Paris Hilton has sparked speculation about her finances after taking out a whopping $44million loan on her newly purchased Beverly Hills mansion more than a month after closing on the multi-million dollar deal.
But is the hotel heiress running out of cash, or just playing a smart financial game?
The former Simple Life star, 44, snapped up the lavish French chateau-style estate just a few months ago from Hollywood heavyweight Mark Wahlberg for $63million, a cool $5million under asking.
Tucked into the hills of Beverly Park and spread across six acres of prime land, Hilton bought the property with her entrepreneur husband, Carter Reum, also 44.
And for the sky-high price tag, the couple scored a jaw-dropping 30,500 square-foot mega-mansion that looks like it was lifted from the French countryside – if the French countryside had a five-hole golf course, a movie theater, 20 bathrooms and a resort-style pool grotto.
But then the couple, who married in 2021 and have two children, decided after they had already bought the house to take out a huge $43.75million mortgage with JPMorgan Chase at an interest rate of 5.25 per cent.
Paris Hilton, 44, has sparked fresh speculation over her finances after quietly taking out a whopping $44million loan on her Beverly Hills mega-mansion – more than a month after sealing the $63million deal
The lavish French chateau-style estate sits on six acres of prime Beverly Hills land and has a five-hole golf course, a movie theater, 20 bathrooms and a resort-style pool grotto
This works out at an astonishing $283,196 a month, which includes California property taxes.
Hilton took a hit to her financial future in 2019 when her grandfather, Barron Hilton, chose to donate 97 per cent of his $4.5billion fortune to his father Conrad’s charitable foundation.
The other 3 per cent went to close relatives, but the heiress’s immediate family was cut out of the deal.
But real estate experts tell the Daily Mail the loss likely had little impact on Paris and Carter’s decision to take out a multi-million dollar loan, with some calling the move a savvy financial strategy.
While some celebrities opt to finance their homes rather than pay cash upfront, it’s unusual to take out a mortgage more than a month after closing – as it’s typically arranged as part of the purchase.
Experts say this delay doesn’t point to financial strain. Instead, they say it’s a strategic move that highlights just how financially savvy Paris really is.
Hilton closed on the home a few months ago after purchasing it from Hollywood hotshot Mark Wahlberg for $5million under the asking price
Hilton and her husband Carter Reum took out a $43.75million loan with JPMorgan Chase at an interest rate of 5.25 per cent, months after closing – meaning they’ll be saddled with an astonishing $283,196 a month
Hilton missed out on a mega-wealthy future after her grandfather Barron (pictured) allocated 97 percent of his $4.5billion fortune to his father Conrad’s charitable foundation
Dr. Lee Davenport is a nationally respected real estate coach, and says: ‘It’s not uncommon for homeowners, whether high net-worth or not, to refinance their homes for liquidity or investment flexibility.
‘A short one-month delay tells me that it may have taken some time to negotiate terms or structure the loan for tax and estate planning.
‘But Paris and her husband likely intended all along to pull out the home value in order to leverage it for another venture.
‘From a distance, it seems Paris is a savvy businessperson, despite a few scandalous moments in the media that may still cloud her reputation.
‘And clearly, lenders agree, at least as far as her creditworthiness is concerned, in order for her to secure a $40million+ loan in as little as a month.
‘Thus, for me, the real question is what investment opportunity has captured her attention.’
Hilton posted photos on her Instagram showing her and her two children playing in the estate’s large lagoon pool that also features a waterslide
It’s been 22 years since Paris and her friend Nicole Richie were sent to live on a farm in Arkansas for the first series of The Simple Life. Now her finances are anything but simple
One real estate expert told the Daily Mail that her decision to take out the loan shows a clear knack for business – pointing out that the $43million can now be leveraged for new ventures
Doug Perry, Strategic Financing Advisor at HouseCashin, agrees that she may have missed out on a huge windfall from her grandad, but she’s still a canny investor.
He said: ‘Buying a home and getting financing after the fact, what is called delayed financing, is done for a variety of reasons. It does require a well-resourced buyer, especially when it is in the ultra-high-end price range.
‘Paris might have been cut out of her grandfather’s will, but she has still inherited his knack for business.
‘She has proven herself an effective businessperson by setting up multiple revenue streams. In the end, she has over 30 percent equity in the property, which is pretty good.’
Indeed, Paris and Carter did pick up a relative bargain from the actor, who had initially put the property on sale for $68million in March, and took a $4.9million reduction on it.
In 2009, Wahlberg splashed out $8.25million on a plot of land in the North Beverly Park area to build his dream home with a pool, library, theater and five-hole golf course, spread over 6.14 acres.
After years of being sneered at and dismissed as a party-girl socialite, characterized as ‘famous for being famous’, Paris has remained in the spotlight for decades and built a $300million empire.
She’s said in the past about her success: ‘I’ve proven myself as an intelligent businesswoman who’s created a huge brand.
‘Being a woman in the industry, there are always stereotypes. But I love it when I can walk into a board meeting and completely take over the room.
‘It feels amazing to have that respect. I feel like an amazing woman!’
