need to bring back debtor jails for these type of amounts. This is all possible because there is no jail time for any of this. It is a civil matter and not criminal. It used to be crime
@@Real.Estate.Report Most likely what is happening, why wait 6 years or more to get paid. Get paid upfront and then abandon the project. I'm sure more details will leak out soon.
I actually worked for this man in his personal residence on Nimes Road in Beverly Hills, CA. The La Belvadere home. I work as a handyman. Was probably one of the most incredible houses I had ever worked in.
100%. I think he goes that route after trying & failing to rip off foreigners by selling them sight unseen properties for 4 or 5+ times what he paid for them. He’s the king of buying $5M hillside lots & trying to get suckers to pay $25-30M+. Or he’ll buy some crappy $2-3M lot on the side of a steep mountain & build some a hideous house on stilts & charge premium luxury prices. If he was legitimate & really had the money he acts like he has he’d be buying the best properties & building the best houses. All the houses he builds seem to be bachelor pads that end up getting torn down after the original buyer manages to sell them. Pretty much every property I know of he’s been involved in has been such a bad ripoff it smells like something else is going on.
Or you should look for the 1 trillion disappeared from pentagon from tax payers while you’re at it 😂 people escaping taxes so that the government launders them is not laundering
What most people don't understand is that relationships go a long way. When you're Mohamed and have years of industry connections, you don't go through the typical evaluation process. It's sad but true.
These huge houses usually look ugly. On the inside. Poor taste in design. Furnishings. Rich people usually don’t have the greatest taste in design. Furnishings. They don’t. 😬😵💫
Shell companies laundering money through outlandish development projects, pulling large amounts from one to service the debt load of another. Hadid was gambling with dirty money and it bit him in the tuckus. As a subcontractor I would demand a surety bond to ensure payment, especially with him.
What I don't understand is why investors/banks loaning so much money on construction like this are fronting so much of the money up front? This is not normally the way it is done, even on a large project. It is done in stages and only to cover the cost of the stage the project is in and money for the next phase is only released when the previous is completed. The banks/investors have their own inspectors that check the work to make sure it is complete to the point expected and all up to code and signed off before approving the next release of funds. This means that the contractors only get paid for what they can finish and if they come up short, file for bankruptcy, or some other issue evolves to cause a change in the project, they are not walking off with all the money for the entire contract. It also keeps the developer from paying interest on money not needed yet. Even people who build their own homes do it this way and once the home gets its final inspection the bank converts the construction loan to a mortgage. Either he just got all the money and then squandered it, or he only got a small portion of it and either because of cost overruns or other factors, the cost of the next phase increased to the point that both the contractors and the banks did not want to do it for the agreed upon amount. This could result in the next stage funds not being released and the project being broke and sitting with no progress for so long.
Zack Vella is my neighbor- a summer house he owns in the Hamptons. He's not to be trifled with.. brilliant and really tough. I'm convinced he knew the risk of default was super high and he was playing some sort of chess match knowing he'd have the right to take the land in default or resell it in some way. Given how long Hadid has been defaulting on loans and how incredibly aggressive Vella is, there's no doubt that wasn't part of the calculation.
Very interesting... thanks for sharing that. I recall seeing Zach Vella on million dollar listing and thinking back then that he seemed like a very sharp businessman.
@ 3:16 he actually bought the the property on 6/18/2013 and tried to sell it for those two prices that you’re showing. He actually paid $2,500,025 per the LA Tax Portal.
He’s just filing bankruptcies on business ventures, he’s screwing the banks/investors, not personal bankruptcy. I’m sure he paid himself from that bank account until it was empty. He wont be getting any new loans but he probably had plenty stashed for himself.
They say that millionaires and billionaires will file bankruptcy multiple times in their life. It’s all a part of the business and how they get richer. That’s their way of not having to pay their creditors 🤷🏾♀️
Hi, I am on the replay. Tree Lane LLC is in bankruptcy it is not personal bankruptcy.The laws are different within an LLC. Not sure if any of these people will get any money.
I remember the name Tree Lane in connection with a bunch of real estate deals in the San Gabriel Valley involving Chinese buyers/investors. Ring a bell??
The level of greed that these people have is unbelievable. They could have a Scrooge McDuck room filled with gold coins to swim in and it still wouldn’t be enough for them, they will always want more.
