"Billionaire Undercover" Glenn Stearns is not really a billionaire

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^OOn Tuesday, at 10 pm, Glenn Stearns presents American television screens on the streets of Erie, Pennsylvania. Stearns, as star of Discovery Channel's new show, "Undercover Billionaire," is charge to turn $ 100 into a $ 1 million business in 90 days, with the help of a cell phone and a van. The first of eight episodes aired on August 6th.

One thing to be wary of: The central premise of the series – that 56 years old Stearns is a billionaire – does not hold water. After reviewing the properties of Stearns and its stake in Stearns Holdings, the California-based private mortgage lender he founded, Forbes estimates its net worth at around $ 500 million. This is far from the billion dollar claimed by the title of the series.

Keely Berg, Executive Assistant to Glenn Stearns, stated Forbes in an email that "Mr. Stearns does not discuss or provide materials regarding confidential matters, including but not limited to personal and professional finances. "

Stearns founded the eponymous mortgage lender in 1989 at the age of 25, according to a complimentary survey Biography presented on his personal website. The page details a story of rags to riches that brought Stearns from a life surrounded by addiction and alcoholism in the suburbs of Washington, DC, to the vertiginous height of 'owning a Montana ranch with John Elway and an island Private Caribbean with Sir Richard Branson. "

Glenn Stearns speaks at a panel promoting Billionaire Undercover.

Getty Images

Stearns Lending, owned by Stearns Holdings, survived the 2008 sub-prime mortgage crisis and became one of the largest biggest wholesale lenders in volume, becoming the first wholesale US residential lender in a 2013 ranking published by the specialty publication Domestic Mortgage Financing. Non-bank lenders such as Stearns have thrived in the post-crisis context with the decline of traditional banks, but the market often unstable acid by 2014. The new mortgages plunged that year and some private lenders have broken by big companies.

"If they're ready to sell, they're losing their shirts," said Larry Charbonneau, general manager of the Texas-based Charbonneau mortgage banking firm. Associates, in an interview. "There are always more willing buyers than willing sellers."

Stearns Lending revenues for fiscal 2014 were $ 522 million, based on Pitchbook. In August 2015, the Blackstone Group, the largest private equity firm in the world, acquired a 70% interest in Stearns Holdings for an undisclosed amount. Based on an analysis of Stearns' listed competitors in 2015, Forbes estimated the company at approximately $ 545 million at the time of the acquisition, which means that Glenn Stearns would have received approximately $ 380 million before tax from the Blackstone sale.

Four years later, in July 2019, Stearns Holdings classroom for bankruptcy. When the Federal Reserve raised interest rates in 2017, emissions continued to grow. dive, preventing the company from paying back $ 183 million in guaranteed notes. Blackstone is infuse The company, which had $ 60 million in cash and $ 35 million in additional financing, viewed bankruptcy as a way to resolve a long-standing dispute with PIMCO, one of Stearns' largest noteholders. Court documents reveal Glenn Stearns owns 29% of the company, which has assets of $ 1.22 billion and liabilities of $ 1.16 billion.

"Bankruptcy is perhaps the best way to simply create a wall between you and the creditors until the market comes back and you can turn things around," said Charbonneau.

Matt Anderson, Senior Vice President of External Relations for Blackstone, said Forbes that the company could not comment on the value of the transaction in 2015 nor the bankruptcy procedure. Laurie Goldberg, VP of Public Relations for Discovery Channel Group, said Forbes that they "hold the title of the issue" and that "Glenn is involved in many companies a significant portion of whose income is tied to investments in private companies."

Stearns' current interest in the mortgage lender is approximately $ 17 million. The bulk of his fortune comes from the 2015 sale to Blackstone. Over the years, Stearns has invested in several other companies and assets, including a 188-foot yacht, valued at 9.1%. stake in California Infinity Bankand a vast real estate empire that extends from Seattle to Maryland.

In total, other known assets of Stearns amount to just over $ 87 million, Forbes calculated. His interest in Infinity Bank was approximately $ 2 million as of September 12, 2019 and his real estate holdings in Wyoming, Maryland, Washington State, Missouri and Arizona had been assessed. at a total market value of about $ 68 million in 2019. The Stearns yacht, the Mendrillon – a name rack named after his wife, Mindy, and Cinderella – is listed in sale at $ 16.9 million.

Stearns also has four small enterprises based in Santa Ana, which provides mortgages, appraisals and audit services, as well as investments in the Indi.com e-commerce website and in the mortgage lender pricing start-up Lender Price. While Forbes unable to value these small companies, and Stearns may have other properties and assets beyond its public knowledge, it is highly unlikely that they will be sufficient to increase Stearns' net worth by $ 500 million. would need to reach a billion dollars.

