A growing number of professional athletes are making real estate investments – and for good reason. With the uncertainty of future paychecks and the current COVID-19 pandemic, real estate investing is an excellent way to stabilize a stream of income that lasts through retirement. Many pro athletes have made millions on real estate investments, including Emmitt Smith, Shaquille O’Neal, Alex Rodriguez, Magic Johnson and Roger Staubach.
Why Do Professional Athletes Invest in Real Estate?
According to NBA pro Anthony Tolliver, “You look at 90% of the most successful people in the world, 97% of them are going to say, ‘Yeah, I have a massive amount of real estate.” He adds, “Real estate is a great tool, especially for us who made good money in the short amount of time and want to put some of it away and put us in a position to succeed long-term.”
Even as athletes’ salaries increase, as they have over the past decade, there’s no guarantee that the income from professional sports will last forever – or even beyond one season. Professional athletes are always one injury away from retirement, so it makes sense to invest in a steady growth market like real estate.
William Sweet, offensive lineman for the Dallas Cowboys, is only 23 – but his future plan involves owning rental properties in Jacksonville, Florida. Sweet already owns a half-dozen and plans to continue investing.
“Everyone isn’t as lucky as Tom Brady. I think that a lot of guys think it’ll last forever. When that time comes, they’re living in the past and just trying to play catch-up, essentially, because the game will be over and a lot of guys are still trying to figure things out,” Sweet says.
The reality is that about 78 percent of NFL players end up broke or bankrupt within two years of retirement – and figures are similar for other professional sports, too. That means that setting up for a life after a career (even a short one) in athletics is absolutely essential.
That’s exactly what NFL Hall-of-Famer Emmitt Smith did. He’s built and sold more than a thousand multi-family properties and continues to offer a wide range of commercial real estate services. Boxer Paulie Malignaggi owns quite a bit of real estate, and Joe Montana owns the Montana Property Group in San Francisco. These are just a handful of examples, but there are dozens more – and that’s because real estate investing has a solid track record of being profitable.
Where Do Professional Athletes Invest in Real Estate?
Major markets are typically the most lucrative. Large cities, such as Boston, Manhattan, Dallas and San Francisco are attractive places for professional athletes to invest in real estate because the growth potential can be astronomical. Some athletes only deal in residential properties, while others expand into commercial properties, as well.
Do Professional Athletes Manage Their Own Properties?
By and large, professional athletes don’t manage their own properties. They often start their own property management firms or turn to established experts – real estate investing, at least after the homes are built or purchased, is typically most lucrative as a hands-off process.
What Do Property Management Firms Do?
Property management firms generally handle a full suite of services, including:
- Tenant screening
- Rent and fee collection
- Lease enforcement
- Response to all tenant calls, emails and texts
- 24-hour emergency maintenance and repair
- Property bill payments (HOA, mortgage, and water and sewer)
- Annual property inspections
- Lease renegotiation and rent increases
- Funds transfers for rent and other payments
- Housing court assistance
Do You Need to Learn More About What Property Management Is?
Whether you’re a professional athlete, a real estate investor, or someone who’s tired of managing a property you own, we can help. Call us at 617-262-3075 or fill out the form below now to find out how we can take all the stress out of renting out a property in Boston.