fighting with nukes over scarce resources." (He also said he had stockpiled "guns, gold, potassium iodide, antibiotics, batteries, water, gas masks from the Israeli Defense Force" to prepare for that event.)BI wasn't able to find which "big patch of land" Altman owns in the expensive coastal California enclave, but it seems likely he'll be able to fly himself there in the event of an apocalypse: A 2010 document shows Altman is licensed to fly single-engine planes, and he's posted about <a target="_blank" href="https://twitter.com/sama/status/573516436834029568">small plane trivia</a> on X. In the same New Yorker interview, Altman also copped to owning five cars, including two McLarens and an "old Tesla." Altman <a target="_blank" href="https://x.com/sama/status/489204644766158848?s=20">posted on X </a>in 2014 about owning a Tesla Roadster, of which only 2,450 were made. The cars are now collectors' items <a target="_blank" href="https://www.businessinsider.com/tesla-roadster-prices-increasing-sales-collectors-items-2022-10">selling for more than $100,000.</a> He's also <a target="_blank" href="https://x.com/sama/status/312309004791607298?s=20">posted</a> about owning a 2013 Tesla Model S.Do you have more to share? You can reach Katherine via the encrypted messaging app Signal (+1-206-375-9280) or email at klong@insider.com. You can reach Hugh via encrypted messaging apps Signal/Telegram (+1 628-228-1836) or email at hlangley@businessinsider.com.

OpenAI CEO Sam Altman went on an 18-month, $85 million real-estate shopping spree &mdash; including a previously unknown Hawaii estate

<ul class="summary-list"><li>Kevin O'Leary is worried about commercial real estate, regional banks, and small businesses.</li><li>The "Shark Tank" star warns a CRE downturn will cause more bank failures and put payrolls at risk.</li></ul>Pressure is building on regional banks, commercial real estate developers, and small businesses, Kevin O'Leary has warned."It's getting worse by the week," the "Shark Tank" investor <a href="https://www.youtube.com/watch?v=YFx0fvKb9LU" target="_blank" rel="noopener">told Fox Business</a> on Friday. "Lots of private equity firms are admitting there's cracks in the system."The Federal Reserve has hiked interest rates from nearly zero to north of 5% over the last 18 months, in a bid to cool inflation which hit a 40-year high of over 9% last summer. Steeper borrowing costs have pulled down the value of commercial properties and weighed on debt-reliant developers, <a href="https://markets.businessinsider.com/news/stocks/credit-crunch-us-bank-crisis-stock-corporate-earnings-recession-svb-2023-4">fueling a credit crunch</a> as banks balk at lending to the sector.Regional banks in particular are <a href="https://www.businessinsider.com/silicon-valley-bank-failure-what-happened-bank-run-explained-2023-3">feeling the squeeze</a>, as they're the main lenders to the CRE space, and have seen the value of the real estate and bonds on their balance sheets tumble as rates have climbed. Smaller banks are also a key source of financing for small businesses, which are weathering a painful period of stubborn inflation, costlier debt, and lingering fears of a recession."We're going to see more cracks in regional banks, and that's putting pressure on the loan books of those banks which are hitting small business," O'Leary said.Many CRE developers face the prospect of refinancing their loans within the next three years at interest rates of 9% to 14% a year, compared to between 3% and 5% when they first borrowed the cash, the celebrity investor said."That makes these buildings uneconomic," he noted, underscoring that the pain in the CRE sector would have knock-on effects on regional banks and small businesses.O'Leary – whose nickname is "Mr. Wonderful" — cautioned that if banks run into trouble, businesses with over $250,000 in their payroll accounts might pull their money out en masse, or be left unable to pay their employees. The Federal Deposit Insurance Corp. only guarantees a maximum of $250,000 per account holder at any one bank if the lender becomes insolvent."You don't want a regional bank failing because you can't past $250,000 guarantee it," O'Leary said, adding that many payroll accounts have well over $250,000 in them ahead of payday. The founder of O'Leary Funds and O'Leary Ventures urged lawmakers to support a $100 million guarantee for non-interest-bearing accounts, which would protect payroll accounts."They've got to have some plan for when these banks start failing," he said.O'Leary has <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-spx-chips-ira-inflation-debt-crunch-oleary-2023-8">recently touted the S&amp;P 500</a> given the tailwind of aggressive government spending, <a href="https://www.businessinsider.com/oleary-regional-banks-commercial-real-estate-small-business-rates-lending-2023-9">sounded the alarm on the triple threat</a> facing the US economy, and <a href="https://www.businessinsider.com/kevin-oleary-shark-tank-us-economy-recession-housing-mortgages-rates-2023-8?utm_source=flipboard&amp;utm_content=user%2FInsiderBusiness">warned mortgage rates could surge past 8%</a> if the Fed lifts rates to north of 6%.

