June 28th 2024.
As Black athletes continue to make history in their respective sports, they also have a unique opportunity to secure their financial futures. While the money from contracts and endorsements may seem like a never-ending flow, the reality is that athletic careers can be volatile and short-lived. To ensure long-term financial stability, it’s essential for these athletes to explore avenues beyond the sports world, and one of the most promising options is investing in commercial real estate.
According to experts, commercial real estate offers a stable and passive income that can extend well beyond an athlete’s playing years. This is because commercial properties, such as office buildings, retail spaces, and industrial complexes, generate consistent rental income regardless of the athlete's active status. As ARVO Small Business CEO Ed Ryland shared with BLACK ENTERPRISE, this is crucial for athletes who have seen many of their peers go from big contracts to broke in a short period of time. With the recent changes allowing college athletes to benefit from NIL agreements, it’s even more critical for them to learn early on how to secure their financial future beyond their playing days. Investing in commercial real estate is a reliable way to achieve this.
One of the most significant advantages of investing in commercial real estate is the potential for both income and asset growth. As property values generally appreciate over time, new Black athletes can use their current earnings to secure properties that will continue to increase in value, ensuring long-term financial security and prosperity. As Ryland noted, this is about creating a legacy of wealth that can benefit not just the athlete but also their families for generations to come.
Investing in commercial real estate also has the power to drive community empowerment and revitalization. Some Black athletes have been known to invest in properties in their old neighborhoods, which not only helps to improve the local infrastructure but also creates jobs and supports small businesses. This has a positive impact that extends far beyond individual financial gain and allows athletes to use their success to make a tangible difference in the lives of others.
Moreover, investing in commercial real estate comes with significant tax benefits. As many wealthy business owners have shown, depreciation, mortgage interest deductions, and other write-offs can reduce taxable income, allowing investors to keep more of their earnings. This can be particularly advantageous for athletes who often find themselves in higher tax brackets due to their lucrative incomes.
However, Ryland advises that it’s essential to seek the assistance of a professional when venturing into commercial real estate investing. This is not something that should be done without the expertise of someone who can help with negotiations, market analysis, property management, and other aspects of the commercial real estate world. By partnering with professionals, athletes can make informed decisions, maximize their investment potential, and effectively manage their portfolios.
In conclusion, commercial real estate is a smart and practical investment option for new Black athletes looking to secure their financial futures. It offers a stable and passive income, the potential for asset growth, the opportunity to give back to communities, and significant tax benefits. With the guidance of professionals, these athletes can make informed decisions and create a legacy of wealth that will benefit themselves and their families for generations to come.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
