Nicolas Cage once blew through $150M — and it wasn't the dinosaur skull or king cobras that broke him

For years, Nicolas Cage's fiscal woes person been the worldly of Hollywood legends. Stories astir the Oscar-winning histrion buying everything from castles (1) to a dinosaur skull (2) and adjacent 2 favored king cobras (3) person cemented his estimation arsenic 1 of the industry's biggest spenders.

But, according to Cage, that's not what yet derailed his fortune.

Must Read

• Jeff Bezos backs a level that lets anyone put successful rental homes for arsenic small arsenic $100 — 6 ways to physique wealthiness similar a landlord without really being 1

• Robert Kiyosaki says this 1 plus volition surge 400% successful a twelvemonth and begs investors not to miss this 'explosion'

• Millionaires nether 43 clasp lone 25% of their wealthiness successful stocks. Here's wherever their wealth is really going

"What is an octopus, $80? You're not going to spell into dire straits buying an octopus," helium told the New York Times (4) during a 2019 interview.

He aboriginal told 60 Minutes (5), successful 2023, helium earned astir $150 cardinal during the tallness of his vocation but insisted it wasn't his eccentric collectibles that near him successful fiscal trouble. Instead, helium pointed to thing galore radical crook to physique wealth: existent estate.

Cage explained that "the marketplace crashed earlier [he] could get [his] wealth out" aft "over investing successful existent estate." He ended up penning a cheque for astir $6,000,000 to wide his indebtedness alternatively than declaring bankruptcy.

His acquisition serves arsenic a reminder that each investments transportation risk, particularly erstwhile they're overleveraged.

Real property isn't ever a harmless stake

Unlike a luxury acquisition that comes with a one-time terms tag, existent property often carries years of ongoing expenses. Think: owe payments, spot taxes, insurance, maintenance, utilities and staffing. If spot values decline, homeowners whitethorn find themselves owing much than what they tin retrieve from a merchantability — oregon struggling to find buyers altogether.

Cage reportedly owned much than a twelve properties (6) astatine 1 point, including castles successful Europe, backstage islands and lavish estates crossed the U.S.. His portfolio included a $25-million waterfront location successful Newport Beach, California; a $15.7 cardinal countryside property successful Newport, Rhode Island and an $8.5 cardinal spot successful Las Vegas.

His portfolio expanded during the existent property roar earlier the 2008 lodging situation dramatically reduced spot values. As the marketplace turned, those assets became progressively hard to merchantability portion their carrying costs remained.

In a 2009 suit (7) filed successful Los Angeles Superior Court, Cage said helium had present been forced to "sell large assets and investments astatine a important loss" due to the fact that of the actions of his concern advisor and accountant. While the histrion blamed mediocre fiscal advice, his erstwhile manager argued that Cage ignored repeated warnings to rein successful his spending.