All Forum Posts by: Avery Rustad

Thanks for the reply, looking into some BTR stuff around that area so I'm just trying to get a sense for what higher end properties are building at and what BTR deals are selling for. 

Hi all, just wondering if anyone has either good data or could point me in the right direction of good data on the cost of building a single-family home in Nashville or the greater Tennessee area. 

Thanks :)

@Benjamin Branson The idea is that the course would be led by professionals and would allow for autonomy amongst the students if they wanted, aside from the formal education regarding the basics and some situational learning. This also wouldn't be a traditional degree. It's essentially a plan for people who don't want to go the traditional route and want some help getting started in real estate. The majority of investors fail because they never buy, and this course is centered around buying and tending to a real estate property. I understand most schools go against entrepreneurship and many entrepreneurs are not fond of traditional schooling, nor am I, however there are kids who need the help funding and a bit of guidance along the way. The premise is that the first property is a gateway drug into more. 

Hey @Todd Solberg I understand this. The issue is that many students can't afford to pull more in student loans or frankly don't want to spend student loan money on classes outside of real estate investing. Also, this would improve the first time investing experience as you have instructors to not only teach you more about investing and situations, but to guide you through inevitable problems whether small or large that come with the first time experience. 

@Matt Devincenzo

The main premise would be student loans are easy to get, but bank loans aren’t necessarily-at least at decent rates. If the school is helping these students with mentors to guide them along the way, not only would there be less risk for the bank, but also make it easier for the students to learn as they go and to have a more local and instant community to assist one another with problems they face. It’s not so much about the degree than it is the opportunity to get hands on experience with an easy loan option and assistance. Hope that helps answer your question!

@Corey Hawkinson Hey Corey, thanks for the input. I am currently writing the paper and have yet to work out all of the details, but I’ll get back to you when I do! Obviously students wanting to take this course have zero hands-on experience, so at face value this seems risky for banks. The argument I’m making is that about 40% of college students drop out at some point during their formal schooling(educationdata.org/college-dropout-rates) That being said, they still have to pay the loans, however, they would have nothing at all to help them pay back their loan whereas the real estate students have a home that the bank could seize if EVERYTHING goes wrong or at least some steady cash flow to pay it back. And if I know one thing about real estate investors it’s that nobody owns just one property.

@Jerry Lucker Thanks for the reply. I believe I hadn't explained the plan well enough initially. The student would be assisted by veteran real estate investors who are hired by the school to walk the students through their individual investments. You wouldn't be paying for curriculums to just educate oneself on the topic, but instead one would pay for the investment with veteran coaching on top of that. The only true cost on the student's end is equity and shared profits in the first investment property- and for what I've heard, no real estate investor only has one investment property. That being said, I believe it would be a great gateway drug into the realm of real estate investing. I hope that cleared things up!

Hey @Scott Mac, I appreciate the quick reply! The plan would be to have a mentorship program of sorts where the University hires veteran real estate investors who have already done their fair share of investing and are looking for a way to give back through teaching. These teachers would be paid by the school and the school would take short term losses, but long term gains from the equity in real estate they acquire over the following years. 

@Scott Mac

My thesis statement goes as follows: 

The University of Minnesota should offer a real estate investing degree that enables students to use a student loan to make a down payment on an investment property. A percentage of the profits and the home’s equity would go to the university, while the rest remains with the student. This equity and profit sharing can be used to pay off the student loan while gaining excellent experience in real estate investing, personal finance, and accounting.

My idea is that many high school and existing college students would be fascinated by this degree path, and both parties would profit. Obviously, not every investment works out, but I will explain the insurance plan later in the paper so try not to worry about that right now. 

What are your thoughts on this degree?

@Jonathan Thank you!