14:15 since Hadid has some middle-Eastern background I'd assume this is a hookah room. You just sit there with your friends, have some tea and smoke hookah. Just having a good time.
That home was done illegally shoring up the cliff side, and was building without a license to do that. Haddid does not pay his bills and taxes. Money laundering?
I never got these spec homes. Almost seems like a black market for holding corrupt foreign money. The legit money is buying in the flats. I don't know what i'm saying but great video!
Too bad about the Cedar Brook project, I loved that one. Would like to see it finished and him stop filling for bankruptcy. Keep up with the great work my friend. I enjoy your videos! 😎
When you are playing in the high stakes game it comes with the territory. If you think he's broke, think again. RE is always at risk but the property remains when the wash is done, it converts to the next player and sometimes revolves back around to the original player. If want to talk dirt, just look at the financiers who will bankrupt you one day and lend money to you the next.
You were joking when you said he sank $10M into that theatre right? Because that's not anywhere close to $10M and while it would be impossible to pinpoint an exact number the highest I would say is $2.5M max
Yeah that was an exaggeration but that room is wild. You can spend a fortune just on the A/V equipment alone. Then add on all of that fancy carpentry and hand painted detail. Lot of money in that room for sure
That's what I'm thinking every time I read about a feature in one of those houses. I ask myself what that feature would cost as a stand-alone project on any other house not in a high-priced neighborhood. Many of these features don't cost nearly as much as the price tag of the house that they are used to justify it.
La Palais - "Palais" is pronounced "pah-lay". (French for "palace"). It is amazing that there are VC people out there dumb enough to lend Hadid money. I think that it is a combination of several things including: 1) he does, occasionally, complete a project 2) The "brand" boost of working with the well-known (although I would say "infamous") Hadid 3) the high-risk, high-rewards nature of VC funding 4) the nature of poorly managed VC firms, 5) VC firms know that Hadid can make money - the question is 'will he?' etc.
I think this is a shining object syndrome situation paired with greed. The questioning me is : if you’ve got a net worth beyond 50 billion (therefore around +/- 5 billion in cash), why would you choose to spend 250 Million on a modern development in Hollywood that depreciates immensely in tax unfriendly environment ? I could get 300 million in profits payments if you put the capital into a 1 year fixed interest situation at 6%.
The house called Le Palais is right across the street from Beverly Hills Hotel. It's a beautiful property, but the location is not the best for the house of that size. Having said that, I watched it being build and what can I say, I was a big fan of that house.
You're right about the property's location. I've been to the house on the same street (Suummitridge) right next to it. I can tell you that the house you originally pointed out is an older house and it didn't belong to the man of the hour. The unfinished construction project is a different story. You did some good investigative work.
What's interesting to me, if I'm understanding the whole process correctly, is how he creates LLCs to manage each project rather than doing so more directly. It's similar to how movies are created (an LLC is created, which courts investors and manages the whole process). The giant loans he keeps getting are not to him directly, but to the LLC (which, I suspect, is using shares in the LLC itself as collateral for the loan?). That LLC between him and the project likely shields him from a lot of liability and what allows him to keep getting away with this.
i can see his passion he has a talent i think he can make it he just has to keep trying i can see his passion is designing and building homes thats pretty neat
Apparently there's no limit on how many times you can file bankruptcy. You would think after the first two or three times lenders would stop giving him money...
Can you make videos about the business model of real estate, like who develops the condos and houses and who sells them and how each of them make profit . You seem to know a lot
You say he has been a real estate developer for over 40 years. With all these bankruptcies, I’d say he is a big fat failure. Seriously, how many bankruptcies should one individual be allowed to pursue? Too bad we don’t have debtor’s prison anymore.
Bankruptcy should not be for these crooks, it is for the common person who is trying to live and pay bills and finds himself in trouble ….taxpayers paying for his debt I THINK NOT
I think this house "la palace" was featured on real housewives of Beverly Hills, probably right before the couple who is selling it, original purchased it.
Seems like common sense that he probably used most of that $31 million loan to finance his lifestyle and probably had no intention to use it to build a house on that land. Would it be that surprising that to see that a guy with multiple bankruptcies used it for fraudulent means? Though i can't really feel bad for lenders at this point if they keep giving this guy loans after his track record of terrible business decisions.
