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NYC billionaire Charles Cohen is being sued over a bad $535M loan — now he faces confiscation of wines, superyacht and mansions, report says. How to build real wealth without drowning in debt

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New York City real estate tycoon Charles Cohen has lived a life most people only dream of — complete with exotic cars, lavish mansions and fancy yachts. Now, some of his prized possessions are under threat as a massive business loan gone bad starts to have very personal consequences.

Cohen, 73, is being sued by Fortress Investment Group over a $535 million loan extended in 2022 to his firm, Cohen Realty Enterprises. The collateral included a Manhattan office tower, the Le Meridien Dania Beach hotel in Fort Lauderdale, Florida, and four other properties, according to The Wall Street Journal, citing records from New York State’s Supreme Court.

But that’s not all: Cohen personally guaranteed $187.2 million of that loan. His net worth is nearly $2 billion, according to a financial statement filed with the court.

His business defaulted last year, and Fortress has since seized much of the collateral. Still, the firm claims those assets fall far short of what Cohen owes, reports The Journal. That shortfall has led Fortress — an investment giant partially owned by Abu Dhabi’s Mubadala Capital — to go after Cohen’s personal wealth.

And that’s exactly what it’s doing.

Fortress is seeking to confiscate Cohen’s homes in Provence, France, and Greenwich, Connecticut, reports The Journal, along with his fleet of 25 luxury cars and five yachts — including a 220-foot superyacht that’s presently docked at an Italian port under court order.

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Following a French court order, debt collectors have already seized hundreds of thousands of dollars’ worth of Cohen’s belongings from his 138-acre estate and vineyard in Provence, according to The Journal. The haul apparently included high-end furniture, valuable artworks and a fine wine collection.

“They keep pecking at us, like a bird would peck at something,” Cohen said of Fortress in a February deposition, per The Journal. “Enough was never enough.”

A blunt reality check

Real estate has long been one of the most powerful tools for building wealth — and for good reason. It has the potential to generate steady rental income, appreciate over time and offer valuable tax advantages.

But as Cohen’s case shows, that success isn’t guaranteed — especially when there’s large amounts of debt involved.

Leverage is a common part of real estate investing, even for everyday investors. With home prices sky-high, most people need to take out a mortgage to buy an income property. And with interest rates elevated, borrowing has become more expensive — assuming you can even save enough for a down payment.

The good news? You no longer need to take on traditional debt to get started in real estate.

Becoming a real estate mogul — starting with $100

Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to America’s real estate market.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

A $35-trillion opportunity

Rising home prices have helped Americans build substantial wealth through homeownership — but for years, the $35-trillion U.S. home equity market was an exclusive playground for big institutions.

Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

Be the landlord of Walmart

If you’ve ever been a landlord, you know how important it is to have reliable tenants.

How do grocery stores sound?

That’s where First National Realty Partners (FNRP) comes in. The platform allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.