Jul 31, 2018
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
Slack
Podio
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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