1 00:00:02,060 --> 00:00:05,540 (Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show. 2 00:00:06,020 --> 00:00:08,460 Each week, we talk about the growth strategies 3 00:00:08,460 --> 00:00:10,260 that matter most to entrepreneurs. 4 00:00:11,020 --> 00:00:13,600 Listen in as we discuss the secrets to 5 00:00:13,600 --> 00:00:16,400 getting credit and money to start and grow 6 00:00:16,400 --> 00:00:17,240 your business. 7 00:00:17,460 --> 00:00:19,820 And enjoy as we talk with seasoned business 8 00:00:19,820 --> 00:00:22,680 owners, coaches, and industry leaders on a variety 9 00:00:22,680 --> 00:00:25,700 of topics from advertising and marketing to the 10 00:00:25,700 --> 00:00:28,140 nuts and bolts of running a highly successful 11 00:00:28,140 --> 00:00:28,720 business. 12 00:00:29,020 --> 00:00:31,340 And now, to introduce the host of our 13 00:00:31,340 --> 00:00:35,300 show, financial expert and award-winning author, Ty 14 00:00:35,300 --> 00:00:36,020 Crandall. 15 00:00:37,080 --> 00:00:38,400 Hello, and thanks for joining us today. 16 00:00:38,520 --> 00:00:40,120 I'm super excited you could be here because 17 00:00:40,120 --> 00:00:41,220 today we're talking about a topic we have 18 00:00:41,220 --> 00:00:45,080 never talked about before, but is amazing opportunity 19 00:00:45,080 --> 00:00:46,580 for you if you're looking for a primary 20 00:00:46,580 --> 00:00:48,260 or even a secondary income stream. 21 00:00:48,480 --> 00:00:50,600 And it's basically to do with senior housing. 22 00:00:50,820 --> 00:00:52,920 Today, we're actually gonna give you the blueprint 23 00:00:52,920 --> 00:00:56,200 to succeed with investing and being part of 24 00:00:56,200 --> 00:00:56,780 senior housing. 25 00:00:56,800 --> 00:00:58,400 And again, I'm not gonna give you all 26 00:00:58,400 --> 00:01:00,580 the insight because I have a expert here 27 00:01:00,580 --> 00:01:01,760 to do that for you. 28 00:01:02,060 --> 00:01:04,180 So with us today is Isabel Garino. 29 00:01:04,379 --> 00:01:06,820 Now, Isabel is the chief operating officer of 30 00:01:06,820 --> 00:01:09,740 Impact Housing Group and a leading trainer at 31 00:01:09,740 --> 00:01:12,860 the Residential Assisted Living Academy with a background 32 00:01:12,860 --> 00:01:17,000 in business marketing and communications, including experience at 33 00:01:17,000 --> 00:01:20,400 Walt Disney World and two Fortune 500 companies. 34 00:01:20,880 --> 00:01:22,520 Isabel has become a dynamic leader of the 35 00:01:22,520 --> 00:01:24,440 business development and operations world. 36 00:01:24,840 --> 00:01:27,440 She has been instrumental in launching major industry 37 00:01:27,440 --> 00:01:31,520 initiatives such as the RAL National Convention, Recovery 38 00:01:31,520 --> 00:01:36,320 Housing Academy, and Pitchmasters Academy, driving success across 39 00:01:36,320 --> 00:01:38,160 Impact Housing Group companies. 40 00:01:38,260 --> 00:01:41,300 Now, a two-time best-selling author of 41 00:01:41,300 --> 00:01:44,080 Living Legacy and host of the Young Boss 42 00:01:44,080 --> 00:01:47,600 podcast, Isabel is widely recognized for her expertise. 43 00:01:48,120 --> 00:01:50,980 She's been named a future leader in senior 44 00:01:50,980 --> 00:01:54,280 housing, one of the top senior housing influencers 45 00:01:54,280 --> 00:01:57,440 under 30, and among the top five disruptive 46 00:01:57,440 --> 00:01:59,460 entrepreneurs going into 2023. 47 00:02:00,080 --> 00:02:03,040 Featured on platforms like BiggerPockets, the Wealthy Way 48 00:02:03,040 --> 00:02:06,900 podcast, and Sales Disruptors, she's a sought-after 49 00:02:06,900 --> 00:02:09,900 speaker and coach of Residential Assisted Living, helping 50 00:02:09,900 --> 00:02:13,540 thousands of investors and entrepreneurs do good and 51 00:02:13,540 --> 00:02:14,900 do well, which I love that. 52 00:02:15,180 --> 00:02:18,480 Isabel's mission is to positively impact 10 million 53 00:02:18,480 --> 00:02:22,100 people through Residential Assisted Living by continuing her 54 00:02:22,100 --> 00:02:24,700 father's legacy as the nation's top coach and 55 00:02:24,700 --> 00:02:25,420 trainer at RAL. 56 00:02:25,920 --> 00:02:29,540 She shares her insights nationwide, empowering young professionals 57 00:02:29,540 --> 00:02:31,980 and seasoned leaders alike to succeed in business, 58 00:02:32,100 --> 00:02:35,000 leadership, and growth while creating lasting social impact. 59 00:02:35,200 --> 00:02:36,600 Isabel, thanks for joining us today. 60 00:02:36,880 --> 00:02:37,460 Look at that. 61 00:02:37,540 --> 00:02:38,540 That was a mouthful. 62 00:02:38,640 --> 00:02:39,200 You did it. 63 00:02:40,740 --> 00:02:42,020 Thanks for having me on. 64 00:02:42,040 --> 00:02:43,200 I'm excited to be here. 65 00:02:43,940 --> 00:02:45,740 So I have to ask you, I mean, 66 00:02:45,820 --> 00:02:47,360 I've never even heard of this before. 67 00:02:47,480 --> 00:02:48,900 Like, so let's just start there. 68 00:02:49,000 --> 00:02:50,600 Like, what are we talking about? 69 00:02:50,640 --> 00:02:52,600 We're talking about senior housing and we're talking 70 00:02:52,600 --> 00:02:53,520 about assisted living. 71 00:02:53,700 --> 00:02:56,140 Like, give me some insight into what you 72 00:02:56,140 --> 00:02:57,740 do, what you actually do. 73 00:02:57,980 --> 00:02:58,840 Yeah, okay. 74 00:02:58,860 --> 00:03:01,860 So most people have heard of senior housing 75 00:03:01,860 --> 00:03:04,500 in the sense of the large commercial assisted 76 00:03:04,500 --> 00:03:07,920 living facilities, the Brookdale, Sunrise, Atrium, you know, 77 00:03:07,960 --> 00:03:11,500 the big, huge ones with multiple floors, long 78 00:03:11,500 --> 00:03:13,380 hallways, impersonal staff. 79 00:03:13,660 --> 00:03:17,000 What we found was that approach is frankly 80 00:03:17,000 --> 00:03:17,540 terrible. 81 00:03:17,820 --> 00:03:19,440 You're getting awful care. 82 00:03:19,600 --> 00:03:22,700 It's ridiculously expensive and no one wants to 83 00:03:22,700 --> 00:03:25,380 age or pass on in a place that 84 00:03:25,380 --> 00:03:27,020 doesn't feel like home. 85 00:03:27,260 --> 00:03:29,220 My own grandmother needed care and assistance. 86 00:03:29,520 --> 00:03:31,200 And so we were looking for something suitable 87 00:03:31,200 --> 00:03:31,900 for her. 88 00:03:32,300 --> 00:03:34,520 And we had experience in the single family 89 00:03:34,520 --> 00:03:35,040 game. 90 00:03:35,220 --> 00:03:36,920 We have been doing fix and flip and 91 00:03:36,920 --> 00:03:37,340 wholesale. 92 00:03:37,600 --> 00:03:39,500 We've been doing long-term and short-term 93 00:03:39,500 --> 00:03:40,600 rentals. 94 00:03:40,760 --> 00:03:42,740 And when we realized that there was an 95 00:03:42,740 --> 00:03:46,400 opportunity to blend assisted living with residential real 96 00:03:46,400 --> 00:03:48,080 estate, we knew that we had kind of 97 00:03:48,080 --> 00:03:49,000 hit a goldmine. 98 00:03:49,000 --> 00:03:52,020 So what we do is we ourselves, as 99 00:03:52,020 --> 00:03:54,180 well as we teach other people how to 100 00:03:54,180 --> 00:03:58,480 take single family homes, nice luxury homes in 101 00:03:58,480 --> 00:04:00,360 nice parts of town, not like three bed, 102 00:04:00,480 --> 00:04:03,280 two baths, but nice single family homes and 103 00:04:03,280 --> 00:04:06,840 turn them into residential assisted living homes for 104 00:04:06,840 --> 00:04:07,180 seniors. 105 00:04:07,200 --> 00:04:10,260 So that a senior can age in somewhere 106 00:04:10,260 --> 00:04:13,060 that feels like a home because it's not 107 00:04:13,060 --> 00:04:15,899 just home-like, it's an actual home. 108 00:04:16,140 --> 00:04:18,000 And it's been a really fun ride. 109 00:04:18,000 --> 00:04:20,360 I have never even heard of this before. 110 00:04:20,980 --> 00:04:23,660 I'm embarrassed to say, like I've been financial 111 00:04:23,660 --> 00:04:24,760 services for decades. 