Hi there,
Got some ideas for you perhaps.
I'm a 21 year old college student and I'd like to get into REI, more specifically small student flats & dorms. I'm learning a lot about it, but I'm still figuring out what to do exactly.
I have a small online retail store on the side, but merely to acquire funds for the former.
Some scenarios/ideas:
-When I graduate at 23, buy a house with 40-50% cash upfront.
e.g.
- Don't want to be tied up to a 20 year loan, rather 5-10 yrs
- BUT RE prices are insane here in Belgium. Please be aware that all prices are in euro, it's just crazy compared to some US states.
Since I don't have a big income yet and don't want to take on a too big loan, I figured I could make a few quid here and there by finding students for (older) people that rent out student dorms. Older people don't bother to "advertise".
e.g. I currently rent a flat from an old couple that is 65% of the acceptable rent price. (230 instead of 350/mo.).
What if I find students for these type of people, then take a percentage or sublet the place for a hefty premium, of course with the knowing of the old folks.
Eventually, this "subletting" could be turned fastlane by offering services to all people who rent out student rooms in a particular region, in which case the company would take care of:
- the contract
- find suitable students for the owners (run background checks)
- handle all the monthly deposits the owner asks for: rent etc. (here's a thing I noticed: most people only own 1 building to rent out. If students don't pay on time, that could potentially be a problem for the owner, but still few owners even bother to ask a late fee or interest, which they actually can if they put it in the contract.
The student pays the company the monthly rent. The company would pay part of that amount to the owner. If the student doesn't pay on time, the company pays from its own balance. Risky? Not so much if the background check was done thoroughly + if the company manages a lot of rentals, this small type of legal stuff could be done in bulk - so to speak.
Good things: 1.the company has little upfront investment, but of course some cash outlay for bad students is needed.
2. It's actually 8 weeks of hard work a year and the rest is semi-auto pilot, or people could be hired to do it. This could be scaled to other cities.
Additionally, later down the road the company could take care of repairs (if company has relation with craftsmen/used-stuff stores)
Company could also work together with insurance companies and thus offer competitive insurance rates (since company manages a lot of properties, a deal could be made in which many owners take a certain form of insurance.
Good idea?
Any remarks or tips for a beginner? I love to learn.
Got some ideas for you perhaps.
I'm a 21 year old college student and I'd like to get into REI, more specifically small student flats & dorms. I'm learning a lot about it, but I'm still figuring out what to do exactly.
I have a small online retail store on the side, but merely to acquire funds for the former.
Some scenarios/ideas:
-When I graduate at 23, buy a house with 40-50% cash upfront.
e.g.
House at 250k with 125k loan @6%
Loan:
5 years: 2700/mo.
7 years: 2100 /m
10 years: 1650/m
7 years: 2100 /m
10 years: 1650/m
Income:
rented out to college and uni students
rented out to college and uni students
5-7 rooms @ 350/room/mo. = 1750-2450 /month total
Remarks:
- Don't want to be tied up to a 20 year loan, rather 5-10 yrs
- BUT RE prices are insane here in Belgium. Please be aware that all prices are in euro, it's just crazy compared to some US states.
Average two story house in city centre, 5 small bedrooms €200-280k
Detached villa without pool, average but not too large garden, just out of town, €475-600k
Detached villa without pool, average but not too large garden, just out of town, €475-600k
Just so you know....
Am I paying off a too large sum monthly? Some advise loan payments @ 50% x rental income to allow for repairs, insurance. But I would pay that with my job income.
Advantage is that after 7 years I have my own property in full. In the area where I'd like to buy, vanancies are near impossible, prices stay consistent.
Am I paying off a too large sum monthly? Some advise loan payments @ 50% x rental income to allow for repairs, insurance. But I would pay that with my job income.
Advantage is that after 7 years I have my own property in full. In the area where I'd like to buy, vanancies are near impossible, prices stay consistent.
Since I don't have a big income yet and don't want to take on a too big loan, I figured I could make a few quid here and there by finding students for (older) people that rent out student dorms. Older people don't bother to "advertise".
e.g. I currently rent a flat from an old couple that is 65% of the acceptable rent price. (230 instead of 350/mo.).
What if I find students for these type of people, then take a percentage or sublet the place for a hefty premium, of course with the knowing of the old folks.
Eventually, this "subletting" could be turned fastlane by offering services to all people who rent out student rooms in a particular region, in which case the company would take care of:
- the contract
- find suitable students for the owners (run background checks)
- handle all the monthly deposits the owner asks for: rent etc. (here's a thing I noticed: most people only own 1 building to rent out. If students don't pay on time, that could potentially be a problem for the owner, but still few owners even bother to ask a late fee or interest, which they actually can if they put it in the contract.
The student pays the company the monthly rent. The company would pay part of that amount to the owner. If the student doesn't pay on time, the company pays from its own balance. Risky? Not so much if the background check was done thoroughly + if the company manages a lot of rentals, this small type of legal stuff could be done in bulk - so to speak.
Good things: 1.the company has little upfront investment, but of course some cash outlay for bad students is needed.
2. It's actually 8 weeks of hard work a year and the rest is semi-auto pilot, or people could be hired to do it. This could be scaled to other cities.
Additionally, later down the road the company could take care of repairs (if company has relation with craftsmen/used-stuff stores)
Company could also work together with insurance companies and thus offer competitive insurance rates (since company manages a lot of properties, a deal could be made in which many owners take a certain form of insurance.
Good idea?
Any remarks or tips for a beginner? I love to learn.
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