Why My Friend Owns a Starbucks, But Not Really.....

Why My Friend Owns a Starbucks, But Not Really.....

A friend of mine likes to casually drop into conversation that he "owns a Starbucks."

Sounds impressive, right? You might be picturing him behind the counter, managing baristas, and ensuring your oat milk latte is perfectly frothed. But in reality?

He owns a fraction of a real estate syndication (a limited partner interest)—one that just happens to include a shopping center with a Starbucks as a tenant. He has zero involvement in the day-to-day, never has to deal with a supply chain crisis, and certainly isn’t waking up at 4 a.m. to unlock the doors.

And yet, every quarter, he gets his cut of the rental income—without lifting a finger.

That’s the beauty of real estate syndications—you can "own" high-performing real estate without ever stepping foot inside.

What Exactly Is a Real Estate Syndication?

If you’ve ever wanted to invest in real estate but don’t want to manage tenants, fix toilets, or spend your weekend at Home Depot, syndications might be your dream come true.

Think of it like group investing—investors pool their money to buy a property, like an apartment complex or student housing development.

? You own a fraction of the deal.

? You collect passive income.

? You let someone else handle the work.

It’s the Uber of real estate investing—you get where you want to go without driving yourself.

Why Real Estate Syndications Are Catching Investors’ Attention

?? No Landlord Duties – You won’t get a call about a broken dishwasher. Actually, you won’t get a call about anything. Ever.

?? Steady Passive Income – Unlike stocks, which give you nothing unless you sell, syndications provide quarterly cash flow (because tenants pay rent).

?? Built-In Diversification – Instead of dumping all your money into one single rental property, you own a piece of a larger, professionally managed asset.

?? Tax Benefits – Real estate investors love depreciation because it helps offset rental income for tax purposes. (Not financial advice, but let’s just say the tax code is very friendly to real estate owners.)

But… Isn’t Student Housing…..Risky?

The moment I mentioned investing in student housing, I'm sure you immediately pictured scenes straight out of Animal House:

?? Beer kegs flying off balconies.

?? Couches on fire in the front yard.

?? Cops breaking up a house party with a live goat in the living room.

Sounds like an investor’s nightmare, right?

Here’s the thing: That’s not reality.

In today’s student housing market:

?? Newer, purpose-built properties have professional management—not some guy named Chad who’s renting out his basement to 10 of his fraternity brothers.

?? Parents serve as lease guarantors, and thanks to automation, rent is drafted straight from their account on the 1st—so there’s no relying on a college kid to remember to pay rent between tailgates and Taco Bell runs.

?? Most students rent by the bedroom, meaning higher per-unit revenue and lower vacancy risks than traditional rentals.

?? Insurance to the rescue – If Chad decides to test the fire resistance of his couch, insurance steps in to cover property damage (after security deposits) and lost rental income while repairs are being made.

Does that mean student housing is zero risk?? ?Of course not—no investment is. But when done strategically in strong university markets, it can provide consistent demand, strong cash flow, and reliable tenant payments (thanks mom and dad!).

Why Student Housing at Ole Miss?

A lot of people don’t realize just how much demand is exploding for student housing in Oxford, Mississippi -- which USA Today named the Best Small College Town in America for 2024.

?? Record-Breaking Freshman Classes – The school is growing faster than its housing supply.

?? Parental Co-Signers – Unlike regular rentals, student leases come with a built-in backup: mom and dad’s bank account.

?? High Demand, Low Supply – Off-campus housing is becoming more competitive, which means rents are rising, and well-located properties stay full.

?? Enrollment Growth Continues – The university is projected to add 6,000 more students in Oxford by 2030—which means thousands more scrambling for a place to live.

Long story short—when the school is growing, student housing turns into the Hunger Games.

Like Our Starbucks Buddy, You Can Access Multi-Million Dollar Real Estate—Without the Multi-Million Dollar Buy-In

The minimum investment for many syndications is $50,000, and unlike traditional landlords, you’ll never have to deal with calls that start with, “Hey, weird question…”.

?? Many investors come in with $250,000 or more because they see the consistent cash flow, appreciation, and tax advantages that come with it.

?? Have an old 401(k) from three jobs ago? (Or even a traditional IRA?) We can walk you through the simple steps to move those dormant funds into a self-directed IRA.??? Why settle for investing solely in index funds when you can be in private equity —no trust fund, yacht, or Patagonia vest required.

?? DM me or visit www.collegiate-capital.com to learn more about how we’re investing in off-campus student housing at Ole Miss—and how you can, too!

* Not investment advice. This is a 506(c) offering for accredited investors. If you’re unsure whether you qualify, click here for the SEC’s official definition—or consult with your attorney or CPA to determine your eligibility. You’re also welcome to message me, and I can walk you through the general requirements.

#RealEstateInvesting #PassiveIncome #Syndications #StudentHousing #AlternativeInvestments #SelfDirectedIRA #Oxford #OleMiss #TaxStrategies

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Angelica Whaley MBA, MS, MT (ASCP)

Area Vice President, Laboratory Operations Hospitals and Clinics, System Transfusion Services

2 周

I am very interested in learning more about this. What do I need to do?

Arlett Tygesen

Managing Partner - Midfield Investments, a real estate investment company

3 周

Passive syndications are a fabulous opportunity to get access to deals you otherwise would never be able to be a part of. Proper due diligence is necessary but returns can be incredible for both CF and appreciation. I LOVE your student housing strategy. Winner winner!

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Pujan Bhatt Sarvadaman Chaudhari

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Adam Gower Ph.D.

I help you raise more capital, faster | 30+ years real estate experience | $1+ billion raised | Proprietary, AI-enhanced systems attract, nurture, and convert more investors | Learn how in my free newsletter

3 周

and the nice thing about NNN leases is that you can you invest with a company who will continue paying you even if their stock goes down!

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