112 00:04:24,880 --> 00:04:26,340 Real estate investors is one of the top 113 00:04:26,340 --> 00:04:27,300 markets that we serve. 114 00:04:27,660 --> 00:04:29,280 And I've never even heard of this before. 115 00:04:29,400 --> 00:04:32,980 So you're taking residential properties and then converting 116 00:04:32,980 --> 00:04:33,700 them to a point. 117 00:04:33,900 --> 00:04:36,060 How many people can you fit in one? 118 00:04:36,080 --> 00:04:37,740 Like if I have a four or five 119 00:04:37,740 --> 00:04:40,220 bedroom house, how is that broken up? 120 00:04:40,380 --> 00:04:42,020 Can it only fit four or five people, 121 00:04:42,120 --> 00:04:42,560 for example? 122 00:04:43,000 --> 00:04:45,340 Most seniors do want their own private bedroom 123 00:04:45,340 --> 00:04:46,140 and private bathroom. 124 00:04:46,140 --> 00:04:48,500 So you're gonna renovate the home to be 125 00:04:48,500 --> 00:04:50,780 able to accommodate as many seniors as you 126 00:04:50,780 --> 00:04:52,180 are allowed in that area. 127 00:04:52,460 --> 00:04:54,180 Depending on where you live in the country, 128 00:04:54,280 --> 00:04:56,560 you'll be allowed to have somewhere between six 129 00:04:56,560 --> 00:04:59,080 and 16 residents in the home. 130 00:04:59,480 --> 00:05:02,200 So in Arizona, I'm limited to 10. 131 00:05:02,340 --> 00:05:04,460 In Florida, you're limited to 12. 132 00:05:04,780 --> 00:05:07,000 So you may start with a home that's 133 00:05:07,000 --> 00:05:09,320 a six, five, but you're gonna convert it 134 00:05:09,320 --> 00:05:12,140 to become somewhere closer to like a 10, 135 00:05:12,240 --> 00:05:14,680 eight, or a 12, 10, something like that. 136 00:05:14,680 --> 00:05:16,460 So most of the seniors can have their 137 00:05:16,460 --> 00:05:17,660 own bedrooms and bathrooms. 138 00:05:17,940 --> 00:05:18,560 What about zoning? 139 00:05:19,060 --> 00:05:19,760 How would that work? 140 00:05:20,060 --> 00:05:20,900 It's zoned residential. 141 00:05:21,540 --> 00:05:24,100 So they're zoned residential and it's okay that 142 00:05:24,100 --> 00:05:26,840 I'm running an assisted living facility out of 143 00:05:26,840 --> 00:05:29,080 a home that's zoned residential in most states? 144 00:05:29,620 --> 00:05:30,600 In every state. 145 00:05:30,640 --> 00:05:32,540 We have students in all 50 states who 146 00:05:32,540 --> 00:05:33,160 are doing this. 147 00:05:33,300 --> 00:05:36,180 So because it's a licensed property and we 148 00:05:36,180 --> 00:05:38,920 are protected by the Federal Fair Housing Act, 149 00:05:38,980 --> 00:05:42,480 a federal law, no city, state, angry neighbor, 150 00:05:42,480 --> 00:05:44,780 HOA, whoever can say no. 151 00:05:45,020 --> 00:05:48,240 These literally can exist anywhere in any neighborhood. 152 00:05:48,900 --> 00:05:50,780 An HOA can say, hey, the home can't 153 00:05:50,780 --> 00:05:52,420 look different from an outside, right? 154 00:05:52,420 --> 00:05:54,280 You can't remove a garage or different things 155 00:05:54,280 --> 00:05:56,540 like that, but they cannot say that we 156 00:05:56,540 --> 00:05:57,300 can't be there. 157 00:05:57,460 --> 00:05:58,640 We're federally protected. 158 00:05:59,300 --> 00:06:00,580 Which I love that, by the way. 159 00:06:00,940 --> 00:06:02,800 Completely not associated, but I do that with 160 00:06:02,800 --> 00:06:03,260 my dogs. 161 00:06:03,360 --> 00:06:04,500 I always get them certified because I have 162 00:06:04,500 --> 00:06:05,060 a German Shepherd. 163 00:06:05,180 --> 00:06:06,600 Everybody picks on her because she's a German 164 00:06:06,600 --> 00:06:08,480 Shepherd, but then when I have a certification, 165 00:06:08,660 --> 00:06:09,780 nobody can mess with her. 166 00:06:10,280 --> 00:06:11,940 So, well, okay, so let's talk about this. 167 00:06:11,940 --> 00:06:13,060 So I'm going to come in, I'm going 168 00:06:13,060 --> 00:06:13,660 to buy a house. 169 00:06:13,760 --> 00:06:14,880 I'm going to buy, let's just say a 170 00:06:14,880 --> 00:06:17,680 five bedroom home and I'm in Florida and 171 00:06:17,680 --> 00:06:19,480 we pack them in there, apparently in Florida, 172 00:06:19,540 --> 00:06:20,960 because we got 12 in one house we're 173 00:06:20,960 --> 00:06:21,600 allowed to do. 174 00:06:22,020 --> 00:06:23,600 So now I'm breaking this up and tip 175 00:06:23,600 --> 00:06:23,820 to you. 176 00:06:24,060 --> 00:06:25,980 Everybody's comfortable, everybody has a good size bedroom 177 00:06:25,980 --> 00:06:26,680 and stuff like that. 178 00:06:26,880 --> 00:06:28,340 So the very first step is I'm finding 179 00:06:28,340 --> 00:06:29,180 the right property. 180 00:06:29,240 --> 00:06:30,540 I'm buying the right property. 181 00:06:31,020 --> 00:06:32,060 Then I'm buying it right. 182 00:06:32,180 --> 00:06:33,820 And then I'm coming in and I'm basically 183 00:06:33,820 --> 00:06:37,060 rehabbing this property to fit the criteria that 184 00:06:37,060 --> 00:06:37,740 I need it to fit. 185 00:06:38,060 --> 00:06:39,160 Now I've done all that. 186 00:06:39,160 --> 00:06:41,440 So as the investor, what are the next 187 00:06:41,440 --> 00:06:42,560 steps that I would take? 188 00:06:42,680 --> 00:06:44,300 If you're just going to be on the 189 00:06:44,300 --> 00:06:46,260 real estate side of it, then you would 190 00:06:46,260 --> 00:06:49,160 be leasing it out to an operator who's 191 00:06:49,160 --> 00:06:51,120 going to run the business in the home. 192 00:06:51,400 --> 00:06:53,140 And you could be making twice the fair 193 00:06:53,140 --> 00:06:56,220 market rent, just renting out your property, right? 194 00:06:56,240 --> 00:06:59,400 And they're signing a three, five, eight, I've 195 00:06:59,400 --> 00:07:03,440 seen 10 or 12 year contracts because they're 196 00:07:03,440 --> 00:07:05,280 going to be running this business in your 197 00:07:05,280 --> 00:07:07,060 home and the business is based on the 198 00:07:07,060 --> 00:07:07,540 location. 199 00:07:07,540 --> 00:07:08,760 So they don't want to be kicked out. 200 00:07:08,760 --> 00:07:10,600 And it's not a single family who you 201 00:07:10,600 --> 00:07:12,120 need to find a new tenant every year. 202 00:07:12,420 --> 00:07:13,860 They want to be there. 203 00:07:14,300 --> 00:07:15,820 If you also, so that's one option. 204 00:07:15,840 --> 00:07:17,100 You can just own the real estate. 205 00:07:17,280 --> 00:07:19,100 The other option, and this is what we 206 00:07:19,100 --> 00:07:20,900 do, because you can control the most and 207 00:07:20,900 --> 00:07:22,960 make the most money this way, is we're 208 00:07:22,960 --> 00:07:23,640 the operators. 209 00:07:23,800 --> 00:07:26,400 I spend five hours a week on three 210 00:07:26,400 --> 00:07:28,260 of my care homes here in the Phoenix 211 00:07:28,260 --> 00:07:28,640 market. 212 00:07:29,240 --> 00:07:31,060 It's not that much work to be the 213 00:07:31,060 --> 00:07:31,500 operator. 214 00:07:31,820 --> 00:07:33,620 What you're doing in the beginning is the 215 00:07:33,620 --> 00:07:33,920 work. 216 00:07:34,000 --> 00:07:36,960 You're hiring the licensed appropriate staff who's going 217 00:07:36,960 --> 00:07:38,400 to work day to day in the home, 218 00:07:38,820 --> 00:07:40,820 caring for the seniors and making sure that 219 00:07:40,820 --> 00:07:41,940 all of that's up and running. 220 00:07:42,340 --> 00:07:44,600 You're setting the marketing and relationships in place 221 00:07:44,600 --> 00:07:46,980 to have that steady flow of seniors coming 222 00:07:46,980 --> 00:07:47,320 in. 223 00:07:47,540 --> 00:07:50,120 And you're setting up the systems more or 224 00:07:50,120 --> 00:07:50,380 less. 225 00:07:50,480 --> 00:07:52,200 But once you have all that in place, 226 00:07:52,460 --> 00:07:54,080 it can be quite hands-off. 227 00:07:54,220 --> 00:07:55,120 So it really depends. 