February 26, 2025 • 30 mins
Isabelle Guarino is the Chief Operating Officer of Impact Housing Group and a leading trainer at the Residential Assisted Living Academy. With a background in Business Marketing and Communications, including experience at Walt Disney World and two Fortune 500 companies, Isabelle has become a dynamic leader in business development and operations. She has been instrumental in launching major industry initiatives such as the RAL National Convention, Recovery Housing Academy, and Pitch Masters Academy, driving success across Impact Housing Group’s companies.
A 2x Best-Selling Author of Living Legacy and host of the Young Boss Podcast, Isabelle is widely recognized for her expertise. She has been named a “Future Leader in Senior Housing”, one of the “Top Senior Housing Influencers Under 30”, and among the “Top 5 Disruptive Entrepreneurs Going Into 2023.” Featured on platforms like Bigger Pockets, The Wealthy Way Podcast, and Sales Disruptors, she is a sought-after speaker and coach for Residential Assisted Living, helping thousands of investors and entrepreneurs “Do Good & Do Well.”
Isabelle’s mission is to positively impact 10,000,000 people through Residential Assisted Living by continuing her father’s legacy. As the nation’s top coach and trainer in RAL, she shares her insights nationwide, empowering young professionals and seasoned leaders alike to succeed in business, leadership, and personal growth while creating lasting social impact.
During the show we discussed:
- Senior Housing Is A Profitable Business Due To Rising Demand And Demographic Trends.
- Choosing The Right Property And Location Is Key To Success.
- Starting Requires Significant Investment, With Various Funding Options Available.
- Prior Experience In Real Estate Or Healthcare Is Helpful But Not Required.
- Legal And Licensing Requirements Must Be Carefully Managed.
- Growing Demand Ensures Long-Term Business Opportunities.
- Smaller Homes Offer Personalized Care And Simpler Operations.
- Rising Care Costs Increase Profitability.
- Common Challenges Include Regulations, Staffing, And Marketing.
- Hiring And Retaining Quality Caregivers Is Essential.
- Strong Marketing Attracts And Keeps Residents.
- Effective Management Enables Hands-Off Operations.
- Streamlined Systems Ensure Steady Cash Flow.
- Scaling Requires Strategic Planning.
- Senior Housing Provides Financial Security And Benefits Communities.
Resources:
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:02):
(Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show.
Each week, we talk about the growth strategies
that matter most to entrepreneurs.
Listen in as we discuss the secrets to
getting credit and money to start and grow
your business.
And enjoy as we talk with seasoned business
owners, coaches, and industry leaders on a variety
(00:22):
of topics from advertising and marketing to the
nuts and bolts of running a highly successful
business.
And now, to introduce the host of our
show, financial expert and award-winning author, Ty
Crandall.
Hello, and thanks for joining us today.
I'm super excited you could be here because
today we're talking about a topic we have
never talked about before, but is amazing opportunity
(00:45):
for you if you're looking for a primary
or even a secondary income stream.
And it's basically to do with senior housing.
Today, we're actually gonna give you the blueprint
to succeed with investing and being part of
senior housing.
And again, I'm not gonna give you all
the insight because I have a expert here
to do that for you.
So with us today is Isabel Garino.
Now, Isabel is the chief operating officer of
(01:06):
Impact Housing Group and a leading trainer at
the Residential Assisted Living Academy with a background
in business marketing and communications, including experience at
Walt Disney World and two Fortune 500 companies.
Isabel has become a dynamic leader of the
business development and operations world.
She has been instrumental in launching major industry
(01:27):
initiatives such as the RAL National Convention, Recovery
Housing Academy, and Pitchmasters Academy, driving success across
Impact Housing Group companies.
Now, a two-time best-selling author of
Living Legacy and host of the Young Boss
podcast, Isabel is widely recognized for her expertise.
(01:48):
She's been named a future leader in senior
housing, one of the top senior housing influencers
under 30, and among the top five disruptive
entrepreneurs going into 2023.
Featured on platforms like BiggerPockets, the Wealthy Way
podcast, and Sales Disruptors, she's a sought-after
speaker and coach of Residential Assisted Living, helping
(02:09):
thousands of investors and entrepreneurs do good and
do well, which I love that.
Isabel's mission is to positively impact 10 million
people through Residential Assisted Living by continuing her
father's legacy as the nation's top coach and
trainer at RAL.
She shares her insights nationwide, empowering young professionals
and seasoned leaders alike to succeed in business,
(02:32):
leadership, and growth while creating lasting social impact.
Isabel, thanks for joining us today.
Look at that.
That was a mouthful.
You did it.
Thanks for having me on.
I'm excited to be here.
So I have to ask you, I mean,
I've never even heard of this before.
Like, so let's just start there.
Like, what are we talking about?
We're talking about senior housing and we're talking
(02:52):
about assisted living.
Like, give me some insight into what you
do, what you actually do.
Yeah, okay.
So most people have heard of senior housing
in the sense of the large commercial assisted
living facilities, the Brookdale, Sunrise, Atrium, you know,
the big, huge ones with multiple floors, long
hallways, impersonal staff.
(03:13):
What we found was that approach is frankly
terrible.
You're getting awful care.
It's ridiculously expensive and no one wants to
age or pass on in a place that
doesn't feel like home.
My own grandmother needed care and assistance.
And so we were looking for something suitable
for her.
And we had experience in the single family
(03:34):
game.
We have been doing fix and flip and
wholesale.
We've been doing long-term and short-term
rentals.
And when we realized that there was an
opportunity to blend assisted living with residential real
estate, we knew that we had kind of
hit a goldmine.
So what we do is we ourselves, as
well as we teach other people how to
take single family homes, nice luxury homes in
(03:58):
nice parts of town, not like three bed,
two baths, but nice single family homes and
turn them into residential assisted living homes for
seniors.
So that a senior can age in somewhere
that feels like a home because it's not
just home-like, it's an actual home.
And it's been a really fun ride.
I have never even heard of this before.
(04:20):
I'm embarrassed to say, like I've been financial
services for decades.
Real estate investors is one of the top
markets that we serve.
And I've never even heard of this before.
So you're taking residential properties and then converting
them to a point.
How many people can you fit in one?
Like if I have a four or five
bedroom house, how is that broken up?
Can it only fit four or five people,
(04:42):
for example?
Most seniors do want their own private bedroom
and private bathroom.
So you're gonna renovate the home to be
able to accommodate as many seniors as you
are allowed in that area.
Depending on where you live in the country,
you'll be allowed to have somewhere between six
and 16 residents in the home.
So in Arizona, I'm limited to 10.
(05:02):
In Florida, you're limited to 12.
So you may start with a home that's
a six, five, but you're gonna convert it
to become somewhere closer to like a 10,
eight, or a 12, 10, something like that.
So most of the seniors can have their
own bedrooms and bathrooms.
What about zoning?
How would that work?
It's zoned residential.
So they're zoned residential and it's okay that
(05:24):
I'm running an assisted living facility out of
a home that's zoned residential in most states?
