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Show Summary
The conversation explores the intersection of real estate investment and professional athletics, focusing on how athletes can leverage real estate to mitigate financial risks and create sustainable funding opportunities. Anthony Scheirer discusses a specific case involving a Division III baseball player transitioning to a professional career and establishing a fund to revitalize a farm in Pennsylvania, highlighting the potential for athletes to engage in real estate ventures.
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Investor Fuel Show Transcript:
Anthony Scheirer (00:00)
Yeah, well you’re going to see them all get involved in real estate here in a minute because when they come to you and say, well, how much money do I need? You say, well, none. You go see Anthony. Because they’re a very special niche and they have power that us lay people don’t have. so we just harness that power for the athletes and we help them be, you know, we’re an equity partner and we help them be successful.And when they’re successful, we’re successful. And it’s just a better way for the athlete. It’s about risk aversion, right, and
Dylan Silver (02:05)
Hey folks, welcome back to the show. Today’s guest is in the Pennsylvania area and has a fund that works with accredited investors to invest along with athletes and alongside athletes. Please welcome Anthony Scheirer. Anthony, welcome to the show.Anthony Scheirer (02:24)
Thanks Dylan.Dylan Silver (02:25)
It’s great to have you on here. And before we hop into the platform that you’re involved in, which is, think, really interesting, and I haven’t had a guest on the show who’s doing what you’re doing, I do want to back up and ask you about how you got into the real estate space.Anthony Scheirer (02:38)
So the CEO ofMitigation for since college and real estate for investors is a huge Risk Mitigation.
So when we started dealing with athletes, we want to try to mitigate their risk. And it was just leveraging real estate and real estate developments was just kind of in our wheelhouse that, hey, if we marry these two things, we can really help these guys.
Dylan Silver (03:05)
You know, I think, A, everyone really should be looking at real estate right now, whether you’re a professional athlete, whether you are potentially in a spot where you think, I can’t afford to be a real estate investor. My mindset as someone who used to think that way is if you can’t beat them, you have to join them because real estate is only gonna get more and more expensive really anywhere in the United States. And on top of that,If you’re not thinking like an investor, it’s gonna be more more challenging to get in, especially where you’re at Pennsylvania, where I’m originally from, Northern New Jersey. I wanna ask you about the athletes themselves and their interest in real estate. Is this a common, I would say, interest point for athletes, that they’re interested in investing in real estate, they’re interested in real estate deals?
⁓ Or is this ⁓ something that is maybe newer and more niche and it’s not across the board in general?
Anthony Scheirer (03:58)
Yeah, so I want to back up because you said about people not being able to invest, start investing in real estate. And what we really bring to the table for athletes, whether they’re NIL pro or retired pro, is that they don’t need any capital. We raise all the capital for them or we help them raise the capital. we really democratize this thing, allowingthese athletes that don’t have money and income and NIL deals or pro contracts to be able to have the same leveraging power. So to answer your question, the athletes, yeah, they see real estate as a safe investment, right? And with most athletes going broke shortly after retirement, they are told to, put your money in, put your money in, put your money in. So our problem with that is that, well,
Dylan Silver (04:44)
Right.Anthony Scheirer (04:48)
Just like everybody else, they’re getting mortgages where they’re paying fees and commissions, right? And there’s this personal risk there because they’re putting their money out at risk. So we want to help stop these guys from going broke and anytime we can prevent fees and commissions, we’re a huge fan of that.Dylan Silver (05:54)
It’s a business model that I’m impressed by. It’s definitely novel. The idea is effectively that these athletes have exposure that people will be interested in investing alongside them. Help me walk through some of the granular aspects of this, maybe without giving away all the secret sauce.Anthony Scheirer (06:12)
Yeah, no. So you keep saying invest alongside them. And once again, they don’t need their capital. So it’s their business. So you’re investing in this athlete’s business, right? At the end of the day, it’s not different than any other kind of real estate, a bigger real estate venture company, right? It’s theirs. So, you know, it’s an opportunity for people to help athletes and team up with them to be able to help stop this terriblespiral that most of them find themselves in because they get a lot of bad advice that sounds like good advice. you know, just, if athletes keep listening to the same advice, the same thing’s gonna happen. And now with NIL, these college kids, well, they’re on the same path. So we need to do something to stop that. And that’s what our whole plan is.
Dylan Silver (06:42)
Right.Yeah.
