Baseball Player/Aspiring Real Estate Investor

Starting Out
10yFollow

Baseball Player/Aspiring Real Estate Investor

Lane A.
Red Oak, OK · Member since 2016 · 3 posts · 1 vote

Hey everybody first I would to say thank you for taking the time to help me out. Please don't hesitate to voice your thoughts and opinions they will be greatly appreciated.

I'm 26 years old and a friend of mine reached out to me and asked me if I'd be interested in real estate. I will admit I don't know the first thing about real estate much less banks, taxes and everything that comes with it. He gave me the book "The Millionaire Real Estate Investor" and after the first chapter I was hooked. I can't seem to stop researching everything real estate. It's 100% something I know I want to invest in. What's really caught my attention is rental properties and hopefully build from there, although I'm keeping all doors open at the moment. I have a great job and a solid chunk of change saved away to get started on.

Sooooo.... What's makes this a little more difficult for my situation is that I play professional baseball and I'm gone from the months of February-September/October. And being that I've never been a landlord I don't think it would be a great idea for me to jump right into landlording while I'm gone for that much time. I know I could hire a property manager but then again I don't know how all that works either.

One of the biggest questions I would like to ask is how should I go about buying my first property? Pay fully in cash or make a down payment and take out a loan?

I know I can't play baseball forever and I'd like to get some assets, equity and cash flow started while I'm playing. I've watched too many athletes go broke by not investing and not managing their money properly and I don't want that to happen to me. So please feel free to respond with your ideas, tips and all that good stuff. All of them are greatly appreciated.

Thank you for your time and your willingness to help a rookie out

1Reply
184 views

Most Popular Reply

Justin R.
Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
10y

@Lane A. A little counter to what others are advising, but I'm not sure I'd jump into REI in shoes like yours. If you've got something important going on that requires attention to succeed at (like being successful for the limited time you'll be able to play pro ball), there's a very real risk that you'll distract yourself with REI. If you're saving your money and investing it already, the capital will be there later to invest in RE once you've got the time to focus on it.

I say this because I have a 9-5 job I love and have no desire to quit ... and I'm becoming aware that real estate can adversely impact that.  It's a very predictable case of spreading too thin and there's the potential of not being great at either.

Just something to keep in mind as you weigh your options.  Protect the financial golden goose.

3Reply
See this reply in the discussion

36 Replies

Jump to latestLatest
  • Kory Thaut
    Investor · West Linn, OR · Member since 2015 · 100 posts · 58 votes
    10y

    @Lane A. As a former baseball player myself (pac-10, well 12 now), I know the commitment it takes to be successful there... You'll do well in real estate as you'll just transfer the work ethic over.  I never made millions in the pros but have made a few million in business / investing and I think it's the result of transferring hours in the batting cage over to the next "obsession".  

    The awesome part about your job is you get to be in a bunch of different cities throughout the spring and summer on the club's dime.  I'd pull out the schedule and do a little research on those areas and then when you get a little off time while your there, go check things out and do some networking with property management, other investors, etc... (just don't lose focus on playing ball, you only get one youth to spend on that my old catcher's knees ache just writing that)

    You've got the perfect situation.. play ball spring and summer, and buy houses in the fall and winter.  I think you're going to need to get good at managing property managers though as I don't think anybody should do everything solo, especially if they have to be on the road a lot.

    2Reply
  • Zach Mitchell
    Investor · Orlando, FL · Member since 2012 · 183 posts · 155 votes
    10y
    Long story short, partner up with someone who knows what they are doing and learn as much as you can from them. You're going to hear a lot of responses telling you what to do and how to do it but it's impossible to tell you what to do without knowing the end goal. I can just assume it's to build a portfolio and have the checks rolling in well after you retire from baseball? My best suggestion is to ask the friend who gave you the book to teach you everything he knows, maybe even partner up on your first deal to learn the ropes. If he's in the same position and hasn't actually done any deals then find your local real estate investors club and go talk to some experienced guys with local knowledge. The fact that you're a professional baseball player will get you a lot of attention and chances are once people know you're looking to invest they will start bringing deals your way. Professional sports usually equal money, which is a part of the real estate equation that a lot of people are missing. Just make sure you vet the person/people you decide to work with.
    1Reply
  • John Arendsen
    Homeowner · VISTA, CA · Member since 2015 · 727 posts · 340 votes
    10y

    Hi @Lane A.You came to the right place by joining BP. My daughter, voted one of the top 100 Interior Designers in the World for her second year in a row,  has had the privilege of working with professional athletes Nationwide since starting her career almost 15 years ago.