Next Tuesday, Stearns will be back on Discovery Channel, concluding deals and cleaning toilets with the goal of creating a million dollar business from scratch. Do not forget that if you look, the "undercover billionaire" is not worth ten figures after all.

Get & nbsp;Forbes& # 39; Daily headlines directly in your inbox& nbsp; for information on the world's greatest entrepreneurs and superstars, expert career advice and secrets to success.

^OOn Tuesday, at 10 pm, Glenn Stearns presents American television screens on the streets of Erie, Pennsylvania. Stearns, as the star of Discovery Channel's new show, "Billionaire Undercover," has a mission to turn $ 100 into a multi-million dollar business in 90 days, with the help of a phone cell phone and a van. The first of eight episodes aired on August 6th.

One thing to be wary of: the central principle of the series – Stearns, 56, is a billionaire – did not hold up. After reviewing the properties of Stearns and its stake in Stearns Holdings, the California-based private mortgage lender he founded, Forbes estimates its net worth at around $ 500 million. This is far from the billion dollar claimed by the title of the series.

Stearns founded the eponymous mortgage lender in 1989 at the age of 25, according to a complimentary biography presented on his personal website. The page details a story of rags to riches that brought Stearns from a life surrounded by addiction and alcoholism in the suburbs of Washington, DC, to the vertiginous height of 'owning a Montana ranch with John Elway and an island Private Caribbean with Sir Richard Branson. "

Stearns Lending – owned by Stearns Holdings – survived the 2008 sub-prime mortgage crisis and became one of the largest wholesale lenders in the country, becoming the largest wholesale residential lender in the US in a 2013 ranking published by the trade publication. Domestic Mortgage Financing. Non-bank lenders such as Stearns have thrived in the post-crisis context with the decline of traditional banks, but the market, often unstable, began to deteriorate in 2014. New mortgages plunged this year and some private lenders have been seized by large companies.

"If they're ready to sell, they're losing their shirt," said Larry Charbonneau, general manager of the Texas Mortgage Advisory Firm, Charbonneau & Associates. "There are always more willing buyers than willing sellers."

Stearns Lending's revenue for fiscal 2014 was $ 522 million, according to Pitchbook. In August 2015, Blackstone Group, the largest private equity firm in the world, acquired a 70% stake in Stearns Holdings for an undisclosed amount. Based on an analysis of Stearns' listed competitors in 2015, Forbes estimated the company at approximately $ 545 million at the time of the acquisition, which means that Glenn Stearns would have received approximately $ 380 million before tax from the Blackstone sale.

Four years later, in July 2019, Stearns Holdings filed for bankruptcy. When the Federal Reserve raised interest rates in 2017, issues continued to plummet, limiting the company's ability to repay $ 183 million in guaranteed notes. Blackstone gives the company $ 60 million in cash and $ 35 million in additional financing, considering bankruptcy as a way for the company to resolve a long-standing dispute with PIMCO, one of Stearns' largest noteholders . The court records reveal that Glenn Stearns owns 29% of the company, which has assets of $ 1.22 billion and a liability of $ 1.16 billion.

"Bankruptcy is perhaps the best way to simply create a wall between you and the creditors until the market comes back and you can turn things around," said Charbonneau.

Stearns' current interest in the mortgage lender is approximately $ 17 million. The bulk of his fortune comes from the 2015 sale to Blackstone. Over the years, Stearns has invested in a number of other companies and assets, including an 18 meter yacht, a 9.1% stake in Infinity Bank, California, and a vast real estate empire. extending from Seattle to Maryland.

In total, other known assets of Stearns amount to just over $ 87 million, Forbes calculated. His interest in Infinity Bank was approximately $ 2 million as of September 12, 2019 and his real estate holdings in Wyoming, Maryland, Washington State, Missouri and Arizona had been assessed. at a total market value of about $ 68 million in 2019. The Stearns yacht, the Minderella – a name rack of his wife's name, Mindy, and Cinderella – is offered for sale for a fee of $ 16.9 million.

Stearns also owns four small Santa Ana-based companies that provide mortgage, valuation and audit services, as well as investments in the Indi.com e-commerce website and the mortgage pricing start-up. Lender Price. While Forbes unable to value these small companies, and Stearns may have other properties and assets beyond its public knowledge, it is highly unlikely that they will be sufficient to increase Stearns' net worth by $ 500 million. would need to reach a billion dollars.

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