As we reported last week, StartEngine has listed an interesting offer for investors (since updated to a Title II offer from a Reg A+ . The equity crowdfunding platform has an offer to invest in the former mansion of William Randolph Hearst – the individual that pretty much created the definition of a media baron. The property has also been feartured in several films including an iconic scene in the Godfather. The investment opportunity on StartEngine is described as follows:
“…invest through BHP20, LLC in a secured financing on a fixed return basis with an annual base interest rate return of five percent and an additional potential incentive return which could equate to 10% to 20% of your investment per Unit, and obtain non-economic enjoyment and fulfilling benefits. An investment regarding The Beverly House™ should offer much more peace of mind, and enjoyment, than the turmoil, uncertainties and unpredictability in world markets and currency risks and allows much desired diversification of investments.”
According to WSJ.com, the estate has now been listed for sale by its current owner, Leonard Ross, for just $195 million – pocket change for a billionaire. At one point the property was listed for $165 million but apparently there were no takers willing to purchase the historic California estate.
If the Hearst property, or Beverly Mansion as it is called, sells – Ross stands to make a respectable capital gain. According to the report, Ross bought the property for $2 million about 40 years ago – he has been renting it out ever since. If you are interested you may rent the property out for $600,000 per month. It is not clear how any potential sale would impact the offer on StartEngine.
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