My daughter and I were passing by that last house you showed that he used to live in and the new people that bought it were gutting the whole thing and re doing everything. They had the gates open and even the driveway outside we could see all the brick tore out and they were laying a different driveway. So I bet they tore out that wood because we saw the inside was all white!
Nobody actually OWNs anything. What people do is borrow 10 times what their gross income is. It's all good as long as the cash 💸 flow to make the monthly mortgage payment is there. When it's not, the bank 🏦 simply initiates foreclosure on a property that it never stopped owning anyway as long as there is a mortgage. What we all need to understand is that if you borrow and OWE money, you don't OWN the asset until you pay it off. 🤓
He owns the contracting companies, ensuring he earns money regardless of the project's outcome. He conceives large-scale projects and secures investment from equity investors who will profit when the homes sell. He pays himself for the work, but if a project fails, the equity investors bear the loss.
Another approach he allegedlytakes is to claim a project will cost $50 million to build. He starts an investment arm that raises $35 million for the project. He then mixes in around $10 million in cash from shady investors and keeps approximately $5 million as his own equity. When the homes sell, he provides a return on the $35 million, recoups the $10 million, and retains his equity along with any additional profits.
Follow the money. The people loaning the money know his history. Maybe he is sucking out money, kicking back to the decision makers, then leaving the lenders on the hook. Or maybe the lenders loan dirty money then when the deal fails the property is auctioned for less but clean money.
How can he keep getting access to his this kind of money? What kind of business credit, official or otherwise, could he possibly have at this point? Oh, btw it’s pronounced Luh Pal-ay
That shot at 14:16 isn’t it where Gigi had her birthday party on housewives of Beverly Hills? With that moment of her wanting cake but all she got was a tiny taste 😢😅
Problems with old time developers in dated “trophy areas” are many, least of which is the design. Why would anyone pay millions for a dated “opulent design” when they can easily do it for cash on their own on a brand new state of the art build? I knew and know of many property developers and ultimately I started to make money when I just did it on my own with limited equity partner(s) on cash terms. Or it becomes a “shell game” to launder money - tax avoidance or evasion if not done to compliance. REITs are the worst. And definitely steer away from dubious sources such that carries libels and multi BKs. Credit rating is really important. Your business entities are your alter ego.
How does he even get approved for loans by banks with such a bad track record? It seems the more money he loses he's just given more to bail himself out lol
Do these lenders not do background checks? If a RUclipsr can dig up this guy's sketchy history, why can't someone in the business of lending millions of dollars do it?
When normal people file for bankruptcy, they typically have no money left. When rich people file for bankruptcy, it’s to stay rich.
White, not rich 😊
So true!
need to bring back debtor jails for these type of amounts. This is all possible because there is no jail time for any of this. It is a civil matter and not criminal. It used to be crime
Personally I suspect money laundering. Even the people he borrows from aren't exactly legit
Get busy and mind ur own shit
He pays himself a salary most likely so he gets paid no matter what. Why finish the project? Sounds like he’s just running a grift at this stage.
That’s a good point… could be skimming off a million dollar salary then walking away
@@Real.Estate.Report Most likely what is happening, why wait 6 years or more to get paid. Get paid upfront and then abandon the project. I'm sure more details will leak out soon.
If he wears multiple hats, he can get paid from multiple sources for performing various responsibilities.
He pays himself from the llc or what
I actually worked for this man in his personal residence on Nimes Road in Beverly Hills, CA. The La Belvadere home. I work as a handyman. Was probably one of the most incredible houses I had ever worked in.
Wow that’s awesome, cool experience I’m sure
Did he pay you at least?
@@kazaabitboll2026yes he did. He’s a good man with very big dreams.
Yeah I heard he had some crazy homes
ELIZABETH TAYLOR AS A NEIGHBOUR !🤩
ive always said that L.A. developers and real estate agents are cartoon characters
😂
They've been called worse....