228 00:07:55,240 --> 00:07:56,120 I can either be on the real estate 229 00:07:56,120 --> 00:07:58,360 side, churn and burn, find these properties, build 230 00:07:58,360 --> 00:08:00,520 them out, hand them over to operators, or 231 00:08:00,520 --> 00:08:02,760 just stay with the property and then maybe 232 00:08:02,760 --> 00:08:04,380 go and do another one and another one. 233 00:08:04,380 --> 00:08:06,200 Well, what do you think makes this an 234 00:08:06,200 --> 00:08:06,580 opportunity? 235 00:08:06,680 --> 00:08:07,580 Because there's a lot of the types of 236 00:08:07,580 --> 00:08:07,980 real estate. 237 00:08:08,140 --> 00:08:10,260 And by the way, again, embarrassing, never really 238 00:08:10,260 --> 00:08:11,220 know much about this one. 239 00:08:11,640 --> 00:08:13,520 So what makes it such a unique and 240 00:08:13,520 --> 00:08:16,120 profitable way to do, to go in real 241 00:08:16,120 --> 00:08:17,280 estate versus other options? 242 00:08:17,660 --> 00:08:19,940 There's really two big parts of this that 243 00:08:19,940 --> 00:08:20,600 we should point out. 244 00:08:20,680 --> 00:08:22,400 Number one is the supply and demand. 245 00:08:22,780 --> 00:08:25,200 The baby boomers, they're not into assisted living 246 00:08:25,200 --> 00:08:25,700 yet. 247 00:08:25,960 --> 00:08:27,900 They're still, the eldest of the baby boomers 248 00:08:27,900 --> 00:08:30,040 is still about five years out from needing 249 00:08:30,040 --> 00:08:31,059 care and assistance. 250 00:08:31,520 --> 00:08:33,880 So right now the silent generation is who 251 00:08:33,880 --> 00:08:34,900 lives in assisted living. 252 00:08:35,080 --> 00:08:38,020 And there's 47 million people in that generation. 253 00:08:38,440 --> 00:08:40,640 There's 76 million baby boomers. 254 00:08:40,880 --> 00:08:42,299 They're not in assisted living yet. 255 00:08:42,539 --> 00:08:45,620 And we are currently 1.3 million beds 256 00:08:45,620 --> 00:08:45,980 short. 257 00:08:46,640 --> 00:08:50,460 We have a major crisis on our hands 258 00:08:50,460 --> 00:08:51,020 as a country. 259 00:08:51,140 --> 00:08:53,240 With the baby boomers coming into this, there 260 00:08:53,240 --> 00:08:54,480 is not enough beds. 261 00:08:54,860 --> 00:08:57,120 The cost of care has gone up 87 262 00:08:57,120 --> 00:08:59,600 % over the last 20 years, and it's 263 00:08:59,600 --> 00:09:01,680 projected to skyrocket. 264 00:09:01,680 --> 00:09:04,220 Average cost of a person living in a 265 00:09:04,220 --> 00:09:07,880 home right now is $5,500 per month 266 00:09:07,880 --> 00:09:08,480 per resident. 267 00:09:08,740 --> 00:09:10,660 So if you have 10 residents in at 268 00:09:10,660 --> 00:09:12,680 that, even if your mortgage is 10K and 269 00:09:12,680 --> 00:09:14,620 maybe it costs you 35K a month to 270 00:09:14,620 --> 00:09:16,880 run the home, you are cash flowing as 271 00:09:16,880 --> 00:09:19,740 the owner operator $10,000 a month on 272 00:09:19,740 --> 00:09:21,280 one single family home. 273 00:09:21,520 --> 00:09:24,800 So on one side, we've got economy playing 274 00:09:24,800 --> 00:09:27,460 in our favor, economics and all of the 275 00:09:27,460 --> 00:09:30,840 aging population, the silver tsunami of seniors, as 276 00:09:30,840 --> 00:09:31,480 we call it. 277 00:09:31,840 --> 00:09:34,580 On the other side, it's a hugely lucrative 278 00:09:34,580 --> 00:09:35,340 opportunity. 279 00:09:35,940 --> 00:09:37,380 So it's kind of the best of both 280 00:09:37,380 --> 00:09:37,780 worlds. 281 00:09:38,180 --> 00:09:39,320 How do I even go about finding the 282 00:09:39,320 --> 00:09:40,220 right kind of property? 283 00:09:40,320 --> 00:09:41,820 What kind of criteria am I looking at 284 00:09:41,820 --> 00:09:42,660 to find the right property? 285 00:09:42,980 --> 00:09:46,580 Think 300 to 500 square feet per resident. 286 00:09:47,040 --> 00:09:49,560 You do want it to be demographically in 287 00:09:49,560 --> 00:09:52,340 an area where the majority population is 50 288 00:09:52,340 --> 00:09:54,920 to 70 years old, making two times the 289 00:09:54,920 --> 00:09:57,740 median income homeowners college grads. 290 00:09:57,740 --> 00:10:01,260 So a nicer area, not because that person 291 00:10:01,260 --> 00:10:03,600 is moving into the home, that person is 292 00:10:03,600 --> 00:10:06,420 the adult child of the person moving into 293 00:10:06,420 --> 00:10:06,900 your home. 294 00:10:07,000 --> 00:10:08,720 And they are making most of the decisions 295 00:10:08,720 --> 00:10:09,860 at that point in life. 296 00:10:09,900 --> 00:10:12,020 So they don't wanna drive 45 minutes outside 297 00:10:12,020 --> 00:10:13,020 of town because it's cheaper. 298 00:10:13,620 --> 00:10:15,320 They wanna drive five minutes on their way 299 00:10:15,320 --> 00:10:17,000 home from work to go visit mom or 300 00:10:17,000 --> 00:10:17,280 dad. 301 00:10:17,680 --> 00:10:20,360 So you wanna target the adult children and 302 00:10:20,360 --> 00:10:23,200 be right where they live, eat, work, sleep, 303 00:10:23,360 --> 00:10:23,540 play. 304 00:10:23,820 --> 00:10:25,620 Well, what about typical investment? 305 00:10:25,620 --> 00:10:27,560 Like what kind of loans am I getting 306 00:10:27,560 --> 00:10:28,680 on something like this? 307 00:10:29,180 --> 00:10:32,400 You know, SBA, 7A and 504 loans are 308 00:10:32,400 --> 00:10:33,880 super friendly to this. 309 00:10:34,140 --> 00:10:35,780 We have people who work with our students 310 00:10:35,780 --> 00:10:38,060 all across the country who lend out on 311 00:10:38,060 --> 00:10:38,420 this. 312 00:10:38,640 --> 00:10:41,120 You can do hard money or bank loans, 313 00:10:41,240 --> 00:10:43,980 but we really lean towards SBA as well 314 00:10:43,980 --> 00:10:45,660 as private money or syndications. 315 00:10:46,020 --> 00:10:47,480 We all know there's a bunch of people 316 00:10:47,480 --> 00:10:49,440 getting like not a lot of return with 317 00:10:49,440 --> 00:10:50,580 their money sitting in the bank. 318 00:10:50,640 --> 00:10:53,060 And if you could offer them 6, 7, 319 00:10:53,180 --> 00:10:55,560 8, 9% on their money, they would 320 00:10:55,560 --> 00:10:57,880 be willing to invest in you, especially that 321 00:10:57,880 --> 00:11:00,260 this is a topic that really hits home. 322 00:11:00,720 --> 00:11:04,280 We're all aging and 70% of us 323 00:11:04,280 --> 00:11:06,140 are going to need daily care for an 324 00:11:06,140 --> 00:11:08,240 average of three and a half years. 325 00:11:08,620 --> 00:11:11,120 Everyone's going to get involved in senior housing 326 00:11:11,120 --> 00:11:12,600 one way or the other. 327 00:11:12,840 --> 00:11:15,240 Either eventually you'll be lying in the bed 328 00:11:15,240 --> 00:11:17,580 or writing the check for someone who is, 329 00:11:18,000 --> 00:11:19,700 or you could be owning the real estate, 330 00:11:19,900 --> 00:11:21,960 cash flowing, having a place for your loved 331 00:11:21,960 --> 00:11:23,800 ones or yourself if and when you ever 332 00:11:23,800 --> 00:11:24,520 need assistance. 333 00:11:24,520 --> 00:11:26,620 But we're all going to get involved some 334 00:11:26,620 --> 00:11:27,160 way, somehow. 335 00:11:27,680 --> 00:11:27,960 Yes. 336 00:11:28,380 --> 00:11:29,800 Like, it's just so smart. 337 00:11:29,940 --> 00:11:32,160 Like not even really knowing this existed, because 338 00:11:32,160 --> 00:11:33,600 I think about my mom and dad, right? 339 00:11:33,620 --> 00:11:34,340 And that's like a worry. 340 00:11:34,420 --> 00:11:35,500 I don't want to put them into a 341 00:11:35,500 --> 00:11:37,960 freaking home for all the same stereotypes that 342 00:11:37,960 --> 00:11:38,820 you have a home, right? 343 00:11:39,120 --> 00:11:40,040 But then what do you do? 344 00:11:40,100 --> 00:11:41,640 Like if you do home health care, that's 345 00:11:41,640 --> 00:11:42,200 expensive. 