    I can tell you that you are one very wise man at this station in life to be thinking the way you are. One of my daughter's clients was a professional quarterback for several NFL teams during his career. He started out with the San Diego Chargers which is where and how he and my daughter began a professional relationship which has lasted over a decade now.

    She helped him design and rebuild his first home in Del Mar which he still owns and rent/leases to other ball players. Then when he was traded to the Rams he bought another home to live in and a condo for an investment to rent/lease which he as been successfully doing since he purchased. 

    After a couple of seasons he was once again traded to the Philadelphia Eagles where he and his new bride at that time, who played World Class Soccer on the US team that one 

    the World Cup, purchased a beautiful flat and had the building in the photo for a view. I took this photo myself from his living room whence visiting him in Philly with my daughter and family.

    Point of all this is that now that he has retired and gone on to become a sports broadcaster he has yet to sell any of the properties he purchased and refurbished/remodeled. Instead, aside from his broadcasting career he continues to buy and hold and my daughter designs, builds and/or remodels very nice real estate that he continues to rent/lease to fellow professional athletes all over the USA.

    At 26 and a young aspiring athlete with a limited shelf live as a professional athlete you are spot on to be thinking the way you are. My daughter's client and very close friend have gone on working as a team and have built a multi million dollar real estate portfolio. 

    So while you have the earning power, the youth and the energy you must JUST DO IT!

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Says you have been playing pro for a few years now according to Google.

    There have been a few baseball players on here before.

    What I would say is you are in your baseball prime years right now. Do not buy something because it is cheap. You will be dealing with nightmare tenants from afar and a property manager. Imagine trying to do your job  with baseball to focus and this takes you off track.

    The ability to make money with baseball far outweighs minimal cash flow from dumpy to average properties.

    A lot of high net worth investors invest in commercial real estate as it is more passive but takes more money to invest.

    If you have 500k to invest to 1 million or more you have options for commercial. If you have say 100k or 200k to invest then in your situation looking at buying a SFR or high end quad in a premium area with tenants makes sense. You can also buy into syndicates as a passive investor.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • John Arendsen
    Homeowner · VISTA, CA · Member since 2015 · 727 posts · 340 votes
    10y

    BTW as @Zach Mitchell advised start building your team now. Just like baseball requires total teamwork and loyalty to your teammates so to does building a good team to help you build your RE portfolio and career. Recruit the best teammates to build a great team and you'll be a champion in real estate.

    If you invest out of state or in other areas of the same state seek out the best RE agents in the area/s you intend to invest in. Don't make the mistake of using just one RE professional to help you purchase all your RE.

    The first thing they teach you when you start studying RE is that it is 100% local unlike a lot of other professions. No one RE professional can help you in every market. Unlike a designer who's only obligation and responsibility is to understand your tastes, learn about the genre and design criteria relevant to the market area you're buying in, etc. a RE professional whose worth his/her salt will only focus within his/her farm.

    0Reply
  • Darnell Kramer
    Investor · San Diego, CA · Member since 2013 · 66 posts · 25 votes
    10y

    @Lane A.

    Welcome to BP.  Great community here.

    One place to start is also:

    https://www.biggerpockets.com/real-estate-investin...

    Loved Millionaire Real Estate Investor. 

    Another thought about the traveling the country Idea that was mentioned above and your schedule is that send out an invite to some of the towns you will travel to during your away games and meet up.  I believe it was the drummer from Smashmouth that did that one.  Hope it worked out, sounded like a great idea.

    I have been full time military for the last decade so I get the travel. Sadly I do not get to research my other places, not much good RE there... ;) That leads me to Property management.  I have used property management my whole time.  You will basically find someone that will deal with everything.  Arrangements can vary, so talk to a few in the city you want to invest in, look over their contracts, make sure they have a good accounting system. I also like to ask my property managers for their idea on rent comps of my future purchases.

    So congratulations on your future investing path.

    0Reply
  • Justin R.
    Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
    10y

    @Lane A. A little counter to what others are advising, but I'm not sure I'd jump into REI in shoes like yours. If you've got something important going on that requires attention to succeed at (like being successful for the limited time you'll be able to play pro ball), there's a very real risk that you'll distract yourself with REI. If you're saving your money and investing it already, the capital will be there later to invest in RE once you've got the time to focus on it.