I'm a realtor and living the good life. The haters hate cause i'm ballin. 😎
😂😅🤣
Money laundering at its finest
100%. I think he goes that route after trying & failing to rip off foreigners by selling them sight unseen properties for 4 or 5+ times what he paid for them. He’s the king of buying $5M hillside lots & trying to get suckers to pay $25-30M+. Or he’ll buy some crappy $2-3M lot on the side of a steep mountain & build some a hideous house on stilts & charge premium luxury prices. If he was legitimate & really had the money he acts like he has he’d be buying the best properties & building the best houses. All the houses he builds seem to be bachelor pads that end up getting torn down after the original buyer manages to sell them. Pretty much every property I know of he’s been involved in has been such a bad ripoff it smells like something else is going on.
Probably funding Hamas 😅
@@swimbod21sure same as you find criminal Israel ! At least he might not use tax payers money so shut up
@@swimbod21i hope he does like you fund your criminal Israel ! Get busy
Exactly and why a Palestinian would want to set up in the area full of Jews, is my question
bros life is just a house of cards.
He's a money launder. Look who he sells his houses to
Or you should look for the 1 trillion disappeared from pentagon from tax payers while you’re at it 😂 people escaping taxes so that the government launders them is not laundering
Hoĺa.no.eniendo.nada.delo.que.dices.español.traducion.okey
Y.porque.te.ries.eso.es.bjrla.okey
Who does he sell to
@@harison7778 heads of state of different countries
You would think the lenders would do their homework and realize lending him money is a bad idea.
I know right
What most people don't understand is that relationships go a long way.
When you're Mohamed and have years of industry connections, you don't go through the typical evaluation process. It's sad but true.
His daughter will bail him out….
Skylark and the other co's. are his own companies going through the lawsuits and lending him money.
They’re just as greedy as him and it clouds their judgement.
These huge houses usually look ugly. On the inside. Poor taste in design. Furnishings. Rich people usually don’t have the greatest taste in design. Furnishings. They don’t. 😬😵💫
Shell companies laundering money through outlandish development projects, pulling large amounts from one to service the debt load of another. Hadid was gambling with dirty money and it bit him in the tuckus. As a subcontractor I would demand a surety bond to ensure payment, especially with him.
Sounds like a trump deal
@@butwhytharum exactly 💯
Yup and now his daughters are thrown into danger
Maxes out purchase price and doesn't realized the snapback comes
He shouldnt be at that caliber without understanding market pullbacks... And time loss value of money
that brick in the ceiling is fascinating. and i think it looked pretty great.
What I don't understand is why investors/banks loaning so much money on construction like this are fronting so much of the money up front? This is not normally the way it is done, even on a large project. It is done in stages and only to cover the cost of the stage the project is in and money for the next phase is only released when the previous is completed.
The banks/investors have their own inspectors that check the work to make sure it is complete to the point expected and all up to code and signed off before approving the next release of funds. This means that the contractors only get paid for what they can finish and if they come up short, file for bankruptcy, or some other issue evolves to cause a change in the project, they are not walking off with all the money for the entire contract. It also keeps the developer from paying interest on money not needed yet. Even people who build their own homes do it this way and once the home gets its final inspection the bank converts the construction loan to a mortgage.
Either he just got all the money and then squandered it, or he only got a small portion of it and either because of cost overruns or other factors, the cost of the next phase increased to the point that both the contractors and the banks did not want to do it for the agreed upon amount. This could result in the next stage funds not being released and the project being broke and sitting with no progress for so long.
Ever heard of money laundering? Questionable resources. ….i smell many dirty deals. Ery typical of money laundering….just like Kim Kardashians.
That's usually the way it works if a legit bank finances the work. But Skylark Capital is just as shady as Hadid himself, I think.
Zack Vella is my neighbor- a summer house he owns in the Hamptons. He's not to be trifled with.. brilliant and really tough. I'm convinced he knew the risk of default was super high and he was playing some sort of chess match knowing he'd have the right to take the land in default or resell it in some way. Given how long Hadid has been defaulting on loans and how incredibly aggressive Vella is, there's no doubt that wasn't part of the calculation.
Very interesting... thanks for sharing that. I recall seeing Zach Vella on million dollar listing and thinking back then that he seemed like a very sharp businessman.
you have my sympathies.
They both know what they’re doing.
@ 3:16 he actually bought the the property on 6/18/2013 and tried to sell it for those two prices that you’re showing. He actually paid $2,500,025 per the LA Tax Portal.
