The billionaire investor took out $61 million in mortgages on ten different properties with $180,000 in monthly payments.
SpaceX and Tesla founder, Musk, whose fortune is estimated at $23.4 billion, secured household loans on five properties in California, four in the Bel Air neighbourhood in Los Angeles and one in Hillsborough, in the Bay Area. The Morgan Stanley loans, signed in the final days of 2018, represent about $50 million in new borrowing. One refinancing on a 20,200-plus square-foot property he bought in 2012 for $17 million turned a $10 million loan into a $19.5 million debt. Musk’s loans are for 30 years with a fixed 3.5 percent interest rate for the first few years that then adjusts based on an index.
READ MORE: Tesla to Cut Number of Full-Time Workers by 7% — Elon Musk
Musk has previously used his shares in Tesla to obtain personal loans. About 40 percent of his stake in the electric carmaker was pledged at the end of 2017. He doesn’t take a salary from Tesla, and he’s repeatedly gone to the market to buy the carmaker’s stock in a show of confidence in the company, which has never turned an annual profit.
The entrepreneur recently put one of his Los Angeles-area homes on the market for $4.5 million, while also tweeting how he had “very little time for recreation” to spend his wealth and saying that he didn’t have “vacation homes or yachts or anything like that.”
Musk joined other ultra-wealthy property owners who have had to take out monster mortgages, like Mark Zuckerberg, Beyonce and Jay-Z and Ken Griffin. The latter took out massive loans in 2016, securing about $114 million in total.