From NBA to Prison to Real Estate Empire: Seth Sundberg's Remarkable Journey to Multifamily Investing Success

In this powerful episode of The Nathan Newberry Show, former Lakers player turned multifamily real estate investor Seth Sundberg shares his extraordinary journey from professional basketball to prison and back to entrepreneurial success. His story offers invaluable insights about high performance, resilience, and the power of continuous learning in building wealth through real estate.

Introduction

What does high performance truly mean, especially after experiencing both the pinnacle of professional sports and the depths of incarceration? For Seth Sundberg, former NBA player and now successful multifamily real estate investor, it's about "clearly identifying the goal, breaking that down into chunks, and then doing your best every day toward that—your best, not everybody else's best."

In this revealing conversation, Seth shares how he transitioned from professional basketball to real estate, overcame a five-year prison sentence for tax fraud, and rebuilt his life to now help others create wealth through multifamily investing. His remarkable journey demonstrates that regardless of your past, strategic action and continuous learning can create extraordinary results.

Whether you're contemplating your first real estate investment or looking to scale from single-family to multifamily properties, Seth's insights on decision-making, personal growth, and practical investment strategies offer a roadmap for both financial success and personal fulfillment.

From NBA Courts to Real Estate: Finding Purpose Through Transitions

Standing 7 feet tall, Seth was naturally drawn to basketball after moving in with his athletic father at age 12. Though initially "terrible" at the sport, his persistence and growing passion led him to the professional courts, including a stint with the Lakers from 1997-2000, followed by an international career.

"Once I got the bug, the basketball bug, it was pretty deeply ingrained," Seth explains. "I used to wear basketball shorts underneath my jeans every single day to school, to wherever, wherever, because I never knew when a game was going to come up."

This passion-driven approach to basketball would later influence his business philosophy. As his playing career wound down, Seth needed to protect his earnings, which led him to his first real estate investments.

"When I was playing, I made some money and spent a lot of money. Then I knew my career was coming to an end, and my window into the long NBA career was coming to an end," Seth recalls. "So I said, 'I got to figure something out.' So I'm going to park some of this money in real estate and just kind of figure it out and see what I want to do with my life."

What began as a financial preservation strategy evolved into a genuine interest in the industry, particularly the debt and equity structuring side. Seth quickly moved from property owner to running a mortgage company with 17 loan officers and developing an investment firm focused on residential acquisitions.

The Prison Turning Point: Humility and Rediscovery

Seth's early financial success, however, fueled what he now recognizes as arrogance. In 2009, this overconfidence led to a disastrous decision to challenge the IRS—a battle he lost, resulting in a five-year federal prison sentence for tax fraud.

"I figured I'd take on the IRS. I did, and I lost, and I ended up spending five years in federal prison for tax fraud," Seth admits candidly. "It was one of the worst things that's ever happened to me and my family, but it was also the thing that I needed. It was the thing that ended up being one of the best things that could have happened to me, just as a human level."

This period of forced reflection became transformative. While incarcerated, Seth read over 500 books, including reading the Bible front-to-back three times. This extensive reading and reflection allowed him to rediscover his authentic self after years of living what he describes as an "inauthentic" life based on what he thought a professional basketball player should be.

"It really got me to the point where I learned who I was, I learned what I cared about," Seth explains. "I think one of the critical pieces that most people need to have is kind of just be curious—in the things that you're interested in, whether it's curious to take your business from point B to point C, or zero to one, or whatever the case may be. I think curiosity is the key."

Seth's entrepreneurial spirit emerged even behind bars. When he discovered prison chicken labeled "not for human consumption," he and a partner developed protein bars from commissary ingredients. What started as personal nutrition evolved into a business with sales teams in different prison units—foreshadowing his post-prison entrepreneurial ventures.

Multifamily Real Estate: The Path to Wealth Building

Since his release in 2014, Seth has rebuilt his life and financial portfolio through strategic real estate investments, now focusing primarily on multifamily properties of 50-250 units. His approach involves:

1. Value-add acquisitions: Purchasing properties with improvement potential
2. Syndication: Pooling capital from multiple investors to acquire larger assets
3. Repositioning: Enhancing property value through strategic improvements

For Seth, multifamily real estate represents an ideal wealth-building vehicle: "Real estate for generations has been one of the things that we use to build wealth in America."