So I have a
better idea now. Are you in many ways also advising and educating the athletes on this? Because if they’re not putting up their own capital, they must have lot of say and, you know, men power and effort of their own time, you know, their time capital in order to make this value add, right?
Anthony Scheirer (07:16)
So we just require them to just market themselves, just to be themselves. essentially their business would be essentially like a sponsor. So anytime that they’re talking to the press or anybody else, it can be part of the conversation.Dylan Silver (07:28)
I think it’s interesting, you know, because I actually had an experience recently when I was living in Denton where a local college football player actually reached out to me and was asking me about wholesale. And I thought, how interesting is this that my platform has reached?you know athletes young athletes who are asking me hey how do I get involved in real estate deals how do I do my first transaction how much cash do I need walk me through this and to your point you know the exposure that they have was interesting to me as a real estate guy I’m sure you know other people around were saying hey I like so-and-so I like what they’re doing on the field but also it’s really you know novel what they’re doing off the field as well how can I get involved is there perhaps
trend to this are we seeing more athletes get involved in real estate in general?
Anthony Scheirer (08:18)
Yeah, well you’re going to see them all get involved in real estate here in a minute because when they come to you and say, well, how much money do I need? You say, well, none. You go see Anthony. Because they’re a very special niche and they have power that us lay people don’t have. so we just harness that power for the athletes and we help them be, you know, we’re an equity partner and we help them be successful.And when they’re successful, we’re successful. And it’s just a better way for the athlete. It’s about risk aversion, right, and
and things like that.
Dylan Silver (08:51)
Right.I want to ask you about some of the asset classes that are part of maybe their businesses, right? So whether it’s single family, small multifamily or commercial residential, also, is it close to them? Like if they’re a Texas athlete, are they investing in Texas? If they’re Florida, is it in Florida or is it a little bit across the board? A mix of everything?
Anthony Scheirer (09:49)
Yeah, it’s to revitalize, like the ones that are doing it to revitalize communities are doing their, where they are now, their hometown, right? And anywhere in between, because they can have this power to help. we even set it up so that at the end of the day, the community members can invest themselves through regulation A.it’s a great way for non-accredited investors and that’s the second step. Actually, it’s concurrent with the Reg D offering.
Dylan Silver (10:17)
You know, it’s interesting because when you talk about revitalizing the area that you’re in, right? This is really where I’m passionate about real estate. I come from a distressed background, know, foreclosures, know, death in the family, divorce, distressed property in general, right? And so as someone who’s worked a lot with investors, I love that niche. And that goes hand in hand with revitalizing. ⁓communities and I think especially for young people and young people who are getting involved in the real estate space It’s a great way to look at it versus you know, well I have nothing against this and I do think it is great, you know owning a commercial residential Apartment complex that’s already established and then maybe doing a small value add there is a different ballgame entirely It doesn’t necessarily have the same heartwarming feel to it. So I have a lot of
affinity and also admiration for folks who are specifically looking to revitalize the area that they’re in.
Anthony Scheirer (11:13)
Well yeah, and can you imagine like your favorite hometown athlete is revitalizing your hometown and as a fan you can participate in that with that athlete and so that’s what we’re really bringing to the table is just allowing everybody to get involved in real estate investing. It’s almost like a Robin Hood.Dylan Silver (11:25)
Yeah,I think it’s great. The idea for folks to be able to participate without themselves having to go out and knock doors and without themselves having to learn exactly how to take a deal from the cradle to the grave. I know how much work I had to put in to understand title work and the first instance as a Texas licensed realtor, the Trek contract. And so for folks, it’s expensive too. ⁓
Anthony Scheirer (11:52)
And expensive, expensive too, right? So yeah, we handleall that. We handle all the back office for.
Dylan Silver (11:59)
For folks who may be on the outside looking in, a lot of that can be overwhelming and it could be kind of what…stops people, right? So they may think, okay, well, I only have so much time, I can’t go learn this, I only have so much available resources, you how do I get more involved? I want to ask you, pivoting a bit here, Anthony, about scaling the business and about connecting with athletes. And also, you know, what is the general message to athletes in the sense of, you know, I’m sure a lot of people are coming to you saying, well, I don’t know all that much about real estate, how can I be a good fit for this?