'Shark Tank' investor Kevin O'Leary warns commercial real estate woes will topple banks and throttle businesses

<ul class="summary-list"><li><keyword id="7034821" type="UNKNOWN" weightage="60" keywordseo="PropTech" source="Orion">Proptech</keyword> was never hotter than 2021, where it raised a record of $30 billion.</li><li>VC investment fell by <a href="https://www.businessinsider.com/proptech-venture-investment-fell-nearly-40-this-year-2022-12">38% in 2022</a>, but the technological transformation of <keyword id="6354553" type="COMPANY" weightage="100" keywordseo="real-estate" source="Orion">real estate</keyword> continues.</li></ul>Real estate's technological transformation was well underway before the pandemic drove it into hyperspeed. Early innovators like Zillow showed that there was a place for real estate on the internet, while investments from firms like SoftBank showed that big money was paying attention.But when COVID reshuffled the deck, and interest rates were at record lows, the sector exploded with interest, and record investment. Now, interest rates are rising, and some of proptech's <a href="https://www.businessinsider.com/proptech-battered-by-tech-and-housing-market-busts-2022-11">stars</a> <a href="https://www.businessinsider.com/proptech-real-estate-startups-let-down-investors-customers-employees-2023-1">have</a> <a href="https://www.businessinsider.com/compass-ceo-robert-reffkin-manage-out-low-performers-leaked-memo-2022-12">sunk</a>, layoffs have <a href="https://www.businessinsider.com/real-estate-tech-layoffs-25-companies-that-have-laid-people-off-2022-7">abounded</a>, and investment was down 38% in 2022. But startups and <keyword id="6357097" type="DEFINITION" weightage="60" keywordseo="Venture-Capital" source="Orion">venture capital</keyword> continue to drive <keyword id="10585589" type="UNKNOWN" weightage="60" keywordseo="real-estate-tech" source="Orion">real estate tech</keyword>'s ambitions forward, backing companies that 3D-print carbon-neutral homes, bring home-buying transactions entirely online, and that make it easier than ever to become a landlord of all — <a href="https://www.businessinsider.com/real-estate-investing-fractional-ownership-second-home-landlord-investment-property-2022-6">or part</a> — of a property.Insider has collected 32 <keyword id="11953110" type="UNKNOWN" weightage="60" keywordseo="pitch-decks" source="Orion">pitch decks</keyword> that successful firms have used to raise funding from VCs and private-equity firms.Check out the full collection below. <h2>Residential real estate</h2><div type="image" title="Doorvest Co Founder Image" height="777" width="1037" msid="83667554" hostid="261"></div>The residential real-estate market surged into the beginning of 2022, with low interest rates driving record-high home price appreciation. Renting got a lot more expensive, too, with and everyone started <a href="https://www.businessinsider.com/investors-spent-record-apartment-buildings-2021-2022-1">flocking to invest in apartment buildings</a>. Then, as the Fed began to pump the brakes, housing has cooled, cutting valuations for any company focused on the residential space.However, this sector has been a major focus for proptech companies such as those that <a href="https://www.businessinsider.com/doorvest-pitch-deck-propech-funding-retail-real-estate-investing-2021-11">help investors purchase and manage homes from afar</a>, tools for<a href="https://www.businessinsider.com/apartment-leasing-company-doorkee-pitch-deck-fundraise-2020-9?r=proptech-pitch-decks-lp"> residential brokers</a> and<a href="https://www.businessinsider.com/apartment-leasing-company-doorkee-pitch-deck-fundraise-2020-9?r=proptech-pitch-decks-lp"> leasing agents</a>, and<a href="https://www.businessinsider.com/pitch-deck-digital-closing-endpoint-startup-first-american-title-2020-11?r=proptech-pitch-decks-lp"> digital closing companies</a> that digitize paper-heavy real estate transactions.