His current work focuses on helping others bridge the gap from residential to multifamily investing through his Multifamily Accelerator program, which covers:

• Finding deals
• Analyzing opportunities (underwriting)
• Raising capital
• Deal structuring
• Implementation and operation

Why Multifamily Investing?

Seth believes multifamily investing offers significant advantages over single-family properties:

"If you're not doing it for your primary residence and things like that," he explains, "multifamily is the best way to be into real estate."

The benefits include:

• Economies of scale
• More control over property value through operational improvements
• Less vulnerability to tenant vacancy
• Greater cash flow potential

For those interested in learning the fundamentals, Seth offers free resources: "If there's anybody that is interested in learning how to underwrite multifamily projects, you can feel free to follow me on Instagram at Seth Sundberg, and just DM me 'underwrite,' and I'll get you a 30-minute training on how to underwrite, templates, and everything you need for free."

High Performance Principles for Business and Life

Throughout the conversation, Seth shares several principles that have guided his comeback and current success:

Focus on the Next Step, Not the Entire Journey

Drawing from his basketball experience, Seth emphasizes the importance of a "short memory" and clear next steps:

"In basketball, we have this phrase called a 'short memory.' Nobody—there's never been a perfect athlete out there, period. The thing that you get better at over time is having a short memory and going, 'Great, made a mistake. What's the next step?'"

This approach translates directly to business:

"I don't need to know what the end of the game is. I don't need to know—I just need to know what's my next step. My next step is, if I screwed up on offense, I need to get my butt back on defense. That's my next step."

Seth recommends entrepreneurs focus on identifying high-reward, low-risk next steps rather than becoming paralyzed by trying to see the entire path forward.

Make Decisions Quickly and Adjust as Needed

Seth believes in decisive action over prolonged deliberation:

"A decision is better—even if you're not making a decision, that ends up being a decision. It's a decision to procrastinate, it's a decision to not choose... Those aren't decisions that I want to be making."

He references Abraham Lincoln's approach to difficult choices: "Standing here and talking about it is not going to get anything done, so let's just make a decision and go for it."

This "falling forward" mentality has been crucial to Seth's comeback, allowing him to take action and adjust course based on results rather than remaining stuck in analysis.

Continuous Learning and Curiosity

Seth attributes much of his success to voracious learning and maintaining curiosity:

"I read over 500 books in the five years that I was down," he shares about his prison experience. This commitment to education has continued in his business life, where he constantly seeks to understand better ways of operating.

He recommends entrepreneurs cultivate curiosity about their fields and learn from those who have already navigated similar paths:

"Learning is critical to life, but we don't have to learn everything from zero. At least we can learn from people that have gone through it, and it's a critical piece of the puzzle to growth."

Daily Reminders of Purpose

One unique practice Seth shares is carrying symbolic reminders of his priorities:

"I have a couple—they're rocks—that I carry around, and they're symbols of reminders of different things that I'm focusing on. I carry those around with me all the time and have them in my pocket now. Every time I just reach in my pocket and I'll jiggle them around, go, 'Yeah, okay.'"

These physical tokens help him stay grounded and focused when he gets "sidetracked off focus or whatever, off-kilter."

Conclusion: Transformation Through Adversity

Seth Sundberg's journey from NBA player to federal inmate to successful real estate investor and mentor demonstrates the power of resilience, continuous learning, and purposeful action. His story reminds us that even our darkest moments can become catalysts for growth if we approach them with curiosity and a willingness to learn.

For those interested in building wealth through real estate, Seth's experience offers both inspiration and practical guidance. His emphasis on education, strategic decision-making, and focusing on clear next steps provides a framework for progress regardless of your starting point.

Perhaps most importantly, Seth's transformation from what he describes as an "arrogant" professional athlete to a purpose-driven entrepreneur illustrates that success isn't just about financial outcomes but about authentic alignment with your values and genuine service to others.

As Seth puts it, reflecting on the highs and lows of his journey: "The broader those waves are, the higher the highs and the lower the lows—that's where happiness and life really is."

Are you ready to explore multifamily real estate investing? Whether you're just starting your real estate journey or looking to scale from single-family to larger properties, the principles Seth shared can help accelerate your path to success.