What would make you invest in my student housing project?

Question

while wholesaling real estate in Charlotte, North Carolina I'm searching for properties I could master lease option for student housing, but also wanted to form a business plan to bring in investors the traditional way. Since this is time sensitive I wanted to ask what are investors looking for in a project that they would invest in? Please leave comments of what you would need to see in a business plan in order to invest in a single family student house in Charlotte, North Carolina.

Joel Owens · Answer

The first thing I would look at it making yourself VISIBLE and TRANSPARENT.

You have been a member since last year but no picture and no profile information way to contact listed.

You have a plus membership but nothing in your signature profile to show when you make a post.

Get out there where people can see who you are, meet in person, etc. The more you put yourself out there the generally easier it is to connect to possible investors.

Dustin S. · Answer

I recently evaluated a Student housing syndication what killed it for me wasn't the property, the property was great but it was how the syndication dispersed payments. It was setup with an 8% preferred return to the investor which was good but the syndication was raising over $500k the sponsors were putting in $0 also the sponsors received a 4% finders fee on the closing 7 to 3 split once the investors got their 8% a fairly conservative 5 year model showed the investors return to be $260k the sponsors were to receive $200k almost half of that up front in the finders fee as long as the numbers were still good i would much prefer the sponsors get a bigger chunk of the cash flow and no finders fee. I like to align my interest with that of who ever is going to be running the property. With residential properties I always pay property managers with a percentage of the collected rent.

Roy N. · Answer

Sure .... if you wait until  after the first of the month, I'll probably be less distracted ... hardwood stairs yesterday, bathroom (vanity & flush) and kitchen (sink an dishwasher) final plumbing today.  Electrical run-down, range hood tomorrow.   Curtain rods, door hardware, etc Thursday. New appliances on Friday. Cleaning and touch-ups on the weekend.

Roy N. · Answer

Account Closed

We have several student rentals and, as others have alluded, as an investor, would be looking for experience; managing students is a little different and frequently more involved than many other types of rentals.

We would also be looking at your approach - are you taking the warehouse/slumlord avenue; aiming to be an accommodation/lifestyle service provider; or something in-between.  Finally we would want to know what differentiates your offering from all the other folks hanging a sign out in-front of a house or two near a university or college.

Colin G Murphy · Answer

Hi Account Closed

As the guys above alluded to, step one is to demonstrate transparency and a viable business plan. Student rentals can cash flow extremely well, but require very high calibre management skills to scale.

Chad K. · Answer

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Chad K. · Answer

@Roy N.

thanks for the info, would you be open to me giving you a call?

Chad K. · Answer

@Colin  Murphy

thanks for that info, after furthering my research I realize management skills have to be perfect

Chad K. · Answer

@Joel Owens @Brian Gibbons thanks for that info. I have been active in my community by meeting some investors I just thought I would widen my options by posting a ad on here. I agree with the profile pick I been trying to upload a pic for the past few days but for some reason my tablet wont let me I will correct that tho and I also agree with adding to my profile

Chad K. · Answer

@Steve L.

Thank you for the comment, but allow me to clarify I wrote the post with no intent of looking for a someone to invest in me master leasing a building that is a whole separate thing. The main objective of this post was to get advice on what investors would want in order to allow me to use their money to purchase a home than refinance or some other exit strategy in order to give them their money. My reason for saying that is because it seems in the beginning of your comment you beleive I'm looking for a master lease option investor which I'm not. I have tooking the approach you spoke of in the last part of your comment an have been unsuccessfully, nevertheless I like your approach of becoming the management an realizing I have to tell myself what does a investor bring to me. Your  comment was very helpful and much needed

What would make you invest in my student housing project?

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