He’s just filing bankruptcies on business ventures, he’s screwing the banks/investors, not personal bankruptcy. I’m sure he paid himself from that bank account until it was empty. He wont be getting any new loans but he probably had plenty stashed for himself.
Correct he paid him self no matter what lol
the woodwork in le belvédère is amazing, you’ve gotta love the general decorum, but it’s great work
They say that millionaires and billionaires will file bankruptcy multiple times in their life. It’s all a part of the business and how they get richer. That’s their way of not having to pay their creditors 🤷🏾♀️
question- how do they file for bankruptcy w/ money in their bank accts?
Hi, I am on the replay. Tree Lane LLC is in bankruptcy it is not personal bankruptcy.The laws are different within an LLC. Not sure if any of these people will get any money.
That’s true
I remember the name Tree Lane in connection with a bunch of real estate deals in the San Gabriel Valley involving Chinese buyers/investors. Ring a bell??
The level of greed that these people have is unbelievable. They could have a Scrooge McDuck room filled with gold coins to swim in and it still wouldn’t be enough for them, they will always want more.
14:15 since Hadid has some middle-Eastern background I'd assume this is a hookah room. You just sit there with your friends, have some tea and smoke hookah. Just having a good time.
Has to be a rcst comment in here somewhere. Rce has NOTHING to do with this.
I enjoyed your dive into this story. Interesting when you examine the details. Could be a great Netflix biopic.
Why are they not funding him in stages of completion VS giving all the money up front ????????!
Right!
That home was done illegally shoring up the cliff side, and was building without a license to do that. Haddid does not pay his bills and taxes. Money laundering?
That movie theater was awesome!
Dude that movie room had me in love! It reminds me of the palace theater I grew up visiting
Classic bait and switch. He never intended to build that property. Just get the loans for it to cover other expenditures.
I never got these spec homes. Almost seems like a black market for holding corrupt foreign money. The legit money is buying in the flats. I don't know what i'm saying but great video!
Too bad about the Cedar Brook project, I loved that one. Would like to see it finished and him stop filling for bankruptcy. Keep up with the great work my friend. I enjoy your videos! 😎
Are there any successful development projects with a budget of more than 100 or 150 million in Bel Air or the surrounding area?
When you are playing in the high stakes game it comes with the territory. If you think he's broke, think again. RE is always at risk but the property remains when the wash is done, it converts to the next player and sometimes revolves back around to the original player. If want to talk dirt, just look at the financiers who will bankrupt you one day and lend money to you the next.
You were joking when you said he sank $10M into that theatre right? Because that's not anywhere close to $10M and while it would be impossible to pinpoint an exact number the highest I would say is $2.5M max
Yeah that was an exaggeration but that room is wild. You can spend a fortune just on the A/V equipment alone. Then add on all of that fancy carpentry and hand painted detail. Lot of money in that room for sure
That's what I'm thinking every time I read about a feature in one of those houses. I ask myself what that feature would cost as a stand-alone project on any other house not in a high-priced neighborhood.
Many of these features don't cost nearly as much as the price tag of the house that they are used to justify it.
"Le Palais" interior feels like a mall
La Palais - "Palais" is pronounced "pah-lay". (French for "palace"). It is amazing that there are VC people out there dumb enough to lend Hadid money. I think that it is a combination of several things including: 1) he does, occasionally, complete a project 2) The "brand" boost of working with the well-known (although I would say "infamous") Hadid 3) the high-risk, high-rewards nature of VC funding 4) the nature of poorly managed VC firms, 5) VC firms know that Hadid can make money - the question is 'will he?' etc.
They’re both on it. Money laundering scheme.
PSST.. just because they claim bankruptcy, it doesn’t mean they’re broke. It means they’re “protecting “ ( aka hiding) their assets..
i read somewhere that for that last 4-5 years he has been in egypt on the massive project of the smart city they are building
I think this is a shining object syndrome situation paired with greed.
The questioning me is :
if you’ve got a net worth beyond 50 billion (therefore around +/- 5 billion in cash),
why would you choose to spend 250 Million on a modern development in Hollywood that depreciates immensely in tax unfriendly environment ?
I could get 300 million in profits payments if you put the capital into a 1 year fixed interest situation at 6%.
If you had 5 billion, you could buy this property and nineteen more.
