50 years of hard work cannot guarantee a good retirement. Take it from Jeff Greenberg, who had walked that path. After reading Rich Dad Poor Dad, he faced the reality that his retirement may not sustain his lifestyle. Before finally hitting the mark, he started looking into real estate. He found a niche in student housing investments and after years of persistence he has become an expert. On this episode, Jeff shares compares multifamily to student housing investments: mistakes to avoid, factors to consider, finding opportunities, and picking the right market.
Key Market Insights
Worked for the government agencies as well as private and public organizations for over 50 years
Faced with the reality that his retirement income will be insufficient, so he started looking into real estate
Started a syndicated deal of 120-unit property in 2007
Key learning from his first syndication: Study the market; confirm value-add opportunity; ensure great returns for investors and yourself
Transitioned to student housing after finding a deal in Oxford, Ohio
Became a student housing expert who’s based in Southern California
CEO and managing member of Synergetic Investment Group
Handles all aspects of projects including acquisition, operation, value add, disposition and investor relation
Involved in projects worth over $300 million, consisting of 800 units
Currently holds 318 student housing beds and properties in Georgia, Arizona, and Ohio
Reason to invest in real estate: leverage through syndication deals - using other people’s money instead of your own
Traditional multifamily looks at the population growth of a city, while student housing looks at the population of a university
Factors to consider: University’s population and reputation; the amount of on-campus housing available; distance away from residential areas
Best Student Housing Location: Proximity to the university and bar district
Ohio student housing has 100% occupancy within a 1-mile square
Georgia Student Housing Project: Bought for $1.1 million, estimated market value of $5 million
Ohio and Miami University markets are already leasing for the school year 2019-2020
Screening student tenants: Check for criminal records; The parents should sign the lease if the student is currently unemployed
Two student housing projects are currently under assigned LOI
Bull’s Eye Tips:
Winning Your Market: Good underwriting. Look at different properties and deals. Develop a relationship with brokers.
Daily Habit: Writes daily tasks and exercises to remain sharp.
Tracking Marketing Changes: Find out what’s going on. Research. Read the local news.
Rich Dad Poor Dad by Robert Kiyosaki
Principles by Ray Dalio
"I didn’t have to rely on the money that I had saved up. Instead, I could use other people’s money to help along the way."
"Make sure you have some value added"
"Traditional multifamily looks at the population growth of a city, while student housing looks at the population growth of a university."
Places to Grab a Bite:
Connect with Jeff:
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