346 00:11:42,380 --> 00:11:43,480 And I might have the means to pay 347 00:11:43,480 --> 00:11:44,660 for it, but a lot of people don't 348 00:11:44,660 --> 00:11:45,940 have the means to be able to pay 349 00:11:45,940 --> 00:11:47,320 for something like that at all. 350 00:11:47,720 --> 00:11:49,420 And there's, I never even knew there was 351 00:11:49,420 --> 00:11:52,060 another option, but this like makes so much 352 00:11:52,060 --> 00:11:54,540 more sense because they're like, they're living in 353 00:11:54,540 --> 00:11:55,320 like a normal house. 354 00:11:55,400 --> 00:11:56,140 Like I was going to get my parents 355 00:11:56,140 --> 00:11:57,500 like a house on the beach with somebody 356 00:11:57,500 --> 00:11:58,160 taking care of them. 357 00:11:58,240 --> 00:11:58,860 That's expensive. 358 00:11:59,200 --> 00:12:01,420 But like, this is like, makes a lot 359 00:12:01,420 --> 00:12:01,820 of sense. 360 00:12:02,020 --> 00:12:03,500 It doesn't sound like it's any more than 361 00:12:03,500 --> 00:12:05,340 them staying in like one of the regular 362 00:12:05,340 --> 00:12:07,920 horrible facilities, but they actually have like a 363 00:12:07,920 --> 00:12:10,260 nice kind of close-knit group of friends 364 00:12:10,260 --> 00:12:12,380 and like a phenomenal environment. 365 00:12:12,580 --> 00:12:14,080 I just think this is so smart. 366 00:12:14,600 --> 00:12:16,320 One of the biggest things most people don't 367 00:12:16,320 --> 00:12:18,820 realize is exactly that, the cost of in 368 00:12:18,820 --> 00:12:19,340 -home care. 369 00:12:19,480 --> 00:12:21,000 So many people have promised their loved ones 370 00:12:21,000 --> 00:12:22,880 like, hey, you know, I'll let you stay 371 00:12:22,880 --> 00:12:24,160 at home and I'll get you in-home 372 00:12:24,160 --> 00:12:24,500 care. 373 00:12:24,880 --> 00:12:27,100 The cost right now, the average cost is 374 00:12:27,100 --> 00:12:28,460 $33 an hour. 375 00:12:28,740 --> 00:12:30,200 So if your loved ones to the point 376 00:12:30,200 --> 00:12:32,940 where they need 24 seven care, that's over 377 00:12:32,940 --> 00:12:37,420 $23,000 a month just for care, not 378 00:12:37,420 --> 00:12:39,500 the mortgage, not the food, not the utilities, 379 00:12:39,700 --> 00:12:40,480 medication, whatever. 380 00:12:40,880 --> 00:12:42,560 Many Americans can't afford that. 381 00:12:42,720 --> 00:12:44,340 So then they start to say, oh my 382 00:12:44,340 --> 00:12:45,620 goodness, what do we do? 383 00:12:45,900 --> 00:12:47,660 Does someone quit their job and take care 384 00:12:47,660 --> 00:12:48,760 of mom or dad full-time? 385 00:12:48,880 --> 00:12:50,780 I don't know about you, but I wasn't 386 00:12:50,780 --> 00:12:52,400 born to be a caregiver, right? 387 00:12:52,800 --> 00:12:54,460 To, it's just not in my blood. 388 00:12:54,560 --> 00:12:55,620 That's not who I am. 389 00:12:56,000 --> 00:12:57,580 But what I am born to do is 390 00:12:57,580 --> 00:12:59,380 run businesses and operate businesses. 391 00:12:59,380 --> 00:13:01,260 So if I can create a business that 392 00:13:01,260 --> 00:13:03,960 gives my loved ones exactly what they need 393 00:13:03,960 --> 00:13:06,200 with people who are born to do that 394 00:13:06,200 --> 00:13:08,720 job and love doing it, then that really 395 00:13:08,720 --> 00:13:10,240 is where it all makes sense. 396 00:13:10,620 --> 00:13:12,020 I never even thought about that angle. 397 00:13:12,100 --> 00:13:13,620 I mean, like, so my parents can get 398 00:13:13,620 --> 00:13:15,080 old enough and I could do this as 399 00:13:15,080 --> 00:13:16,880 a business to make sure they're taken care 400 00:13:16,880 --> 00:13:17,080 of. 401 00:13:17,240 --> 00:13:18,500 And then it costs me nothing. 402 00:13:18,500 --> 00:13:19,760 I can actually make money. 403 00:13:19,900 --> 00:13:21,520 I can have my parents in the house. 404 00:13:21,840 --> 00:13:23,620 Heck, I could even bring their friends into 405 00:13:23,620 --> 00:13:27,060 the house where they're aging with their closest 406 00:13:27,060 --> 00:13:29,940 friends and then make it a business, not 407 00:13:29,940 --> 00:13:31,040 where I'm trying to profit. 408 00:13:31,200 --> 00:13:32,380 But I mean, I'm saying, like I go 409 00:13:32,380 --> 00:13:35,540 from $23,000 a month to zero because 410 00:13:35,540 --> 00:13:37,140 I'm actually making money on the property. 411 00:13:37,220 --> 00:13:38,300 I never even thought of it from that 412 00:13:38,300 --> 00:13:38,500 angle. 413 00:13:39,240 --> 00:13:41,920 That's why so many people come to learn 414 00:13:41,920 --> 00:13:42,740 from us. 415 00:13:42,820 --> 00:13:44,280 You've been teaching people for the last 10 416 00:13:44,280 --> 00:13:47,820 years, but so many people come because they 417 00:13:47,820 --> 00:13:49,400 are either caring for their loved one and 418 00:13:49,400 --> 00:13:51,320 they're like, I can't do it anymore, they're 419 00:13:51,320 --> 00:13:54,220 doing in-home care, it's insanely expensive, or 420 00:13:54,220 --> 00:13:57,340 their loved one had a terrible time at 421 00:13:57,340 --> 00:13:58,480 a large facility. 422 00:13:58,920 --> 00:14:01,180 You know, we hear stories of abuse and 423 00:14:01,180 --> 00:14:03,940 neglect and just the reality is in the 424 00:14:03,940 --> 00:14:07,280 big boxes, the ratios of seniors to caregivers, 425 00:14:07,560 --> 00:14:10,560 it's typically 30 seniors to one caregiver. 426 00:14:10,980 --> 00:14:13,460 One person cannot take care of 30 people. 427 00:14:13,680 --> 00:14:14,980 Like it should be illegal. 428 00:14:14,980 --> 00:14:16,560 We don't even do that in schools. 429 00:14:16,700 --> 00:14:17,980 Like we wouldn't even do that in a 430 00:14:17,980 --> 00:14:18,520 school. 431 00:14:18,960 --> 00:14:20,540 We're students, that's crazy. 432 00:14:21,040 --> 00:14:21,420 Thank you. 433 00:14:21,560 --> 00:14:23,900 And these are high need human beings. 434 00:14:24,080 --> 00:14:25,840 If you need help getting out of bed 435 00:14:25,840 --> 00:14:28,000 just to go to the bathroom, you need 436 00:14:28,000 --> 00:14:31,460 help wiping yourself and showering and eating and 437 00:14:31,460 --> 00:14:32,280 taking medication. 438 00:14:33,040 --> 00:14:34,880 A 30 to one ratio does not work 439 00:14:34,880 --> 00:14:35,680 for high need. 440 00:14:35,920 --> 00:14:38,200 So in our homes, we recommend a four 441 00:14:38,200 --> 00:14:40,340 to one or five to one ratio. 442 00:14:40,560 --> 00:14:42,960 So if you're paying the same, but your 443 00:14:42,960 --> 00:14:45,980 care ratio is so much greater, you're actually 444 00:14:45,980 --> 00:14:48,260 getting, to me, what you paid for. 445 00:14:48,360 --> 00:14:49,800 You're getting the quality attention. 446 00:14:50,000 --> 00:14:51,340 You're in that smaller environment. 447 00:14:51,640 --> 00:14:53,160 You still have fun activities. 448 00:14:53,340 --> 00:14:54,740 You still have socialization. 449 00:14:54,880 --> 00:14:56,780 You still have a private bedroom, but it 450 00:14:56,780 --> 00:14:59,540 comes down to the care and the environment. 451 00:14:59,740 --> 00:15:02,760 And that's why RAL is such a sweet 452 00:15:02,760 --> 00:15:03,340 option. 453 00:15:03,880 --> 00:15:07,660 And by the way, you're at residentialassistedlivingacademy.com, 454 00:15:07,680 --> 00:15:07,900 right? 455 00:15:08,140 --> 00:15:08,360 Yeah. 456 00:15:08,540 --> 00:15:10,260 Okay, so everybody wants to follow along, you 457 00:15:10,260 --> 00:15:11,020 can check that out now. 458 00:15:11,020 --> 00:15:12,560 We'll talk about it at the end of 459 00:15:12,560 --> 00:15:17,260 our show as well, but that's residentialassistedlivingacademy.com. 460 00:15:17,320 --> 00:15:18,120 So make sure you check it out. 461 00:15:18,420 --> 00:15:19,980 So you talked about the business experience. 