<ul><li><a href="https://www.businessinsider.com/doorvest-pitch-deck-propech-funding-retail-real-estate-investing-2021-11">Individual real-estate investors now have a way to compete with the big guys. Here's the 12-page deck one startup used to raise $39 million to make that happen.</a></li><li><a href="https://www.businessinsider.com/june-homes-used-pitch-deck-to-raise-money-from-softbank-2021-9">See the pitch deck a real-estate startup used to raise $27 million from SoftBank to build the world's largest housing company — without owning any homes</a></li><li><a href="https://www.businessinsider.com/divvy-series-a-investor-deck-2019-2?r=proptech-pitch-decks-lp">Here's the investor deck that helped the real-estate startup Divvy raise a $30 million series A led by Andreessen Horowitz</a></li><li><a href="https://www.businessinsider.com/online-mortgage-broker-morty-pitch-deck-raise-series-b-2022-2">The online mortgage broker Morty used this pitch deck to raise a $25 million Series B and enable more homebuyers to skip the traditional mortgage process</a></li><li><a href="https://www.businessinsider.com/pitch-deck-digital-closing-endpoint-startup-first-american-title-2020-11?r=proptech-pitch-decks-lp">Here's the presentation digital closing startup Endpoint used to nab $40 million from its parent company, title giant First American</a></li><li><a href="https://www.businessinsider.com/localize-pitch-deck-real-estate-listings-search-website-app-fundraising-2021-8">A real-estate listings startup trying to rival Zillow used this pitch deck to raise $25 million for its super-powered home search website</a></li><li><a href="https://www.businessinsider.com/pitch-deck-flyhomes-raises-150-million-wild-housing-market-2021-6">Flyhomes turns home buyers into cash buyers in a wild housing market. Check out the pitch deck it used to raise $150 million in fresh funding.</a></li><li><a href="https://www.businessinsider.com/immo-property-tech-startup-raises-75-million-to-scale-investments-2022-4">Real-estate startup Immo scoops up single-family homes from sellers then turns them into rental investments. Check out the 26-slide pitch deck it used to raise $75 million.</a></li><li><a href="https://www.businessinsider.com/pitch-deck-ownwell-used-to-raise-seed-round-2022-5">Here's an exclusive look at the pitch deck that property-tech startup Ownwell used to raise a $5.75 million seed round from investors like First Round Capital</a></li><li><a href="https://www.businessinsider.com/playhouse-pitch-deck-tiktok-real-estate-seed-millions-2022-4">Here's the pitch deck that Playhouse used to raise $2.8 million to become a 'TikTok for real estate'</a></li><li><a href="https://www.businessinsider.com/tiko-raises-65-million-buy-properties-sellers-pitch-deck-2021-7">This property startup buys homes directly from sellers in as little as a week. Check out the 19-page pitch deck it used to raise $65 million.</a></li></ul><h2>Commercial real estate </h2><div type="image" title="Nick Gayeski, cofounder and CEO of Clockwork Analytics" height="533" width="711" msid="83667555" hostid="261"></div>The pandemic laid bare the necessity of a technological transformation of commercial real estate. Remote work has changed professional workers' relationship to the office forever. E-commerce adoption has skyrocketed, but consumers also were starved for in-person interactions and increased their time at restaurants. Data of all sorts became increasingly more important in order to keep a competitive advantage over other struggling commercial landlords, and processes that used to take place on email or even in pen and paper are now taking place on dedicated pieces of software.<ul><li><a href="https://www.businessinsider.com/startup-northspyre-real-estate-developers-rely-less-on-spreadsheets-projects-2022-3">As building costs rise, this startup says real-estate developers can save millions by ditching spreadsheets. Here's the 12-slide pitch deck it used to raise $25 million.