Loren Steffy

A business blog

Chamillionaire shows he’s not penny wise


Houston rapper Charmillionaire walked away from his mortgage on a $2 million manse in The Woodlands. He told TMZ that the home was one of several he owns and it was his most expensive mortgage.

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"I decided to let that house go because that house ended up being worth nothing when the market went down," he said.

Well, that’s doubtful. The 7,583-square-foot house in the exclusive golf community of Carlton Woods, an area not exactly known for its depressed real estate. A quick check of the Chronicle’s survey of housing prices shows that median prices in Chamillionaire’s neighborhood fell at most 8 percent.

Let’s give him the benefit out of the doubt and say his home bore the worst of the decline. Even if he ate 8 percent, it’s still worth $1.84 million. Even if it declined 8 percent a year in the four years since he bought it, it’s worth a lot more than nothing.

The rapper said he “didn’t feel like it was a good business investment” to keep paying a mortgage on a home he didn’t use. So, he stopped making payments, thereby making what may have been a bad business decision far worse.

If he didn’t want the house, why didn’t he sell it at a loss? He’d still spend less than he will on the increased interest rates that will result from the foreclosure.

So is Chamillionaire really Cha-deadbeat? He told TMZ he’s fare from broke, saying “I still got all the cars.”

Now that’s a bad business investment. Sorry Cha-lly, but cars are a depreciating asset. Funny how a guy with “millionaire” in his name seems to understand so little about money.

3 Responses

  1. elowe says:

    You wasted time on this?


    You couldn’t have written on something productive or relevant, like Goldman Sachs hijacking the imminent “financial (non)reform” bill?




    Just sayin…

  2. Old Gringo Stan says:

    gee, stupid rapper….what a surprise!…:)

  3. B Langley says:

    Bad investment? The Woodlands is currently the second fastest selling community in America. The Houston/ Woodlands real estate market has seen a constant 3-5% gain year over year for 30 years with the exception of the early 80s.I would argue that The Woodlands and Carlton Woods is THE BEST place in America to have an investment in real estate. But then again maybe him joining the private club at carlton Woods and being suspended for non payment was a bad investment as well.