The house called Le Palais is right across the street from Beverly Hills Hotel. It's a beautiful property, but the location is not the best for the house of that size. Having said that, I watched it being build and what can I say, I was a big fan of that house.
I agree!
You're right about the property's location. I've been to the house on the same street (Suummitridge) right next to it. I can tell you that the house you originally pointed out is an older house and it didn't belong to the man of the hour. The unfinished construction project is a different story. You did some good investigative work.
I remember that Zack Vella guy from Million Dollar Listing NYC. Was always using Frederick. He did move to LA but I don’t know what agent he used.
@@ccf8093 Oh! You’re right he was on few a season. Stepping on Altman’s toes 😆
What's interesting to me, if I'm understanding the whole process correctly, is how he creates LLCs to manage each project rather than doing so more directly. It's similar to how movies are created (an LLC is created, which courts investors and manages the whole process). The giant loans he keeps getting are not to him directly, but to the LLC (which, I suspect, is using shares in the LLC itself as collateral for the loan?). That LLC between him and the project likely shields him from a lot of liability and what allows him to keep getting away with this.
Absolutely. No developer puts their own money at risk. At the end of the day, if the project fails, the LLC folds, and the damage is contained.
Zach Vella used to be on Million dolar listing NY. Also that Lola lady is much more interesting..
I remember him from the show too!
i can see his passion he has a talent i think he can make it he just has to keep trying i can see his passion is designing and building homes thats pretty neat
After 40 years of wasting money “he just has to keep trying”
This is a video detailing how he scams and completes nothing. The only thing he's doing is getting loans and scamming. This is failure.
SMELLS LIKE AN ORGANISE CRIME RICO IN THE MAKING😂😂
How this guy keeps getting these huge loans! All because his two daughters are models?! Crazy. Foolish.
And they aren’t even the best models at that. Naomi is still slaying
His money made his daughters models... full circle
How many times can one person file bankruptcy in their life?
Right! Seems to be part of his business plans.
@@todd737it’s like his “get out of jail free card”
Apparently there's no limit on how many times you can file bankruptcy. You would think after the first two or three times lenders would stop giving him money...
There's no limit but they can file every 10 years for personal bk but businesses he can file as many as he wants if has an LLC for each one etc
😂😂
I am surprised that there are fools dealing with this guy. Maybe these guys are laundering their illicit money.
Blame the companies doing business with him, don’t feel sorry for them, they just need to google his name and find out they never getting paid 🥴🙄🤦♀️🤡
Can you make videos about the business model of real estate, like who develops the condos and houses and who sells them and how each of them make profit .
You seem to know a lot
That house on Nimes Road has been completely gutted, it looks nothing like that anymore
"Curve painting" ... Just bought a curve frame and put the canvas in. It is not fancy...
He launders money!
How explain
@@Bambotbthe whole video explains 😂
You say he has been a real estate developer for over 40 years. With all these bankruptcies, I’d say he is a big fat failure. Seriously, how many bankruptcies should one individual be allowed to pursue? Too bad we don’t have debtor’s prison anymore.
What! 😮 Omg , You got the Tea . Didn't know this is happening 😮
Bankruptcy should not be for these crooks, it is for the common person who is trying to live and pay bills and finds himself in trouble ….taxpayers paying for his debt I THINK NOT
I respect how he swings for the fences
Very nice video, be great!
I think this house "la palace" was featured on real housewives of Beverly Hills, probably right before the couple who is selling it, original purchased it.
this happens when you don't know when to stop.... go big or go broke ..... doesn't always pay off...
Sooooo he made money, spent money, and lost
That about sums it up lol
What has Nile Niami been up to lately?
Good question
Seems like common sense that he probably used most of that $31 million loan to finance his lifestyle and probably had no intention to use it to build a house on that land. Would it be that surprising that to see that a guy with multiple bankruptcies used it for fraudulent means? Though i can't really feel bad for lenders at this point if they keep giving this guy loans after his track record of terrible business decisions.
The room you said you had no clue, that was a hookah lounge.
Nice that makes sense
My daughter and I were passing by that last house you showed that he used to live in and the new people that bought it were gutting the whole thing and re doing everything. They had the gates open and even the driveway outside we could see all the brick tore out and they were laying a different driveway. So I bet they tore out that wood because we saw the inside was all white!
