Xavier Worthy injured during 1st practice as a Chief

[90sBills]

So has this kid bought a house yet or what?

[Alphadawg7]

1 hour ago, Royale with Cheese said:

I don’t think we needed to go to the extreme.

 

I don’t its a smart idea to buy 20 houses at 10%.  Just buy one for cash, live in it for 2-3 years and I am certain you will make money if you buy in the right location.

 

I just would never rent with that much money.

Well remember the subject person here…a first round draft pick with substantially more means than necessary to buy 20 properties with 10% down.  I’m not suggesting someone stretch themselves thin, and would never suggest to over leverage oneself.  
 

In 2004 the 28th pick was Chris Gamble who signed a $7.5m rookie contract with a $2.75m signing bonus and annual salary of $1.5m.

 

He could have easily bought those homes with 7 figures left over and $1.5m salary coming every year after.  

[Green Lightning]

On 5/30/2024 at 5:52 PM, ndirish1978 said:

 

This is the guy everyone wanted?

Well, at least it's fast money.

[Alphadawg7]

It takes more than physical traits to make it in the NFL.  This isn’t the kind of start you want to see from your first round WR if I am KC.

 

Keon is not only physically gifted, he has all those other qualities that you can’t teach…those qualities you need to be great.  
 

Kobe Bryant knew he wasn’t the most talented player coming into the NBA, so he made up for that by out working everyone else to become the best.  From what we have seen and heard from Keon, I feel like he’s got that kind of drive and mindset where it’s not about flash and bling…it’s all football all the time for this kid.

 

What kind of potential and what he becomes in the NFL is yet to be known…but what I do know I am confident in is that Keon will reach what ever his potential is, because he will put in the work to make sure he does.  

Keon is the kind of prospect I always want and root for.  

[Mr. WEO]

20 hours ago, Royale with Cheese said:

 

So whose link is correct?   

Let me guess, Zillow obviously is smarter than Redfin.

And just like any city.  Its location.  Most people are poor and those areas houses do not appreciate well.  Nicer areas appreciate very well.  I think someone like Worthy would have a home in a nicer area of KC.  
 

Would you say houses appreciate more in Orchard Park or the lower Westside of Buffalo?  
 

 

 

It was the KC realtors association publishing the numbers.

 

19 hours ago, Alphadawg7 said:

Agree to disagree on whether investment homes are worth it or not.  I’ll take the permanent income for life from the rents which are all mostly profit once other people pay your mortgage which is also something you are not considering in your comparison. 
 

Player buys 20 houses putting 10% down that’s $600k outlay and would be worth $12.6M today based on the earlier parameters.  And once the mortgages are paid off the rents would be earning him an additional $800,000 to $1,200,000 annually in income on top of the future equitable gains. 
 

Again, good to do both and be diversified.

 

 

 

What's the rental market for $600,000 homes in KC?

[FLFan]

On 5/30/2024 at 5:52 PM, ndirish1978 said:

 

This is the guy everyone wanted?

He is definitely a Chief.  

[Alphadawg7]

13 minutes ago, Mr. WEO said:

 

It was the KC realtors association publishing the numbers.

 

 

What's the rental market for $600,000 homes in KC?

I don’t know, it’s not 20 years later.  And when it’s an investment property you can buy anywhere, not just KC.

[Mr. WEO]

4 minutes ago, Alphadawg7 said:

I don’t know, it’s not 20 years later.  And when it’s an investment property you can , not just KC.

 

you keep changing the topic.

 

to reset, we are talking about which is best for a rookie in a new town: rent or buy his home, which he may only be in for 2 years.

 

There are myriad better investments than houses in KC.  no need to discuss them here. 

[Alphadawg7]

15 minutes ago, Mr. WEO said:

 

you keep changing the topic.

 

to reset, we are talking about which is best for a rookie in a new town: rent or buy his home, which he may only be in for 2 years.

 

There are myriad better investments than houses in KC.  no need to discuss them here. 

I never changed the topic because I never commented to you or things you said.  I joined a side convo where there was discussion of real estate vs index funds on why I think people should do both.  Then you decided to start commenting at me under your previous context even though none of my posts were directed at you or what you had previously proposed.  
 

But since you brought it back to your original thoughts, technically all I’m discussing is really a 3rd option where a player does both…rent and buy.
 

Now it’s ok that you don’t agree with me on the 3rd option, but my part of this convo was never directed at you or your original comments.  But given you have brought the two discussions together multiple times now, I will say it’s not only a viable 3rd option to your original 2, but also a great option to both preserve and grow newfound wealth for these rookies.
 