462 00:15:20,280 --> 00:15:21,740 What do I need to get into this? 463 00:15:21,780 --> 00:15:23,440 Like, I mean, we're talking about real estate. 464 00:15:23,500 --> 00:15:24,280 We're talking about business. 465 00:15:24,320 --> 00:15:25,140 We're talking about healthcare. 466 00:15:25,560 --> 00:15:27,660 So like, do I need experience in all 467 00:15:27,660 --> 00:15:29,560 three or any of these areas to jump 468 00:15:29,560 --> 00:15:31,020 into the academy and be able to figure 469 00:15:31,020 --> 00:15:31,480 this out? 470 00:15:31,920 --> 00:15:34,600 We have had people who are 17 years 471 00:15:34,600 --> 00:15:36,740 old who've opened care homes and others who 472 00:15:36,740 --> 00:15:39,500 are 72, and they have nothing in common 473 00:15:39,500 --> 00:15:41,700 besides the fact that they both wanted to 474 00:15:41,700 --> 00:15:42,660 be in this industry. 475 00:15:42,980 --> 00:15:44,960 So you do not need a medical background. 476 00:15:45,080 --> 00:15:47,180 You don't even need a real estate background. 477 00:15:47,520 --> 00:15:49,360 You just need to have grit and be 478 00:15:49,360 --> 00:15:51,540 willing to jump through the hoops to make 479 00:15:51,540 --> 00:15:53,800 it happen and actually set up the business 480 00:15:53,800 --> 00:15:54,360 well. 481 00:15:54,820 --> 00:15:56,380 So if you... 482 00:15:56,380 --> 00:15:58,000 And now a quick break to hear from 483 00:15:58,000 --> 00:15:58,680 our sponsor. 484 00:15:59,420 --> 00:16:01,100 Hey, it's Ty Crandall with CreditSuite. 485 00:16:01,260 --> 00:16:03,460 Many of our subscribers wanna build business credit 486 00:16:03,460 --> 00:16:05,960 that's linked to their EIN without a personal 487 00:16:05,960 --> 00:16:06,980 guarantee or credit check. 488 00:16:07,160 --> 00:16:08,540 Now, if you're looking to get no doc, 489 00:16:08,540 --> 00:16:10,800 high limit business credit cards that report to 490 00:16:10,800 --> 00:16:13,600 the business reporting agencies without a personal guarantee 491 00:16:13,600 --> 00:16:15,480 or credit check, give us a call at 492 00:16:15,480 --> 00:16:17,800 877-600-2487. 493 00:16:18,300 --> 00:16:22,720 That's 877-600-2487, or schedule your free 494 00:16:22,720 --> 00:16:25,800 consultation online to talk more at creditsuite.com 495 00:16:25,800 --> 00:16:26,980 forward slash consult. 496 00:16:27,460 --> 00:16:28,560 Do you have medical experience? 497 00:16:28,560 --> 00:16:30,360 I will say that it can be a 498 00:16:30,360 --> 00:16:32,000 feather in your cap because you can market 499 00:16:32,000 --> 00:16:34,060 the home that way as doctor owned or 500 00:16:34,060 --> 00:16:36,260 nurse owned, but you do not need it 501 00:16:36,260 --> 00:16:38,640 because you are not working in the home. 502 00:16:38,780 --> 00:16:40,140 You are not living in the home. 503 00:16:40,280 --> 00:16:42,880 You're hiring that staff to do this. 504 00:16:42,980 --> 00:16:45,440 So anybody can get involved and it doesn't 505 00:16:45,440 --> 00:16:47,840 matter your background, but if you do have 506 00:16:47,840 --> 00:16:49,920 real estate background, maybe that part will be 507 00:16:49,920 --> 00:16:50,700 easier for you. 508 00:16:50,780 --> 00:16:52,920 And if you are a medical professional, you 509 00:16:52,920 --> 00:16:55,480 can help market your home and get even 510 00:16:55,480 --> 00:16:57,820 higher paying clients because of that. 511 00:16:58,080 --> 00:16:59,920 I feel angry about this 30 to one. 512 00:17:00,020 --> 00:17:00,900 Like I'm really mad. 513 00:17:01,060 --> 00:17:03,000 Like a king that's legal like that just 514 00:17:03,000 --> 00:17:04,040 really angers me. 515 00:17:04,140 --> 00:17:06,380 I'm actually happy that you're mad because so 516 00:17:06,380 --> 00:17:08,260 many people, when I say this every day, 517 00:17:08,280 --> 00:17:10,119 I'm preaching this all the time and they're 518 00:17:10,119 --> 00:17:11,319 just like, yeah, yeah. 519 00:17:11,440 --> 00:17:13,380 And I'm like, no, this should piss us 520 00:17:13,380 --> 00:17:13,859 off. 521 00:17:14,000 --> 00:17:16,640 Like we like shut down these places. 522 00:17:16,900 --> 00:17:18,660 People ask about COVID all the time. 523 00:17:18,720 --> 00:17:20,780 They're like, wasn't that terrible for you guys? 524 00:17:20,839 --> 00:17:22,300 And I'm like, not for us. 525 00:17:22,660 --> 00:17:25,240 We can control who comes in and out 526 00:17:25,240 --> 00:17:25,640 the door. 527 00:17:26,220 --> 00:17:28,700 97% of COVID cases happened in the 528 00:17:28,700 --> 00:17:29,480 large facilities. 529 00:17:29,940 --> 00:17:32,940 And to me, there was way more unnecessary 530 00:17:32,940 --> 00:17:35,980 deaths happening because people shoving food under the 531 00:17:35,980 --> 00:17:38,480 door, people being left alone for days on 532 00:17:38,480 --> 00:17:38,820 end. 533 00:17:39,160 --> 00:17:42,440 Like that is just showing a glimpse of 534 00:17:42,440 --> 00:17:44,060 what's happening in those facilities. 535 00:17:44,460 --> 00:17:47,400 In our homes, rarely was there COVID happening. 536 00:17:47,740 --> 00:17:50,880 People were still functioning, having activities, visiting with 537 00:17:50,880 --> 00:17:53,580 people safely, of course, but it just goes 538 00:17:53,580 --> 00:17:56,920 to show smaller is better and it is 539 00:17:56,920 --> 00:17:58,240 safer as well. 540 00:17:58,640 --> 00:18:02,160 So what kind of licensing legal requirements are 541 00:18:02,160 --> 00:18:02,480 there? 542 00:18:02,480 --> 00:18:04,140 I mean, it varies state by state, but 543 00:18:04,140 --> 00:18:05,760 in general, what am I looking at here 544 00:18:05,760 --> 00:18:07,340 to be able to launch a facility like 545 00:18:07,340 --> 00:18:07,580 this? 546 00:18:07,840 --> 00:18:10,120 So the physical home is going to have 547 00:18:10,120 --> 00:18:11,000 a license on it. 548 00:18:11,080 --> 00:18:13,940 And that's based on points of egress, square 549 00:18:13,940 --> 00:18:16,840 footage, wide enough hallways and doorways. 550 00:18:17,320 --> 00:18:19,840 It doesn't have to be ADA compliant, but 551 00:18:19,840 --> 00:18:21,220 you want it as close to that as 552 00:18:21,220 --> 00:18:21,720 possible. 553 00:18:22,140 --> 00:18:23,980 So you do want it to really look 554 00:18:23,980 --> 00:18:26,660 and feel nice and roomy and cozy in 555 00:18:26,660 --> 00:18:28,200 that way and have enough space for them 556 00:18:28,200 --> 00:18:29,280 to move and groove around. 557 00:18:29,280 --> 00:18:32,640 The licensed administrator is one of the biggest 558 00:18:32,640 --> 00:18:34,800 hiring decisions you are making. 559 00:18:35,040 --> 00:18:36,660 That person is kind of like your property 560 00:18:36,660 --> 00:18:38,240 manager in the real estate world. 561 00:18:38,660 --> 00:18:41,020 They are running all of the day-to 562 00:18:41,020 --> 00:18:42,600 -day within the home and they have a 563 00:18:42,600 --> 00:18:42,900 license. 564 00:18:43,360 --> 00:18:45,940 They hire your licensed caregivers who do the 565 00:18:45,940 --> 00:18:47,880 24-7 care of the residents. 566 00:18:48,320 --> 00:18:50,760 So you as the owner operator do not 567 00:18:50,760 --> 00:18:52,660 have a license, but the home does, the 568 00:18:52,660 --> 00:18:54,680 administrator does, and the caregivers do. 569 00:18:55,220 --> 00:18:56,920 Now the money that comes in, does that 570 00:18:56,920 --> 00:18:58,780 usually come in from the government or comes 571 00:18:58,780 --> 00:19:01,120 from the individual that's actually putting a loved 572 00:19:01,120 --> 00:19:01,520 one there? 573 00:19:01,860 --> 00:19:04,960 We focus only on private pay residents. 