Hip-Hop Stars Feeling The Effects Of Slumping Real Estate Market Too

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Site Last Updated: 1:27 AM EDT, December 4, 2008	Make BallerStatus Your Homepage

Published: Tuesday - August 19, 2008
Words by Allen Starbury

Scott Storch (left) and Suge Knight (right) (Photo: Getty Images)

The U.S. real estate slump has not slowed up, and while the general public has suffered most from the decline in property value -- forcing them to sell at a lower price tag then what they purchased their homes for -- they're not the only ones affected. Hip-hop stars are in the same boat.

Forbes.com recently highlighted the rappers who have real estate on the market. While some are just looking for new scenery, others are in a crunch like everyone else. Among them include former hip-hop powerhouses like Scott Storch and Suge Knight.

Storch, once considered one of the most sought after producers in the music biz, is going through hard times right now. He hasn't had a top 10 hit in nearly three years, and as he faces financial troubles, his home made be in jeopardy.

According to Forbes, the producer has liens on his $10.5 million Miami home for unpaid electric and security bills, as well as two years' worth of unpaid property taxes totaling a half-million dollars. Thanks to his lavish lifestyle, his home may go into foreclosure.

Suge Knight on the hand had his house placed on the market after filing bankruptcy in 2006 when he lost control of his Death Row Records label and was ordered to pay a $107 million in a civil suit filed by a woman claiming she helped launch the label in the first place.

In 2007, his $6.2 million Malibu mansion went on the market. The estate boasts 8,000 square feet of space, seven bedrooms, nine-and-a-half bathrooms, and ocean views. At press time, however, it is unclear if the property was sold.

Knight and Storch may be in a bind, but others like 50 Cent just don't need all the space their estates provide them.

Fiddy's 17-acre estate, which was once owned by Mike Tyson, is on the market for $18.5 million. His asking price is well above the purchase price of $4.1 million he bought it for in 2003.

Russell Simmons Saddle River, NJ mansion, which took a whole episode of MTV Cribs to show, is on sale for $20 million. The house is being sold due to his divorce from Kimora Lee Simmons.

While many are selling their homes, others are building. Forbes reports that Jay-Z and Beyonce are building a multi-million mansion in the wealthy New York City suburb of Scarsdale.

For a full look at hip-hop homes for sale, see the rest at Forbes.com.

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COMMENTS (6)

Dozer Says:
Wednesday - August 20, 2008 at 6:25pm

Rappers are faced with a conundrum; On BET they dance around with bling, throwing money at the screen, fancy cars, etc. But the first time he mentions to one of his groupies that he can't take her to St. Tropez because he's trying to save up some chedda for a rainy day, she will tell everybody and their momma that he is a broke-ass tight wad. Thus, that is the reason why most of these rappers spend like their is no tomorrow: they are trying to keep up with appearances. But in time all is revealed, and the "golden mask" is stripped away. Ask M.C. Hammer, Scott Storch, etc.

Ky57 Says:
Wednesday - August 20, 2008 at 1:07pm

It just goes to show you that without being properly educated on finances or any thing other important life time subject, it does not matter how much money you make. Rappers tend to think only about spending. Even the ones who invest tend to do so in related such as fashion or music, that they no business education in. Instead of using some of that money to get a top grade education the only things thay use it for are bling bling and pretty young things. How uneducated is that... Back to the hood you go :-)

Dame Dummy Says:
Wednesday - August 20, 2008 at 2:54am

Roc-A-Fella Records company co-founder Damon Dash and his wife are in jeopardy of losing two of their Manhattan apartments after apparently failing to pay their hefty mortgages. The bank holding the mortgages says in a court filing Dash and Rachel Roy owe $7.3 million on the properties and it has begun foreclosure proceedings. Eastern Savings Bank says Dash and Roy were supposed to make monthly payments of $78,500. Efforts to contact Dash's lawyer and publicist by phone and e-mail have been unsuccessful. Dash is the estranged business partner of rapper Jay-Z.

Booya Says:
Tuesday - August 19, 2008 at 6:01pm

Everyone need to set money aside period. You neva know what could happen especially being in the music industry. Money is not flowing well these days and people need to learn how to invest, put money aside and live within' their means. When these broke niggas get out the hood and get paid, all they do is spend, spend, spend because most of them are not use to having that much money. Get wit Diddy, Master P or Jay. These brothas know how to manage money!!!

Philly-O Says:
Tuesday - August 19, 2008 at 5:20pm

If these cats had been smart with their money, instead of forcing themselves to live up to a lifestyle that they portrayed, they wouldn't be in this mess. Pay ya damn bills first, THEN go make it rain in the club.

LAB Says:
Tuesday - August 19, 2008 at 1:20pm

If they earned so much $$, why didn't they just pay for what they bought? Paid off houses make paying the taxes, utility bills and insurance more tolerable. Whoever didn't get enough arithmetic in school is supposed to have all those great advisors. Great advisors???????