Great seeing student housing content! Here are my takes: I rent room by room to individuals (more work, but less likely to organize big parties). I market to grads and seniors. Screen tenants with a small questionnaire. Then do a zoom call with each tenant to further confirm good vibes. Maintain a group text with the tenants to address issues quickly and inform them of contractor visits, etc. Pay the existing tenant a small fee to show the room to a new prospect - the new person feels more comfortable, and they get an unbiased take on life in the house. Plus, you don't have to go do a bunch of showings. 6 students is not an issue if you screen properly. Would love to see more student content!
Installing remotely monitored “outdoor security” cameras could also act as a deterrent for parties. I’ve also seen an investor that reached out directly to the coaches of women’s sports to find teammates that were looking for housing. The teammates are more likely to get along, & the girls were less damaging to their properties.
Super helpful to hear anything about student housing. I have a new construction ADU in my backyard that I plan to market to travelers and grad students in my college town. Any more material you guys can muster up on this topic will be appreciated! Love the podcast in every way!
Hey, David. I recently got your new book Pillars of Wealth and have been enjoying it greatly! In the offense portion of your book you talked about how sales is a better environment for acquiring more capital as well as rewarding you more for your hard work compared to a regular W2 job. My questions are, for someone with little sales experience, what is the best way to get into sales, how much should you vet potential companies to work for, and should I focus on becoming a real estate agent or does any sales job suffice? For context I am 21 years old and I worked as a retail employee at JCPenney when I was sixteen and I am currently an electrician making 42k a year. Thank you so much.
Your video was awesome! I really liked how you talked about the challenges of growing your real estate properties when your debt and income are at their limit. Keep up the good work!
The more renters the better! We ourselves & our kids didn’t over party, and I feel like if you ask the right questions & write the correct things in the contract you’ll be good.
Question: How do you navigate the city’s requirement for number of unrelated adults living together using rent by the room? This video talks about 4-6 adults in a house but if the zoning code only allows for 4 unrelated adults then this should be mentioned. The city I live in only allows for 4 but different cities I’ve seen allow 3-6 unrelated adults. I heard a story from an investor in California who got caught by the City who was renting by the room to college students because they exceeded the unrelated adults living together. I’m guessing people do theirs are not looking into this.
Great episode! Just so you know, I fully expect an extravaganza for the one thousandth episode.... complete with balloons, circus ponies, and Brandon. We're getting closer fellas... I recommend you start planning now.
I currently own a brand new consrtuction 6 bed 6 bath duplex in a college town. I have 1 unit rented to a section 8 family and 1 unit rented to grad students. My only regret is not renting fully to grad students. This is quite possibly the best rental scenario you can have.
Even though Sec 8 is Guaranteed money. (That's a WHOLE different set of issues or positives) The Landlord should market More towards Grad/Lawyer and Med School Students, but this all depends on what the university curriculum provides. If only Bachelors then its going to be young or new renters no matter what.
@@raimondnu3 You are correct. They need to be near the right college. But having a fiance getting her PhD I can confirm you dont even need to market. There is always a new crop of grad students and they are always looking and they almost always go based off referrals. As a student moves out they are already telling their replacement about their old place.
Can you guys do a deal deep dive on selling a rental, taking that money and purchasing 3 different properties in a 1031. Would really like to hear more about this tool.
Did BP change from the Sunday, Tuesday, and Thursday podcast release schedule? At least on Spotify shows are popping up a day or two later than they were since Thanksgiving.
Hey David! Big fan of these episodes and first time commenter. I have a duplex in Philly and the process of negotiating offers was difficult for me and am looking to improve in the future for my next deal. One thing I was trying to implement on a duplex I was out bid on was finding a way to help the seller so that there would be more incentive to go with me given I didn’t have the highest bid but my realtor wasn’t really helpful getting me in contact with the seller directly. I kept hitting that wall where I wasn’t able to get in contact with the seller to plead my case. I was also looking for houses that sat on the mls so I wasn’t looking at off market deals so I assume targeting off market deals could help me overcome this but any advice to get in contact with the seller directly for mls deals? Would it be considered unprofessional to circumnavigate the buying and listing agents? Cheers!
Thanks for the great episode! Can you please clarify how renting to only students is different than renting to only active duty military? I was told that renting to military exclusively is considered a violation of fair housing act. I’d like to build my veteran owned business around helping only active duty and veterans with housing, but don’t want to break the law. Thank you!
