Gene In Montana
Practice Squad Player
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- May 29, 2006
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CLICK HERE to Register for a free account and login for a smoother ad-free experience. It's easy, and only takes a few moments.Absolutely pathetic, how these guys go broke is beyond me. It does not take a ton of financial management skill to put away money for a rainy day. Sapp is a joke along with all these other clowns who "ball out" until they have nothing left. It's very simple really, intelligent wealthy people invest in appreciating assets (namely real estate) unintelligent wealthy people; mostly professional athletes, invest in depreciating assets (cars, rims, jewelry, hookers, cocaine) and then they wonder why they're in court filing for chapter 7. Be smart with your money boys.
Absolutely pathetic, how these guys go broke is beyond me. It does not take a ton of financial management skill to put away money for a rainy day. Sapp is a joke along with all these other clowns who "ball out" until they have nothing left. It's very simple really, intelligent wealthy people invest in appreciating assets (namely real estate) unintelligent wealthy people; mostly professional athletes, invest in depreciating assets (cars, rims, jewelry, hookers, cocaine) and then they wonder why they're in court filing for chapter 7. Be smart with your money boys.
...It's very simple really, intelligent wealthy people invest in appreciating assets (namely real estate) unintelligent wealthy people; mostly professional athletes, invest in depreciating assets (cars, rims, jewelry, hookers, cocaine) and then they wonder why they're in court filing for chapter 7. Be smart with your money boys.
The moment you got to the bolded part, you should have realized that your argument was a lousy one.
He has filed under Chapter 7, which will result in full liquidation of his $6.45 million in assets (including a “Large Nude women painting” . . . it’s unclear whether the painting or the women are large) to pay his $6.7 million in debts.
Of all the things he listed, real estate is still an excellent investment. I know someone who bought his first house in 2007…and another…and a third. All priced below the market and now have slowly appreciated. He lives in one and rents the other 2 out. All this hinges him on not losing his job (he's a physician so he should be able to keep a steady income)....
Of all the things he listed, real estate is still an excellent investment. I know someone who bought his first house in 2007…and another…and a third. All priced below the market and now have slowly appreciated. He lives in one and rents the other 2 out. All this hinges him on not losing his job (he's a physician so he should be able to keep a steady income).
He could have been like his contemporaries and gone house-poor buying a $750K home, but he instead lives in a $350K and makes money off the other $180K homes.
That is still a better investment than pretty much anything else out there.
And I know a lot of people who've lost their ass in the real estate market. His argument was a lousy one.
This is great for that person. However, he is in the minority. There's a max percentage of the population that will be able to take advantage of this. There are many factors, including property price paid, tax bracket, interest rates etc. Some factors beyond your control includes the economy, housing policy, unemployment, crime, natural disaster, maintenance, bad tenants, etc…In general, buying a home is more consumption than investment for majority of people. There is an owner-renter equilibrium, which is localized and your return will be dependent on this...
So in short, what DI said is quite accurate. I'm speaking from experience as a landlord and whose wife is a real-estate professor.
I don't necessarily disagree with your take. Real estate is not 100% profitable and someone has to lose a little for someone else to gain.
By the way, the person I am talking about decided to buy his investment props in Magnolia and Marlton, NJ…not far from you. He chose to live in Marlton instead of trendy Haddonfield, Moorestown, or Voorhees like his young doctor contemporaries.
A guy like Sapp could have all that and much much more.
So in short, what DI said is quite accurate. I'm speaking from experience as a landlord and whose wife is a real-estate professor.
Edit: People who have money sometimes do not do their homework. They don't know the hidden costs and are given bad advice by their advisers who make a living stealing a quick commission off them.
You've seen Sapp on TV. Do you think he is capable of making an informed decision?
Ok - so your wife (and you) know a heck of a lot more than me on this topic. I should probably slowly back away towards the door now.
Sapp claims $6.45 million in assets, which includes 240 pairs of Jordan sneakers and sandals, a Lion skin rug and a large nude women painting. He also has a De Grisogono watch but notes it has scratches on the crystal and band.
Of all the things he listed, real estate is still an excellent investment. I know someone who bought his first house in 2007…and another…and a third. All priced below the market and now have slowly appreciated. He lives in one and rents the other 2 out. All this hinges him on not losing his job (he's a physician so he should be able to keep a steady income).
He could have been like his contemporaries and gone house-poor buying a $750K home, but he instead lives in a $350K and makes money off the other $180K homes.
That is still a better investment than pretty much anything else out there. People in this country need to learn to 'just do your job.' There is no reason to max out multiple credit cards. Stop trying to impress your neighbors and just live your life with hard work, take care of your family, and hope your health doesn't leave you. 240 f@#king pairs of Jodans, my @$$.
Here is a funny quote from PFT:
Not to belabor this and I am far from the economist - but here is my take:
1. People who lose their shirts in real estate are probably stretching themselves too thin and taking chances trying to hit it too big, too fast. Even The Donald filed for Chap 11 in the early 1990s…so it is not just dumb, big, fat athletes who end up there.
2. As far as the banks go - wasn't much of their loss due to lending to homeowners and investors who had to be foreclosed upon? Again, people stretching themselves too thin.
Deus, I am not saying EVERYONE makes it in real estate…but those with means (like Sapp) could have invested $10-15M for rainier days and used it after retirement. Tampa is not an expensive city - reasonably priced real estate that could slowly mature over time. These guys think of an investment as something that doubles overnight. That does not happen with anything unless you are talking about real estate in Asia. In America, you have to be patient and be in it for the long haul.
That pretty much sums it up. Ever since Sapp tried to humiliate Russ Hochstein by attempting to "interview" him at the Super Bowl years ago I've had no stomach for the bug-eyed toad. I would love for the NFLN not to renew his contract.
It's a general lack of discipline (look at the bankruptcy rates of Lotto winners). Being financially educated doesn't stop intelligent people attempting to live beyond their means. If you can't afford something now, it's better not to buy it or attempt to save for it in the future.Not buying your take
Donald Trump has gone broke a couple times on Real Estate
You need a good supply of more cash than you think to maintain your properties between buy and sell
Tampa RE has gone down substantially in the years since Sapp quit football
Bottom line is that Deus is right. It's easy to lose money if you have no experience with it. Guys hear millions and decide that they can buy anything they see. Worse yet many of these players try to do the right thing maybe buying Mom a house but hire unscrupulous financial advisors and managers who piss their money away on restaurants, real estate and risky stock investments.