    I say this because I have a 9-5 job I love and have no desire to quit ... and I'm becoming aware that real estate can adversely impact that.  It's a very predictable case of spreading too thin and there's the potential of not being great at either.

    Just something to keep in mind as you weigh your options.  Protect the financial golden goose.

    3Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    Contrary to what others have said, I'd be careful about saying that you're a baseball player, when you initially go to any REI clubs, because there are going to be people, who are looking for newbies and suckers. And if you advertise, that you're new and have cash, they will be drawn to you like a moth to a flame. And when you're new to real estate, it's harder to separate who's real and who's not, when certain people see a reason to play up to you.

    I would suggest to go to the meetings, but keep some of that private and observe, learn, meet new people , maybe find a partner, who you feel comfortable with. And once you're more familiar with some of the people and the subject, then let more of the details out.

    Read all you can on Bigger pockets and interact with people here and ask questions.

    1Reply
  • Shane Hedeen
    Real Estate Agent · Saint Louis Park, MN · Member since 2015 · 213 posts · 82 votes
    10y

    Lane, 

    Welcome to BP! You are doing exactly the right thing in reading and learning. I have been a high school baseball coach my entire adult life, and never played beyond D3 level ball. Excellent for you to be thinking of investing and getting into real estate. 

    While eventually you have to act, I think it's important to continue to soak up new things. One thing you could always do during season on bus/plane trips is listen to some podcasts, including the BP podcast. Great alternative to music on trips while traveling for your job. 

    Would say you need to find an area you are comfortable investing in, and then start by building your team and network as you will need one with your job more than some others who are within a short drive to their properties. 

    Looking forward to reading future posts, and many successes! SH

    0Reply
  • David Dey
    Investor · Lakeland, FL · Member since 2015 · 344 posts · 606 votes
    10y

    @Lane A. who is an expert on money partnering with people all over the country and get some pointers from him.  

    Hope this helps

    0Reply
  • Stephen Hundley
    Realtor · Lafayette, LA · Member since 2011 · 297 posts · 175 votes
    10y

    @Lane A. congrats on seeing the opportunity real estate can provide and reaching out for help. Don't lose that drive for more info. I started investing when I was 22 but only after I started reading and learning since I was 18. I'm 28 now and man I made a bunch of mistakes but also avoided some through reading, research and mentors. Find people in your network that are successful real estate investors and take them out to lunch. You can set yourself up for retirement with a few smart decisions in real estate. 

    0Reply
  • Paulette Midgette
    Investor · Philadelphia, PA · Member since 2014 · 344 posts · 276 votes
    10y

    Hello @Lane A., check into a gentleman by the name of Ken Weinstein (see link below).  He is a prominent developer in Philadelphia, PA.  Like you and all of us here on BP he started with very little knowledge and money.  He has program in which he provides educational training and mentorships to professional alethic with RE goals such as yours. 

    Also check out a program started by Ken called Jumpstart Germantown.

    https://www.linkedin.com/in/kenweinstein

    Good Luck!

    0Reply
  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    10y

    @Lane A.

    Welcome to Bigger Pockets. It is great to see you hear.

    0Reply
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    @Lane A.   Be careful of the people that want your money.  If the club has not told you, you must have a great CPA.

    Many people here might not know but major league baseball players have some of the most complex personal tax returns in the United States.  They often make the filing threshold in every state they play in.

    I would talk to other players about CPAs.

    On the real estate side you might want to start with something boring.  Maybe a commercial property with a 15 year triple net lease.

    Please take my advice, pay enough down where it will easily cash flow.  As you mentioned you will not play baseball forever.

    0Reply
  • John Arendsen
    Homeowner · VISTA, CA · Member since 2015 · 727 posts · 340 votes
    10y

    @Lane A.so aptly stated seek out the best of the best at every level. Not totally sure having to take them OTL will win out over just a good ole fashioned eyeball to eyeball. But do take your time interviewing every/any professional you wish to get involved with. 

    The one thing I would be very worried about though is getting involved with friends. Unless you're connected at the hips and drawn blood on one another as young Indian Guides try to avoid friends. The best way to lose friends is to get involved with them in a biz deal that goes South.

