The Camp North End acquisition. A 🧵.

Lesson 1: Never give up. These things can take forever.
Lesson 2: Conduct yourself as if your reputation matters, because it does.
Lesson 3: Hope for a seller who makes the kind of short-sighted mistakes as Rite Aid made.

1/11

Theoretically there are 3 decision makers for every BR in student housing

(student + 2 parents)

I focus on the student.

Build/buy/provide a house they want, not necessarily what the parents want.

1000x I have seen a children bully their parents into renting a house they (and

Wish I understood this ~20 yrs ago

-big college apartments sell amenities
-houses sell freedom

If I buy a small apartment building, I will lose on both amenities and freedom

You’re worried about vacancy, but I’m worried about occupancy

Before you let the frothy rents cast a spell on you, make sure to price in the risk of getting stabbed by a curling iron

You think it’s weird that I rent to college kids, but I think it’s weird you rent to tenants that might not pay rent. Like let’s get on the truth train, that’s pretty weird right?

Potential misstep I occasionally see in student rentals

A landlord renting an entire apartment building to 10-20 kids all in the same fraternity, sorority etc

Can be great if things go perfect - knocks out a ton of leases quickly

But heaven help you if something goes wrong

.01% of my brain answering questions from the other 99.99% of my brain on why I keep doing this for a living

I wasn't invited to give a graduation speech anywhere but here is my best advice to new college grads

As you step into the world, you might often hear the phrase, 'It's not who you know, but who knows you.'

This statement holds a profound truth about success in business and

The coastal elites in my niche are grad student landlords

Oh you’re “managing” a 2 bedroom w med students?

Where do you find the time???

Can they stitch up the kid who fell down the stairs and asked me to change their lightbulb?

This will sound dumb, etc but the # 1 sign of a premier college rental is one with a reputation.

A house that is distinct.

Kids who don't even live there - immediately know which one you're talking about

The one with the giant columns
The house with the huge oak tree in the

15 yrs ago I'd walk into a turnover & see a discharged fire extinguisher

powder residue everywhere (non-Colombian kind)

I'd run around the house panicked looking for a fire they didn't tell me about which didn't exist

But now, bc I've matured, I just say Boys will be Boys

IMO the opposite is true

Raise the rent $100 on 5 kids? It's only $20 each + they're not paying for it.

Lower the rent $100 on 5 kids? Same thing. $20 each + they're not paying for it.

Pricing when the decision maker is not price sensitive is harder than it looks.

Talked to a new CU lender today that said they do 80% LTC / 25 year AM for new construction so looking forward to getting a 40% LTC / 10 year AM term sheet tomorrow morning with the subject line GREAT NEWS

I need to preemptively tell you that if I ever say things are going great at work that this account has been compromised