In every state.
We have students in all 50 states who
are doing this.
So because it's a licensed property and we
are protected by the Federal Fair Housing Act,
a federal law, no city, state, angry neighbor,
HOA, whoever can say no.
(05:45):
These literally can exist anywhere in any neighborhood.
An HOA can say, hey, the home can't
look different from an outside, right?
You can't remove a garage or different things
like that, but they cannot say that we
can't be there.
We're federally protected.
Which I love that, by the way.
Completely not associated, but I do that with
my dogs.
I always get them certified because I have
a German Shepherd.
(06:05):
Everybody picks on her because she's a German
Shepherd, but then when I have a certification,
nobody can mess with her.
So, well, okay, so let's talk about this.
So I'm going to come in, I'm going
to buy a house.
I'm going to buy, let's just say a
five bedroom home and I'm in Florida and
we pack them in there, apparently in Florida,
because we got 12 in one house we're
allowed to do.
So now I'm breaking this up and tip
to you.
Everybody's comfortable, everybody has a good size bedroom
(06:25):
and stuff like that.
So the very first step is I'm finding
the right property.
I'm buying the right property.
Then I'm buying it right.
And then I'm coming in and I'm basically
rehabbing this property to fit the criteria that
I need it to fit.
Now I've done all that.
So as the investor, what are the next
steps that I would take?
If you're just going to be on the
real estate side of it, then you would
(06:46):
be leasing it out to an operator who's
going to run the business in the home.
And you could be making twice the fair
market rent, just renting out your property, right?
And they're signing a three, five, eight, I've
seen 10 or 12 year contracts because they're
going to be running this business in your
home and the business is based on the
(07:07):
location.
So they don't want to be kicked out.
And it's not a single family who you
need to find a new tenant every year.
They want to be there.
If you also, so that's one option.
You can just own the real estate.
The other option, and this is what we
do, because you can control the most and
make the most money this way, is we're
the operators.
I spend five hours a week on three
of my care homes here in the Phoenix
(07:28):
market.
It's not that much work to be the
operator.
What you're doing in the beginning is the
work.
You're hiring the licensed appropriate staff who's going
to work day to day in the home,
caring for the seniors and making sure that
all of that's up and running.
You're setting the marketing and relationships in place
to have that steady flow of seniors coming
in.
And you're setting up the systems more or
(07:50):
less.
But once you have all that in place,
it can be quite hands-off.
So it really depends.
I can either be on the real estate
side, churn and burn, find these properties, build
them out, hand them over to operators, or
just stay with the property and then maybe
go and do another one and another one.
Well, what do you think makes this an
opportunity?
Because there's a lot of the types of
real estate.
And by the way, again, embarrassing, never really
(08:10):
know much about this one.
So what makes it such a unique and
profitable way to do, to go in real
estate versus other options?
There's really two big parts of this that
we should point out.
Number one is the supply and demand.
The baby boomers, they're not into assisted living
yet.
They're still, the eldest of the baby boomers
is still about five years out from needing
care and assistance.
(08:31):
So right now the silent generation is who
lives in assisted living.
And there's 47 million people in that generation.
There's 76 million baby boomers.
They're not in assisted living yet.
And we are currently 1.3 million beds
short.
We have a major crisis on our hands
as a country.
With the baby boomers coming into this, there
(08:53):
is not enough beds.
The cost of care has gone up 87
% over the last 20 years, and it's
projected to skyrocket.
Average cost of a person living in a
home right now is $5,500 per month
per resident.
So if you have 10 residents in at
that, even if your mortgage is 10K and
maybe it costs you 35K a month to
(09:14):
run the home, you are cash flowing as
the owner operator $10,000 a month on
one single family home.
So on one side, we've got economy playing
in our favor, economics and all of the
aging population, the silver tsunami of seniors, as
we call it.
On the other side, it's a hugely lucrative
opportunity.
(09:35):
So it's kind of the best of both
worlds.
How do I even go about finding the
right kind of property?
What kind of criteria am I looking at
to find the right property?
Think 300 to 500 square feet per resident.
You do want it to be demographically in
an area where the majority population is 50
to 70 years old, making two times the
median income homeowners college grads.
(09:57):
So a nicer area, not because that person
is moving into the home, that person is
the adult child of the person moving into
your home.
And they are making most of the decisions
at that point in life.
So they don't wanna drive 45 minutes outside
of town because it's cheaper.
They wanna drive five minutes on their way
home from work to go visit mom or
dad.
So you wanna target the adult children and
(10:20):
be right where they live, eat, work, sleep,
play.
Well, what about typical investment?
Like what kind of loans am I getting
on something like this?
You know, SBA, 7A and 504 loans are
super friendly to this.
We have people who work with our students
all across the country who lend out on
this.
You can do hard money or bank loans,
(10:41):
but we really lean towards SBA as well
as private money or syndications.
We all know there's a bunch of people
getting like not a lot of return with
their money sitting in the bank.
And if you could offer them 6, 7,
8, 9% on their money, they would
be willing to invest in you, especially that
this is a topic that really hits home.
We're all aging and 70% of us
(11:04):
are going to need daily care for an
average of three and a half years.
Everyone's going to get involved in senior housing
one way or the other.
Either eventually you'll be lying in the bed
or writing the check for someone who is,
or you could be owning the real estate,
cash flowing, having a place for your loved
ones or yourself if and when you ever
need assistance.
(11:24):
But we're all going to get involved some
way, somehow.
Yes.
Like, it's just so smart.
Like not even really knowing this existed, because
I think about my mom and dad, right?
And that's like a worry.
I don't want to put them into a
freaking home for all the same stereotypes that
you have a home, right?
But then what do you do?
Like if you do home health care, that's
expensive.
And I might have the means to pay
for it, but a lot of people don't
(11:44):
have the means to be able to pay
for something like that at all.
And there's, I never even knew there was
another option, but this like makes so much
more sense because they're like, they're living in
like a normal house.
Like I was going to get my parents
like a house on the beach with somebody
taking care of them.
That's expensive.
But like, this is like, makes a lot
of sense.
It doesn't sound like it's any more than
them staying in like one of the regular
(12:05):
horrible facilities, but they actually have like a
nice kind of close-knit group of friends
and like a phenomenal environment.
I just think this is so smart.
One of the biggest things most people don't
realize is exactly that, the cost of in
-home care.
So many people have promised their loved ones
like, hey, you know, I'll let you stay
at home and I'll get you in-home
care.
The cost right now, the average cost is
(12:27):
$33 an hour.
So if your loved ones to the point
where they need 24 seven care, that's over
$23,000 a month just for care, not
the mortgage, not the food, not the utilities,
medication, whatever.
Many Americans can't afford that.
So then they start to say, oh my
goodness, what do we do?
Does someone quit their job and take care
(12:47):
of mom or dad full-time?
I don't know about you, but I wasn't
born to be a caregiver, right?
To, it's just not in my blood.
That's not who I am.
But what I am born to do is
run businesses and operate businesses.