Nobody actually OWNs anything. What people do is borrow 10 times what their gross income is.
It's all good as long as the cash 💸 flow to make the monthly mortgage payment is there. When it's not, the bank 🏦 simply initiates foreclosure on a property that it never stopped owning anyway as long as there is a mortgage.
What we all need to understand is that if you borrow and OWE money, you don't OWN the asset until you pay it off. 🤓
I would Zach Vella would be smarter than this and not loan Hadid a dime. Banks and contractors should be running from this guy.
The only difference between these houses that Hadid walks away from and the Oceanwide Plaza in DTLA is the amount of graffiti on the walls.
Impressive but the massive maintenance....got to oversee the army of people to keep everything chill.
damn i remeber zach vella for MDL NYC
This guys is awesome where can I meet him! He just gets back up and keep going where most men will stop!
He owns the contracting companies, ensuring he earns money regardless of the project's outcome. He conceives large-scale projects and secures investment from equity investors who will profit when the homes sell. He pays himself for the work, but if a project fails, the equity investors bear the loss.
Another approach he allegedlytakes is to claim a project will cost $50 million to build. He starts an investment arm that raises $35 million for the project. He then mixes in around $10 million in cash from shady investors and keeps approximately $5 million as his own equity. When the homes sell, he provides a return on the $35 million, recoups the $10 million, and retains his equity along with any additional profits.
The $250m project would have never gone through in the first place
I don’t recommend building on those types of cliffs
Follow the money. The people loaning the money know his history. Maybe he is sucking out money, kicking back to the decision makers, then leaving the lenders on the hook. Or maybe the lenders loan dirty money then when the deal fails the property is auctioned for less but clean money.
some Saudi Prince will buy him out in exchange for his daughter 🎉😅🎉😅
So true
How can he keep getting access to his this kind of money? What kind of business credit, official or otherwise, could he possibly have at this point? Oh, btw it’s pronounced Luh Pal-ay
It is a laundering scheme with his connections in the Middle East. That’s the only way.
That shot at 14:16 isn’t it where Gigi had her birthday party on housewives of Beverly Hills? With that moment of her wanting cake but all she got was a tiny taste 😢😅
Why should he give up....When he's got the American Taxpayers bailing out his Ass every few years.....
La Palais looks like a hotel inside. "Brick ceiling". You mean the copula?
Why would anyone lend this guy a dime? I just don't understand how he keeps getting opportunities to burn millions of other people's money...
How does he continue to get funding?
Fraud.
Same way the beyond corrupt Trump kept on business loans, I guess
In summary, he's a money launderer.
Who keeps giving this guy money? 😂
Well the lenders are fools.
He gets the loans as he’s a foreigner and they dare not lend to him!
on J and E its selling for 68 million
How many times does this guy for bankruptcy hahaha
I lost track 😂
He does not seem to be some one who stresses
His recent twitter rants say otherwise,,
Cool channel.
Why do these Schmucks keep lending him money? why would anyone want to work for him or have anything to do with his projects??
How can you make so much money and go bankrupt . What about wealth protection when you have made so much money before in your life
Go get a bottle of kin euphorics and chill 70s is the new 50s🤩🥂
He’s obviously doing it on purpose and most definitely money laundering.
Problems with old time developers in dated “trophy areas” are many, least of which is the design. Why would anyone pay millions for a dated “opulent design” when they can easily do it for cash on their own on a brand new state of the art build?
I knew and know of many property developers and ultimately I started to make money when I just did it on my own with limited equity partner(s) on cash terms. Or it becomes a “shell game” to launder money - tax avoidance or evasion if not done to compliance. REITs are the worst. And definitely steer away from dubious sources such that carries libels and multi BKs. Credit rating is really important. Your business entities are your alter ego.
How does he even get approved for loans by banks with such a bad track record? It seems the more money he loses he's just given more to bail himself out lol
11:41 it's pronounced "loo pah-LAY" , French for "The Palace".
he need to contact the recent MegaMillions winner
Haha
Do these lenders not do background checks? If a RUclipsr can dig up this guy's sketchy history, why can't someone in the business of lending millions of dollars do it?
I’m wondering the same thing
The projects are too big and outrageous . He could use a better wig .
I wouldn’t be surprised if this guy had a price on his head.