For example, If Chris gamble would have done it 20 years ago as the 28th pick in the 2004 draft, his assets and portfolio would be almost double the gross value (even before agents and taxes) of his entire 5 year rookie contract today with permanent significant monthly income for life.
 

So feel free to dismiss it or disagree with it, that’s fine, but doesn’t change the fact that a young player getting early assets as a rookie into long term holdings could literally set him up for life after football.  And as an investment property, it doesn’t have to be KC, it can be anywhere they feel best about.  

[Billy Claude]

19 hours ago, Alphadawg7 said:

It takes more than physical traits to make it in the NFL.  This isn’t the kind of start you want to see from your first round WR if I am KC.

 

Keon is not only physically gifted, he has all those other qualities that you can’t teach…those qualities you need to be great.  
 

Kobe Bryant knew he wasn’t the most talented player coming into the NBA, so he made up for that by out working everyone else to become the best.  From what we have seen and heard from Keon, I feel like he’s got that kind of drive and mindset where it’s not about flash and bling…it’s all football all the time for this kid.

 

What kind of potential and what he becomes in the NFL is yet to be known…but what I do know I am confident in is that Keon will reach what ever his potential is, because he will put in the work to make sure he does.  

Keon is the kind of prospect I always want and root for.  

 

Sorry for being a PITA but maybe you got Kobe Bryant mixed up with someone else?   Kobe was well known for worling hard but it wasn't because he didn't think he was incredibly talented.  He was well known for his supreme arrogance regarding his athletic ability.  The guy was drafted into the NBA out of high school .  A player (especially someone from a well off family) does not declare for the draft out of high school if they didn't think pretty highly of themselves nor does the NBA draft players out of high school because they try hard.

 

 

 

Edited June 3 by Billy Claude

[Royale with Cheese]

On 6/1/2024 at 7:27 PM, Alphadawg7 said:

Well remember the subject person here…a first round draft pick with substantially more means than necessary to buy 20 properties with 10% down.  I’m not suggesting someone stretch themselves thin, and would never suggest to over leverage oneself.  
 

In 2004 the 28th pick was Chris Gamble who signed a $7.5m rookie contract with a $2.75m signing bonus and annual salary of $1.5m.

 

He could have easily bought those homes with 7 figures left over and $1.5m salary coming every year after.  

 

I just look at it like, why stretch yourself that thin?  Start with one property, pay cash, never have a mortgage on it and then buy another one later when you have the cash.  It'll take years buying 20 properties with 10% down to turn a consistent profit.  Paying cash means immediate returns and cash flow.

[Alphadawg7]

3 hours ago, Billy Claude said:

 

Sorry for being a PITA but maybe you got Kobe Bryant mixed up with someone else?   Kobe was well known for worling hard but it wasn't because he didn't think he was incredibly talented.  He was well known for his supreme arrogance regarding his athletic ability.  The guy was drafted into the NBA out of high school .  A player (especially someone from a well off family) does not declare for the draft out of high school if they didn't think pretty highly of themselves nor does the NBA draft players out of high school because they try hard.

 

 

 

 

No disrespect, as a Laker fan, Kobe is maybe my favorite player all-time in the NBA.  Of course Kobe had talent...what I said is what Kobe himself said many times during his career...which was that hard work beats talent.  And that was his mindset his whole career leading up to and in the NBA.  He never felt he was the most talented player, but he knew he was the hardest working player and that no one was going to out work him at becoming the best. 

 

I think you misread what I wrote because you seem to have more the impression it meant he had no talent and only got there on hard work...but that wasn't what I wrote.  

 

Edited June 3 by Alphadawg7

[Alphadawg7]

14 minutes ago, Royale with Cheese said:

 

I just look at it like, why stretch yourself that thin?  Start with one property, pay cash, never have a mortgage on it and then buy another one later when you have the cash.  It'll take years buying 20 properties with 10% down to turn a consistent profit.  Paying cash means immediate returns and cash flow.

 

I get that...but when you are NFL player you don't need immediate returns and cash flow as its not your income.  So applying the power of leverage for long term gains becomes substantially more valuable to them.  But hey, even if they did pay cash for the property, it would still be a great move for them.  

[Billy Claude]

5 minutes ago, Alphadawg7 said:

 

No disrespect, as a Laker fan, Kobe is maybe my favorite player all-time in the NBA.  Of course Kobe had talent...what I said is what Kobe himself said many times during his career...which was that hard work beats talent.  And that was his mindset his whole career leading up to and in the NBA.  He never felt he was the most talented player, but he knew he was the hardest working player and that no one was going to out work him at becoming the best. 

