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Being a celebrity has perks, but it’s not all fun and games. The rich and famous must take time out to make sure their financial lives are in order. Without a plan in place, they could put their wealth in jeopardy.
Ari Rastegar, a real estate development expert, spoke with Showbiz Cheat Sheet. He told us how he helps the stars stay on top of their real estate investments and protect their wealth. Here’s a peek inside our chat.
Celebrities have a unique advantage when it comes to real estate investing
Most celebrities have an advantage when seeking real estate investment opportunities. Since they have greater access to real estate opportunities, they can build a significant amount of wealth. They can also build their brand through commercial real estate deals.
“Celebrities, just by nature of their brand power, have access to other types of investments that sometimes the average person does not have access to,” Rastegar, founder of Rastegar Property Company, tells Showbiz Cheat Sheet. “So, done right, that can really create incredible opportunities not only for the celebrity to invest directly in those deals to make money, but in some instances, be a brand authority and a brand spokesperson around those deals to help further drive traffic and further drive demand.”
Ari Rastegar encourages celebrities to surround themselves with a team of financial experts
Rastegar says it’s not uncommon for celebrities to make big mistakes when managing their finances. He emphasizes the importance of having an expert financial team.
“A lot of times, people are targeting celebrities or throwing deals their way, and they’re looking to utilize the celebrity’s brand power to make the deal work versus the deal working on its own merits, so celebrities need to be very leery of the opportunities that are brought their way and consult expert advice from licensed financial advisers and other experts in the field,” says Rastegar.
He continues, “Every celebrity needs to have a licensed registered investment adviser or financial planner and wealth managers, and certified public accountants, and have a team of very sophisticated financial experts who will oversee their wealth and plan that. And the celebrities need to delegate that duty to subject matter experts to make sure they don’t go broke.”
Rastegar also says it’s important for those who find themselves suddenly famous to educate themselves about personal finance. This way, they can decrease their chances of being taken advantage of.
“A lot of celebrities have their expertise in their niche—they’re movie stars, they’re musicians, and things of that nature. So, they might not have the subject matter expertise around real estate,” says Rastegar. “It’s important to educate them on what it is and make it easier to understand some difficult subject matter concepts and working directly with their financial advisers, agents, or other representatives to help educate them on it and overcoming it by overeducating.”
How can the average person become a successful real estate investor?
If you’re looking to get into real estate investing, Rastegar advises starting slow and learning as much as possible. With time, you’ll acquire the knowledge you need to build a nice nest egg.
“The average person first needs to educate themselves around real estate,” says Rastegar. “And one of the easiest ways is to start by investing in publicly traded REITs [real estate investment trusts] or publicly traded real estate investment vehicles.”
Rastegar continues, “They can also read the financials, learn about them, and educate themselves, whether that’s through great courses, seminars, or books, and surround themselves with subject matter experts and really take it slow before they start doing anything else. I suggest finding strategic partnerships, using the public markets first and foremost, so that they have liquidity and better transparency in what the deals are.”
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