How to Build a £100 Million Real Estate Portfolio Using Student Housing and Other People’s Money

Episode Summary

In this powerful episode of The Real Estate Investing Club podcast, host Gabe Petersen sits down with Sree Varma from Varma Properties Group to uncover the blueprint for building a £100 million real estate portfolio through student housing investments. Sree shares his journey from arriving in the UK with just £150 to becoming a successful property developer with 35 retail investors backing his deals.

Key Takeaways:

• Learn the exact BRR (Buy, Refurbish, Refinance, Repeat) strategy that enables infinite returns on investment
• Discover why student housing provides 10x the cash flow of traditional single-family rentals
• Understand how to raise capital from high-net-worth individuals in your existing network
• Master the art of finding below-market-value properties through strategic networking
• Learn from real deal failures and how discipline trumps intelligence in real estate investing

How Do You Start Real Estate Investing With Limited Capital as an Immigrant?

Starting with limited capital requires creativity, determination, and multiple income streams. Sree Varma’s journey exemplifies this approach perfectly. Coming from an immigrant family with just £150 in their pockets, he understood early that traditional paths wouldn’t create the wealth he sought.

The key is leveraging side hustles to build initial capital while developing valuable skills. During his MBA, while others were socializing, Sree was selling second-hand clothes and building websites for local businesses. As he explains, “When my friends were partying, I was actually trying to sell my mates’ parents, you know, the second hand clothes and these sort of things.” This entrepreneurial mindset created the foundation for his future real estate success.

The breakthrough comes when you combine your earned income with strategic learning. After building a successful sports business network with 26,000 executives, COVID-19 forced Sree to reassess his business model. This pause became his opportunity to educate himself through books like Rich Dad Poor Dad, podcasts, and conversations with successful property developers. The lesson is clear: use any available capital to invest in education first, then leverage that knowledge to attract investors who have capital but lack the expertise or time to invest themselves.

Why Is Student Housing More Profitable Than Traditional Buy-to-Let Properties?

Student housing offers significantly higher returns than traditional rentals due to its unique economics and demand dynamics. The fundamental advantage lies in the rent-per-room model versus single-tenant occupancy.

Sree discovered this after UK government policy changes and rising interest rates made traditional buy-to-let strategies less profitable. He realized, “You’re not just depending from one apartment, not just from one income, you have 10 tenants in one apartment, and then you have 10 rents coming.” This multiple income stream from a single property dramatically increases cash flow while reducing vacancy risk.

The premium pricing opportunity in student housing is another crucial factor. By creating high-quality, community-focused living spaces with amenities like Netflix, Spotify, gym facilities, and organized social events, you can charge premium rents that students (and their parents) are willing to pay. Students prioritize convenience, community, and quality of life, especially international students who often have higher budgets. This allows investors to achieve returns that would be impossible with traditional rental strategies while providing genuine value to tenants.

What Is the BRR Strategy and How Can It Create Infinite Returns?

The BRR (Buy, Refurbish, Refinance, Repeat) strategy is a powerful wealth-building method that allows investors to recycle their capital indefinitely. This approach enabled Sree to scale from limited personal funds to a multi-million pound portfolio.

The strategy works by purchasing properties below market value, typically at 25-30% discount. After acquisition, you add significant value through strategic renovations—in Sree’s case, converting properties into 10-bed student apartments. Once the refurbishment is complete, you refinance the property at its new, higher valuation. The key is that the new loan amount often equals or exceeds your total investment (purchase price plus renovation costs), allowing you to pull out all your initial capital while maintaining ownership of a cash-flowing asset.

As Sree emphasizes, “I use investor finance. At the beginning I used my money so you can only go so far with your money so I started raising money.” The beauty of this strategy is that once you prove the model with one or two successful deals, raising capital becomes easier because you can show investors concrete returns and a repeatable system. This creates a snowball effect where each successful project attracts more investors and enables larger deals.

How Do You Find Below-Market Properties in Competitive Markets?

Finding below-market properties requires building strong relationships and becoming the go-to buyer in your market. Success comes from positioning yourself as a reliable, quick closer rather than competing on price alone.

Sree’s approach centers on relationship-building with estate agents and becoming known as someone who closes deals quickly and professionally. “Definitely network and building relationships and the personal brand is so important because people buy from people and if an agent wants to come and give you a deal they need to trust you,” he explains. This trust becomes your competitive advantage.

The tactical approach involves creating a focused geographic strategy. Sree’s team created a detailed map showing properties within walking distance of the University of Surrey, targeting the 200-300 meter radius where student demand is highest. They then systematically build relationships with all agents operating in that area, establishing themselves as the specialist buyers for student housing conversions. When agents know you’ll close quickly and have funding ready, they bring deals to you before they hit the open market.

What Mistakes Should You Avoid When Scaling Your Real Estate Portfolio?

The most dangerous mistake in real estate is letting emotions override numbers and discipline. Even experienced investors fall into this trap, as Sree learned firsthand on his third deal.

After two successful deals, overconfidence led to a costly error. “I became a bit cocky and then I thought this is fine. I’ll make it work. And I paid probably over by twenty thousand pounds because I wanted that deal because it’s on the same street as the other two,” Sree admits. This emotional decision-making, combined with underestimating construction costs, meant he couldn’t achieve his target GDV (Gross Development Value) and had to leave money in the deal.

The lesson echoes Warren Buffett’s wisdom that Sree now lives by: “You don’t have to be the smartest but just be the most disciplined.” Stick religiously to your investment criteria. If the numbers don’t work at your target metrics, walk away—no matter how attractive the location or how much you want the deal. As Gabe reinforces, this discipline is “the hardest thing you’re going to do, but you’re going to regret it if you go forward with a deal that doesn’t stick to your criteria.”

How Can You Raise Capital From High-Net-Worth Individuals?

Raising capital successfully requires offering value beyond just returns—it’s about solving problems for people who have money but lack time or expertise. Sree has raised funds from 35 retail investors, primarily from his sports industry network.

The key insight is understanding your investors’ pain points. As Sree explains, wealthy individuals “put the money in the bank account, they don’t get much interest or returns.” They want passive income and inflation protection but don’t have the time or knowledge to invest directly in real estate. By offering them a hands-off investment with strong returns backed by real assets, you’re solving a genuine problem.

Building credibility is crucial before approaching investors. Start by proving the model with your own money or small amounts from close contacts. Document everything—returns, processes, and lessons learned. When you approach larger investors, you can show real results, not just projections. Sree leveraged his existing network from his sports business, where trust was already established. This highlights the importance of building relationships before you need them, whether through professional networks, podcasts, or industry events.

What Creates Long-Term Success in Real Estate Investing?

Long-term success in real estate comes from treating it as a business, not just an investment, and focusing on creating genuine value for all stakeholders.

Sree’s approach to student housing exemplifies this philosophy. Rather than just providing rooms, he creates a community experience with “pizza and beer nights,” private WhatsApp groups, and regular social events. “We’re creating a co-living brand for them to feel they are part of a community,” he explains. This value-first approach leads to full occupancy, premium rents, and positive word-of-mouth marketing.

The strategic vision is equally important. Sree has a clear five-year plan to reach £100 million in portfolio value, broken down into specific milestones and strategies. This includes geographic expansion (targeting Newcastle due to Saudi investment in the local football club), systematic team building (architect, contractors, property managers), and continuous education through podcasts and networking. Success comes from combining this long-term vision with daily discipline in deal analysis, relationship building, and operational excellence.

Want to learn more about our guest? Connect here: sree@isportconnect.com

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