So if I can create a business that
gives my loved ones exactly what they need
with people who are born to do that
job and love doing it, then that really
(13:08):
is where it all makes sense.
I never even thought about that angle.
I mean, like, so my parents can get
old enough and I could do this as
a business to make sure they're taken care
of.
And then it costs me nothing.
I can actually make money.
I can have my parents in the house.
Heck, I could even bring their friends into
the house where they're aging with their closest
friends and then make it a business, not
(13:29):
where I'm trying to profit.
But I mean, I'm saying, like I go
from $23,000 a month to zero because
I'm actually making money on the property.
I never even thought of it from that
angle.
That's why so many people come to learn
from us.
You've been teaching people for the last 10
years, but so many people come because they
are either caring for their loved one and
they're like, I can't do it anymore, they're
(13:51):
doing in-home care, it's insanely expensive, or
their loved one had a terrible time at
a large facility.
You know, we hear stories of abuse and
neglect and just the reality is in the
big boxes, the ratios of seniors to caregivers,
it's typically 30 seniors to one caregiver.
One person cannot take care of 30 people.
(14:13):
Like it should be illegal.
We don't even do that in schools.
Like we wouldn't even do that in a
school.
We're students, that's crazy.
Thank you.
And these are high need human beings.
If you need help getting out of bed
just to go to the bathroom, you need
help wiping yourself and showering and eating and
taking medication.
A 30 to one ratio does not work
(14:34):
for high need.
So in our homes, we recommend a four
to one or five to one ratio.
So if you're paying the same, but your
care ratio is so much greater, you're actually
getting, to me, what you paid for.
You're getting the quality attention.
You're in that smaller environment.
You still have fun activities.
You still have socialization.
You still have a private bedroom, but it
(14:56):
comes down to the care and the environment.
And that's why RAL is such a sweet
option.
And by the way, you're at residentialassistedlivingacademy.com,
right?
Yeah.
Okay, so everybody wants to follow along, you
can check that out now.
We'll talk about it at the end of
our show as well, but that's residentialassistedlivingacademy.com.
(15:17):
So make sure you check it out.
So you talked about the business experience.
What do I need to get into this?
Like, I mean, we're talking about real estate.
We're talking about business.
We're talking about healthcare.
So like, do I need experience in all
three or any of these areas to jump
into the academy and be able to figure
this out?
We have had people who are 17 years
old who've opened care homes and others who
are 72, and they have nothing in common
(15:39):
besides the fact that they both wanted to
be in this industry.
So you do not need a medical background.
You don't even need a real estate background.
You just need to have grit and be
willing to jump through the hoops to make
it happen and actually set up the business
well.
So if you...
And now a quick break to hear from
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(16:01):
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(16:22):
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Do you have medical experience?
I will say that it can be a
feather in your cap because you can market
the home that way as doctor owned or
nurse owned, but you do not need it
because you are not working in the home.
You are not living in the home.
You're hiring that staff to do this.
(16:42):
So anybody can get involved and it doesn't
matter your background, but if you do have
real estate background, maybe that part will be
easier for you.
And if you are a medical professional, you
can help market your home and get even
higher paying clients because of that.
I feel angry about this 30 to one.
Like I'm really mad.
Like a king that's legal like that just
(17:03):
really angers me.
I'm actually happy that you're mad because so
many people, when I say this every day,
I'm preaching this all the time and they're
just like, yeah, yeah.
And I'm like, no, this should piss us
off.
Like we like shut down these places.
People ask about COVID all the time.
They're like, wasn't that terrible for you guys?
And I'm like, not for us.
We can control who comes in and out
(17:25):
the door.
97% of COVID cases happened in the
large facilities.
And to me, there was way more unnecessary
deaths happening because people shoving food under the
door, people being left alone for days on
end.
Like that is just showing a glimpse of
what's happening in those facilities.
In our homes, rarely was there COVID happening.
(17:47):
People were still functioning, having activities, visiting with
people safely, of course, but it just goes
to show smaller is better and it is
safer as well.
So what kind of licensing legal requirements are
there?
I mean, it varies state by state, but
in general, what am I looking at here
to be able to launch a facility like
this?
(18:07):
So the physical home is going to have
a license on it.
And that's based on points of egress, square
footage, wide enough hallways and doorways.
It doesn't have to be ADA compliant, but
you want it as close to that as
possible.
So you do want it to really look
and feel nice and roomy and cozy in
that way and have enough space for them
(18:28):
to move and groove around.
The licensed administrator is one of the biggest
hiring decisions you are making.
That person is kind of like your property
manager in the real estate world.
They are running all of the day-to
-day within the home and they have a
license.
They hire your licensed caregivers who do the
24-7 care of the residents.
(18:48):
So you as the owner operator do not
have a license, but the home does, the
administrator does, and the caregivers do.
Now the money that comes in, does that
usually come in from the government or comes
from the individual that's actually putting a loved
one there?
We focus only on private pay residents.
So usually they're using their cash, their savings,
their IRAs.
(19:08):
They're selling physical properties that they own and
using that capital to pay for their care
needs or their adult children are footing the
bill.
We have some residents who may have VA
benefits and 10% of the population has
a long-term care insurance.
So if you have that, you can use
that.
We avoid any government funding, Medicaid, Medicare.
(19:28):
It pays out really, really low.
And usually families who are relying on that,
they don't have any additional income to foot
the rest of the bill.
So you just end up short every month
and it's not worth it.
So what are the biggest challenges that your
students face that you see when they're jumping
in this trying to succeed?
(19:49):
I think the biggest challenge in this industry
is people.
And I don't mean the seniors because many
times the seniors are lovely.
They're amazing.
They're actually like just dolls, but it's just
all the people involved.
It could be the family of the senior
who has really high needs, really high expectations.
And to be frank, it's an extremely emotional
(20:09):
time putting your loved one into a care
home.
You feel guilty.
You feel maybe angry.
You feel relief.
You feel like it's so many mixed emotions
that you don't know what you're getting out
of this person at this point in time.
So the families can be very difficult to
deal with.
And then the caregivers, that is the number
one most in-demand job in our country
(20:31):
right now is home health aides and caregivers.
We do not have enough people getting into
this industry and the people who are in
this industry, in my opinion, the ones who
are working in big boxes, they're being used
and abused, not paid enough, not treated well.
And they're not able to do the thing
that they actually signed up to do when
the ratios are against them.
(20:51):
They're not being paid very much.
Caregivers get paid minimum wage plus a couple
dollars an hour.
You can go get that at In-N
-Out or Chick-fil-A these days.
So what makes them want to go do
this job that is a tough job?
It's their heart.
Like they love seniors and they wouldn't want
to do anything else.
So we have to, in any business, I
(21:13):
think treat, like for me as the owner,
the staff is my client, not the senior.
I focus all my energy and effort on
getting that staff to feel loved, appreciated, respected,
paid well, what they want, what they need
to thrive and survive in this industry so
that they treat the seniors amazingly.
Because if I only focus on the seniors
(21:34):
and skip over them, they're not going to
last.
