Television personality and entrepreneur Bethenny Frankel has detailed her approach to real estate, revealing that she designs her homes primarily as investments. This strategy was highlighted by a recent Hamptons property sale where she more than doubled her initial purchase price, turning a $2.675 million house into a $6 million asset.
Frankel's comments came in response to online criticism of her Miami home's interior design. She explained that her design philosophy, which favors neutral and simple aesthetics, is a deliberate business decision aimed at maximizing resale value by allowing potential buyers to envision themselves in the space.
Key Takeaways
- Bethenny Frankel confirmed selling a Hamptons property for $6 million, which she originally purchased for $2.675 million.
- Her core real estate strategy involves designing homes as investments with a focus on high returns.
- She advocates for simple, neutral interiors to broaden a property's appeal to potential buyers.
- Frankel has applied this successful formula to properties in New York City, Connecticut, and now Florida.
- Despite her history of flipping homes, she considers her current Shinnecock Bay residence a long-term keeper due to its unique location.
The Hamptons Sale as a Case Study
The discussion around Frankel's real estate acumen was sparked by public commentary on her newly featured Miami home. In a direct response, she used a specific Hamptons transaction as a prime example of her method's success.
“Let me give you a little education on architecture, on real estate and on business,” Frankel stated, addressing critics who labeled her design style as bland. She clarified that her primary goal is financial return, not just personal taste.
The property in question was a Hamptons house she acquired for $2.675 million. Through strategic design and market timing, she successfully sold it for $6 million, securing a profit of over $3.3 million. This sale, she argued, validates her approach of creating spaces that appeal to a wide market rather than a niche aesthetic.
By the Numbers: A Profitable Flip
- Purchase Price: $2,675,000
- Selling Price: $6,000,000
- Gross Profit: $3,325,000
- Return on Investment: Approximately 124%
A Philosophy of Investment-First Design
Frankel's strategy extends beyond a single successful sale. She described a consistent philosophy applied across a portfolio of properties in various high-value markets, including Tribeca and Soho in New York City, and Greenwich, Connecticut.
The core principle is to design with a potential buyer in mind from day one. “I love to live there, and I make them exactly what I want them to be, but they’re designed as investments,” she explained. This means prioritizing neutral color palettes, clean lines, and uncluttered spaces. Such an approach, according to Frankel, makes it easier for prospective buyers to project their own lives and belongings onto the property, increasing its marketability.
Why Neutral Design Sells
Real estate experts often advise sellers to "depersonalize" their homes. Neutral designs act as a blank canvas, appealing to the broadest possible audience. Bold or highly specific design choices can be polarizing and may deter buyers who cannot see past the current owner's taste. Frankel's method is a direct application of this widely accepted industry principle.
By avoiding overly personal or trendy decor, she minimizes the risk of alienating buyers and reduces the need for new owners to undertake immediate, costly renovations. This focus on broad appeal has been a consistent factor in her profitable property flips.
The Exception to the Rule: A Forever Home
While most of her properties are acquired with an eventual sale in mind, Frankel revealed that not every home is on the market. She identified her current Hamptons residence on Shinnecock Bay as a property she intends to keep for the long term.
She purchased this new home for approximately $5.5 million and believes its value has already appreciated to around $7 million. “My new Hamptons home I paid like five and a half [million] and it’s already worth about seven,” she said, calling it an “extraordinary piece of property” due to its direct beach access.
“That one,” she said, “I’ll never sell.”
Frankel projects that the Shinnecock Bay property could be worth between $8 million and $10 million within a few years, cementing its status as a personal retreat rather than a tradable asset. This distinction shows that while her overarching strategy is business-oriented, she also recognizes and values unique properties for personal enjoyment.
Looking Ahead to the Florida Market
Having recently moved to Florida permanently, Frankel is applying the same investment principles to her new home in Miami. Despite the online criticism of its design, she remains confident in her strategy's financial viability.
She anticipates a significant return on her Florida property when she eventually decides to sell it. In her response to critics, she projected making “another $3 million” on the home. This confidence stems from her track record of successfully identifying markets and preparing properties for profitable resale.
Frankel's transparency about her methods provides a glimpse into the mindset of a celebrity who treats real estate not just as a place to live, but as a key component of a diversified business portfolio. Her focus on simple, strategic design continues to yield significant financial results, from the Hamptons to South Florida.
