50 years of hard work cannot guarantee a good retirement. Take it from Jeff Greenberg, who had walked that path before facing the reality that his retirement may not sustain his lifestyle. Before hitting retirement, 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 explains some of the key differences between student housing investments and multifamily: 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 the opportunity 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 the 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.
Resources:
Rich Dad Poor Dad by Robert Kiyosaki
Book Recommendation:
Principles by Ray Dalio
Digital Resources
Tweet This: “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 add opportunities”
“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: Tito’s Tacos
Connect with Jeff: Website: www.synergeticig.com
Email: jeff@synergeticig.com
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