    0Reply
  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    10y

    I was in a situation where I was making substantial money as a sales rep. The quarterly estimated taxes I was paying were more than what the average person makes in a year. It was quite disgusting. My CPA at the time had several professional athletes as clients. I happen to ask him, in total disgust at the thought of writing another one of those estimated tax checks, how I could mitigate this horrendous tax liability. He looked at me and said, "You have no overhead and therefore no write offs. Invest in real estate. That is what my other clients do." 

    I'm guess you don't buy your own bats or pay your travel expenses so you're overhead is probably quite limited too. Real estate can be a great way to keep more of your money on your balance sheet, even if it isn't in cash. The biggest problem I foresee is that you never know where you might end up. You may think you're going to go back home at some point, but you may end up in a city you really like and decide to stay there. That could be a real hassle if you buy just a few investment properties. I have properties in 5 states and there are many days I wish my tenants in the 4 other states would burn the places to the ground. 

    So, it would seem to me you have a tough decision on what to invest in and where to do it. Commercial is a great avenue. I have friends in commercial real estate, but they are backed by dozens of rental houses. Personally, I like very well located houses in upscale, gated, golf course communities. They rent well, stay rented and typically attract a much more stable (both financially and mentally) tenant. Commercial is great, but nobody needs a warehouse, or an office building. I like to invest in things that people need. Small to midsized apartment buildings are great as well and they satisfy one of the basic needs of survival; shelter.

    Maybe your 'friend' is looking for a partner and has more experience than you? If he/she is lacking in the experience department, be careful he/she isn't trying to get a real estate investment education at your expense. If your friend has a proven track record, he/she might be a good ally. 

    As for paying cash or getting loans, 4% interest financing on residential real estate is absurd. I'd take all of that financing I could get. I don't know how long interest rates will stay this low, but at some point in the future, you'll be laughing every time you make that monthly payment.

    Whatever you do, don't open a restaurant.. or buy everyone on your team a couple of suits.

    0Reply
  • MARK WOHLERS
    Canton, GA · Member since 2014 · 15 posts · 6 votes
    10y

    As a former player, good for you for thinking about life after baseball. 

    1Reply
  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Lane A. I would continue immersing yourself with books at this point. Then once you start hearing the same thing over and over again I'd start doing a strategy that you found most interesting. 

    Here's a book list: 

    http://www.biggerpockets.com/renewsblog/2013/04/14...

    0Reply
  • Cal C.
    Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Let me give a slightly different take.  You already know a good bit about real estate investing whether you realize it or not.  Every time you moved to a new city you had to find new accommodations and that very likely meant asking teammates or former teammates where they lived or the very looking for yourself.  I'm sure you quickly learned what was affordable and what was good value for money.   Which part of town to live in either to party or to save money.   You get the idea, but you have a lot of knowledge about finding a place to live you use that to your advantage by applying to providing a place to live.  

    When you are in Scranton (I strongly hope you are in the Bronx though!)  check out the prices to buy in the areas your teammates are living.   Run the numbers and you'll probably come to understand what could work and what wouldn't work.

    IL teams are spread to many cities that have great opportunities for REI, including Buffalo, Syracuse, Louisville, Columbus, and Indianapolis. Go check the markets out when you are there. Again run the numbers.

    Also you unquestionably have some contacts in Bentonville/Fayetteville, Omaha, and KC. Go there in the off-season and check out places to live.  

    Heck, some people really like Tampa and Orlando.  

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    10y
    Originally posted by @Lane A.:

    Hey everybody first I would to say thank you for taking the time to help me out. Please don't hesitate to voice your thoughts and opinions they will be greatly appreciated.

    I know I can't play baseball forever and I'd like to get some assets, equity and cash flow started while I'm playing. I've watched too many athletes go broke by not investing and not managing their money properly and I don't want that to happen to me. So please feel free to respond with your ideas, tips and all that good stuff. All of them are greatly appreciated.

    Thank you for your time and your willingness to help a rookie out

     Well, since you were with the Royals, I'll extend a warm hand of service and welcome, :)

    For those who don't know Lane, he's a hero on and off the field. He's also pretty hot on the hardwoods. I have family connected to Bears basketball and Hammon's Field. 

    Lane, I'd suggest you simply learn the basics of real estate first, you can't play any game well if you don't know the rules. You also can't play well if you don't understand the basic techniques and theory behind your skill. So, I'll invite you to my site in my signature line, it's free, and it's guru free as well.

