Savvy real estate investors who are always looking for the next big trend and ways to build their wealth and investment portfolio already know the secret about investing in a home near a college campus.

But you do not need to be an “in-the-know­” investor in order to make a profit with college-based real estate.

Regular people are beginning to realize the tremendous profit margin and are cashing in on this new trend in real estate investing.

There are many ways to invest in college-town real estate, but the best advice is to do your research before you even think about getting started.

A recent article on Bankrate.com by Steve McLinden, “Near campus real estate is a good investment,” discusses some reasons why you may want to invest in a home near a college campus.

The main reason why this type of real estate is looking so attractive right now, is because enrollment in college is expected to increase steadily for a long time.

And the students that enroll in college over the next few years are going to need somewhere to live, which is where real estate investors come into play.

“Statistics seem to favor investment potential for homes in college communities at present, particularly with oversupply issues still dogging the housing sector and average times on the market ballooning to months instead of weeks. College enrollment is expected to rise 15 percent over the next decade, according to the National Center for Education Statistics.”

“And yes, some institutions are responding to increased housing needs by building new dorms, while developers are hustling to construct apartments in nearby infill sites -- if they can find them. But the housing stock in mature college communities will always be limited, especially if there are such elements as medical schools, research labs or technology facilities that draw additional non-student employment.”

The one thing that any investor needs to think long and hard about before they put their money into this type of investment is whether they can or want to be a landlord to college-aged kids.

Of course they can hire out a property management company to do the dirty work for them, but that will cost extra money. Those who want to get into this type of real estate investing need to realize everything that is involved.

“There are some potential negatives of being a landlord to college kids, as you might well expect. Even the most fastidious college students have little motivation -- other than the anticipated loss of a damage deposit -- to keep the place orderly, especially if they are moving on next term. There are often issues with noise, parking and parties (beer busts and, umm, beer recycling) that could attract unwelcome attention to your house. If you don't plan to live in the area and check on the place regularly, hire someone who can.”

Just be sure that you understand everything associated with this type of purchase beforehand, and research different college towns in advance so you can make sure you get the best deal possible.