We're going to churn and burn and we're
going to have a revolving door.
But if I focus my effort on giving
them everything, they will want to do the
same for the seniors.
And really, I think that's true of any
business, but especially true in RAL.
Give me an idea of what this looks
like.
What does a home, what does a property
look like?
I mean, I can visualize that it's the
(21:54):
room and I would, well, I'll let you
describe it.
So like, what does this look like?
Put a visual in my head of what
a normal, if there is a normal type
of property looks like.
Yeah, it's not pad split where it's just
the whole house is chopped up into bedrooms
and bathrooms, right?
We still have a beautiful living room when
(22:14):
you walk in.
You'll still want a dining room.
Many of these homes have movie theaters, salons,
like these are luxury homes in really nice
parts of town.
Many bedrooms and bathrooms, a nice backyard with
walking paths and gardens and seating areas.
You'll have a nice kitchen.
You want multiple places for the seniors to
(22:34):
go hang out and function and live life.
There's usually an office somewhere in the house
for the administrator to take personal meetings with
family members or different things like that.
But it's just really a luxurious house in
a nice part of town with a great
backyard, lots of bedrooms and bathrooms, but all
the same things you or I may have
in our own home.
(22:55):
I'm familiar with Phoenix area, I spent a
lot of time out there.
So if I'm buying one of these properties
in Phoenix and let's say that I'm going
to put 10 residents in there, million bucks,
somewhere in that price range is what I'll
probably pay?
Easy, easy.
Depending on where you are in the country,
it could be between, I mean, on the
lowest end, I'd say like 700,000, but
(23:15):
we have a lot of students who have
homes up to 3 million depending on their
market.
So in the Phoenix market, you're going to
be a million or more easily.
So let's talk about your hiring.
If you're talking about something that has a
$3 million property, how many residents are in
there?
I would hope that that's a home that
has 14 up to 16.
Like you would want to maximize that.
Because if your mortgage is going to be
(23:36):
30,000 a month, let's call it, right?
Then you're going to need to be bringing
in enough income to afford that.
The math always has to work.
So we do have students who have mortgages
of 30, $35,000 a month, but their
rates are like $8,000 a month and
they have 16 residents in there and they're
still cash flowing almost $40,000 a month
(23:58):
on one home.
So the sky is kind of the limit.
We always encourage people to have three homes,
a three-pack within 20 to 40 minutes
of each other so you can share resources.
But some of these homes, some of our
students are like, hey, 40K on one home,
I'm good.
That's all I need.
Sure, yeah, it makes sense.
But then, and if you think about that
(24:19):
though, you've got that 40K, you've got to
pay the caregivers, the staff, all that, which
I think, and then you're down to like,
I mean, what's your, is there an average
profit that you're actually making on these properties?
I know you mentioned 10K earlier, just as
we were throwing numbers out.
Yep, 10K was that super average 10 bed
home, but no, that 40 was net take
home.
(24:39):
The gross for 16 residents at $8,000
a month is 128,000 gross.
I was doing the math at 5,500,
which is where I got stuck.
Okay, okay, yeah.
I didn't really do the math of 80K.
That's okay.
So then we take out the mortgage, then
we take out paying the care staff and
stuff like that.
So there is a big lift.
Like there are a lot of expenses in
(25:00):
the industry, not just the mortgage, but that,
the care staff.
It costs, usually it's 40% of your
total expenses goes for the staff.
And the less you want to be involved,
the more you're going to be paying out
on that.
So I like to pay more and make
a little bit less.
Like some of my homes, if I went
and visited them every day, I might be
able to make 15,000.
(25:21):
I don't want to.
So I make 10 so that I can
pay for extra people in between me and
the home.
So I don't have to be as hands
-on.
And they're going to buy everything else.
I got to buy like the, you know,
the kits and the medical stuff.
I got to buy the food and all
that stuff as well on a regular basis.
That's part of all the expenses then.
Exactly.
So the senior who's living in the home,
(25:42):
their fee, it's covering all of that for
them.
It's their room, their board, their activities, their
food, their care, their everything, part of the
utilities.
That's what they're paying for at that time
in life.
So a lot of people will be like
5,500.
Oh my God, that's so expensive.
And I'm like, pause.
How much does it cost you to live
every single month?
(26:02):
Now think if you had a private chef,
activities coming to your house every day, laundry,
housekeeping, someone wiping your bum, bathing you, doing,
you know, making your bed, pretty sure it
costs you more than 5,500.
This is kind of a steal of a
deal.
Yeah.
Yeah.
I wish like one of my expenses was
5,500.
That would be fantastic.
Right?
(26:22):
So a lot of people in business I
find and our audience are all entrepreneurs.
They're trying to, they always try to figure
out how to get leads.
So what does that look like?
What kind of strategies are out there to
be able to even attract potential residents into
the property once you have it all set
up?
The biggest and most important thing is setting
it up in the right location first.
Cause location will be everything.
I get people all the time who like
(26:42):
listen to a podcast or a YouTube video
and they're like, oh my God, I did
this and I started this home and I
don't have any residents.
What did I do wrong?
And I'm like, oh my gosh, like location
is everything.
So it is real estate at the end
of the day.
You want to make sure you're located properly.
But there are so many ways to fill
the beds and with the coming silver tsunami
of seniors, if you are not full, I'm
going to be real blunt right here.
(27:04):
It is 100% your fault, because there
is an entire industry of people called placement
agents.
And what they do is they're kind of
like a realtor for bodies.
If you need assisted living, your family usually
finds a placement agent and it costs the
family nothing.
They ask you, hey, what location, what amenities,
what price point do you want or need?
(27:25):
They tour you around to different homes.
And if they choose your home, you as
the homeowner pay half of the first month's
rent to that placement agent.
For someone who's going to live with me
for an average of three and a half
years at six, seven, eight, $9,000 a
month, I will pay half of a first
month's rent.
Like this is, I will pay for speed
(27:45):
all day long.
So you can work with placement agents, but
you also need everything else you need for
a business.
You need a Facebook page, you need a
website, you need brochures and business cards, and
you want to start building relationships in the
communities.
Geriatric doctors, hospice agencies, elder law attorneys, churches,
synagogues, temples, these are all amazing referral sources
(28:06):
for you that don't cost a dime.
So there's a mix between online marketing, as
well as having your placement agents, as well
as having the community relationships.
But with all three of those legs running
at the same time, you should be full
for sure.
I love it.
Isabel, where can somebody go that's watching this?
This is crazy, I want to learn more.
(28:28):
Because we just scratched the surface of so
many things that I'm sure a lot of
people have questions on.
Where can they go, what should they do
to be able to learn more?
RAL101.com is a great website to go
check out.
We've got free books, free webinars.
You can schedule a call with me or
the team right there.
We'd love to chat with you if you've
got a property in mind or any questions.
So RAL101.com.
(28:49):
So make sure, RAL101.com.
And that's a great landing page.
It kind of gives you everything that you
need.
You can even schedule an enrollment card there
as well.
