Chamillionaire Foreclosure, A Business Decision or Sign of More Financial Trouble

Posted by The Marksman at 21 June, at 06 : 18 AM Print

We all know that tough times have befallen many people in the United States in the past few years, but when you hear Texas rapper, Chamillionaire recently saw his Dallas mansion lost to foreclosure it sticks out.  The most interesting part of this is, it’s a move he is calling “a calculated business decision.”

He bought the 7,583 sq. foot home in 2006 for $2 million. The property was recently repossessed by the bank after Chamillionaire failed to make several payments. The rapper said that he “decided to let that house go because the real estate market had turned, leaving the house as a bad investment.”

“I was always on the road touring. I just didn’t feel like it was a good business investment to pay that much mortgage for a house I was never at. I still got all the cars.” – Chamillionaire

Now if he still has all the cars which probably number over 10, why would you keep them if you are always on the road touring as he says?  It’s not like he takes those cars on tour with him, so while he is gone they are just sitting around somewhere needing upkeep.  Those are an equally bad investment if he is truly purging things that are not going to help him on his portfolio.

Would it not have been a better idea to sell the house at a loss, that way he still has some semblance of credit to speak of?  One negative trend in society today is that cars have become a symbol of wealth and success, they always have been in a way, but credit has allowed average people to get expensive cards without really having the funds to do so.

I suspect Chamillionaire’s “business decision” has more to do with his fading rap career than anything else; he has not released anything that has jumped up the charts recently.  No one even talks about him anymore, so he has almost had his 15 minutes of fame in the industry at this point.

It makes you wonder, are all the cars paid for?  Whomever his financial manger is (if he has one) probably gave him a good bit of advice there, especially if he still has a significant portion of the money he has made during his rap career.  He would not have any need for credit, he should be able to pay cash for most things.  On top of this if he is touring as much as he claims then he needs to just rent a place, and rent some cars when he is in town it will save him a ton of money in the long run.  If you were in his situation and not knowing what his financial situation is, would you have made the same move?

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