Where to Invest: A Pro Athlete's Guide

Professional athletes often find themselves with substantial wealth at a relatively young age. A common investment strategy is to diversify their portfolio by purchasing real estate. But where to invest? The decision can be daunting, even for the most seasoned financial advisors. Let's explore three primary factors that often influence an athlete's choice: destination cities, hometown connections, and familiarity.

Destination Cities

Many athletes choose to invest in real estate in cities known for their vibrant economies, booming populations, and high demand for rental properties. These "destination cities" often offer substantial returns on investment. Think about cities like New York, Los Angeles, Miami, and Chicago. These metropolitan areas attract tourists, businesses, and young professionals in droves, ensuring a steady stream of potential renters.

Hometown Sweet Investment

For some athletes, there's a strong emotional pull to invest in their hometown or the city where they attended college. Nostalgia aside, there are practical reasons for this choice. A deep understanding of the local market can provide a competitive edge. Strong personal and professional networks can facilitate property management and tenant acquisition. Moreover, owning property in a familiar environment can offer a sense of security and stability.

The Familiarity Factor

Another common approach is to invest in a city with which the athlete is already familiar. Perhaps it's a place they visited frequently during their playing career or a city where they have friends or family. This familiarity can provide comfort and ease the investment process.

Ultimately, the decision of where to invest in real estate is a personal one. A combination of factors, including financial goals, risk tolerance, and personal preferences, will influence the final choice. While destination cities offer high potential returns, hometown connections and familiarity can provide stability and peace of mind. Regardless of the chosen path, we can help you choose a city that will work for your next home! Click the video below to see what Founder and CEO Rod Watson has to say.