Billionaire futurist Elon Musk has taken out $61 million in mortgages on five California mansions.
Morgan Stanley provided the debt on the properties, which amount to $180,000 in monthly payments for Musk, according to Bloomberg.
All of the loans represent new debt except one. That one is a refinance on the first Bel Air home Musk bought in 2012, a 1.7-acre estate above the Bel Air Country Club. Musk acquired another home next door in 2013, but turned it into a private school for his children and their friends.
Such large mortgages are rare in the world of private home lending, but Musk isn’t alone among wealthy homeowners who prefer debt to cash. His neighbors in Bel Air, power couple Jay-Z and Beyoncé, took out a $52.8 million loan on a sprawling 30,000-square-foot spec mansion in the area in 2017.
In 2015, Musk added two more Bel Air properties to his portfolio. Two years later he dropped $24.3 million for an unfinished spec home in the exclusive neighborhood. But that wasn’t enough. A few weeks ago, he bought another home for $6.4 million.
In total, there were 230 mortgages of $10 million to $20 million last year. Around three quarters of those were taken out in the last five years, Bloomberg reported. [Bloomberg] — Dennis Lynch