Diddy has borrowed $140 million from various banks to pay for his extravagant real estate empire, raising questions about whether he really has a billion-dollar fortune.
It could be the largest mortgage loan ever obtained by a Hollywood star, as the 54-year-old has needed several mortgages to finance the purchase of three luxury mansions in Los Angeles and Miami.
The three were raided Monday by the Department of Homeland Security, after filing complaints of sexual harassment and rape, and agents ransacked the homes and took boxes and bags of evidence.
The rapper, producer and businessman still owes almost $100 million, which he must repay in the coming years and a $23 million loan must be paid off by 2029.
Diddy, 54, took out several mortgages to finance the purchase of three luxury mansions in Los Angeles and Miami. The rap star borrowed nearly $140 million from several banks to pay for the homes, which were raided Monday, and more than $100 million is still owed.
He bought his Los Angeles home for $39 million in August 2014. It’s in the celebrity enclave of Holmby Hills and has eight bedrooms, 11 bathrooms and an underwater swimming tunnel.
Diddy purchased luxury properties next to each other on affluent Star Island in Miami Beach. He took out several mortgages for each of them.
In 2022, Forbes estimated that Diddy, who has seven children with four different women, was worth $1 billion.
He bought his Los Angeles home for $39 million in August 2014, located in the celebrity enclave of Holmby Hills. It has eight bedrooms, 11 bathrooms and an underwater swimming tunnel that connects to a grotto.
Diddy took out two mortgages in 2003 when he bought the Miami property owned by Tommy Mattola, music mogul and Mariah Carey’s ex-husband, for $14.5 million.
He has been saddled with two Bank of America mortgages, both for $25.35 million, in 2014 and May 2021 and neither appears to have been paid off. The first must be fully reimbursed in August 2029 and the second in May 2036.
Diddy, whose real name is Sean Combs, also purchased luxury properties next to each other on Miami Beach’s uber-wealthy Star Island, which were also raided this week in the sex trafficking investigation.
Two mortgages were taken out when he bought a nine-bedroom, 12-bathroom beachfront apartment in November 2003 for $14.5 million from Sony Music head Tommy Mottola, who is credited with guiding the careers of Mariah Carey and Diddy’s ex Jennifer Lopez.
It appears that Combs was financially strapped at the time, as one of those loans (a $1.5 million balloon mortgage) is from the previous owner, Mottola, and had to be repaid within two months.
The second was for $7.25 million with CitiMortgage and should be settled in December 2033.
Things became more complicated two years later, in February 2005, when he initially borrowed another $22 million from HSBC Bank USA and the move was so risky on the bank’s part that Combs had to personally act as guarantor.
In February 2005, Diddy borrowed $22 million from HSBC Bank USA, and the move was so risky on the bank’s part that Combs had to personally act as guarantor.
He took out a second mortgage on his Miami home for $7.25 million with CitiMortgage and is expected to pay off in December 2033.
Diddy bought a mansion next to his current mansion in Miami and obtained a mortgage loan for $20.7 million in 2021.
In November 2007, he managed to reduce the mortgage to $12.95 million before paying off the entire lot 11 years later in July 2018.
However, while he was paying off some mortgage loans, like this one, he was fixing others to replace them.
In June 2018, he borrowed $18.85 million from another lender, Bank of America, which he repaid in September 2021.
Four months earlier, Combs borrowed another $18.85 million from the same bank. That loan must be paid off before May 2036.
Homeland Security agents are seen outside Diddy’s home in Los Angeles on Monday as part of an ongoing investigation into sex trafficking.
An HSI (Homeland Security Investigations) officer is seen at Diddy’s oceanfront mansion in Miami on Monday.
For one of his properties in Miami, he took out five mortgages totaling $68.45 million and has paid $42.35 million so far.
The mansion next door was purchased in July 2021 from Gloria and Emilio Estefan for $35 million and has ten bedrooms and six bathrooms.
It is much simpler than the mortgage agreements for the adjacent platform, as it only has a $20.7 million mortgage loan with Bank of America that is due to be repaid in August 2036.
That means that on Combs’ homes in Los Angeles and Miami he has taken out eight mortgages worth $139.85 million, of which $97.5 million is currently outstanding.
He likely owns other properties in his native New York and possibly elsewhere.
Combs bought this ‘abandoned mansion’ on the outskirts of Atlanta, in Sandy Springs, for which he paid $2.6 million in October 2003.
The photos show the interior of the house in ruins. Diddy hoped to renovate it, but she didn’t get the necessary financing.
The abandoned mansion has a swimming pool that has turned a murky green. It appears that Diddy sold the place in 2007 for a reduced price of $1.3 million.
Another clue in his property portfolio as to why Combs may not be as wealthy as assumed is the “abandoned mansion” outside Atlanta in Sandy Springs, for which he paid $2.6 million in October 2003.
Urban explorer Abandoned Southeast took images of the eight-bedroom Italian Baroque-style villa, known as Casa Nirelle, in 2022, showing the desolate interior and exterior, including a 60,000-gallon salt pool.
According to the real estate ads, it also has a sauna, home theater and a “secret room.”
The identity of the current owner is unclear, but Diddy was reported to have hoped to renovate it, although he was unable to secure the necessary financing.
Abandoned Southeast claimed it was due to the 2008 financial crisis, but it appears that Diddy sold the place in 2007 for a reduced price of $1.3 million.