</a></li><li><a href="https://www.businessinsider.com/wynd-pitch-deck-air-purification-marriott-2022-4">See the pitch deck the air-purification startup Wynd used to raise $10 million to help Marriott guests breathe easier</a></li><li><a href="https://www.businessinsider.com/social-distancing-tech-proptech-startup-vergesense-9-million-2020-5?r=proptech-pitch-decks-lp">VergeSense, an office-sensor startup that tracks employees' movements, just nabbed $9 million. From social distancing scores to real-time occupancy alerts, here's its pitch deck.</a></li><li><a href="https://www.businessinsider.com/clockworks-analytics-pitch-deck-proptech-startup-pandemic-fundraising-2021-3?r=proptech-pitch-decks-lp">See the pitch deck a startup that monitors building ventilation used to raise $8 million during the pandemic</a></li><li><a href="https://www.businessinsider.com/fintor-pitch-deck-proptech-startup-used-to-raise-9-million-2022-10">An exclusive look at the 19-slide pitch deck a real-estate-investing startup aimed at millennials and Gen Zers used to raise a total of $9 million</a></li><li><a href="https://www.businessinsider.com/insurtech-honeycomb-series-a-pitch-deck-multifamily-insurance-real-estate-2022-1">Here's the 10-page Series A pitch deck used by Honeycomb, a startup that wants to revolutionize the $26 billion market for multifamily property insurance</a></li><li><a href="https://www.businessinsider.com/google-keyway-proptech-startup-pitch-deck-technology-2021-11">Check out the 9-slide pitch deck this ex-Googler used to raise $15 million for SME property tech startup Keyway</a></li><li><a href="https://www.businessinsider.com/pitch-deck-boiler-doubles-as-power-plant-2022-11">This entrepreneur is giving landlords and homeowners a chance to buy their own personal power plants. See the pitch deck he used to raise millions.</a></li></ul><h2><keyword id="11171401" type="UNKNOWN" weightage="60" keywordseo="construction-tech" source="Orion">Construction tech</keyword></h2><div type="image" title="Mosaic cofounder and CEO Salman Ahmad" height="902" width="1200" msid="83667557" hostid="261"></div>The pandemic boosted traditional <keyword id="34617" type="COMPANY" weightage="60" keywordseo="construction" source="Orion">construction</keyword> companies' interest in the high-tech corner of the sector. Startups that make digital tools to manage worksites from afar suddenly became indispensable, while the <a href="https://www.businessinsider.com/why-there-are-so-few-homes-for-sale-high-prices-2021-3?r=proptech-pitch-decks-lp">current housing shortage</a> brought even more attention to <a href="https://www.businessinsider.com/mosaic-pitch-deck-raised-14-million-from-a16z-construction-tech-2020-9?r=proptech-pitch-decks-lp">companies that are developing ways to build homes faster and more cheaply</a>.<ul><li><a href="https://www.businessinsider.com/pitch-deck-cove-tool-proptech-construction-architecture-design-software-startup-2020-11?r=proptech-pitch-decks-lp">A construction-tech startup that's developed a faster way to model a building's energy efficiency used this 13-page pitch deck to nab $5.7 million</a></li><li><a href="https://www.businessinsider.com/openspace-pitchdeck-15-million-raise-menlo-jll-construction-tech-2020-7">OpenSpace, a startup that wants to be the telemedicine of construction, used this 24-page pitch deck to nab $15 million from investors including Menlo Ventures</a></li><li><a href="https://www.businessinsider.com/pitch-deck-raise-funding-startup-proptech-gearflow-construction-parts-2021-7">Read the 19-page pitch deck an online construction-parts marketplace trying to compete with Amazon used to raise millions</a></li><li><a href="https://www.businessinsider.com/briq-pitch-deck-startup-funding-construction-proptech-tiger-global-2021-8">See the pitch deck that lured investing powerhouse Tiger Global to lead a $30 million round for a startup trying to revolutionize construction spending</a></li><li><a href="https://www.businessinsider.com/mosaic-pitch-deck-raised-14-million-from-a16z-construction-tech-2020-9?r=proptech-pitch-decks-lp">Here's the 21-slide pitch deck construction-tech startup Mosaic used to lay out its vision for the future of homebuilding and nab $14 million from backers including Andreessen Horowitz</a></li><li><a href="https://www.businessinsider.com/startup-northspyre-real-estate-developers-rely-less-on-spreadsheets-projects-2022-3">As building costs rise, this startup says real-estate developers can save millions by ditching spreadsheets. Here's the 12-slide pitch deck it used to raise $25 million.