Yeah, cool.
Thank you so much for tuning in, or
thank you very much for coming on today.
I really appreciate it.
Happy to be here.
Thanks for having me.
All right, so listen, if you're watching this,
this is ridiculous, right?
I don't know about you, but I've never
heard anything like this before.
(29:09):
And it makes so much sense.
I don't know about your parents and where
they are in life, but this is exactly
what I would want for my parents.
It's one of the most common sense things
I've seen.
I'm still really angry about the 30 to
one.
I cannot even believe that that's legal in
our country.
But that's what our parents are headed towards,
if you're there, right?
So this is something that you should really
think about with your heart because this solves
(29:30):
a major problem.
And this could be a ridiculously lucrative business
for you.
This is a section of the real estate
side that not a lot of people are
in.
So there's a massive opportunity with like 1
.3 million, I think, they're negative out there
looking for properties for.
And you know, but something that a lot
of people don't know.
So it's a phenomenal opportunity to get in
(29:51):
to really make a difference in what's happening
in society, to be able to potentially learn
something that can even help your elders in
there.
(Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show.
Each week, we talk about the growth strategies
that matter most to entrepreneurs.
Listen in as we discuss the secrets to
getting credit and money to start and grow
your business.
And enjoy as we talk with seasoned business
owners, coaches, and industry leaders on a variety
(00:22):
of topics from advertising and marketing to the
nuts and bolts of running a highly successful
business.
And now, to introduce the host of our
show, financial expert and award-winning author, Ty
Crandall.
Hello, and thanks for joining us today.
I'm super excited you could be here because
today we're talking about a topic we have
never talked about before, but is amazing opportunity
(00:45):
for you if you're looking for a primary
or even a secondary income stream.
And it's basically to do with senior housing.
Today, we're actually gonna give you the blueprint
to succeed with investing and being part of
senior housing.
And again, I'm not gonna give you all
the insight because I have a expert here
to do that for you.
So with us today is Isabel Garino.
Now, Isabel is the chief operating officer of
(01:06):
Impact Housing Group and a leading trainer at
the Residential Assisted Living Academy with a background
in business marketing and communications, including experience at
Walt Disney World and two Fortune 500 companies.
Isabel has become a dynamic leader of the
business development and operations world.
She has been instrumental in launching major industry
(01:27):
initiatives such as the RAL National Convention, Recovery
Housing Academy, and Pitchmasters Academy, driving success across
Impact Housing Group companies.
Now, a two-time best-selling author of
Living Legacy and host of the Young Boss
podcast, Isabel is widely recognized for her expertise.
(01:48):
She's been named a future leader in senior
housing, one of the top senior housing influencers
under 30, and among the top five disruptive
entrepreneurs going into 2023.
Featured on platforms like BiggerPockets, the Wealthy Way
podcast, and Sales Disruptors, she's a sought-after
speaker and coach of Residential Assisted Living, helping
(02:09):
thousands of investors and entrepreneurs do good and
do well, which I love that.
Isabel's mission is to positively impact 10 million
people through Residential Assisted Living by continuing her
father's legacy as the nation's top coach and
trainer at RAL.
She shares her insights nationwide, empowering young professionals
and seasoned leaders alike to succeed in business,
(02:32):
leadership, and growth while creating lasting social impact.
Isabel, thanks for joining us today.
Look at that.
That was a mouthful.
You did it.
Thanks for having me on.
I'm excited to be here.
So I have to ask you, I mean,
I've never even heard of this before.
Like, so let's just start there.
Like, what are we talking about?
We're talking about senior housing and we're talking
(02:52):
about assisted living.
Like, give me some insight into what you
do, what you actually do.
Yeah, okay.
So most people have heard of senior housing
in the sense of the large commercial assisted
living facilities, the Brookdale, Sunrise, Atrium, you know,
the big, huge ones with multiple floors, long
hallways, impersonal staff.
(03:13):
What we found was that approach is frankly
terrible.
You're getting awful care.
It's ridiculously expensive and no one wants to
age or pass on in a place that
doesn't feel like home.
My own grandmother needed care and assistance.
And so we were looking for something suitable
for her.
And we had experience in the single family
(03:34):
game.
We have been doing fix and flip and
wholesale.
We've been doing long-term and short-term
rentals.
And when we realized that there was an
opportunity to blend assisted living with residential real
estate, we knew that we had kind of
hit a goldmine.
So what we do is we ourselves, as
well as we teach other people how to
take single family homes, nice luxury homes in
(03:58):
nice parts of town, not like three bed,
two baths, but nice single family homes and
turn them into residential assisted living homes for
seniors.
So that a senior can age in somewhere
that feels like a home because it's not
just home-like, it's an actual home.
And it's been a really fun ride.
I have never even heard of this before.
(04:20):
I'm embarrassed to say, like I've been financial
services for decades.
Real estate investors is one of the top
markets that we serve.
And I've never even heard of this before.
So you're taking residential properties and then converting
them to a point.
How many people can you fit in one?
Like if I have a four or five
bedroom house, how is that broken up?
Can it only fit four or five people,
(04:42):
for example?
Most seniors do want their own private bedroom
and private bathroom.
So you're gonna renovate the home to be
able to accommodate as many seniors as you
are allowed in that area.
Depending on where you live in the country,
you'll be allowed to have somewhere between six
and 16 residents in the home.
So in Arizona, I'm limited to 10.
(05:02):
In Florida, you're limited to 12.
So you may start with a home that's
a six, five, but you're gonna convert it
to become somewhere closer to like a 10,
eight, or a 12, 10, something like that.
So most of the seniors can have their
own bedrooms and bathrooms.
What about zoning?
How would that work?
It's zoned residential.
So they're zoned residential and it's okay that
(05:24):
I'm running an assisted living facility out of
a home that's zoned residential in most states?
In every state.
We have students in all 50 states who
are doing this.
So because it's a licensed property and we
are protected by the Federal Fair Housing Act,
a federal law, no city, state, angry neighbor,
HOA, whoever can say no.
(05:45):
These literally can exist anywhere in any neighborhood.
An HOA can say, hey, the home can't
look different from an outside, right?
You can't remove a garage or different things
like that, but they cannot say that we
can't be there.
We're federally protected.
Which I love that, by the way.
Completely not associated, but I do that with
my dogs.
I always get them certified because I have
a German Shepherd.
(06:05):
Everybody picks on her because she's a German
Shepherd, but then when I have a certification,
nobody can mess with her.
So, well, okay, so let's talk about this.
So I'm going to come in, I'm going
to buy a house.
I'm going to buy, let's just say a
five bedroom home and I'm in Florida and
we pack them in there, apparently in Florida,
because we got 12 in one house we're
allowed to do.
So now I'm breaking this up and tip
to you.
Everybody's comfortable, everybody has a good size bedroom
(06:25):
and stuff like that.
So the very first step is I'm finding
the right property.
I'm buying the right property.
Then I'm buying it right.
And then I'm coming in and I'm basically
rehabbing this property to fit the criteria that
I need it to fit.