574 00:19:05,160 --> 00:19:07,500 So usually they're using their cash, their savings, 575 00:19:07,640 --> 00:19:08,440 their IRAs. 576 00:19:08,500 --> 00:19:11,940 They're selling physical properties that they own and 577 00:19:11,940 --> 00:19:13,700 using that capital to pay for their care 578 00:19:13,700 --> 00:19:16,180 needs or their adult children are footing the 579 00:19:16,180 --> 00:19:16,380 bill. 580 00:19:16,820 --> 00:19:18,840 We have some residents who may have VA 581 00:19:18,840 --> 00:19:21,520 benefits and 10% of the population has 582 00:19:21,520 --> 00:19:23,100 a long-term care insurance. 583 00:19:23,280 --> 00:19:24,980 So if you have that, you can use 584 00:19:24,980 --> 00:19:25,220 that. 585 00:19:25,220 --> 00:19:28,200 We avoid any government funding, Medicaid, Medicare. 586 00:19:28,920 --> 00:19:31,580 It pays out really, really low. 587 00:19:32,100 --> 00:19:34,140 And usually families who are relying on that, 588 00:19:34,300 --> 00:19:37,280 they don't have any additional income to foot 589 00:19:37,280 --> 00:19:38,260 the rest of the bill. 590 00:19:38,400 --> 00:19:40,820 So you just end up short every month 591 00:19:40,820 --> 00:19:42,480 and it's not worth it. 592 00:19:42,860 --> 00:19:44,920 So what are the biggest challenges that your 593 00:19:44,920 --> 00:19:47,500 students face that you see when they're jumping 594 00:19:47,500 --> 00:19:48,540 in this trying to succeed? 595 00:19:49,080 --> 00:19:51,260 I think the biggest challenge in this industry 596 00:19:51,260 --> 00:19:52,120 is people. 597 00:19:52,440 --> 00:19:54,420 And I don't mean the seniors because many 598 00:19:54,420 --> 00:19:55,820 times the seniors are lovely. 599 00:19:56,020 --> 00:19:56,500 They're amazing. 600 00:19:56,720 --> 00:19:59,860 They're actually like just dolls, but it's just 601 00:19:59,860 --> 00:20:01,080 all the people involved. 602 00:20:01,160 --> 00:20:03,280 It could be the family of the senior 603 00:20:03,280 --> 00:20:06,660 who has really high needs, really high expectations. 604 00:20:06,660 --> 00:20:09,720 And to be frank, it's an extremely emotional 605 00:20:09,720 --> 00:20:12,520 time putting your loved one into a care 606 00:20:12,520 --> 00:20:12,760 home. 607 00:20:12,900 --> 00:20:13,920 You feel guilty. 608 00:20:14,340 --> 00:20:16,300 You feel maybe angry. 609 00:20:16,440 --> 00:20:17,500 You feel relief. 610 00:20:17,640 --> 00:20:20,160 You feel like it's so many mixed emotions 611 00:20:20,160 --> 00:20:22,120 that you don't know what you're getting out 612 00:20:22,120 --> 00:20:24,620 of this person at this point in time. 613 00:20:24,780 --> 00:20:26,780 So the families can be very difficult to 614 00:20:26,780 --> 00:20:27,240 deal with. 615 00:20:27,400 --> 00:20:29,360 And then the caregivers, that is the number 616 00:20:29,360 --> 00:20:31,580 one most in-demand job in our country 617 00:20:31,580 --> 00:20:33,760 right now is home health aides and caregivers. 618 00:20:34,160 --> 00:20:36,380 We do not have enough people getting into 619 00:20:36,380 --> 00:20:38,360 this industry and the people who are in 620 00:20:38,360 --> 00:20:40,780 this industry, in my opinion, the ones who 621 00:20:40,780 --> 00:20:43,160 are working in big boxes, they're being used 622 00:20:43,160 --> 00:20:45,640 and abused, not paid enough, not treated well. 623 00:20:45,840 --> 00:20:48,420 And they're not able to do the thing 624 00:20:48,420 --> 00:20:50,120 that they actually signed up to do when 625 00:20:50,120 --> 00:20:51,660 the ratios are against them. 626 00:20:51,660 --> 00:20:53,620 They're not being paid very much. 627 00:20:53,800 --> 00:20:55,940 Caregivers get paid minimum wage plus a couple 628 00:20:55,940 --> 00:20:56,740 dollars an hour. 629 00:20:56,960 --> 00:20:58,220 You can go get that at In-N 630 00:20:58,220 --> 00:20:59,940 -Out or Chick-fil-A these days. 631 00:21:00,420 --> 00:21:02,560 So what makes them want to go do 632 00:21:02,560 --> 00:21:04,580 this job that is a tough job? 633 00:21:04,840 --> 00:21:05,540 It's their heart. 634 00:21:05,740 --> 00:21:09,220 Like they love seniors and they wouldn't want 635 00:21:09,220 --> 00:21:10,220 to do anything else. 636 00:21:10,580 --> 00:21:13,080 So we have to, in any business, I 637 00:21:13,080 --> 00:21:15,840 think treat, like for me as the owner, 638 00:21:16,220 --> 00:21:18,640 the staff is my client, not the senior. 639 00:21:18,860 --> 00:21:20,980 I focus all my energy and effort on 640 00:21:20,980 --> 00:21:23,980 getting that staff to feel loved, appreciated, respected, 641 00:21:24,280 --> 00:21:26,500 paid well, what they want, what they need 642 00:21:26,500 --> 00:21:29,700 to thrive and survive in this industry so 643 00:21:29,700 --> 00:21:32,160 that they treat the seniors amazingly. 644 00:21:32,500 --> 00:21:34,000 Because if I only focus on the seniors 645 00:21:34,000 --> 00:21:35,960 and skip over them, they're not going to 646 00:21:35,960 --> 00:21:36,240 last. 647 00:21:36,360 --> 00:21:37,500 We're going to churn and burn and we're 648 00:21:37,500 --> 00:21:38,520 going to have a revolving door. 649 00:21:38,620 --> 00:21:40,300 But if I focus my effort on giving 650 00:21:40,300 --> 00:21:42,600 them everything, they will want to do the 651 00:21:42,600 --> 00:21:44,080 same for the seniors. 652 00:21:44,260 --> 00:21:46,120 And really, I think that's true of any 653 00:21:46,120 --> 00:21:48,460 business, but especially true in RAL. 654 00:21:48,880 --> 00:21:50,140 Give me an idea of what this looks 655 00:21:50,140 --> 00:21:50,280 like. 656 00:21:50,340 --> 00:21:51,380 What does a home, what does a property 657 00:21:51,380 --> 00:21:51,920 look like? 658 00:21:52,000 --> 00:21:54,480 I mean, I can visualize that it's the 659 00:21:54,480 --> 00:21:57,480 room and I would, well, I'll let you 660 00:21:57,480 --> 00:21:57,940 describe it. 661 00:21:58,180 --> 00:21:59,460 So like, what does this look like? 662 00:21:59,500 --> 00:22:00,920 Put a visual in my head of what 663 00:22:00,920 --> 00:22:03,460 a normal, if there is a normal type 664 00:22:03,460 --> 00:22:05,020 of property looks like. 665 00:22:05,320 --> 00:22:08,780 Yeah, it's not pad split where it's just 666 00:22:08,780 --> 00:22:11,000 the whole house is chopped up into bedrooms 667 00:22:11,000 --> 00:22:11,940 and bathrooms, right? 668 00:22:12,160 --> 00:22:14,600 We still have a beautiful living room when 669 00:22:14,600 --> 00:22:15,240 you walk in. 670 00:22:15,280 --> 00:22:16,780 You'll still want a dining room. 671 00:22:16,780 --> 00:22:20,500 Many of these homes have movie theaters, salons, 672 00:22:20,640 --> 00:22:22,880 like these are luxury homes in really nice 673 00:22:22,880 --> 00:22:23,600 parts of town. 674 00:22:23,880 --> 00:22:27,200 Many bedrooms and bathrooms, a nice backyard with 675 00:22:27,200 --> 00:22:30,780 walking paths and gardens and seating areas. 676 00:22:31,120 --> 00:22:32,260 You'll have a nice kitchen. 677 00:22:32,720 --> 00:22:34,960 You want multiple places for the seniors to 678 00:22:34,960 --> 00:22:37,980 go hang out and function and live life. 679 00:22:38,120 --> 00:22:40,200 There's usually an office somewhere in the house 680 00:22:40,200 --> 00:22:43,280 for the administrator to take personal meetings with 681 00:22:43,280 --> 00:22:45,200 family members or different things like that. 682 00:22:45,200 --> 00:22:48,400 But it's just really a luxurious house in 683 00:22:48,400 --> 00:22:49,860 a nice part of town with a great 684 00:22:49,860 --> 00:22:52,600 backyard, lots of bedrooms and bathrooms, but all 685 00:22:52,600 --> 00:22:54,400 the same things you or I may have 686 00:22:54,400 --> 00:22:55,240 in our own home. 687 00:22:55,260 --> 00:22:57,040 I'm familiar with Phoenix area, I spent a 688 00:22:57,040 --> 00:22:57,760 lot of time out there. 