PHOTO: President Joe Biden and First Lady Jill Biden. WASHINGTON POST
He is the Commander in Chief of Cash: An Analysis of Joe Biden’s Financial Strategy
President Joe Biden, alongside First Lady Jill Biden, has managed their Delaware real estate portfolio in an unconventional manner. A report by the New York Post highlights that the Bidens have repeatedly leveraged their properties, taking out and refinancing mortgages a staggering 35 times over the years. Here’s a detailed look at their financial maneuvers.
Frequent Refinancing: The Biden Approach
The Biden’s strategy of frequently refinancing their properties stretches back to the late 1970s, soon after Joe and Jill Biden got married. According to reports, the couple has arranged a new mortgage or credit deal approximately every 17 months. This repeated refinancing has sparked curiosity and scrutiny regarding their financial management.
A History of Borrowing
Joe and Jill Biden, with an estimated net worth of $10 million USD, have reportedly borrowed around $6 million USD against their properties over several decades. Their current residence, a mansion acquired in 1996, still has an outstanding mortgage of $541,000 USD nearly 30 years later. Records reveal that their previous Wilmington home, purchased in 1975 for $185,000 USD and sold in 1996 for $1.2 million USD, had 15 different mortgages and credit lines attached before its sale.
Joe Biden’s home in the Greenville Neighbourhood of Wilmington, Delaware Picture: Google Earth
Questions Arise: Financial Expert Opinions
The Bidens’ strategy has puzzled financial experts. LA realtor Tony Mariotti, founder of RubyHomes.com, questioned the wisdom of such frequent borrowing. “Why would anyone view their home as an ATM?” Mariotti asked the Daily Mail. He noted that while mortgage fees accumulate over time, paying off a mortgage acts like a forced savings account, providing modest interest benefits.
Financial Scrutiny in Context
The revelations about the Bidens’ borrowing practices add a layer of intrigue to the President’s financial narrative, especially amid scrutiny of his family’s financial history. Despite their substantial income, which totaled $620,000 USD in 2023 from salaries and investments, the Bidens still maintain significant debt, primarily from the mortgage on their Wilmington residence and an equity loan on the same property.
The Bidens’ Real Estate Portfolio
The Bidens’ real estate dealings include their current four-acre property purchased for $350,000 USD in 1996, now burdened with 20 different credit agreements and mortgages totaling $4.23 million USD. Additionally, their summer home in Rehoboth Beach, bought in 2017 for $2.74 million USD, was a cash purchase, devoid of any mortgages.
A Consistent Pattern of Loans
Records indicate that between 1978 and 1994, the Bidens took out 13 home loans and two credit agreements totaling $1.72 million USD. The pattern continued after switching Wilmington homes in the 1990s, with the couple taking out construction loans and multiple mortgages through various banks, including Beneficial National, Chase Manhattan, Commerce Bank, TD Bank, and Wilmington Savings Fund Society.
A Closer Look at the Bidens’ Financial Strategy
The frequent borrowing and refinancing by the Bidens raise questions about their financial strategy. Despite holding assets estimated between $1 million and $2.6 million USD, their total liabilities range from $350,000 to $850,000 USD. This strategy of using real estate as a tool for borrowing reflects a unique approach that continues to attract attention and debate.
As President Joe Biden continues to navigate his term in office, his financial history provides an intriguing backdrop to his leadership, marked by unconventional borrowing practices and a distinctive approach to real estate management.
SOURCE: NEWS.COM.AU