Curtis Jackson, better known as “50 Cent,” blasted onto the music scene with his iconic debut album, “Get Rich or Die Tryin’” in 2003. Since then, the Grammy Award-winning rapper’s wealth and influence has grown, as he has become a producer, actor and entrepreneur.
He can now add another entry to his long list of titles: property mogul. Since May, Jackson has purchased a number of properties across downtown Shreveport, Louisiana, spending $2.4 million as of June, according to the Shreveport Times, citing official records. He now owns more than 10 downtown properties, making him the second-largest property owner in the city’s core, per KTAL NBC 6.
“These properties that ‘50 Cent’ has purchased, some of them have been vacant for years,” Janie Landry of Shreveport’s Downtown Development Authority told the local broadcaster. “So, we’re really excited about the potential that this opens to other properties that have been vacant in downtown or underutilized.”
Prior to his property shopping spree, Jackson launched G-Unit Studios in the city in April, a place from which he can expand his entertainment empire. Jackson’s strategic investments in the city of 180,000 residents can serve to highlight key lessons for all real estate investors.
Undervalued, underappreciated assets
Unlike Los Angeles or New York, Shreveport isn’t an established hub for the entertainment industry. However, attractive valuations may have played a part in Jackson’s decision to invest here.
He purchased a 150-foot-by-150-foot vacant lot for just $12.50 per square foot ($281,250), according to The Shreveport-Bossier City Advocate, which contacted the listing agent. By comparison, listing sites show a number of industrial spaces in Los Angeles for sale at hundreds of dollars per square foot.
Jackson’s decision mirrors a similar move made by Tyler Perry, who purchased a 330-acre lot in Atlanta, Georgia, to launch Tyler Perry Studios in 2015.
“I’m leaving no room for error,” Jackson wrote on Instagram in June. “Tyler showed me something today that inspired me. I need all my money if you owe me, you better give me mine now!”
Late billionaire real estate investor Sam Zell was also well-known for bargain hunting distressed properties. In fact, his reputation for seeking out undervalued deals was so entrenched it earned him the label “the grave dancer.”
For regular investors, the lesson is clear: keep an eye out for underappreciated assets. But snapping up cheap property isn’t enough. It can pay to take proactive steps to unlock its value.
Adding sweat equity
Jackson’s investments may ignite an economic engine that revitalizes Shreveport’s downtown core, and Landry believes his purchases could draw even more potential investors.
He has already demonstrated his commitment to the city by hosting the Humor & Harmony Weekend festival in August, which featured appearances by comedians Dave Chappelle and Katt Williams, as well as musical acts Master P, Da Baby and of course the “In Da Club” rapper himself, among many others. The festival benefited the G-Unity Foundation, a nonprofit founded by Jackson with the stated goal of “empowering youth in America’s cities.”
Directly adding value to an investment this way is known as “sweat equity.” While regular investors typically can’t host megaevents to add value to their property, they can certainly invest in do-it-yourself renovations and upgrades.
Investing time, money and labor into one’s own potential income streams can certainly add value down the line.