689 00:22:58,060 --> 00:22:59,420 So if I'm buying one of these properties 690 00:22:59,420 --> 00:23:01,420 in Phoenix and let's say that I'm going 691 00:23:01,420 --> 00:23:04,220 to put 10 residents in there, million bucks, 692 00:23:04,460 --> 00:23:05,680 somewhere in that price range is what I'll 693 00:23:05,680 --> 00:23:06,280 probably pay? 694 00:23:06,740 --> 00:23:07,700 Easy, easy. 695 00:23:07,860 --> 00:23:09,300 Depending on where you are in the country, 696 00:23:09,460 --> 00:23:11,240 it could be between, I mean, on the 697 00:23:11,240 --> 00:23:15,460 lowest end, I'd say like 700,000, but 698 00:23:15,460 --> 00:23:17,060 we have a lot of students who have 699 00:23:17,060 --> 00:23:19,020 homes up to 3 million depending on their 700 00:23:19,020 --> 00:23:19,340 market. 701 00:23:19,500 --> 00:23:20,820 So in the Phoenix market, you're going to 702 00:23:20,820 --> 00:23:22,660 be a million or more easily. 703 00:23:23,260 --> 00:23:24,740 So let's talk about your hiring. 704 00:23:24,940 --> 00:23:25,980 If you're talking about something that has a 705 00:23:25,980 --> 00:23:28,060 $3 million property, how many residents are in 706 00:23:28,060 --> 00:23:28,200 there? 707 00:23:28,700 --> 00:23:30,320 I would hope that that's a home that 708 00:23:30,320 --> 00:23:32,540 has 14 up to 16. 709 00:23:32,660 --> 00:23:34,400 Like you would want to maximize that. 710 00:23:34,420 --> 00:23:36,220 Because if your mortgage is going to be 711 00:23:36,220 --> 00:23:38,680 30,000 a month, let's call it, right? 712 00:23:38,980 --> 00:23:41,100 Then you're going to need to be bringing 713 00:23:41,100 --> 00:23:43,620 in enough income to afford that. 714 00:23:43,700 --> 00:23:45,400 The math always has to work. 715 00:23:45,600 --> 00:23:48,200 So we do have students who have mortgages 716 00:23:48,200 --> 00:23:51,100 of 30, $35,000 a month, but their 717 00:23:51,100 --> 00:23:53,760 rates are like $8,000 a month and 718 00:23:53,760 --> 00:23:55,880 they have 16 residents in there and they're 719 00:23:55,880 --> 00:23:58,220 still cash flowing almost $40,000 a month 720 00:23:58,220 --> 00:23:59,640 on one home. 721 00:24:00,100 --> 00:24:02,500 So the sky is kind of the limit. 722 00:24:02,760 --> 00:24:05,000 We always encourage people to have three homes, 723 00:24:05,100 --> 00:24:07,520 a three-pack within 20 to 40 minutes 724 00:24:07,520 --> 00:24:09,620 of each other so you can share resources. 725 00:24:09,620 --> 00:24:11,820 But some of these homes, some of our 726 00:24:11,820 --> 00:24:13,900 students are like, hey, 40K on one home, 727 00:24:14,140 --> 00:24:14,640 I'm good. 728 00:24:14,760 --> 00:24:15,640 That's all I need. 729 00:24:16,340 --> 00:24:17,580 Sure, yeah, it makes sense. 730 00:24:17,700 --> 00:24:19,260 But then, and if you think about that 731 00:24:19,260 --> 00:24:20,900 though, you've got that 40K, you've got to 732 00:24:20,900 --> 00:24:23,400 pay the caregivers, the staff, all that, which 733 00:24:23,400 --> 00:24:26,180 I think, and then you're down to like, 734 00:24:26,240 --> 00:24:27,560 I mean, what's your, is there an average 735 00:24:27,560 --> 00:24:29,960 profit that you're actually making on these properties? 736 00:24:30,040 --> 00:24:32,100 I know you mentioned 10K earlier, just as 737 00:24:32,100 --> 00:24:33,080 we were throwing numbers out. 738 00:24:33,320 --> 00:24:36,240 Yep, 10K was that super average 10 bed 739 00:24:36,240 --> 00:24:39,180 home, but no, that 40 was net take 740 00:24:39,180 --> 00:24:39,480 home. 741 00:24:39,600 --> 00:24:43,420 The gross for 16 residents at $8,000 742 00:24:43,420 --> 00:24:46,160 a month is 128,000 gross. 743 00:24:46,580 --> 00:24:48,280 I was doing the math at 5,500, 744 00:24:48,460 --> 00:24:49,460 which is where I got stuck. 745 00:24:49,640 --> 00:24:50,380 Okay, okay, yeah. 746 00:24:50,400 --> 00:24:51,700 I didn't really do the math of 80K. 747 00:24:51,720 --> 00:24:52,100 That's okay. 748 00:24:52,560 --> 00:24:54,380 So then we take out the mortgage, then 749 00:24:54,380 --> 00:24:56,020 we take out paying the care staff and 750 00:24:56,020 --> 00:24:56,460 stuff like that. 751 00:24:56,500 --> 00:24:58,280 So there is a big lift. 752 00:24:58,320 --> 00:25:00,180 Like there are a lot of expenses in 753 00:25:00,180 --> 00:25:02,800 the industry, not just the mortgage, but that, 754 00:25:02,920 --> 00:25:03,620 the care staff. 755 00:25:03,620 --> 00:25:06,300 It costs, usually it's 40% of your 756 00:25:06,300 --> 00:25:08,380 total expenses goes for the staff. 757 00:25:08,760 --> 00:25:10,460 And the less you want to be involved, 758 00:25:10,520 --> 00:25:11,880 the more you're going to be paying out 759 00:25:11,880 --> 00:25:12,200 on that. 760 00:25:13,300 --> 00:25:15,680 So I like to pay more and make 761 00:25:15,680 --> 00:25:16,480 a little bit less. 762 00:25:16,480 --> 00:25:17,860 Like some of my homes, if I went 763 00:25:17,860 --> 00:25:19,660 and visited them every day, I might be 764 00:25:19,660 --> 00:25:20,880 able to make 15,000. 765 00:25:21,320 --> 00:25:22,200 I don't want to. 766 00:25:22,660 --> 00:25:24,280 So I make 10 so that I can 767 00:25:24,280 --> 00:25:27,240 pay for extra people in between me and 768 00:25:27,240 --> 00:25:27,660 the home. 769 00:25:27,800 --> 00:25:29,260 So I don't have to be as hands 770 00:25:29,260 --> 00:25:29,480 -on. 771 00:25:29,860 --> 00:25:30,960 And they're going to buy everything else. 772 00:25:30,960 --> 00:25:32,260 I got to buy like the, you know, 773 00:25:32,300 --> 00:25:34,240 the kits and the medical stuff. 774 00:25:34,300 --> 00:25:35,600 I got to buy the food and all 775 00:25:35,600 --> 00:25:37,660 that stuff as well on a regular basis. 776 00:25:37,920 --> 00:25:39,900 That's part of all the expenses then. 777 00:25:40,080 --> 00:25:40,340 Exactly. 778 00:25:40,560 --> 00:25:42,240 So the senior who's living in the home, 779 00:25:42,420 --> 00:25:46,100 their fee, it's covering all of that for 780 00:25:46,100 --> 00:25:46,340 them. 781 00:25:46,400 --> 00:25:48,580 It's their room, their board, their activities, their 782 00:25:48,580 --> 00:25:51,320 food, their care, their everything, part of the 783 00:25:51,320 --> 00:25:51,800 utilities. 784 00:25:52,120 --> 00:25:53,960 That's what they're paying for at that time 785 00:25:53,960 --> 00:25:54,380 in life. 786 00:25:54,480 --> 00:25:55,940 So a lot of people will be like 787 00:25:55,940 --> 00:25:56,600 5,500. 788 00:25:56,860 --> 00:25:58,060 Oh my God, that's so expensive. 789 00:25:58,080 --> 00:25:59,160 And I'm like, pause. 790 00:25:59,160 --> 00:26:01,340 How much does it cost you to live 791 00:26:01,340 --> 00:26:02,240 every single month? 792 00:26:02,640 --> 00:26:04,840 Now think if you had a private chef, 793 00:26:04,920 --> 00:26:07,580 activities coming to your house every day, laundry, 794 00:26:08,020 --> 00:26:11,440 housekeeping, someone wiping your bum, bathing you, doing, 795 00:26:11,680 --> 00:26:13,540 you know, making your bed, pretty sure it 796 00:26:13,540 --> 00:26:14,860 costs you more than 5,500. 797 00:26:15,160 --> 00:26:16,420 This is kind of a steal of a 798 00:26:16,420 --> 00:26:16,680 deal. 799 00:26:17,200 --> 00:26:17,340 Yeah. 800 00:26:17,940 --> 00:26:18,200 Yeah. 801 00:26:18,300 --> 00:26:20,200 I wish like one of my expenses was 802 00:26:20,200 --> 00:26:20,820 5,500. 803 00:26:21,080 --> 00:26:21,480 That would be fantastic. 804 00:26:21,760 --> 00:26:21,860 Right? 805 00:26:22,680 --> 00:26:24,380 So a lot of people in business I 806 00:26:24,380 --> 00:26:26,280 find and our audience are all entrepreneurs. 807 00:26:26,500 --> 00:26:27,600 They're trying to, they always try to figure 808 00:26:27,600 --> 00:26:28,300 out how to get leads. 809 00:26:28,300 --> 00:26:29,580 So what does that look like? 810 00:26:29,660 --> 00:26:31,800 What kind of strategies are out there to 811 00:26:31,800 --> 00:26:34,200 be able to even attract potential residents into 812 00:26:34,200 --> 00:26:35,440 the property once you have it all set 813 00:26:35,440 --> 00:26:35,680 up? 814 00:26:35,820 --> 00:26:37,820 The biggest and most important thing is setting 815 00:26:37,820 --> 00:26:39,580 it up in the right location first. 