Friday, December 1, 2006
Helping NBA Milllionaires Manage
Hummers. Escalades. Custom Rolexes. Champagne rooms. These things go with the territory for many NBA players, helping spark sportswriters such as the New York Times' William Rhoden to wonder if today's star athletes are not "$40 Million slaves". While some may be slave to a luxurious lifestyle, none of them can play sports forever.
Lisa A. Vander of San Diego, author of "The Real Guide to Making Millions Through Real Estate", helps the tallest millionaires invest their capital. I spoke with her regarding her work with the ballers.
SC: How did you begin your work with the NBA?
LV: I was invited to speak at the players' annual meeting in the Bahamas. I addressed all the players about real estate investment. The initial idea was to come in once a year to speak with the rookies as part of their orientation. I also offered a class in New York twice a year to remind the players about sound real estate strategies.
SC: Do you advise players about new real estate development, existing properties, or both?
LV: We cover holdings and new property. We establish the ground rules for building a strong portfolio, and how to adjust strategies to current market trends. I also teach them how to grow their established investments.
SC: Describe your current interaction with the league as a client.
LV: I go around to each team to discuss real estate. I'm designing a newsletter for the players. And the players' union is buying my book.
SC: Given that the players have their own accountants and lawyers, does that make your work with them awkward?
LV: If their portfolio is in poor shape, they are extremely vulnerable. I recommend that they stabilize it, and I discuss my book with their representative. I make it clear that before we add assets into their portfolio we must build a strong foundation.
SC: How important is technology to players' research and updates on their holdings?
LV: In the beginning, it plays a huge role. The players are very tech savvy, and with the proper access to information, they're ready to rock and roll. A lot of this is new for the industry, and the general audience is still learning it, but for the average age of the players, it's a tremendous help.
SC: How do you work in terms of the other areas in which the players are already invested?
LV: Real estate is unlike CDs, bonds, or their other investments. They might have solid areas, or general partnerships, but still be vulnerable in terms of real estate. They need to know hat different factors effect the housing market. It's much more complex than the stock market. I'm putting together a CD for them, and hope to produce a DVD they can watch in the hotel, or while they're driving or on the plane.
SC: Do you advocate that they own property near the city they play in or are from, (so players can keep their eye on them or are more familiar) or do you suggest properties anywhere, based on their potential?
LV: One doesn't have to own near where they work or live. Assets should be diversified, and the total market examined. We're looking for the highest potential for appreciation or cash flow in a diverse market. Players should diversify by sector, cycle, and region. You can't do this by only investing where you live.
SC: How have the players responded to your input?
LV: Really well. They learn fast and they want to learn, to know things. These guys want to help their families, and to become stable financially. I'm impressed with how many have foundations, and charities. Learning to invest well in real estate is part of the big picture for them.
SC: Thank you, Ms. Vander, and we wish you well in your endeavors.
LV: Thank you.