 

I think you misread what I wrote because you seem to have more the impression it meant he had no talent and only got there on hard work...but that wasn't what I wrote.  

 

 

 

OK.  I certainly agree that Kobe believed that you had to work hard to be your best  no matter how talented you are.   Some of ths stuff he said was probably shade at Shaq who probably was the most talented player in the NBA at the time but definitely did not work as hard as he could.

 

[Royale with Cheese]

1 hour ago, Alphadawg7 said:

 

I get that...but when you are NFL player you don't need immediate returns and cash flow as its not your income.  So applying the power of leverage for long term gains becomes substantially more valuable to them.  But hey, even if they did pay cash for the property, it would still be a great move for them.  

 

You mean he's not thinking like a 42 year old middle class dad who wants to generate a little more income so he doesn't buy off brand stuff just to save $2.00?

 

My first post about real estate investing in this thread was sarcastic and it kinda too off lol.

 

[Alphadawg7]

1 hour ago, Billy Claude said:

 

 

OK.  I certainly agree that Kobe believed that you had to work hard to be your best  no matter how talented you are.   Some of ths stuff he said was probably shade at Shaq who probably was the most talented player in the NBA at the time but definitely did not work as hard as he could.

 

 

Oh yeah, and it's the main reason why him and Shaq clashed and eventually split.  

[Alphadawg7]

1 minute ago, Royale with Cheese said:

 

You mean he's not thinking like a 42 year old middle class dad who wants to generate a little more income so he doesn't buy off brand stuff just to save $2.00?

 

My first post about real estate investing in this thread was sarcastic and it kinda too off lol.

 

 

Ha...well I joined in midway when the convo seemed to go index funds vs real estate.  And my main comment is that real estate should out pace the fund and its good to do both...and then those comments took off lol. 

 

The nature of of a message board though, was interesting none the less.  

[billsfan89]

On 6/1/2024 at 5:17 PM, Alphadawg7 said:

No offense but your math is wrong here.  He didn’t invest $330,000 in 2004, he invested $30,000.  Had he invested $330,000 (that would have bought 11 homes in that scenario) it would be with $7.271 million which is a lot more than $1.28 million from your fund.  

 

Then you are talking about just being insanely over leveraged by taking out 3 million in debt counting on rentals on 11 individual homes to help pay that consistently. While pay property tax, insurance, up keep and closing costs on 11 different homes. The risk that comes with that and the money needed to cover the difference on the mortgage and rental on 11 properties is not really a viable proposition for the first 5-8 years. The odds of getting 11 good renters for 20 years is nearly 0%. Also banks are not likely to lend to you at a good rate for 11 homes as they would for one home you would be living in even in the looser credit time of 2004. 

 

You should almost always aim to own the home you live in but as far as where to invest your other money? I would say an index fund in the S&P 500 with dividends reinvested is far better and less stressful way to invest money as opposed to over leveraging yourself on investment properties.

[Jauronimo]

Keon and Worthy will be inextricably linked for their entire careers much like Allen and Mahomes.  Who will have the better career is completely unknown.  But one thing is clear: you should diversify your portfolio by going all in on the Missouri real estate market.  

[DCofNC]

3 hours ago, Royale with Cheese said:

 

I just look at it like, why stretch yourself that thin?  Start with one property, pay cash, never have a mortgage on it and then buy another one later when you have the cash.  It'll take years buying 20 properties with 10% down to turn a consistent profit.  Paying cash means immediate returns and cash flow.

Yeah, and you outlay all the cash to have it pay you back slowly or you buy 10 houses with 10% down, for the same money, have 10 houses cash flowing, 10 houses to claim depreciation against and 10x the tax shelter.  You don’t understand the investment in real estate game.

40 minutes ago, billsfan89 said:

 

Then you are talking about just being insanely over leveraged by taking out 3 million in debt counting on rentals on 11 individual homes to help pay that consistently. While pay property tax, insurance, up keep and closing costs on 11 different homes. The risk that comes with that and the money needed to cover the difference on the mortgage and rental on 11 properties is not really a viable proposition for the first 5-8 years. The odds of getting 11 good renters for 20 years is nearly 0%. Also banks are not likely to lend to you at a good rate for 11 homes as they would for one home you would be living in even in the looser credit time of 2004. 

 

You should almost always aim to own the home you live in but as far as where to invest your other money? I would say an index fund in the S&P 500 with dividends reinvested is far better and less stressful way to invest money as opposed to over leveraging yourself on investment properties.

There are massive tax considerations you aren’t thinking about with the real estate vs stock investment.  Both have their place, but for a high earning employee, there’s a very good reason to take on investment properties for tax shelter.