How The Kardashian Clan Keeps Making Billionaires

Half of the former KimYe couple has had a rough financial go of late. 

Kanye West — the Ye in KimYe — reportedly lost as much as $2 billion after making anti-Semitic comments. The rapper was dropped by partners like adidas AG ADS, GAP Inc. GPS and others. West said he put upward of $140 million into JPMorgan Chase & Co. JPM, and the bank still cut ties with him.

Kim Kardashian — the Kim half of KimYe and West’s ex — has been making deposits. Her companies have performed well. SKIMS and KKW Beauty Inc. have taken off. Kardashian is reportedly worth $1 billion, and she isn’t the only billionaire in the family.

Kylie Jenner, Kardashian’s sister, is reportedly also worth $1 billion. Jenner’s massive rise into billionaire status came largely thanks to Kylie Cosmetics, owned by Coty Inc. COTY. At one point, Jenner was named the world’s youngest self-made billionaire. 

Regardless of your personal opinions on West, Kardashian and Jenner; you have to admire the financial savvy stemming from one family. Now separated, Kardashian and West have both built massive empires (even if West’s is now crumbling), and Jenner took note. So, how do these billionaires spend and invest their money? Real estate.

Real estate can accommodate your family privacy, act as a hideaway and a place for business and pleasure. It also can act as an investment. It’s typically best as a long-term hold, but consider this: According to YCharts Inc., the median sale of an existing homes in the U.S. in August 2018 was $265,000; less than five years later, as of Sept. 30, the same home sold for $384,800. That’s an increase of about $120,000 or about 45%. Returns like that are far outpacing the stock market, bonds and other investments.

The Kardashians aren’t buying average homes, though. Their homes go for a bit more.

Kourtney Kardashian and Travis Barker purchased a beach house for $14.5 million, according to TMZ. The house, which isn’t their primary residence,is a getaway for the couple.

Kim Kardashian bought several homes with her ex-husband. The former power couple had a large family and busy travel schedules. Whether investments or lifestyle was the driving force behind their portfolio of pads is irrelevant. Their collection was and is something to behold. One of their most famous acquisitions was their Hidden Hills home, which checked in at $60 million. The couple, known for fashion and design, obviously made some renovations, but they purchased the home in 2014 for just $20 million.

Kardashian also made news recently for purchasing model Cindy Crawford’s 7,450-square-foot Malibu, California, home for a whopping $70.4 million. Believe it or not, $70 million was $29 million less than the original listing price in March. 

Jenner owns the most California estates in the bunch, according to House Digest. One of her most recognizable is in Holmby Hills and checks in at over $36.5 million. The home is new construction and was originally listed at $45 million. Speculation is that this house will serve as a place for entertainment.

The list goes on for the family. Kris Jenner has several homes, as does Khloe Kardashian and model Kendall Jenner. Every member of the family is at least a millionaire multiple times over. By observing their money moves, it’s clear that real estate is important to their wealth and something they invest heavily in.

Cardone Enterprises CEO Grant Cardone agrees. Cardone has been on record saying that real estate is the way to go and that the Federal Reserve ended most people’s hopes of owning a home because of skyrocketing interest rates. He went on to explain that if investors can afford it, real estate is a smart and savvy investment to make for the long run.

How do investors emulate billionaires’ success when they can’t afford $70 million homes? They can look to real estate investment trusts (REITs), which offer some traditional and unique approaches to investing in real estate. Perhaps more appealing, though, is investing through Arrived Homes.

Arrived Homes is a platform backed by Jeff Bezos, who does more than just run Amazon.com Inc. AMZN. Bringing crowdfunded home investment to the masses, platforms like Arrived Homes allow investors to claim partial ownership in homes with as little as $100. Whether they are using the platform to diversify their real estate portfolio — one home is good, part ownership in 30 is better.

Consider investing now, and building your empire the same way billionaires do.