Brady plays the game
Patriots fans have seen quarterback Tom Brady make some great plays on the gridiron, but it turns out he’s quite adept at playing the real estate market as well.
Reporter Kimberly Blanton writes in today’s Globe about a rather savvy deal Brady recently completed in Boston. Seems he purchased a Beacon Street town house in 2006 for $6.24 million, then converted it into four condos and sold three of them, keeping the top two floors for himself. The buyer paid $7.95 million for three units -– $1.71 million more than Brady paid for the whole building.
A local real estate agent told Blanton that the biggest selling point probably wasn’t Brady’s status as the area’s reigning hero quarterback. More likely the draw was the location, the parking spots, and the building upgrades.
Other experts said Brady likely didn’t turn a huge profit on the deal, because he spent so much money converting the building; but he did cut himself a pretty smart deal.
Sports marketer Marc Ganis said this shows Brady is taking charge of his financial future. Football players’ careers are limited, so players need to make wise financial decisions while they’re still playing. Actually, the NFL Players Association now requires rookies to attend financial planning classes to help them learn to manage their finances, instead of running off and blowing their first year’s salary on fancy cars and homes, etc.
However, I’m not too worried about Brady, he seems to have a grip on things.
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Are you sure it's not another home for one of Belichick's flings?
mmm...you know what, too much real economic worry out there to be devoting space to celebrity millionaire dealmaking. I love watching him play, but the guy lives in a different financial universe than the other 99.99% of us. I don't need to be reminded of his cheerfully turning several million into several million more. It's like describing the typical eating habits of mongolian goat herds to a Bostonian wondering what to have for dinner tonight. (What a simile!)
One small detail missing from Kimberly's story and those who "analyzed" it....the cost of renovation was not included in the calculations and I can assure you renovating 3 multi million dollar units for sale may have used up whatever "profit" one imagines Brady making. Fun celebrity story 'tho...not so much a real estate one.
accidental landlord, couldn't agree with you more. With so many struggling right now - hearing about how the rich continue to get richer hardly feels newsworthy or appropriate.
Let's be realistic here - and not give Brady too much credit. It's his entourage of investors, advisors and lawyers who take care of all of this. If anyone they should be commended for turning a profit. I would be surprised if Brady had any knowledge of what was going on.
I highly doubt Tom was down at Home Depot on the weekends picking out tile and paint colors.
Do we even know if Tom Brady made any money? Possibly he did, indeed, but one can't tell without knowing how much he spent to re-develop the building. The article alludes to that, but the headline ignores it completely.
If he could have made more money in a bank account in the meantime, would the deal still be savvy?
Articles like this are why the average person is so woefully poorly educated in finance. Instead of showing how to properly analyze a deal, a best case scenario is treated as fact, and awkward issues like carrying cost and renovation costs are ignored.
LL, Tom Brady has a first class degree from Michigan & he graduated CUM LAUDE , so your (talk) about him not knowing what is going on is rubbish - this man is very educated and smarter than most people in the sporting world - so before you come here spouting you garrbage again, go do a little reading about Tom.
"I don't need to be reminded of his cheerfully turning several million into several million more."
Ha! I love comments like this...
Well, you know... if you thought this article might have "peed in your Cheerios", so to speak, maybe don't read it next time. It was pretty obvious that it was about a millionaire making millions, right?
We do live in tough times, but you're only subjected to what you subject yourself to...
P-f-f-f-t, you're just jealous she didn't call you, Avi.
Ha ha!
Rehab costs, carrying costs (PITI), property taxes, realtor's selling commission, and short-term capital gains would eat up most of Brady's "profit."
I'm sure he made something, but to say he got a "free condo" out of the deal is pure fantasy, much like the crap they promote on the flipping shows.
I forgot, you can't live in New England unless you attend the church of Brady. How dare anyone question the local hero!
He may very well be a bright, highly educated fellow. HOWEVER, I very much doubt that he has the time to be general contracting on a condo conversion project. I'd be willing to wager that he did little more than put his signature on a few checks and a deed.
This blogger might want to review your comment before posting it.
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