Your question id fair and you are correct that students nor military are protected classes under Fair Housing Laws. That said, we cannot refuse non students. A major difference with military is that student requirements are so different that it’s highly unlikely that non students would be willing to pay the steep rent to live in close proximity to the campus. I’m not so sure the difference of military personnel is that great vs the general population. So, students and military are vastly different.
Just got new books. The book on Estimating rehab costs , and Tax strategies for the savy real estate investor. I'm educating the shit outta myself on this I wanna know every secret and strategy
Getting 4 students to rent one space is more stable than 6. My daughter is in a 4/2 and getting 3 girls who get along with to sign a lease together is more complex than 3. I can't imagine lining up 5 consistent, stable roommates
Maybe the common living room area you could swap out the comfortable couch/ chairs and turn it to a media / computer area. Ouiet Zone signs .lol. Idk 🤷♂️ I’m trying to do this myself.
I’ve thought about this response for a few days now because you said you are trying to do this yourself. My take is a bit different. The tenants are customers and want what they want. A common area to socialize and relax is part of it. IMHO, too much focus has been on “Parties”. While it’s great to go after the most responsible students there are no guarantees. Student tenants may occasionally blow off some steam and that doesn’t necessarily mean property damage. We want the students to enjoy living in our property and willing to pay premium rents to do so. Honestly, I find pets to be a bigger problem than parties. Also, we want to build these to sell or rent to non students should one day the neighboring college experiences negative growth as some predict. Lastly, I want to emphasize that students pay a premium rent due to proximity to the college or university and because they are a higher maintenance clientele. The premium rent is why this investment class is attractive. If we take all the luxury of living in our unit away then do we run the risk of vacancy or decreased rental rates?? We give discount rental rates to those whose parent co-signs and nearly all take advantage of if.. Rarely do we really have to go after anyone. Best to you!
Great question - Supposedly, this is true but several major universities are still experiencing a growth pattern combined with existing supply of off campus housing is outdated and needs replaced with modern and efficient housing. So, overall decline of students attending college might be an issue for some locations but not really at play for others. Know the market….
Great seeing student housing content! Here are my takes: I rent room by room to individuals (more work, but less likely to organize big parties). I market to grads and seniors. Screen tenants with a small questionnaire. Then do a zoom call with each tenant to further confirm good vibes. Maintain a group text with the tenants to address issues quickly and inform them of contractor visits, etc. Pay the existing tenant a small fee to show the room to a new prospect - the new person feels more comfortable, and they get an unbiased take on life in the house. Plus, you don't have to go do a bunch of showings. 6 students is not an issue if you screen properly. Would love to see more student content!
Installing remotely monitored “outdoor security” cameras could also act as a deterrent for parties. I’ve also seen an investor that reached out directly to the coaches of women’s sports to find teammates that were looking for housing. The teammates are more likely to get along, & the girls were less damaging to their properties.
Super helpful to hear anything about student housing. I have a new construction ADU in my backyard that I plan to market to travelers and grad students in my college town. Any more material you guys can muster up on this topic will be appreciated! Love the podcast in every way!
Hey, David. I recently got your new book Pillars of Wealth and have been enjoying it greatly! In the offense portion of your book you talked about how sales is a better environment for acquiring more capital as well as rewarding you more for your hard work compared to a regular W2 job.
My questions are, for someone with little sales experience, what is the best way to get into sales, how much should you vet potential companies to work for, and should I focus on becoming a real estate agent or does any sales job suffice? For context I am 21 years old and I worked as a retail employee at JCPenney when I was sixteen and I am currently an electrician making 42k a year. Thank you so much.
Your video was awesome! I really liked how you talked about the challenges of growing your real estate properties when your debt and income are at their limit. Keep up the good work!
The more renters the better! We ourselves & our kids didn’t over party, and I feel like if you ask the right questions & write the correct things in the contract you’ll be good.
For the college town look into rules about how many unrelated occupants can live together. Many college towns have rules around that.
Question: How do you navigate the city’s requirement for number of unrelated adults living together using rent by the room? This video talks about 4-6 adults in a house but if the zoning code only allows for 4 unrelated adults then this should be mentioned. The city I live in only allows for 4 but different cities I’ve seen allow 3-6 unrelated adults. I heard a story from an investor in California who got caught by the City who was renting by the room to college students because they exceeded the unrelated adults living together. I’m guessing people do theirs are not looking into this.
Simplist answer is find out what the rule is for the particular investment location and abide by said rule.
Great episode! Just so you know, I fully expect an extravaganza for the one thousandth episode.... complete with balloons, circus ponies, and Brandon. We're getting closer fellas... I recommend you start planning now.
