Student housing is a growing real estate investment asset class. In just two short years, from 2014 to 2016, transactions increased from $3 billion to almost $10 billion. Many of those looking into building their portfolios with this type of real estate are private investors, though as the class increases in activity, more institutions are taking note. The draw to this type of investment includes healthy yields and fairly recession-proof properties which outperformed other asset classes during the last economic slowdown. One of the most difficult aspects related to this investment is finding the right property. After all, there is only so much real estate that surrounds colleges.
The good news is that college enrollment is on the rise and is expected to increase by 14 percent by the time 2025 rolls around. At this time, almost 20 million students should be looking for student housing. The bad news is that renter-turnover is almost a certainty and students have been known to treat their abodes as party venues instead of quiet places of rest and rejuvenation. But, if you have patience, persistence and know a good handyman, this investment strategy can offer low vacancy rates, increasing rents and high returns.
Providing off-campus housing carries with it a degree of responsibility above and beyond a typical residential dwelling. The college may require that certain conditions are met with one of the most important being the provision that the tenants are provided with a safe and secure place of residence. Another important consideration is that student housing has morphed from small, twin bed miniscule apartments into luxury accommodations with amenities such as common gathering areas and fitness centers. As with all real estate investments, know thy market, investigate competitors occupancy and rental rates and choose a location where the supply is not meeting the demand.
Not all national or Texas commercial loan lenders are prone to providing funds for these types of projects. Thought they can be very lucrative, they can also carry a greater risk in regards to vacancy rates and the wear and tear of the property.
At Level 4 Funding, we work with a wealth of private hard money Texas commercial loan lenders that have made this particular asset class their number one lending strategy. Funding is available up to $50,000,000 with loans based on collateral. This means that your credit report does not carry as much weight and that funding can occur in as little as a few days compared to the month-plus funding time that occurs with traditional lenders. Our different loan programs include construction, bridge, business and fix & flip loans. You can be preapproved in as little as 24 hours and many of our lenders offer no prepayment penalties. Call us today for a no-obligation quote.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.