Now I've done all that.
So as the investor, what are the next
steps that I would take?
If you're just going to be on the
real estate side of it, then you would
(06:46):
be leasing it out to an operator who's
going to run the business in the home.
And you could be making twice the fair
market rent, just renting out your property, right?
And they're signing a three, five, eight, I've
seen 10 or 12 year contracts because they're
going to be running this business in your
home and the business is based on the
(07:07):
location.
So they don't want to be kicked out.
And it's not a single family who you
need to find a new tenant every year.
They want to be there.
If you also, so that's one option.
You can just own the real estate.
The other option, and this is what we
do, because you can control the most and
make the most money this way, is we're
the operators.
I spend five hours a week on three
of my care homes here in the Phoenix
(07:28):
market.
It's not that much work to be the
operator.
What you're doing in the beginning is the
work.
You're hiring the licensed appropriate staff who's going
to work day to day in the home,
caring for the seniors and making sure that
all of that's up and running.
You're setting the marketing and relationships in place
to have that steady flow of seniors coming
in.
And you're setting up the systems more or
(07:50):
less.
But once you have all that in place,
it can be quite hands-off.
So it really depends.
I can either be on the real estate
side, churn and burn, find these properties, build
them out, hand them over to operators, or
just stay with the property and then maybe
go and do another one and another one.
Well, what do you think makes this an
opportunity?
Because there's a lot of the types of
real estate.
And by the way, again, embarrassing, never really
(08:10):
know much about this one.
So what makes it such a unique and
profitable way to do, to go in real
estate versus other options?
There's really two big parts of this that
we should point out.
Number one is the supply and demand.
The baby boomers, they're not into assisted living
yet.
They're still, the eldest of the baby boomers
is still about five years out from needing
care and assistance.
(08:31):
So right now the silent generation is who
lives in assisted living.
And there's 47 million people in that generation.
There's 76 million baby boomers.
They're not in assisted living yet.
And we are currently 1.3 million beds
short.
We have a major crisis on our hands
as a country.
With the baby boomers coming into this, there
(08:53):
is not enough beds.
The cost of care has gone up 87
% over the last 20 years, and it's
projected to skyrocket.
Average cost of a person living in a
home right now is $5,500 per month
per resident.
So if you have 10 residents in at
that, even if your mortgage is 10K and
maybe it costs you 35K a month to
(09:14):
run the home, you are cash flowing as
the owner operator $10,000 a month on
one single family home.
So on one side, we've got economy playing
in our favor, economics and all of the
aging population, the silver tsunami of seniors, as
we call it.
On the other side, it's a hugely lucrative
opportunity.
(09:35):
So it's kind of the best of both
worlds.
How do I even go about finding the
right kind of property?
What kind of criteria am I looking at
to find the right property?
Think 300 to 500 square feet per resident.
You do want it to be demographically in
an area where the majority population is 50
to 70 years old, making two times the
median income homeowners college grads.
(09:57):
So a nicer area, not because that person
is moving into the home, that person is
the adult child of the person moving into
your home.
And they are making most of the decisions
at that point in life.
So they don't wanna drive 45 minutes outside
of town because it's cheaper.
They wanna drive five minutes on their way
home from work to go visit mom or
dad.
So you wanna target the adult children and
(10:20):
be right where they live, eat, work, sleep,
play.
Well, what about typical investment?
Like what kind of loans am I getting
on something like this?
You know, SBA, 7A and 504 loans are
super friendly to this.
We have people who work with our students
all across the country who lend out on
this.
You can do hard money or bank loans,
(10:41):
but we really lean towards SBA as well
as private money or syndications.
We all know there's a bunch of people
getting like not a lot of return with
their money sitting in the bank.
And if you could offer them 6, 7,
8, 9% on their money, they would
be willing to invest in you, especially that
this is a topic that really hits home.
We're all aging and 70% of us
(11:04):
are going to need daily care for an
average of three and a half years.
Everyone's going to get involved in senior housing
one way or the other.
Either eventually you'll be lying in the bed
or writing the check for someone who is,
or you could be owning the real estate,
cash flowing, having a place for your loved
ones or yourself if and when you ever
need assistance.
(11:24):
But we're all going to get involved some
way, somehow.
Yes.
Like, it's just so smart.
Like not even really knowing this existed, because
I think about my mom and dad, right?
And that's like a worry.
I don't want to put them into a
freaking home for all the same stereotypes that
you have a home, right?
But then what do you do?
Like if you do home health care, that's
expensive.
And I might have the means to pay
for it, but a lot of people don't
(11:44):
have the means to be able to pay
for something like that at all.
And there's, I never even knew there was
another option, but this like makes so much
more sense because they're like, they're living in
like a normal house.
Like I was going to get my parents
like a house on the beach with somebody
taking care of them.
That's expensive.
But like, this is like, makes a lot
of sense.
It doesn't sound like it's any more than
them staying in like one of the regular
(12:05):
horrible facilities, but they actually have like a
nice kind of close-knit group of friends
and like a phenomenal environment.
I just think this is so smart.
One of the biggest things most people don't
realize is exactly that, the cost of in
-home care.
So many people have promised their loved ones
like, hey, you know, I'll let you stay
at home and I'll get you in-home
care.
The cost right now, the average cost is
(12:27):
$33 an hour.
So if your loved ones to the point
where they need 24 seven care, that's over
$23,000 a month just for care, not
the mortgage, not the food, not the utilities,
medication, whatever.
Many Americans can't afford that.
So then they start to say, oh my
goodness, what do we do?
Does someone quit their job and take care
(12:47):
of mom or dad full-time?
I don't know about you, but I wasn't
born to be a caregiver, right?
To, it's just not in my blood.
That's not who I am.
But what I am born to do is
run businesses and operate businesses.
So if I can create a business that
gives my loved ones exactly what they need
with people who are born to do that
job and love doing it, then that really
(13:08):
is where it all makes sense.
I never even thought about that angle.
I mean, like, so my parents can get
old enough and I could do this as
a business to make sure they're taken care
of.
And then it costs me nothing.
I can actually make money.
I can have my parents in the house.
Heck, I could even bring their friends into
the house where they're aging with their closest
friends and then make it a business, not
(13:29):
where I'm trying to profit.
But I mean, I'm saying, like I go
from $23,000 a month to zero because
I'm actually making money on the property.
I never even thought of it from that
angle.
That's why so many people come to learn
from us.
You've been teaching people for the last 10
years, but so many people come because they
are either caring for their loved one and
they're like, I can't do it anymore, they're
(13:51):
doing in-home care, it's insanely expensive, or
their loved one had a terrible time at
a large facility.
You know, we hear stories of abuse and
neglect and just the reality is in the
big boxes, the ratios of seniors to caregivers,
it's typically 30 seniors to one caregiver.
One person cannot take care of 30 people.
(14:13):
Like it should be illegal.
We don't even do that in schools.
Like we wouldn't even do that in a
school.
We're students, that's crazy.
Thank you.
And these are high need human beings.
