I've talked to a lot of property scouts lately, and I'm often asked what to look for. If you are trying to find cool properties, I just stumbled across a great opportunity that has READY CASH written all over it. Its the Kiddie Condo Craze and deals with finding apartment buildings or hotels, in college towns that can be quickly converted and sold as condos to parents of college bound students.
Its an amazing opportunity for several reasons. First, within the next 10 years there will be an incredible 80 million young people turning 18! Pretty hard to imagine isn't it! The "echo-boomers" are coming on strong. One thing we know about many of these kids is that they'll be college bound.
Second, many colleges -- especially state supported schools, will not have the funds needed to add dorm rooms to campuses, and the schools are increasingly relying on private investors to build or convert existing facilities to condos.
Third, the FHA has a program whereby, mom and dad can buy the condo and the student's name will also be on the loan -- qualifiying for owner-occupied rates. The student can rent out rooms to roommates, potentially getting enough money to cover the mortgage. Because the condo is owner occupied, the thought is (theoretically of course) that the homeowner will take better care of it than a normal rentor would. Personally, I'm not sure that's the case -- have you ever SEEN a dorm room or condo populated with college kids? My GOSH!! The health department won't even go in! But it sounds good!
Anyway, when the student graduates a couple of things happen. They will sell the condo with appreciation -- maybe enough to pay for grad school, or to put as down payment on a home, or to pay off student loans. AND the student will have his or her very own credit rating. Because their names were on the loan, along with mom and dad, the student's credit history has been established all along. Assuming the payment history has been good, the student starts out life on the right foot!
If you're looking for this kind of opportunity, stick to the states in the south -- Arizona, California, Texas, New Mexico, the Carolinas, and Florida. That's where MOST students will end up and there are many schools in those states with high housing shortages right now. The ratio of on campus housing available should be less than 25% -- meaning, the college can only house 25% of students in campus housing. That's a lot of students needing off campus living arrangements.
The best properties are close enough to be with in walking distance of campus, but if that's not possible, they need to be close to public transportation. They should also have the ability to bave amenities like internet access, work-out facilities, a pool, a party room and the like. Students especially like a high ratio of bathrooms to bedrooms... the good old days of sharing the bathroom with 30 of your closest friends are long gone. Thank goodness!
If you can find properties like I've just described, you are well on your way to making millions. If you're not already a property scout, go to www.propertyscoutcash.com to sign up now. Good luck.
Happy Hunting!
To your incredible success,
Maggie
www.NACREPS.org
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