NIL Money and Real Estate: What College Athletes Should Consider Before Buying a Home | Jimmy Bisharat
By Jimmy Bisharat, Wealth Advisor at Gerber Kawasaki Wealth & Investment Management
College athletes are using NIL money to make decisions that once seemed years away: buying homes, supporting family, and building a financial future before their professional playing careers have begun.
A recent Wall Street Journal article highlighted that shift, reporting that University of Arizona quarterback Noah Fifita purchased a $950,000 home in Tucson. It is a striking example of how college athlete earnings are changing what is possible before an athlete turns professional. Read the WSJ article.
That ambition deserves credit. Thinking beyond the next season is exactly the kind of mindset the people around these athletes should encourage.
But it also raises a financial planning question: What needs to happen before NIL money becomes a down payment?
For agents, CPAs, parents, collectives, and advisors, this is an opportunity to help athletes turn good intentions into decisions they can sustain.
Before buying a home with NIL money, an athlete should have a coordinated plan for taxes, spending, cash reserves, and long-term investing. The property purchase should fit within that plan and remain manageable if income falls or the athlete moves.
Start with what the NIL money needs to accomplish
NIL, short for name, image, and likeness, allows athletes to earn money from activities such as endorsements, appearances, and licensing their personal brand.
For an athlete receiving meaningful income early in life, there may be several competing priorities: helping parents, buying a home, investing for the future, or simply enjoying what they have earned.
The first conversation should give those goals some definition.
How much family support does the athlete want to provide? Could a transfer or professional opportunity require a move? What should this money make possible after sports?
A house can support those goals. It can also consume the cash needed to pursue them.
Understanding the athlete’s priorities makes it easier to determine how much belongs in a property and how much should remain available for everything else.
Plan for NIL taxes before committing the money
A contract’s headline value is not the amount an athlete has available to spend.
NIL income is generally taxable, but the treatment depends on how it is earned. Payments for services performed as an independent contractor generally involve self-employment income. Employee compensation and certain royalty payments can be treated differently. Assuming every NIL payment has the same tax treatment can lead to mistakes. IRS guidance on NIL income.
Before setting a home budget, the athlete’s CPA should help determine the appropriate tax reserve and payment schedule based on the actual income, contracts, and circumstances.
That reserve should remain separate from money available for a down payment.
Money earmarked for taxes is already committed, even when it is still sitting in the bank.
Build a budget that can handle a smaller NIL year
A strong earning year creates opportunities. It should also prompt a conversation about how much of that income can reasonably be expected to continue.
A useful planning exercise is to model a lower-income year before taking on a long-term obligation. What happens if a deal is not renewed, payments arrive late, or the next contract is smaller?
For a home purchase, the budget needs to include more than the mortgage:
Property taxes and homeowners insurance.
Maintenance, repairs, and utilities.
HOA fees, where applicable.
Moving costs and potential property management expenses.
Paying cash removes the mortgage payment, but ownership still requires ongoing spending.
The question is whether the athlete can comfortably carry those costs while continuing to meet other goals.
Keep cash available and make saving consistent
Before committing a large share of NIL earnings to real estate, establish a cash reserve that reflects the athlete’s expenses, income uncertainty, and upcoming commitments.
A bank balance can look substantial while already being spoken for by taxes, living expenses, and family support.
Separating those needs helps clarify what is truly available to invest or spend.
From there, automate savings and investment contributions at a level the athlete can sustain. For irregular income, a process triggered by each payment may work better than a fixed monthly transfer.
Money needed soon should be managed differently from money intended for goals ten or more years away. Long-term investments should reflect the athlete’s time horizon and willingness and ability to accept risk.
Consistency helps turn a short earning window into progress toward lasting financial security.
Evaluate the house as part of the full financial picture
Real estate can be a useful part of an athlete’s financial plan. It also ties a substantial amount of money to one property and one location.
Before moving forward, the athlete and their team should discuss:
How long the athlete realistically expects to own the home.
What happens if a transfer or career change requires a move.
How much accessible cash remains after closing.
Whether ownership is affordable with lower income.
Whether a rental backup plan accounts for vacancies, repairs, and management costs.
A plan that depends on quick appreciation or uninterrupted rental income deserves a closer look.
Buying a home should leave the athlete with enough flexibility to handle the next chapter, even if that chapter looks different from today’s expectations.
The people around the athlete can improve the timing
Agents, CPAs, parents, collectives, and financial advisors each see a different part of an athlete’s life. Better decisions happen when those perspectives connect before a major commitment.
The agent can clarify contract terms and payment timing. The CPA can assess tax obligations. The financial advisor can connect the purchase to cash flow, investments, and long-term goals. Family members can help clarify expectations around financial support.
A useful question to ask early is:
“Before we commit to this purchase, have we confirmed what remains after taxes, ongoing expenses, and the athlete’s other priorities?”
That conversation can help an athlete move forward with greater confidence.
NIL money creates a chance to build a financial foundation unusually early. A home may be part of that foundation. The lasting opportunity is helping the athlete make decisions today that continue to serve them after the checks change.
If you support NIL athletes and want a second perspective before a major financial decision, I’m happy to connect with you and their existing team. Schedule an introductory conversation.
Sources
Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: http://www.adviserinfo.sec.gov .
Jimmy Bisharat is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$4.78B billion in assets under management and assets under advisement as of 06/30/26. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This material is for general information only and is not intended to provide specific tax or investment advice. Consult your tax professional regarding your individual situation.To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."
