All Forum Posts by: Andrew Fudge

I recently got to come to an agreement with a friend to create a partnership to allow us to more easily invest. I wanted to reach out and ask if a partnership has any unforeseen problems that could arise? My partner and I have very good communication and are on the same page when it comes to investing strategies, so we both assume this is a great path to follow. Will a partnership cause variations in the route we would take to finance a property? As in, would a bank treat us differently as a partnership rather than just a singular person? Also in terms of financing, if one party is funding more than another, is there a way to dictate that when closing a deal? I just had these questions running my mind while trying to formulate a good partnership agreement for us, and wanted to try at least hearing from others before I finished!

To follow that up, when going through the process of our first deal, would it be smarter to open a new line of credit or checking between the two of us? I know this sounds like a ridiculously "google-able" question, however I'm asking here because google doesn't have the human touch to it's answers! What does including extra investors add to the workload? Is it smarter to onboard whatever investors you have prior to acquiring the property or is it safe to still gather investors in to the first few months of owning a property?

Last question, I promise! Are there any recommended softwares or websites for virtually tracking investments, income/expenses, etc. It's completely fine if those aren't recommended as well, I just need a quick way to for my partner and I to have access to the property data without crunching tons of numbers.

Thank you for your time and help,

Andrew

0 Votes

Austin, Texas

Quote from @Eliott Elias:

Build a good buyers list, after you know what they want go find the deal

I'm also interested in this!

What are good ways I can introduce myself and begin a connection with buyers without anything to present? Or is it more of just a "collecting names" situation until the moment you're ready to make a deal.

0 Votes

San Jose, California

Hello BP Community!

I'm Andrew, a 21-year-old prospective investor! I've been teaching myself as much as possible in the last two years, and after a few months on BP I feel like it's time I introduce myself! I am looking to start investing within multifamily properties in the Central Texas area. I'd like to focus on LTR investments, however, due to my area, airbnb's look fruitful and I would hate to turn away opportunity.

I'm happy to have befriended the people I already have on here, however I look forward to creating many more relationships and growing with all of you!

Thank you for your time!

2 Votes

Austin, Texas

Quote from @Eliott Elias:

Killeen Texas is a hot rental market

Haven't thought of Killeen yet. I just came across a nice duplex investment property there for around $147 price/sqft. Total price is $334k, seems like a very "doable" market.

0 Votes

Las Vegas, Nevada

Quote from @Eliott Elias:

I'm assuming you're reffering to UT Austin? 1. Most those students get tuition paid by their parents. 2. Expect the worst, these are college kids not young professionals who go to bed at 10pm to wake up for work. There is going to be some abnormal wear and tear on the property. 3. Make sure each tenant is responsible for their rent, don't put one number on the lease and expect it to get collected and paid in total. Hold each student accountable.

Thank you for the advice, I'm actually referring to Texas State, a little south of us. However, the advice can still be applied! I'm far too intimidated to want to step into the UT market. I assumed in San Marcos, I could possibly have an easier time finding smaller properties/duplex's.

0 Votes

Austin, Texas

Quote from @Stephanie Jacobson:

As usual @Christopher Liu has fantastic advice. I specialize in student housing in both Ithaca and Binghamton NY- management is key, and also being aware of any potential restrictions on student housing (Binghamton in particular is going through some upheaval in that department at the moment).

Students tend to be rough on the properties, but they also don't typically need to be evicted; they have bigger fish to fry with classes and whatnot. Many already have student loans or financial aid set aside, though in states like New York you can only take one month's rent at lease signing. Just stay on top of them and financially they're pretty reliable.

You also said your college town. Is this an area where you're already familiar with what the students look for and where they want to be? That's a huge advantage over other investors. My most successful clients are actually alumni from whichever town they're looking at investing in.

Best of luck, and keep us posted!

I hadn't thought of my advantage just from living here and attending the college! I'm more confident in this area then if I attempted a long-distance investment. How would you best check student housing restrictions? Would that be something you go through the school to deal with or the city?

Thank you so much!

0 Votes

Austin, Texas

Quote from @Account Closed:

As a landlord, the lease term is up to you. My experience in college was that leases went from August - August.

I was in a college town where the demand for rental housing for upperclassmen was through the roof. A lot of that had to do with the city and the fact that there is limited housing and laws against building buildings over 5 stories.

Do the research into the relative income of the town and the income of the parent base. I went to school in a rich town with wealthy parents on average and I knew zero students who paid their own rent. Landlords had full pricing power because of limited housing stock and knowing that parents are going to stroke a check no matter the rent.

I'd say the opposite and claim that getting into a good investment home in a college town is one of the most lucrative ways to be in this game. The hard part is, the markets with high income parents and residents usually have high investor competition for deals when they hit the market and expensive property values. Lastly, the property management companies in these college towns usually have a monopoly and manage a majority of student houses. There is definitely some agism there in their aggressive fines, although, the strict fine structure surely incentivizes students to respect the house and not be morons.

For reference, my college town was Boulder, CO. If you're a student landlord there, you do very well.

Thank you! The competitiveness in the area is pretty intimidating to me as a new investor, however the abundance of local property management companies near me makes things a little more calm.

0 Votes

Austin, Texas

Quote from @Christopher Liu:

@Andrew Fudge One other thing to consider. I like to target students in graduate and PhD programs, instead of your typical undergraduates. They tend to be older, more mature and responsible. Good luck !

Thank you for the advice! I hadn't thought about the complications I could skip if I just properly vetted my tenants.

0 Votes

Austin, Texas

Hello everyone!

My friend and I have been tossing the idea around of investing in our college town however I've been having second thoughts regarding the process. I wanted to reach out and ask if any of you have had any significant experiences dealing with properties near colleges and universities, either good or bad.

My friend mentioned parents paying rent for their kids which makes sense to me, but I've also seen a lot of situations where students are getting little to no help from their parents financially. I am mostly worried about rent payments, and the upkeep on the property. The only thing that could possibly assuage those feelings is if I hacked the property and lived in one of the units!

Thank you for any help!!

2 Votes

Austin, Texas

All Forum Posts by: Andrew Fudge

Andrew Fudge has started 3 posts and replied 9 times.

Post: Is investing in a partnership preferrable? What are some things to look out for?

Post: Newbie to Wholesaling. What are my first steps?

Post: Second Time Poster, Long Time Reader and Listener!

Post: Finding a hot rental market

Post: Would a college town be certain death to a new investor?

Post: Would a college town be certain death to a new investor?

Post: Would a college town be certain death to a new investor?

Post: Would a college town be certain death to a new investor?

Post: Would a college town be certain death to a new investor?