</a></li><li><a href="https://www.businessinsider.com/pitch-deck-property-startup-plentific-raises-100-million-series-c-round-2021-8">Plentific helps big landlords source contractors for repairs. We got an exclusive look at the pitch deck it used to raise $100 million for expansion and acquisitions.</a></li><li><a href="https://www.businessinsider.com/wreno-property-tech-5-million-seed-round-pitch-deck-2022-8">Here's an exclusive look at the pitch deck the proptech platform Wreno used to raise a $5 million seed round</a></li></ul><h2>Short-term rentals and hospitality</h2><div type="image" title="Roman Pedan, Kasa Founder and CEO" height="3733" width="4978" msid="83667561" hostid="261"></div>The short-term rental market saw an explosion in the early days of the pandemic, as those looking for a place to wait out quarantine in comfort competed with those looking for a safer family vacation, driving up occupancy. Suddenly, <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing" source="Orion">investing</keyword> in vacation-rental properties that could be listed on Airbnb or Vrbo became extremely attractive, and regular people could take advantage of the cheap capital to do so.Things have since swung in the other direction, <a href="https://www.businessinsider.com/people-worried-about-airbnb-bust-short-term-rentals-2022-11">with supply outpacing demand</a>, making some say the <a href="https://www.businessinsider.com/airbnb-hosts-should-lower-their-expectations-occupancy-bookings-airdna-2022-7">gold rush is over</a>. However, short-term rental is here to stay, with companies that help people buy, manage, and invest properties finding plenty of customers — and investors. <ul><li><a href="https://www.businessinsider.com/casai-short-term-rental-startup-48-million-a16z-latam-mexico-2020-10?r=proptech-pitch-decks-lp">A Latin American short-term rental startup just raised $48 million in a Series A led by a16z. Here's the deck it uses to pitch institutional landlords it looks to partner with.</a></li><li><a href="https://www.businessinsider.com/kasa-pitch-deck-raised-30-million-short-term-rental-startup-2020-11?r=proptech-pitch-decks-lp">See the 26-page pitch deck Kasa Living used to raise $30 million while other short-term rental startups were folding</a></li><li><a href="https://www.businessinsider.com/koala-pitch-deck-timeshare-marketplace-fundraise-booking-rentals-2020-9?r=proptech-pitch-decks-lp">Here's the pitch deck that Koala, a startup bringing an Airbnb-style marketplace to the wonky timeshare industry, used to raise $3.4 million</a></li><li><a href="https://www.businessinsider.com/vacation-rental-startup-here-raised-5-million-pitch-deck-2022-7">See the pitch deck a startup used to raise $5 million to help people invest in shares of vacation homes for as little as $100</a></li><li><a href="https://www.businessinsider.com/pitch-deck-raised-26-million-celebrities-classpass-luxury-hotels-2022-12">Regular people can pay for a day pass to swim in pools at Ritz-Carlton hotels. Here's the pitch deck ResortPass used to raise $26 million from investors like The Points Guy, Gwyneth Paltrow, and Jessica Alba.</a></li><li><a href="https://www.businessinsider.com/pitch-deck-startup-buy-sell-manage-short-term-rentals-airbnbs-2022-12">See the pitch deck a startup used to raise $4 million to buy, sell, and manage short-term-rental properties</a></li></ul>

