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Debate

Is Regan Smith's $7.5 million sale a sign of financial woes or just a savvy business decision?

A successful NASCAR driver lives a life equal to that of a Hollywood celebrity. It’s not just the race-winning purse that swells up drivers’ pockets, but multiple brand partnerships and business ventures allow them to elevate their social status. However, this is true for select drivers who have an established name on the racetrack or have created a unique brand for themselves… and not the case for drivers with a few wins here and there or those who run a part-time feature.

However, former NASCAR driver Regan Smith’s recent activity has turned heads in the racing community. The former Furniture Row Racing driver seems to have been sitting on a gold mine, having invested in a real estate property. But he is now looking to flip this investment into profit by listing it on the market.

The stunning property, situated in Troutman, North Carolina, comes equipped with five feature bedrooms and two bonus rooms. Along with the addition of a swimming pool, the house also features a pool deck and a golf simulator screen. Being a gearhead himself, Smith also added a lavish garage to this property that can house five cars.

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Real estate marketplace website Zillow shared the details of the Smith house on their page. Although the stunning visuals and snapshots of the property looked serene, the prize tag mentioned below took everyone by surprise. The estimated value of the entire house was listed at a whopping $7.5 million. But the biggest shocker was how Regan Smith was able to afford such a lavish home in the first place. If you think about it, it’s not too surprising to believe.

Having started his NASCAR career in 2002 (in the Truck Series), Regan Smith was most successful in the Xfinity Series. He competed in 206 races over 12 years, raking in 6 wins, 79 top-10 finishes, and 1 pole. His first win came in 2012 in the Ford EcoBoost 300 at Homestead-Miami Speedway, and two years later, he had his best season in the series.

In 2014, he finished second in the championship, ending the year with 1171 points, 1 win, 7 top-5s, and 26 top-10s. 14 of those top-10s came consecutively – in the first 14 races of the season. As for his Cup Series, he raced in 224 events over 12 years, with 1 win (2011, Darlington Raceway) and 14 top-10 finishes. His best result in the top tier was 24th place in the 2012 championship. Despite these achievements, fans were unable to take in the news that his North Carolina home was worth $7.5 million.

A race fan posted this on Reddit, and the next thing you know, several others jumped in to share their opinions.

Fans weren’t “familiar with [Regan Smith’s] game” 

What’s your perspective on:

Is Regan Smith's $7.5 million sale a sign of financial woes or just a savvy business decision?

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Furniture Row Racing wasn’t one of the top dogs in the NASCAR Cup Series. Although Smith did have a win with the team at Darlington Raceway, this race fan believed Smith had to be financially smart with his money to afford such a house. “Absolute insanity that Regan Smith can (or at least was able) to afford a $7,500,000 home. Dude must have been a monster at saving money because the JRM/Furniture Row paychecks could not have been that extraordinary.”

The thing about real estate is that its price increases with time. If you buy a property for a certain amount, it’s likely to return a profit when you sell it down the line. Expressing this sentiment, another Redditor wrote, “Looks like he bought the lot and built a house on it.” They even surmised how much Smith may have invested in the piece of land: “No way he’s got more than $2.5M or so into the whole thing.”

If that’s the case, Regan Smith is set to make a profit of $5 million. That’s 50 times more than what he earned after finishing first in the first 2015 XFINITY Dash 4 Cash race at Dover International Speedway ($100,000). Speaking of this win, Smith was a title contender when he competed in the Xfinity Series with JR Motorsports from 2013 to 2015.

He clinched six wins with JRM during his tenure, and along with the glory, he did pocket a good chunk of cash in race wins. Especially considering he competed in all three NASCAR series – Cup, Xfinity, and Trucks. “Do you people realize just how much money NASCAR people used to make, even in the Busch series?” questioned a user.

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According to Kenny Wallace, who retired from NASCAR in 2016, an Xfinity driver can make “anywhere between $250,000 to $400,000 a year.” That’s the gross amount. In Trucks, they can make anything between $100,000 and $300,000, and in the Cup Series, Wallace revealed, “This is where you make a living. You’re going to make anywhere between $750,000 up to $8 million.” Considering Regan Smith’s NASCAR career started in 2002, it’s not surprising that he made enough to buy a house worth $7.5 million. But that’s not all.

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Apart from racing cars, drivers have different avenues where they can make good money. In Smith’s case, he joined the broadcasting side of things in late 2017 after he retired from competitive racing. He serves as the pit reporter for FOX. He is still associated with FOX and covers major events. Referring to this, a user wrote, “He probably made more in broadcasting than in racing.”

Meanwhile, this race fan asked for Smith’s forgiveness, presumably for assuming he didn’t earn much from his NASCAR racing career. So, after learning about his smart investments, they commented, “Damn, sorry, Regan. I was not familiar with your game.” It’s fair to say that Regan Smith will have quite a retirement life after the sale of this house.