It turns out that no one wants to buy a $500
million home atop a hill in Los Angeles.
Maybe because that home was on the market for $0.5 billion,
like who has money for that?
And now the developer, that genius developer who decided to build this and
put it out there on the market,
is defaulting on the loan that he needed in order to construct this monstrosity.
Now, look, I like homes.
I like nice homes, everyone likes nice homes.
This home Is laughable.
Okay, so it's the largest modern home in America.
And it could be auctioned off in January, starting at $250 million.
It's owner told a U.S Bankruptcy Court official.
So this is a situation where, because of the fact the developer had defaulted on
the loan, he has to go through bankruptcy.
Okay, and so
let me just make a serious point about this before we start dunking on this guy.
Which will be a lot of fun.
Remember students in this country who are drowning in student loan debt
are not able to discharge their loans if they filed for bankruptcy.
Those loans will follow them for the rest of their lives.
Their wages will be garnished.
If a grandparent has co signed on their student loans,
the social security that their grandparents receive could be cornished.
I mean, it is disastrous, but there's all these avenues in which
the failures of these multi billionaires, get forgiven.
And so I'll give you some more details.
The developer Nile Niami's Crestlloyd plans to hire two
luxury home sellers to list the Bel-Air mega mansion known as it gets better.
The one for the price and help find bidders for the auction.
Now, before we go on, I think it's important for
you guys to get a visual of what this monstrosity looks like.
So let's go to the video.
>> Nile would attempt to build the world's most expensive house ever.
In total, the Bel-Air Mega Mansion is over 100,000 square feet.
And looks as if it's floating above the city.
On top of the eye catching outer design.
The one has 42 bathrooms.
21 bedrooms.
A 10,000 bottle wine cellar.
A 50 car garage.
A 50 seat movie theater.
A four lane bowling alley.
A VIP nightclub.
An outside running track.
And five swimming pools.
And this isn't even scratching the surface.
The house has a cigar lounge, multiple art galleries,
a 4000 square foot guest house, tennis courts, a sprawling master bedroom.
And even an anatomically correct giraffe skeleton.
When it comes to the one, it's safe to say it's unlike anything ever built before.
>> I mean an anatomically correct giraffe skeleton.
>> Tax the rich.
>> But even the rich aren't stupid enough to buy that house,
that's the mistake that this developer made.
>> Yeah, I'm gonna get to that in a second.
Several art galleries inside the house.
Why do you need 42 bathrooms?
>> Especially when you only have 21 bedrooms?
>> Yeah, why do you need to bathroom for every bedroom?
Who could possibly use 42 bathrooms?
Okay?
>> Or five pools?
>> Five pools.
>> How about one pool?
How bout two pools?
Let's go crazy.
How about two pools?
Five pools for what?
>> [LAUGH] >> Guys,
the rich literally don't know what to do with their money.
I thought it was gonna be a dinosaur.
Is the giraffes killed it?
So random.
I have you seen the downstairs art gallery?
Are dirty, callous, having different than third pole.
And then perhaps you can use about the seventh different bathroom on this trip.
For what?
Okay, anyway.
So, guys, the reason why it's not selling a supply and
demand at a $500 million price tag there isn't that much demand.
Because, yes,
there are a number of wealthy folks who could afford that kind of home.
But they're not in the thousands.
There are a handful of people who could afford a house that large.
So if they already are satisfied with their $100 million home,
they might not need $250 or $500 million home.
So you're selling to a very small group.
So if you screw it up at all and one of them doesn't buy it, well,
then you're out a couple 100 million bucks.
>> Dude, I love this story so much.
So the developer is one thing, right?
Because remember, like, of course, there are people who are gonna want loans for
all sorts of bad ideas.
That exists.
And the question is, are there lenders stupid enough to believe in this project?
And loan hundreds of millions of dollars to develop this property?
And so we now go to Hanky.
Okay, Hanky is the lender here.
And, yes, hanky is the name of the lender.
The fate of the mansion, with its help top view of the Los Angeles Basin.
And the Pacific Ocean, has been up in the air since Miami's Crestlloyd
defaulted last year on $106 million owed to Hanky.
A hard money lender and
real estate developer who made his fortune in subprime auto lending.
Bad guys all around.
>> [CROSSTALK] >> Yeah, and so
what is the developer now hoping for through this bankruptcy process?
We're still going back and forth strategically speaking, but
we anticipate that the listing price will be approximately $250 million.
Crestlloyd manager Lawrence Perkins told the court.
Our goal is to run a thoughtful sale process to maximize the value from
a small group of people in the world that can buy a property like this.
And by the way there is a lot of money laundering happening right now with
foreign investors.
And typically, they launder their money through US real estate.
I don't know if they might consider this a good deal.
But the monstrosity is still, by the way, under construction.
It's not finished.
And so that was another question that came up through the bankruptcy.
Which is, Well, are you guys gonna finish constructing this thing?
And so it may take $10 million and as long as 12 months to repair and
finish the 105,000 square-foot home.
Crestlloyd had no plans to employ anyone indicating it would be sold as is.
Outside of court, Perkins said, real estate experts who were consulted said any
buyer would want to personalize the property.
And therefore it made little sense to spend millions completing it.
>> Yeah, because no rich person he's gonna wanna walk into that.
That this is not nearly sufficient.
I need to personalize.
There's not nearly enough bathrooms in here.
And I love that one of the things involved in this is named Hanky.
I don't know if their partner's name is Panky.
>> [LAUGH] >> But it is quite fitting for the story.
Look, last thing is, everybody that lives in L A looks at that and goes,
just give it one good rain store, okay?
It's gonna slide right down that hill, and
then we're all gonna have a belly laugh of our lives.
>> I don't know about that.
If that thing slides down the hill,
there's a lot of people living down the hill.
>> [CROSSTALK] >> I hear you.
A little shot in for you, though.
But maybe that's what they meant by trickle down economics.
Okay, so these guys have the audacity to say, you can't raise taxes on the wealthy?
Well, they're spending it all in the economy eventually will trickle
down on you guys.
Does it look like that, or does it look like they're buying giraffe skeletons?
>> No, these are real job creators, which is important because we have about 60,000
homeless people on the streets of Los Angeles alone.
So, great.