It is a common belief that becoming an owner of real estate is one the fastest and simplest ways to start building wealth. Athletes, whether amateur or professional, are increasingly looking for ways to invest their hard-earned earnings, with many eyeing real estate as a promising avenue.
Recently, Amerant Bank’s Orly Garcia, Senior Vice President, Private Client – Sports and Entertainment Group, had the privilege of speaking with one of the top real estate agents in the United States, Ben Moss, the National Director of Sports and Entertainment Division at Compass, who specializes in working with athletes and entertainers.
During their conversation, they delved into key topics, and Ben shared his expertise and insight working with athletes and real estate investments.
Q. Why Do Athletes Invest in Real Estate?
A: Most athletes today are eager to find ways to maximize their income during and after their playing careers, and real estate has become their top choice for many of them in achieving this goal. Real estate investment is like a “forced saving” plan for athletes. It not only creates a passive income but also prevents them from splurging on things like luxury cars. By investing in real estate while still active in their careers, athletes build equity that can be tapped into during their post-playing days.
Real estate investment allows athletes to follow the ‘build income equity’ method otherwise known as the “BRRRR Method,” which stands for buy, rehab, rent, refinance, and repeat. The method originated from investor Brandon Turner in 2017, and it has since been adopted by real estate investors. This strategy focuses on buying run-down properties, renovating and renting them out, and repeating the process.
Q. What area is good for athletes and others to invest in? South Florida?
A: Currently, South Florida is quite pricey for real estate investments. Many athletes are now turning their attention to areas north of Broward County, such as the Tampa/St. Pete area. Tennessee, particularly Nashville, has also emerged as a booming destination for investment.
Q. What type of properties are athletes looking to invest in?
A: Airbnb rentals are currently in high demand and gaining significant popularity among athletes. They are also exploring investment properties that generate rental income and opportunities for flipping. Embracing the “get-rich-slow” model and building wealth steadily through real estate investment has become the go-to approach.
Amerant Bank has a dedicated mortgage team ready to assist athletes and entertainers with their lending needs. Amerant Mortgage is licensed in 37 states, with four more on the horizon. Its loan offerings cover everything from jumbo loans to investment properties, FHA, VA, condo financing, and portfolio loans. These tailored solutions empower professionals to secure loans that might be harder to obtain elsewhere.
“Within Amerant Bank, our Sports and Entertainment division, part of our Private Client Group, provides VIP and boutique services to our valued clients. Our mission is to offer an unparalleled banking experience that goes beyond private banking,” added, Garcia, Senior Vice President, Sports and Entertainment Group. “Safeguarding and growing your wealth is the utmost priority – allowing you to focus on what truly matters to you. We’re here to support you wherever you are in life and wherever you aspire to go.”
For more information about sports & entertainment banking at Amerant, visit amerantbank.com/SE.