Donald Sterling Needs to Sell Property for Debt
Donald Sterling is under quite some fire. The CFO of Donald Sterling’s properties, Darren Schield who also oversees the finances of The Sterling Family Trust, has statedthat the Clippers owner may have to sell a large amount of his real estate in order to pay off his $500 million in loans if he does not sell the LA Clippers for $2 billion dollars.
Should Sterling sell $500 million dollars worth of property, and experts are claiming that the real estate market in Los Angeles will get really shaken up, with Schieldsaying that it could potentially destabilize the market.
We at The Moradifar Group, however, don’t think it’s going to cause quite the stir that everyone has been predicting. There is too high of a demand in real estate in the Los Angeles area right now for anything to change drastically. If Sterling is forced to sell some of his real estate empire, we predict that he will get rid of his “bad” buildings, and investors will jump on the opportunity. The truth of the matter is that investment-wise, Sterling most likely does not really have any “bad” buildings. Therefore, his properties are ones that are in high demand and will have no problem selling smoothly and rapidly. Not only will the properties sell rather quickly, they will also sell at high prices. Donald Sterling might have been a fool to make racial slurs on the phone with V. Stiviano, but he was no fool when it came to creating his massive empire.
What do you think? Is the market going to destabilize? Do you think Sterling will be forced to sell a large part of his empire? Comment and let us know, we’d love to hear your thoughts!
-The Moradifar Group