816 00:26:39,660 --> 00:26:41,400 Cause location will be everything. 817 00:26:41,500 --> 00:26:42,820 I get people all the time who like 818 00:26:42,820 --> 00:26:44,460 listen to a podcast or a YouTube video 819 00:26:44,460 --> 00:26:45,780 and they're like, oh my God, I did 820 00:26:45,780 --> 00:26:47,320 this and I started this home and I 821 00:26:47,320 --> 00:26:48,060 don't have any residents. 822 00:26:48,160 --> 00:26:48,900 What did I do wrong? 823 00:26:48,940 --> 00:26:51,360 And I'm like, oh my gosh, like location 824 00:26:51,360 --> 00:26:51,960 is everything. 825 00:26:52,160 --> 00:26:53,820 So it is real estate at the end 826 00:26:53,820 --> 00:26:54,080 of the day. 827 00:26:54,140 --> 00:26:55,720 You want to make sure you're located properly. 828 00:26:55,760 --> 00:26:58,060 But there are so many ways to fill 829 00:26:58,060 --> 00:27:00,140 the beds and with the coming silver tsunami 830 00:27:00,140 --> 00:27:02,600 of seniors, if you are not full, I'm 831 00:27:02,600 --> 00:27:04,140 going to be real blunt right here. 832 00:27:04,240 --> 00:27:06,620 It is 100% your fault, because there 833 00:27:06,620 --> 00:27:09,020 is an entire industry of people called placement 834 00:27:09,020 --> 00:27:09,680 agents. 835 00:27:09,880 --> 00:27:11,740 And what they do is they're kind of 836 00:27:11,740 --> 00:27:14,120 like a realtor for bodies. 837 00:27:14,820 --> 00:27:17,300 If you need assisted living, your family usually 838 00:27:17,300 --> 00:27:19,880 finds a placement agent and it costs the 839 00:27:19,880 --> 00:27:20,600 family nothing. 840 00:27:20,940 --> 00:27:23,600 They ask you, hey, what location, what amenities, 841 00:27:23,800 --> 00:27:25,400 what price point do you want or need? 842 00:27:25,400 --> 00:27:27,840 They tour you around to different homes. 843 00:27:27,980 --> 00:27:30,460 And if they choose your home, you as 844 00:27:30,460 --> 00:27:33,200 the homeowner pay half of the first month's 845 00:27:33,200 --> 00:27:34,880 rent to that placement agent. 846 00:27:35,060 --> 00:27:36,440 For someone who's going to live with me 847 00:27:36,440 --> 00:27:37,780 for an average of three and a half 848 00:27:37,780 --> 00:27:40,440 years at six, seven, eight, $9,000 a 849 00:27:40,440 --> 00:27:42,420 month, I will pay half of a first 850 00:27:42,420 --> 00:27:43,120 month's rent. 851 00:27:43,340 --> 00:27:45,840 Like this is, I will pay for speed 852 00:27:45,840 --> 00:27:46,520 all day long. 853 00:27:46,540 --> 00:27:48,800 So you can work with placement agents, but 854 00:27:48,800 --> 00:27:51,580 you also need everything else you need for 855 00:27:51,580 --> 00:27:52,020 a business. 856 00:27:52,100 --> 00:27:53,580 You need a Facebook page, you need a 857 00:27:53,580 --> 00:27:56,080 website, you need brochures and business cards, and 858 00:27:56,080 --> 00:27:57,980 you want to start building relationships in the 859 00:27:57,980 --> 00:27:58,540 communities. 860 00:27:59,000 --> 00:28:03,540 Geriatric doctors, hospice agencies, elder law attorneys, churches, 861 00:28:03,800 --> 00:28:06,740 synagogues, temples, these are all amazing referral sources 862 00:28:06,740 --> 00:28:08,680 for you that don't cost a dime. 863 00:28:09,040 --> 00:28:12,660 So there's a mix between online marketing, as 864 00:28:12,660 --> 00:28:14,880 well as having your placement agents, as well 865 00:28:14,880 --> 00:28:16,640 as having the community relationships. 866 00:28:16,640 --> 00:28:19,000 But with all three of those legs running 867 00:28:19,000 --> 00:28:21,120 at the same time, you should be full 868 00:28:21,120 --> 00:28:21,820 for sure. 869 00:28:21,820 --> 00:28:22,660 I love it. 870 00:28:23,000 --> 00:28:25,800 Isabel, where can somebody go that's watching this? 871 00:28:25,860 --> 00:28:28,080 This is crazy, I want to learn more. 872 00:28:28,220 --> 00:28:29,740 Because we just scratched the surface of so 873 00:28:29,740 --> 00:28:30,900 many things that I'm sure a lot of 874 00:28:30,900 --> 00:28:31,520 people have questions on. 875 00:28:31,820 --> 00:28:33,140 Where can they go, what should they do 876 00:28:33,140 --> 00:28:33,940 to be able to learn more? 877 00:28:36,140 --> 00:28:38,280 RAL101.com is a great website to go 878 00:28:38,280 --> 00:28:38,660 check out. 879 00:28:38,760 --> 00:28:40,960 We've got free books, free webinars. 880 00:28:41,140 --> 00:28:42,780 You can schedule a call with me or 881 00:28:42,780 --> 00:28:43,680 the team right there. 882 00:28:43,760 --> 00:28:45,260 We'd love to chat with you if you've 883 00:28:45,260 --> 00:28:46,840 got a property in mind or any questions. 884 00:28:47,080 --> 00:28:49,360 So RAL101.com. 885 00:28:49,360 --> 00:28:52,080 So make sure, RAL101.com. 886 00:28:52,480 --> 00:28:53,820 And that's a great landing page. 887 00:28:53,920 --> 00:28:55,140 It kind of gives you everything that you 888 00:28:55,140 --> 00:28:55,340 need. 889 00:28:55,420 --> 00:28:57,320 You can even schedule an enrollment card there 890 00:28:57,320 --> 00:28:57,700 as well. 891 00:28:58,660 --> 00:28:59,020 Yeah, cool. 892 00:28:59,220 --> 00:29:00,560 Thank you so much for tuning in, or 893 00:29:00,560 --> 00:29:02,120 thank you very much for coming on today. 894 00:29:02,160 --> 00:29:03,040 I really appreciate it. 895 00:29:03,240 --> 00:29:03,920 Happy to be here. 896 00:29:04,020 --> 00:29:04,800 Thanks for having me. 897 00:29:05,000 --> 00:29:06,360 All right, so listen, if you're watching this, 898 00:29:06,380 --> 00:29:07,540 this is ridiculous, right? 899 00:29:07,540 --> 00:29:08,500 I don't know about you, but I've never 900 00:29:08,500 --> 00:29:09,380 heard anything like this before. 901 00:29:09,460 --> 00:29:10,500 And it makes so much sense. 902 00:29:10,580 --> 00:29:12,160 I don't know about your parents and where 903 00:29:12,160 --> 00:29:14,200 they are in life, but this is exactly 904 00:29:14,200 --> 00:29:15,440 what I would want for my parents. 905 00:29:15,520 --> 00:29:16,880 It's one of the most common sense things 906 00:29:16,880 --> 00:29:17,380 I've seen. 907 00:29:17,380 --> 00:29:19,540 I'm still really angry about the 30 to 908 00:29:19,540 --> 00:29:19,700 one. 909 00:29:19,860 --> 00:29:21,620 I cannot even believe that that's legal in 910 00:29:21,620 --> 00:29:22,100 our country. 911 00:29:22,240 --> 00:29:24,960 But that's what our parents are headed towards, 912 00:29:24,960 --> 00:29:25,940 if you're there, right? 913 00:29:26,000 --> 00:29:28,440 So this is something that you should really 914 00:29:28,440 --> 00:29:30,940 think about with your heart because this solves 915 00:29:30,940 --> 00:29:32,340 a major problem. 916 00:29:32,940 --> 00:29:36,120 And this could be a ridiculously lucrative business 917 00:29:36,120 --> 00:29:36,720 for you. 918 00:29:37,060 --> 00:29:38,560 This is a section of the real estate 919 00:29:38,560 --> 00:29:40,440 side that not a lot of people are 920 00:29:40,440 --> 00:29:40,700 in. 921 00:29:40,800 --> 00:29:43,080 So there's a massive opportunity with like 1 922 00:29:43,080 --> 00:29:45,460 .3 million, I think, they're negative out there 923 00:29:45,460 --> 00:29:46,820 looking for properties for. 924 00:29:46,820 --> 00:29:49,200 And you know, but something that a lot 925 00:29:49,200 --> 00:29:50,000 of people don't know. 926 00:29:50,060 --> 00:29:51,980 So it's a phenomenal opportunity to get in 927 00:29:51,980 --> 00:29:54,420 to really make a difference in what's happening 928 00:29:54,420 --> 00:29:56,820 in society, to be able to potentially learn 929 00:29:56,820 --> 00:29:58,860 something that can even help your elders in 930 00:29:58,860 --> 00:29:58,980 there.