If you need help getting out of bed
just to go to the bathroom, you need
help wiping yourself and showering and eating and
taking medication.
A 30 to one ratio does not work
(14:34):
for high need.
So in our homes, we recommend a four
to one or five to one ratio.
So if you're paying the same, but your
care ratio is so much greater, you're actually
getting, to me, what you paid for.
You're getting the quality attention.
You're in that smaller environment.
You still have fun activities.
You still have socialization.
You still have a private bedroom, but it
(14:56):
comes down to the care and the environment.
And that's why RAL is such a sweet
option.
And by the way, you're at residentialassistedlivingacademy.com,
right?
Yeah.
Okay, so everybody wants to follow along, you
can check that out now.
We'll talk about it at the end of
our show as well, but that's residentialassistedlivingacademy.com.
(15:17):
So make sure you check it out.
So you talked about the business experience.
What do I need to get into this?
Like, I mean, we're talking about real estate.
We're talking about business.
We're talking about healthcare.
So like, do I need experience in all
three or any of these areas to jump
into the academy and be able to figure
this out?
We have had people who are 17 years
old who've opened care homes and others who
are 72, and they have nothing in common
(15:39):
besides the fact that they both wanted to
be in this industry.
So you do not need a medical background.
You don't even need a real estate background.
You just need to have grit and be
willing to jump through the hoops to make
it happen and actually set up the business
well.
So if you...
And now a quick break to hear from
our sponsor.
Hey, it's Ty Crandall with CreditSuite.
(16:01):
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877-600-2487.
That's 877-600-2487, or schedule your free
(16:22):
consultation online to talk more at creditsuite.com
forward slash consult.
Do you have medical experience?
I will say that it can be a
feather in your cap because you can market
the home that way as doctor owned or
nurse owned, but you do not need it
because you are not working in the home.
You are not living in the home.
You're hiring that staff to do this.
(16:42):
So anybody can get involved and it doesn't
matter your background, but if you do have
real estate background, maybe that part will be
easier for you.
And if you are a medical professional, you
can help market your home and get even
higher paying clients because of that.
I feel angry about this 30 to one.
Like I'm really mad.
Like a king that's legal like that just
(17:03):
really angers me.
I'm actually happy that you're mad because so
many people, when I say this every day,
I'm preaching this all the time and they're
just like, yeah, yeah.
And I'm like, no, this should piss us
off.
Like we like shut down these places.
People ask about COVID all the time.
They're like, wasn't that terrible for you guys?
And I'm like, not for us.
We can control who comes in and out
(17:25):
the door.
97% of COVID cases happened in the
large facilities.
And to me, there was way more unnecessary
deaths happening because people shoving food under the
door, people being left alone for days on
end.
Like that is just showing a glimpse of
what's happening in those facilities.
In our homes, rarely was there COVID happening.
(17:47):
People were still functioning, having activities, visiting with
people safely, of course, but it just goes
to show smaller is better and it is
safer as well.
So what kind of licensing legal requirements are
there?
I mean, it varies state by state, but
in general, what am I looking at here
to be able to launch a facility like
this?
(18:07):
So the physical home is going to have
a license on it.
And that's based on points of egress, square
footage, wide enough hallways and doorways.
It doesn't have to be ADA compliant, but
you want it as close to that as
possible.
So you do want it to really look
and feel nice and roomy and cozy in
that way and have enough space for them
(18:28):
to move and groove around.
The licensed administrator is one of the biggest
hiring decisions you are making.
That person is kind of like your property
manager in the real estate world.
They are running all of the day-to
-day within the home and they have a
license.
They hire your licensed caregivers who do the
24-7 care of the residents.
(18:48):
So you as the owner operator do not
have a license, but the home does, the
administrator does, and the caregivers do.
Now the money that comes in, does that
usually come in from the government or comes
from the individual that's actually putting a loved
one there?
We focus only on private pay residents.
So usually they're using their cash, their savings,
their IRAs.
(19:08):
They're selling physical properties that they own and
using that capital to pay for their care
needs or their adult children are footing the
bill.
We have some residents who may have VA
benefits and 10% of the population has
a long-term care insurance.
So if you have that, you can use
that.
We avoid any government funding, Medicaid, Medicare.
(19:28):
It pays out really, really low.
And usually families who are relying on that,
they don't have any additional income to foot
the rest of the bill.
So you just end up short every month
and it's not worth it.
So what are the biggest challenges that your
students face that you see when they're jumping
in this trying to succeed?
(19:49):
I think the biggest challenge in this industry
is people.
And I don't mean the seniors because many
times the seniors are lovely.
They're amazing.
They're actually like just dolls, but it's just
all the people involved.
It could be the family of the senior
who has really high needs, really high expectations.
And to be frank, it's an extremely emotional
(20:09):
time putting your loved one into a care
home.
You feel guilty.
You feel maybe angry.
You feel relief.
You feel like it's so many mixed emotions
that you don't know what you're getting out
of this person at this point in time.
So the families can be very difficult to
deal with.
And then the caregivers, that is the number
one most in-demand job in our country
(20:31):
right now is home health aides and caregivers.
We do not have enough people getting into
this industry and the people who are in
this industry, in my opinion, the ones who
are working in big boxes, they're being used
and abused, not paid enough, not treated well.
And they're not able to do the thing
that they actually signed up to do when
the ratios are against them.
(20:51):
They're not being paid very much.
Caregivers get paid minimum wage plus a couple
dollars an hour.
You can go get that at In-N
-Out or Chick-fil-A these days.
So what makes them want to go do
this job that is a tough job?
It's their heart.
Like they love seniors and they wouldn't want
to do anything else.
So we have to, in any business, I
(21:13):
think treat, like for me as the owner,
the staff is my client, not the senior.
I focus all my energy and effort on
getting that staff to feel loved, appreciated, respected,
paid well, what they want, what they need
to thrive and survive in this industry so
that they treat the seniors amazingly.
Because if I only focus on the seniors
(21:34):
and skip over them, they're not going to
last.
We're going to churn and burn and we're
going to have a revolving door.
But if I focus my effort on giving
them everything, they will want to do the
same for the seniors.
And really, I think that's true of any
business, but especially true in RAL.
Give me an idea of what this looks
like.
What does a home, what does a property
look like?
I mean, I can visualize that it's the
(21:54):
room and I would, well, I'll let you
describe it.
So like, what does this look like?
Put a visual in my head of what
a normal, if there is a normal type
of property looks like.
Yeah, it's not pad split where it's just
the whole house is chopped up into bedrooms
and bathrooms, right?
We still have a beautiful living room when
(22:14):
you walk in.
You'll still want a dining room.
Many of these homes have movie theaters, salons,
like these are luxury homes in really nice
parts of town.
Many bedrooms and bathrooms, a nice backyard with
walking paths and gardens and seating areas.
You'll have a nice kitchen.
You want multiple places for the seniors to
(22:34):
go hang out and function and live life.
There's usually an office somewhere in the house
for the administrator to take personal meetings with
family members or different things like that.
