Introduction to investing in student housing

Introduction to investing in student housing

As an introduction to investing in student accommodation, five investors came together and named it “ICHILIMBA STUDENT ACCOMMODATION” (I am one of them) and made plans to invest in this niche in Zambia near a private University.
We selected a good developer who has successfully built a set of one bedded accommodation for students in the country and overseas.
As a group, we contribute $1000 every month to a nominated bank account here in Australia.
We have signed an agreement through a lawyer in Zambia to be sending at least $15,000 every three months until the project is complete.
Our first transfer was on 8th September through OFX money transfer service completely free.
And the work has begun as you can see from these photos:

 

Why student accommodation?
It would be broken down into three steps for you.

The first step is to decide which college is right for you.
Choosing the right college will reduce the number of party-type tenants you have to deal with. Locate colleges that are the very best in terms of prestige and academic standing and have a GPA requirement of 3.9 or above to be considered. Most of the students are committed to their academics and getting a degree.

Step 2: Choose the deal that’s right for you
It is imperative that you choose a home that is within your price range but that also has the capacity to house an extra bedroom for additional cash flow. Get in touch with what people are actually willing to pay, in order to charge the prices, you want to charge. To make sure you’re getting your supplies nearby to the university, purchase as close to campus as possible.

For step 3, select the appropriate tenants

Overall, it’s the parents who are covering the costs, so you never have to worry about rent that hasn’t been paid. When possible, parents do not want their children to be evicted from their current residence while in college. On the other hand, it is critical that you screen the student tenants and identify the right type.
“I concentrate on recruiting medical, pharmacy, dental, or nursing school students. Once they’ve reached a certain age, most people find it necessary to invest time and effort in order to earn their professional degree because those classes are challenging.
The best candidates for law, engineering, and computer science jobs are law, engineering, and computer, science students. I search their social media for any pictures of them smoking, doing drugs, getting drunk, or at a party. This minimises the risk of finding bad tenants who would ruin your home”.

100% occupancy with tenants currently under contract for COVID-19
Right now, the most obvious question that might occur to you is, “How are you getting students as tenants after COVID-19 and classes are shifted to the online format?” Truth be told, one investor is completely booked up for his 12 bedrooms. There are three main reasons why university-related housing is always in high demand, no matter the time period.

Students are still interested in going out and enjoying some of the college lifestyles. There’s only one way to accomplish that, and that is to live in a house with their friends. Students of all ages love to get together to study or to watch lectures. Students in college still find themselves having to work with others in many activities. Despite the increasing availability of higher education, some colleges and universities still require students to do on-the-job training and/or lab work. , grad students need to be on campus to finish their research projects because university resources are required.

Students find it difficult to concentrate at their parents’ house. His tenants have informed him about how cramped and chaotic their parents’ home is, preventing them from excelling in their schoolwork. When he was living with his parents, he had a hard time concentrating in school because he was easily distracted.

College students enjoy the freedom to make their own decisions. This is something to think about if you’re currently dating someone and would like them to visit your parents’ home for a romantic movie night. It’s not unusual for parents to get in the way when your significant other and you are alone together. Although many college students do enjoy being freed from their parents telling them what to do, they’re only experiencing this joy because their parents never expected them to stay in school this long.

While this does not mean that it is an easy task to own a six-figure rental portfolio, it does not take very much work to get there. To succeed in the student housing market, you will need to develop specific skills in the following areas:

How to embark

The writer states that mastering these six skills enabled him to climb the property ladder from raking in just $1,280 my first year to amassing a portfolio that brings in $10,755 per month.

Communication.

You must be confident, assertive, and be able to communicate clearly what you’re seeking. To successfully invest in real estate, it is critical to have the ability to defuse conflict quickly and clarify expectations.

An offer/deal assessment
Figuring out the market demand is an important aspect of this investment strategy. To make sense of investing terms like NOI, CAP rate, and CapEx, it’s good to have some familiarity with them.
Marketing.
You don’t make any money if you don’t have tenants. Period. It took him five years to perfect his skills in marketing himself so that he would always get high-quality tenants.
Management.
Setting up systems and processes that allow you to automatically handle your management duties will help you avoid having your real estate investing turn into a full-time job. A property manager takes a significant percentage of your income; typically 8-12% of your total earnings.

Be open to negotiation.
To get the best possible price on any purchase, it is important to be firm in negotiations while also working to obtain what the seller wants. This creates a win-win scenario. Negotiation should not be avoided. Rather, we should celebrate it.

Building a team.
Going far as a real estate investor is only possible with a reliable team. To save time and money, it’s important to find someone who is experienced in the field. The probability of fixing your iPhone is probably not going to be greatly improved if you spent four years going to school to learn how to programme on it. You will, instead, head to your nearest Apple Store and have them take care of it for you. I want to hire a contractor I can trust to complete the job.

Student accommodation

You must decide to become successful. Simply put, you make things happen, regardless of what obstacles may arise.
In other words, when you encounter a pest problem or a costly repair, is it simply because you have a “nasty tenant” or because you “dropped some hard-earned dough”? Well, what of it? You will have a better idea next time when you pick yourself back up. No one knows everything before they even start.

That’s why I believe the best way to master these skills is to be actively involved in games, rather than just watching them from the sidelines. Alternatively, you can get a coach who is focused on pursuing the same goals you are, who can assist you in building and honing the six skills, and who can show you what is truly possible for you.

Real estate is not a “waiting game” to buy. You must buy something, but don’t hold onto it. Analytical paralysis is the worst thing that an investor can face because, for the rest of their lives, they will have to watch as other investors have built wealth for their families and wonder when they will have the opportunity to do the same.

If this, is you, I have a feeling your time has finally come?
The decision to start is the first step towards everything falling into place. You’ll get help from others. That’s at least how it has been for me. Investing in student housing can be a great way to get started in real estate investing while you are completing COVID-19. The investment is safe, it’s proven to be profitable, and the company doesn’t face the risk of eviction.

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