Joshua Kennon

Holy crap!  Talk about return on investment!  It is nice to see not everyone in Hollywood is stupid.

I’m catching up on some real estate blogs that I read every few months and apparently, a few months ago, the Los Angeles Times featured a mansion that “The Hurt Locker” actors Jeremy Renner, 39, and his boyfriend Kristoffer Winters, 31, bought together for $1,550,000 in 2008 and sold for $4,004,952 in 2010.  That is a $2,454,952 gross profit in under 24 months.

Now, I don’t know how much money they invested in the property, so the actual results could be a lot lower when factoring in capital expenditures but it’s hard to imagine it being less than satisfactory given that almost all real estate deals involve debt leverage.  With a traditional 20% down payment, they would have only put $300,000 to $400,000 into the real estate at closing plus whatever improvements they made. This is even more impressive when you realize that the two guys leased the house for one year at $25,000 per month, so the property is producing gross cash flows of $300,000 annually.

Not to mention, I love the architectural style.  I’d buy it.  Still haven’t seen that movie, but I have heard that it is good …. of course, all I’m going to be thinking when I watch it now is, “dudes made $2,454,952 gross from holding on to something for less than 24 months.”  I know myself.

Sometimes something is so spectacular you just have to share it.  This is one of those times. You must look at this mansion in Southern California that has hit the market.  The price tag is in the eight-figures but sweet Jesus I want it.  The maintenance and taxes costs alone probably approach the mid-six figures annually.

When I get older and actually build (or acquire) the house that will serve as the family estate (you know, where children and grandchildren come back for Christmas), I will have a home like this. I saw this on a real estate listing that was sent to me and … wow. It just absolutely took my breath away for a moment.  Unlike most people, though, I will not do it until dividends and interest can pay for the house without touching my principal.  Unless it was a rounding error on my balance sheet, I simply wouldn’t be able to enjoy it.

Normally, spending money doesn’t give me the same thrill as investing it, but buying this would be an exception.  In 20 years, if I had commissioned this house myself, I would have sent the architect a box of chocolates and a few thousand shares of my holding company as a “thank you” bonus.  It is that amazing.  Someday, God willing, I’ll be able to do it and still enjoy building a publicly traded holding company … this is the type of thing I’ve seen since I was a child.  I will wander the halls, wearing a cashmere sweater and blue jeans, reading annual reports and investing my shareholders’ money.  I just have to keep on keeping on until I get there, closer and closer each day.  I’m only 27 years old.  I’ve built more than most people have in a lifetime.  I just have to keep going …

You can see the rest of the pictures after the jump … (more…)