All Forum Posts by: Jeff G.

I really want to get into student housing for my first hold. I've done as much undirected research as I possibly can. Based upon what I'm reading I really think this is an effective strategy and would like pointers on how to get started.

Basically, I'd like to set a respectable property up within 1-2 miles of a University pre-furnished, with made service 2-3 times per week, on site laundry, utilities (including Internet access) covered by me and charge a premium. Ideally I'd dorm two students per room and extract $1,000+ per student in rent.

My biggest open questions are:

• What are the logistics involved in getting something like this set up?
• To what degree to I have to work with / be beholden to the local university to be considered student housing?
• What are the added liability issues?

I've asked some local wholesalers in the area to put me on their buyers list for anything within 1-2 miles of a college or university as a first step. But, that's step one. I'm not sure of step 2. Frankly, I'd almost certainly need a funding partner too, but I think that's further down the check-list than step 2. It's spring now, and I'd like to have something in place for autumn if it's not too late.

Has anyone else done this on BP who might be able to help me get a workable action plan together?

@Pat L., I read that article too...

I think this is a symptom of inflation. Rents are rising with real inflation and wages for low-skilled jobs are fairly stagnate and don't keep pace. Fixed incomes for the retired set are fixed dollar amounts that lose purchasing power over time.

I'm open to alternative interpretations of the facts here. That's just my take on the problem.

@Steve Babiak, you may well right that it's BS. I've done some additional research since and it appears that a smoke-free addendum is probably legit, at least in my state. My initial comment may be based upon dated information.

Something I should have mentioned in my initial post. The landlord civil asset forfeiture risk associated with active drug traffic in a property you own. 

In brief: civil asset forfeiture is a process by which the state deprives you of your property without charging you with a crime, because it suspects your property may have been used in a crime or is the ill gotten gains thereof. Typically the property itself is charged with a crime. 

If you've ever taken a high school civics class you may be wondering, "wait, how the hell is that Constitutional?" The answer is, it's about as Constitutional as Jim Crow in 1900. That is to say, unconstitutional on its face and now law degree is required to see that, but it's none the less the enforced law of the land.

For example this unfortunate cancer patient who was cultivating a certain herb yielding seed for his own use as a medically-valid treatment for his cancer had his stuff taken. He himself was never charged with a crime, but his stuff was.

So, it might not be wise to let anybody knowingly consume or deal marijuana on your property.

I was thinking about using an email auto-responded to train bird dogs in the basics of driving for dollars, how to look-up public records, and so forth. Then, advertising on craigslist.

Have any of you done that with any amount of success?

@Dean Klein

 Do yourself a huge favor and check three things:

• Rentometer to see what the median area rent is, buy bedroom count.
• Section 8 "fair market rents" which may, in point of fact, be above or below market for your area.
• Use the bigger pockets buy and hold calculator at biggerpockets.com/calc and run some conservative numbers.

~Jeff

@David Shives

You may want to have a quick chat with a lawyer. In some states (don't ask me which ones of the top of my head) it's my non-expert understanding that "no smoking" clauses are not legal/enforceable. 

Hi,

How many of you wholesalers out there use bird dogs? What kind of success rate do you have?

Is it worth the time and energy to even cultivate a team of bird dogs?

~Jeff

Price: $65,000
ARV: $149,000
Gross Annual Rent: $22,500 (projected)

DETAILS

• Year Built: 1850
• Sq Footage: 2,416 sqft.
• Bedrooms: 5 Beds
• Bathrooms: 3 Baths
• Floors: 2
• Parking: 2 Off street
• Lot Size: 7,841 Square Feet
• Property Type: Multi-Family (duplex)

UNITS

• Unit 1: 1,200 sq ft 3 bed / 1 bath
• Unit 2: 1,200 sq ft 2 bed / 2 bath

This property has excellent cash-flow potential but it's also in need of serious rehab. It was built in 1850 and has lots of character and period charm. It is situated on a spacious corner lot with off-street parking. Motivated seller, must sell! 

Contact me for additional information including a scope of work, comps, area rental data, etc.

I'm about to ramp-up marketing on classified ads sites to recruit bird dogs. What is the most common way to pay them? Should I give them an option (e.g., a flex option) on the contract that I have stating the amount of money they're going to get? Or, am I over-thinking it?

If there is more than one option I'd love to hear the pros and cons.

Thanks!

I just recently got my first wholesale deal under contract. It's a duplex. The margins are thin, but it's nonetheless a workable wholesale deal. I'd like to carve out at least a little more profit from the deal by negotiating some of the back property taxes or late fees away. Then, I'd split the savings 50/50 with the seller.

There is just one problem: I have no idea how to do that. Can anyone speak to this? Do I need something on the paperwork side to give me the authority to negotiate on his behalf with the property tax man? Also, roughly how long can I expect the process to take?

Thanks!