That was way too short.
You need more of these or longer episodes
I currently own a brand new consrtuction 6 bed 6 bath duplex in a college town. I have 1 unit rented to a section 8 family and 1 unit rented to grad students. My only regret is not renting fully to grad students. This is quite possibly the best rental scenario you can have.
Even though Sec 8 is Guaranteed money. (That's a WHOLE different set of issues or positives) The Landlord should market More towards Grad/Lawyer and Med School Students, but this all depends on what the university curriculum provides. If only Bachelors then its going to be young or new renters no matter what.
@@raimondnu3 You are correct. They need to be near the right college. But having a fiance getting her PhD I can confirm you dont even need to market. There is always a new crop of grad students and they are always looking and they almost always go based off referrals. As a student moves out they are already telling their replacement about their old place.
Can you guys do a deal deep dive on selling a rental, taking that money and purchasing 3 different properties in a 1031. Would really like to hear more about this tool.
Did BP change from the Sunday, Tuesday, and Thursday podcast release schedule? At least on Spotify shows are popping up a day or two later than they were since Thanksgiving.
Hey David! Big fan of these episodes and first time commenter. I have a duplex in Philly and the process of negotiating offers was difficult for me and am looking to improve in the future for my next deal. One thing I was trying to implement on a duplex I was out bid on was finding a way to help the seller so that there would be more incentive to go with me given I didn’t have the highest bid but my realtor wasn’t really helpful getting me in contact with the seller directly. I kept hitting that wall where I wasn’t able to get in contact with the seller to plead my case. I was also looking for houses that sat on the mls so I wasn’t looking at off market deals so I assume targeting off market deals could help me overcome this but any advice to get in contact with the seller directly for mls deals? Would it be considered unprofessional to circumnavigate the buying and listing agents?
Cheers!
Thanks for the great episode! Can you please clarify how renting to only students is different than renting to only active duty military? I was told that renting to military exclusively is considered a violation of fair housing act. I’d like to build my veteran owned business around helping only active duty and veterans with housing, but don’t want to break the law. Thank you!
Your question id fair and you are correct that students nor military are protected classes under Fair Housing Laws. That said, we cannot refuse non students. A major difference with military is that student requirements are so different that it’s highly unlikely that non students would be willing to pay the steep rent to live in close proximity to the campus. I’m not so sure the difference of military personnel is that great vs the general population. So, students and military are vastly different.
Rent to grad students, more mature and done with the party life.
Great show as always 👏 👍
Just got new books. The book on Estimating rehab costs , and Tax strategies for the savy real estate investor. I'm educating the shit outta myself on this I wanna know every secret and strategy
Getting 4 students to rent one space is more stable than 6. My daughter is in a 4/2 and getting 3 girls who get along with to sign a lease together is more complex than 3. I can't imagine lining up 5 consistent, stable roommates
Excellent point. Thank you!
good
Wish this was longer today:(
That's what she said.
Maybe the common living room area you could swap out the comfortable couch/ chairs and turn it to a media / computer area. Ouiet Zone signs .lol. Idk 🤷♂️ I’m trying to do this myself.
I’ve thought about this response for a few days now because you said you are trying to do this yourself. My take is a bit different. The tenants are customers and want what they want. A common area to socialize and relax is part of it. IMHO, too much focus has been on “Parties”. While it’s great to go after the most responsible students there are no guarantees. Student tenants may occasionally blow off some steam and that doesn’t necessarily mean property damage. We want the students to enjoy living in our property and willing to pay premium rents to do so. Honestly, I find pets to be a bigger problem than parties. Also, we want to build these to sell or rent to non students should one day the neighboring college experiences negative growth as some predict. Lastly, I want to emphasize that students pay a premium rent due to proximity to the college or university and because they are a higher maintenance clientele. The premium rent is why this investment class is attractive. If we take all the luxury of living in our unit away then do we run the risk of vacancy or decreased rental rates?? We give discount rental rates to those whose parent co-signs and nearly all take advantage of if.. Rarely do we really have to go after anyone. Best to you!
@@Nergredos good stuff. I appreciate it.
Multiple room units in single family home?
Room mates amigo
Aren't there fewer young adults going to college?
Great question - Supposedly, this is true but several major universities are still experiencing a growth pattern combined with existing supply of off campus housing is outdated and needs replaced with modern and efficient housing. So, overall decline of students attending college might be an issue for some locations but not really at play for others. Know the market….