    If you think the business side of baseball is tough, (it is) then try real estate and finance.

    I agree with others, your time is more valuable on the field and at home plate than in homes. 

    Long ago I was a nationally ranked amateur athlete and I know you eat and sleep your sport, like an addiction and personal distractions hinder performance.  

    I disagree that you need to "build a team" that takes time and knowledge to vet those you'd be doing business with. You need a manager, let the manager vet the partners, deals and the business end of your real estate ventures. I'll bet you already have a "team", your attorney, CPA and stock broker, most likely.  

    You do need to understand the basics of the industry from an investment standpoint, you will be directing your manager and making the final decisions. But, you don't really need to go crawl under a foundation or try to process rental applications.  

    After baseball, you can have a real estate portfolio to step into. If you want to go hammer nails you could, but you can do a lot more to be more profitable and effect how a or your community addresses housing needs. In other words, think bigger!

    One of the assets you have is recognition, that plays very in politics, not saying run for office, but real estate developments and investing is political, you have an upper hand. You might look up Section 42 Housing Tax Credits as an example.

    I can also tell you that reading guru books is not the path to take! Pulling some of things investors and operators talk about on the internet can ruin your good name! Higher profile citizens take on greater responsibilities, it's a cost of being recognized by your community, with fame comes obligations.

    When you were here in Springfield you made a choice concerning your education, I think you made the right choice. You could have gotten an MBA, but that wouldn't have put you in the position you're in today socially or financially. That's not to say that education isn't needed to manage and preserve your assets or to increase your earning potential.

    So, my suggestion is to enter the real estate arena at a more sophisticated level than most do without money, an education or experience. 

    If I can assist, don't hesitate to ask. All the best, yes, even with the Yankees :)  

    1Reply
  • Jynell BerkshirePro Member
    Real Estate Attorney, Broker, Investor · Indianapolis, IN · Member since 2013 · 207 posts · 58 votes
    10y

    Lane,

    Welcome to the BP community! It is great to hear that you are considering options other than your baseball career. As you have already learned, real estate investing is an opportunity that you can do full-time or part-time.

    Best of luck! If you are ever in Indianapolis, feel free to look me up.

    0Reply
  • William Kyle Walker
    Rental Property Investor · Atlanta, GA · Member since 2013 · 119 posts · 28 votes
    10y
    Welcome, We all got the real estate bug and that's why we ended up on BP. I guess the first thing would be to determine what your end goal is. Do you want a stable 5-6 FIgue income or to build an empire? Do you want to be supper involved or more passive? Should you use leverage? That depends on your risk appetite, I would suggest yes because that will magnify your returns. Since you will be on the road a lot I would download some investing podcasts. Bigger Pockets has one, The Real Estate Guys Radio is good, and I also like The Commercial Real Estate Show with Michael Bull. If I where you I wouldn't play with residential houses, I would start educating myself on commercial and multi family. Because the profession your in you will have the opportunity to build a rolodex of people that have funds to invest. This means you can take down bigger project threw "syndication".
    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    To me the most important thing is this:

    There are many, many different ways to invest in real estate. Read a lot and figure out what you'd enjoy doing. 

    Don't just pick one form, because it might make you a lot of money. See where your strengths and weaknesses are. Some forms involve more numbers crunching, others about dealing with people. Find something that you'll enjoy doing and that you're good at, don't just follow the money. 

    0Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    Another thing I'd suggest is to maybe change your profile and only use your first initial of your last name. These posts come up on google, so if a baseball fan googles your name, they'd come across your posts on BiggerPockets. I don't think that would be something you'd want. 

    1Reply
  • Parker Cox
    Independent Insurance Agent · San Diego, CA · Member since 2015 · 138 posts · 56 votes
    10y

    @Lane A. that as long as your smart, the money should still be there in a few years. And in the meantime, spend free time on here, read and learn all that you can, start to attend REIA events in your local area or many local areas and try and get your "hands" dirty following a mentor when you can.

    Pretend your starting investing with no money and no time, and learn the business from the ground up.  I believe that if you act like your backs to the wall financially, and the first deal will make or break your dreams, like so many others on here, if your educated, focused and driven, you will be wildly successful and then you will have the finances to accelerate faster than many others.  

    All the best.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free