Anthony Scheirer (12:33)
Yeah, well most of them think it’s too good to be true. we have to sit down and say, no, listen, this is what we’re doing, this is why we’re doing it. And the light bulb goes off and they say, all right, I’m in. Because there’s no reason not to be. So there’s potential tax efficiencies for a lot of these, especially the college athletes and their income. It’s amazing how much money they make now and they’re going to have a big issue come next.Spring. ⁓ So it just makes financial sense for them to do it. It helps them start a legacy that they can rely on and they can just keep revitalizing communities and doing what they want.
Dylan Silver (12:57)
Yeah.I think when it comes to the idea that it’s too good to be true, I think one of the beauties about real estate is the ability to pivot. And so right now we’re in this time period where NIL still feels new. People are still real.
realizing ways where they can best make use of this. And then also too, you have people like yourself who are realizing, well, there’s a niche here. There’s young people who have a brand, but they also have the possibility that this might not be a forever thing, right? This could be four years, this could be three years, this could be the next 16 years if they go pro, but what do I do right now?
Anthony Scheirer (14:27)
Yeah, well, so they need to set up a business, a proper business structure, first and foremost. So that’s what we do for athletes. Just having that structure provides tremendous value. And then from there, we can now figure out, okay, well, what’s the best course? And when it comes to paying their people, their parents, right, everyone’s to buy mom a house. And like, well, listen, let the …let the business do it, right? Because it reduces that liability for them. It gives them efficiencies and then they can even hire mom and qualified people to help run that business take our place. Because I don’t want to all these businesses, but we made it as simple as possible so that the athletes have the chance. So number one, anytime active, retired, pro, NIL, you to have a business, the right business.
That’s what we really want to get across to them.
Dylan Silver (15:22)
about, you mentioned supporting family, right? There’s so many tax benefits to real estate specifically. And then once you kind of peel back the layer, you realize, there’s all this other strategy that I can get involved in. You start meeting people who are in the same niche that you’re in, and then you realize, ⁓ I need to do this. When athletes are new to the idea of real estate investing, and they may not be familiar with tax strategy, as I would say most people are not, but they are interested in,Anthony Scheirer (15:46)
Yeah, I mean.Dylan Silver (15:47)
buying mom a house or helping someone with a business. How much of the education, whether it’s you are giving them or whether you’re referring to folks on the tax strategy side of the game, is being given to these athletes in general? Is there a lot of tax strategy that’s given to these NIL athletes and what kind of guidance are they given in general regarding?Anthony Scheirer (16:07)
Yeah, so that’s a case by case basis with the tax advisor. Right? So yes, there are tons of efficiencies that can be recognized that aren’t traditionally recognized for, especially athletes that are current. There’s so much we can do that their tax person probably has no idea. So as we grow here, word of that will get out. But it’s just…That’s probably one of the biggest reasons for starting a business with us and letting us do this process for athletes because it’s such a potential efficiency. And we’re not asking them for money, so why wouldn’t you?
Dylan Silver (16:44)
It’s such a novel idea and whenever I hear things like this, it’s like, person threaded the needle and found gold and is connecting the dots. And that’s really the hallmark of great real estate operators because you know it, Anthony, I know it. The same real estate strategy that worked 10 years ago.you know, shoot five years ago might not be effective today. I know so many fixing flippers, for instance, in DFW in San Antonio throughout Texas that had to pivot their business model slightly. We are coming up on time here though, Anthony. Where can folks go if maybe they’d like to reach out to you? They may be an athlete themselves or they’re interested in what you have going on.
Anthony Scheirer (17:23)
Yeah, so we have a little bit of an ecosystem as you can imagine. So 360sportsinc.com is our main company and then there’s information where you can contact us if you’re an athlete. 360xcapital.com is our athlete-ownedfund platform so you can find ⁓ athlete owned real estate private equity funds there. And athleteadvisors.net is a platform where we have locations across country where athletes can get athlete advice. So you’re not gonna get this advice from a regular real estate agent or a regular real estate investor because well, they don’t know that athletes have a special opportunity.
Even the athletes right now don’t know. that’s why we’re doing this podcast. Right. But it’s good.
Dylan Silver (18:06)
Yeah.It’s tremendous what you have going on. ⁓ like I said, threading the needle with everything that’s going on with athletes. And then also, I would say, with the way real estate is changing. Robinhood, democratization of real estate, I think all those are accurate terms. But Anthony, thank you for coming on the show. I think what you’re doing is great. And thanks for coming on here today.
Anthony Scheirer (18:28)
Yeah, I appreciate you having me, Dylan. Thank you very much.