See 32 pitch decks that some of the hottest proptech startups used to raise millions from top VCs like SoftBank and a16z

<ul class="summary-list"><li>Louisville investors Dana McMahan and Mike Consigliere bought a rundown house for $80,000 in 2020.</li><li>They lost money on the deal, even after selling the rehabbed house for $435,000 two years later.</li></ul>Real-estate investor partners Dana McMahan and Mike Consigliere own and operate what they say is a lucrative 16-unit rental property in the heart of Louisville, Kentucky's historic downtown.But their journey to becoming successful landlords has been anything but straightforward and risk-free. It started in the autumn of 2020, when the pair purchased a neglected Victorian home that they planned to restore. They nicknamed the 123-year-old house Sleeping Beauty, McMahan told Insider, and their drive to rejuvenate the building was equally rooted in two passions: a love of old homes and a desire to turn a profit. "It was quite literally hidden behind an overgrowth of shrubs. The neighbors thought it was going to be demolished because it was in such rough shape," McMahan said of <a href="https://www.zillow.com/homedetails/4556-S-3rd-St-Louisville-KY-40214/95196182_zpid/" target="_blank" rel="noopener">the 3,000-square-foot house</a>. "Maybe we were naive, but we just saw the potential of how beautiful it could become." The partners were able to purchase the derelict home for $80,000 thanks entirely to a cash-out refinance that McMahan did on her own home just a few blocks away. But due to <a href="https://www.businessinsider.com/construction-pay-growing-residential-commercial-real-estate-boom-2022-3">steep labor costs</a> and supply chain constraints that saw <a href="https://markets.businessinsider.com/news/commodities/lumber-prices-above-1000-first-time-since-june-housing-commodities-2021-12">building materials skyrocket in price</a>, the project ended up costing far more than either had anticipated. (McMahan, who moonlights as a freelance writer, has <a href="https://www.realtor.com/living/design-diy/before-after-louisville-ky-victorian-paint-makeover/" target="_blank" rel="noopener">written extensively about the renovation</a>.)After a thorough renovation, they listed the house for sale in August 2022 for just under $470,000 and ended up selling for $435,000 in November. Despite the significant increase in the sale price in two years, the two ended up losing money on the deal, they told Insider. One of the reasons is that they listed the property at a time when <a href="https://www.businessinsider.com/mortgage-rates-fluctuating-climbing-and-falling-this-year-2022-8">mortgage rates began to increase</a> after record lows, causing buyers to retreat to sidelines and <a href="https://www.businessinsider.com/housing-market-outlook-existing-home-sales-july-mortgage-rates-prices-2022-8">home prices to soften</a>. There were times when the partners considered cutting their losses during the renovation, they conceded to Insider, but felt that it was important to see the project all the way through."More than once, people asked us if we would just sell it as is and walk away," McMahan said. "We did have some pretty serious discussions about doing that. But the thought was, we're losing money either way. If we're going to lose money, we at least want something we can be proud of. It sounds hokey, but the house deserves it."<h2>They had to dip into retirement accounts for their second deal</h2>After selling the house, the partners were at a crossroads and in a tough spot financially. But after getting a lead on a 16-unit rental property, they scrounged up their remaining savings and cashed out their 401(k) retirement accounts to buy it. The owner was also agreeable to seller financing, and McMahan put her own home up as collateral.With some luck and cash in hand, the two closed on the $1 million property in September of 2021.They've been slowly updating each unit as it becomes vacant and have also rented some of the apartments <a href="https://www.businessinsider.com/building-adu-for-passive-income-california-san-jose-2023-3">out to travel nurses</a>, which has been both more lucrative than traditional long-term leases and more secure than short-term rentals like Airbnb.The building's 250-square-foot studio apartments rent for around $750 a month, while slightly larger one-bedroom units go for $1,100 a month. Travel nurses and medium-length renters, though, will pay closer to $1,500 a month, McMahan said. <h2>Their warning to other investors</h2>While the building is cash-flowing and the two are focused full-time on growing their portfolio, McMahan thinks it's important to warn others that real-estate investing is anything but "passive income." (The <a href="https://www.nytimes.com/2023/01/27/business/passive-income-job-retirement.html" target="_blank" rel="noopener">popular phrase</a> is often used by <a href="https://www.businessinsider.com/passive-income-tiktok-youtube-rise-of-side-hustle-hucksters-2022-10">"side-hustle hucksters"</a> and others to describe business ventures that make money but are also not a lot of work.)The two regularly take phone calls and work out of their cars outside of the building."The reality is whether it's rental, or <a href="https://www.businessinsider.com/real-estate-investing-brrrr-method-scale-rental-properties-housing-market-2023-3">BRRRR method</a>, or whether it's flipping houses, it's just irresponsible in my mind to tell people that it's easy or that it's passive," she said.