But it's just really a luxurious house in
a nice part of town with a great
backyard, lots of bedrooms and bathrooms, but all
the same things you or I may have
in our own home.
(22:55):
I'm familiar with Phoenix area, I spent a
lot of time out there.
So if I'm buying one of these properties
in Phoenix and let's say that I'm going
to put 10 residents in there, million bucks,
somewhere in that price range is what I'll
probably pay?
Easy, easy.
Depending on where you are in the country,
it could be between, I mean, on the
lowest end, I'd say like 700,000, but
(23:15):
we have a lot of students who have
homes up to 3 million depending on their
market.
So in the Phoenix market, you're going to
be a million or more easily.
So let's talk about your hiring.
If you're talking about something that has a
$3 million property, how many residents are in
there?
I would hope that that's a home that
has 14 up to 16.
Like you would want to maximize that.
Because if your mortgage is going to be
(23:36):
30,000 a month, let's call it, right?
Then you're going to need to be bringing
in enough income to afford that.
The math always has to work.
So we do have students who have mortgages
of 30, $35,000 a month, but their
rates are like $8,000 a month and
they have 16 residents in there and they're
still cash flowing almost $40,000 a month
(23:58):
on one home.
So the sky is kind of the limit.
We always encourage people to have three homes,
a three-pack within 20 to 40 minutes
of each other so you can share resources.
But some of these homes, some of our
students are like, hey, 40K on one home,
I'm good.
That's all I need.
Sure, yeah, it makes sense.
But then, and if you think about that
(24:19):
though, you've got that 40K, you've got to
pay the caregivers, the staff, all that, which
I think, and then you're down to like,
I mean, what's your, is there an average
profit that you're actually making on these properties?
I know you mentioned 10K earlier, just as
we were throwing numbers out.
Yep, 10K was that super average 10 bed
home, but no, that 40 was net take
home.
(24:39):
The gross for 16 residents at $8,000
a month is 128,000 gross.
I was doing the math at 5,500,
which is where I got stuck.
Okay, okay, yeah.
I didn't really do the math of 80K.
That's okay.
So then we take out the mortgage, then
we take out paying the care staff and
stuff like that.
So there is a big lift.
Like there are a lot of expenses in
(25:00):
the industry, not just the mortgage, but that,
the care staff.
It costs, usually it's 40% of your
total expenses goes for the staff.
And the less you want to be involved,
the more you're going to be paying out
on that.
So I like to pay more and make
a little bit less.
Like some of my homes, if I went
and visited them every day, I might be
able to make 15,000.
(25:21):
I don't want to.
So I make 10 so that I can
pay for extra people in between me and
the home.
So I don't have to be as hands
-on.
And they're going to buy everything else.
I got to buy like the, you know,
the kits and the medical stuff.
I got to buy the food and all
that stuff as well on a regular basis.
That's part of all the expenses then.
Exactly.
So the senior who's living in the home,
(25:42):
their fee, it's covering all of that for
them.
It's their room, their board, their activities, their
food, their care, their everything, part of the
utilities.
That's what they're paying for at that time
in life.
So a lot of people will be like
5,500.
Oh my God, that's so expensive.
And I'm like, pause.
How much does it cost you to live
every single month?
(26:02):
Now think if you had a private chef,
activities coming to your house every day, laundry,
housekeeping, someone wiping your bum, bathing you, doing,
you know, making your bed, pretty sure it
costs you more than 5,500.
This is kind of a steal of a
deal.
Yeah.
Yeah.
I wish like one of my expenses was
5,500.
That would be fantastic.
Right?
(26:22):
So a lot of people in business I
find and our audience are all entrepreneurs.
They're trying to, they always try to figure
out how to get leads.
So what does that look like?
What kind of strategies are out there to
be able to even attract potential residents into
the property once you have it all set
up?
The biggest and most important thing is setting
it up in the right location first.
Cause location will be everything.
I get people all the time who like
(26:42):
listen to a podcast or a YouTube video
and they're like, oh my God, I did
this and I started this home and I
don't have any residents.
What did I do wrong?
And I'm like, oh my gosh, like location
is everything.
So it is real estate at the end
of the day.
You want to make sure you're located properly.
But there are so many ways to fill
the beds and with the coming silver tsunami
of seniors, if you are not full, I'm
going to be real blunt right here.
(27:04):
It is 100% your fault, because there
is an entire industry of people called placement
agents.
And what they do is they're kind of
like a realtor for bodies.
If you need assisted living, your family usually
finds a placement agent and it costs the
family nothing.
They ask you, hey, what location, what amenities,
what price point do you want or need?
(27:25):
They tour you around to different homes.
And if they choose your home, you as
the homeowner pay half of the first month's
rent to that placement agent.
For someone who's going to live with me
for an average of three and a half
years at six, seven, eight, $9,000 a
month, I will pay half of a first
month's rent.
Like this is, I will pay for speed
(27:45):
all day long.
So you can work with placement agents, but
you also need everything else you need for
a business.
You need a Facebook page, you need a
website, you need brochures and business cards, and
you want to start building relationships in the
communities.
Geriatric doctors, hospice agencies, elder law attorneys, churches,
synagogues, temples, these are all amazing referral sources
(28:06):
for you that don't cost a dime.
So there's a mix between online marketing, as
well as having your placement agents, as well
as having the community relationships.
But with all three of those legs running
at the same time, you should be full
for sure.
I love it.
Isabel, where can somebody go that's watching this?
This is crazy, I want to learn more.
(28:28):
Because we just scratched the surface of so
many things that I'm sure a lot of
people have questions on.
Where can they go, what should they do
to be able to learn more?
RAL101.com is a great website to go
check out.
We've got free books, free webinars.
You can schedule a call with me or
the team right there.
We'd love to chat with you if you've
got a property in mind or any questions.
So RAL101.com.
(28:49):
So make sure, RAL101.com.
And that's a great landing page.
It kind of gives you everything that you
need.
You can even schedule an enrollment card there
as well.
Yeah, cool.
Thank you so much for tuning in, or
thank you very much for coming on today.
I really appreciate it.
Happy to be here.
Thanks for having me.
All right, so listen, if you're watching this,
this is ridiculous, right?
I don't know about you, but I've never
heard anything like this before.
(29:09):
And it makes so much sense.
I don't know about your parents and where
they are in life, but this is exactly
what I would want for my parents.
It's one of the most common sense things
I've seen.
I'm still really angry about the 30 to
one.
I cannot even believe that that's legal in
our country.
But that's what our parents are headed towards,
if you're there, right?
So this is something that you should really
think about with your heart because this solves
(29:30):
a major problem.
And this could be a ridiculously lucrative business
for you.
This is a section of the real estate
side that not a lot of people are
in.
So there's a massive opportunity with like 1
.3 million, I think, they're negative out there
looking for properties for.
And you know, but something that a lot
of people don't know.
So it's a phenomenal opportunity to get in
(29:51):
to really make a difference in what's happening
in society, to be able to potentially learn
something that can even help your elders in
there.
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