‘Broke billionaires’ or investing geniuses? Why Beyoncé and Jay-Z took out a second $57M mortgage

The estate is the crown jewel in their alleged $313-million real estate portfolio — which also includes a palatial Hamptons home, a sprawling Malibu mansion and a chic New York penthouse.

The couple is reportedly worth around $4 billion, yet they secured a $57.8 million mortgage on the property in 2025 (2). And this was after locking in a $52.8 million mortgage four years earlier.

Are the music moguls now just broke billionaires, as some online commentators have speculated, or is this a savvy real estate move? Here’s a closer look.

I’ve got 99 problems, but a mortgage ain’t one

An outstanding liability of roughly $110.6 million on a single property likely sounds mind-boggling, though that figure is just 2.8% of the couple’s combined wealth.

They have secured fairly attractive interest rates on both mortgages. According to The Daily Mail, the new mortgage from Morgan Stanley’s Private Bank Group had a 30-year term with an interest rate fixed at 5% for the next 10 years.

The previous mortgage, meanwhile, was secured from Goldman Sachs at 3.15%. Both of those rates are notably below 2026’s average 30-year fixed mortgage rate of 6.1%, according to the Federal Reserve (3).

Even if their interest rates were closer to the average, their loans would have still unlocked some key financial benefits for the billionaire couple.

Buy, borrow, die

By borrowing money against an asset they can easily afford, Jay-Z and Beyoncé seem to be pulling from the “buy, borrow, die” playbook. The strategy involves acquiring appreciating assets like real estate, stocks or artwork — and borrowing against those assets to create tax-free cash flow. Then they can pass the assets along to their heirs (Blue Ivy, Rumi and Sir) to potentially erase long-term capital gains.

Beyond the tax advantages, this method also helps wealthy families minimize opportunity costs. By borrowing against their mansion, Jay-Z and Beyoncé can invest the $110.6 million they owe into their various business ventures or even the S&P 500, which has delivered an annualized return of approximately 16.3% over the past 10 years (4).

On their passing, the property portfolio’s tax basis would reset, potentially saving their three children millions of dollars in capital gains taxes.

Other celebrities also take advantage of this strategy — even though Paris Hilton’s net worth is reportedly between $300 and $400 million, she and her husband took out a $43.8 million mortgage on their $63 million Beverly Hills mansion in 2025, according to Fortune (5).

But you don’t have to be a billionaire to use leverage as a financial tool.

Can’t knock the hustle

Anyone, regardless of their net worth, can use debt strategically to start building wealth.

The most important part of this strategy is to only borrow for appreciating assets. For instance, buying property with a mortgage or getting a business loan to start a new venture may help you build equity, while using an expensive personal loan or credit card debt to finance a vacation could destroy your wealth over time.

Find a better interest rate

Whenever you borrow money, make sure you shop around for the best rate — and try to negotiate before signing up. Every basis point you can cut from the loan agreement can magnify your savings over the long term.

Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders at once. All you have to do is enter some basic information about yourself like your zip code, desired property type, price range and annual income.

From there, MRC will show you mortgage offers tailored to your needs so you can shop for a mortgage with confidence.

After you match with a desired lender, you can set up a free, no-obligation consultation to see if you’ve found the right fit.

Get into real estate — without getting into a mortgage

If real estate investing sounds like a lot of extra work, you might be surprised to learn you don’t have to take on a mortgage to benefit from the property market.

You can tap into real estate by investing in shares of vacation homes and rental properties through Arrived.

Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse their selection of vetted properties, each chosen for appreciation and income-generating potential.

Once you choose a property, you can start investing with as little as $100.

Leverage multifamily investment opportunities

Beyond vacation and rental homes, you could also consider larger real estate opportunities.

mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.