Real-estate investors who nearly went bust on their first and only flip are now landlords of a 16-apartment building. They say real estate is anything but 'easy' or 'passive.'

<ul class="summary-list"><li>Brace for the intense pressure on commercial real estate to spread to house prices, Elon Musk says.</li><li>"Commercial real estate is melting down fast. Home values next," the tech billionaire tweeted.</li></ul>Elon Musk is once again ringing the alarm on the US real-estate sector. "Commercial real estate is melting down fast. Home values next," the Tesla and SpaceX chief <a href="https://twitter.com/elonmusk/status/1663238551406772245" target="_blank" rel="noopener">tweeted</a> on Monday. The tech billionaire made the comment in response to a tweet by the Craft Ventures founder David Sacks, who said that a big chunk of commercial real-estate debt was due to mature soon. Musk has previously warned that cracks could appear in property markets following turmoil in the banking sector. For example, the clean-energy pioneer said commercial real estate was <a href="https://markets.businessinsider.com/news/stocks/commercial-real-estate-market-musk-ackman-chanos-lending-interest-rates-2023-3" target="_blank" rel="noopener">"by far the most serious looming issue,"</a> and cautioned regional banks could experience a wave of defaults because of their huge exposure to the sector. The debt-fueled industry has kept investors on edge in recent months, given that it faces a raft of headwinds. These include higher interest rates, tighter credit conditions, and work-from-home trends. JPMorgan estimated that about <a href="https://markets.businessinsider.com/news/stocks/credit-crunch-us-bank-crisis-stock-corporate-earnings-recession-svb-2023-4?utm_medium=ingest&amp;utm_source=markets" rel="">$450 billion in commercial real-estate</a> debt set to expire this year could default. Meanwhile, Morgan Stanley Wealth Management said commercial-property prices could <a href="https://markets.businessinsider.com/news/stocks/commercial-real-estate-prices-outlook-crash-financial-crisis-morgan-stanley-2023-4" target="_blank" rel="noopener">tumble 40% from their peak</a> in light of the sector's troubles. The US housing market is also dealing with similar problems, which likely explains Musk's view that prices were set to topple. Morgan Stanley reported that <a href="https://markets.businessinsider.com/news/commodities/us-housing-market-sales-bottom-inventory-mortgage-rates-morgan-stanley-2023-5">home sales have bottomed</a> as higher borrowing costs crippled demand with experts warning of a <a href="https://www.businessinsider.com/housing-market-crash-home-price-declines-recession-credit-crunch-lachman-2023-5">potential 15% to 20% plunge</a> in prices.In response to historic inflation, the Federal Reserve has hiked rates from virtually zero to upwards of 5% since last spring. While the pace of price increases has slowed, the painful combination of higher borrowing costs and steeper prices threatens to weigh on demand and economic growth.Moreover, lenders are pulling back in preparation for further bank runs after a wave of deposit withdrawals toppled Silicon Valley Bank and Signature Bank in March. Those forces are putting downward pressure on asset prices, fanning fears that the prices of houses and commercial spaces could suffer.

You Searched For "real estate ventures" and got 11 results

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I have 6 short-term rental properties. People think real estate is passive income, but I disagree.

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He worked 2 nursing jobs to help fund his real estate side hustle. Now, at 29, it's his main focus.

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The Titanic is overrated, deep-sea explorers say. The wealthy keep venturing to it anyway.

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See 32 pitch decks that some of the hottest proptech startups used to raise millions from top VCs like SoftBank and a16z

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Real-estate investors who nearly went bust on their first and only flip are now landlords of a 16-apartment building. They say real estate is anything but 'easy' or 'passive.'

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Elon Musk warns house prices are set to plunge - and says commercial real estate is in meltdown

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