Bob Helms – The Godfather of Real Estate

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In June the world lost a pioneer, an icon, a gentleman, and a scholar. Bob Helms, a.k.a. “The Godfather of Real Estate”. He was 85 years old. He had been investing in real estate for over seven decades. Even in his 80’s Bob was active, planning, learning, growing, contributing and creating. He authored his book “Be In The Top 1%: A Real Estate Agent’s Guide To Getting Rich In The Investment Property Niche” when he was in his 80’s.

His book isn’t an advertisement, not a business card. It’s not an ego memoir. It’s a contribution, born out of a genuine desire to teach, to share, to pay it forward. We spend so much of our lives deep in the content of living. What was striking about Bob was the context. Bob’s context was contribution. You never got the impression that he was acting out of self-interest.
Bob Helms Book (1)
Bob and I had many deep conversations over the years. But the conversation that stuck foremost in my mind was the very first conversation. He wanted to get to know me. He was genuinely interested in learning about me. He was the quintessential ambassador and made me instantly feel welcome. But I’m not an isolated case. Everyone I speak with who knew Bob had virtually the same first meeting experience. He left that same lasting first impression with everyone he engaged with. Bob was a people’s person. He loved people. It wasn’t an act, or a realtor’s gimmick. His genuine love for people burst through in every interaction. He carried an abundance mindset in an industry that is synonymous with turf wars. He was never insecure about sharing. There would always be enough to go around.
Bob was successful in business in his own right. He helped build one of the largest real estate brokerages in the country out of his home market in Silicon Valley. The wave of growth in Silicon Valley no doubt played a role in his success. There’s nothing like being in the right place at the right time. But Silicon Valley is an incredibly competitive environment and only the best rise to the top.
Bob distinguished himself as an expert in investment properties. He learned early on that a residential home buyer doesn’t generate a lot of repeat business. Active investors on the other hand, are deal junkies. They cultivate a deal flow. A single investor client with repeat business could bring the same level of business as twenty or thirty individual clients. Focus and attention on serving his target clients catapulted his business. These are concepts that are central to marketing in our current time. But think back thirty or forty years and Bob’s work was pioneering.
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Image by Benjamin Hartwich from Pixabay

Bob was well known as the third member of the Real Estate Guys Radio Show duo with his son Robert Helms and Russell Gray. Now in its 24th year, this terrestrial radio show and podcast has listeners in over 190 countries. Whenever Bob was a guest on the show, his elder statesman wisdom shone through. Bob was a life long student. He took copious notes. Even though retired, he would sit at the back of a seminar with his notebook open, paying close attention and integrating what he was learning. There was always a lineup of people waiting to talk to Bob, to share their story, to ask Bob for advice. Bob would cut through the fog and get to the heart of the matter, but in the gentlest of ways. He would lead you to a new way of looking at the problem so that the best answer was clear. But he didn’t make you wrong, or naïve, or dumb in the process. He merely illuminated the path.
Bob Helms playing guitar
Bob’s greatest love and accomplishment was his family. He was an integral part of the multi-generational Helms family.
That doesn’t mean there weren’t problems. Of course there were. Everyone in life experiences adversity. There was no drama, no rebellion, only a quiet acceptance and a focus on clarity, learning and moving forward. The world lost a mentor. The Helms lost their “Papa”. His gentle but impactful manner is part of his legacy.  
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Victor Menasce

[email protected] http://www.victorjm.com 613-762-0162 347-708-8383

I have focused the past 9 years of my professional life on real estate investment. This started locally in Canada, and moved quickly into the US markets as the opportunities for great investments presented themselves. This was a right hand turn in my career. I spent the first 25 years of my career in the high tech industry. My past roles include, Vice President of Engineering at Wavesat, a developer of chips for wireless networks, and Chief Technical Officer at Applied Micro Circuits Corporation, a Silicon Valley based public company that develops processors for use in numerous consumer products including televisions and gaming. I was founder and Chief Operating Officer at Somerset Technologies. I also held several senior roles in marketing and engineering with Tundra Semiconductor. I started my career at Bell Northern Research and Nortel where I designed chips that were used to control the telephone network. For approximately a decade, 54% of the phone calls in North America were routed by a chip that I designed. I have conducted business in over 15 countries, have forged numerous partnerships, raised capital, been awarded patents, acquired businesses, negotiated deals, lead organizations, and brought about business improvement. On my 18th trip to Tokyo in a year and a half, it was clear that I was on the wrong path. The way I was working wasn’t right for me, nor for my family. I made the conscious decision to move full-time into the world of real estate investment. I am having the time of my life, leveraging the accumulated business learning and applying my skills to the world of investments. I live in Ottawa, Canada with my family.

The Latest “Spooktacular” News about Airbnb

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Image by Myriam Zilles from Pixabay

By Holly Lynn

Enjoy these treats while they last!

If Halloween decorations, costumes, and a smoky punch bowl are in the forefront of your mind for a great party, keep Airbnb off of your list of potential party spots for the holiday weekend.
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Image by Alexas_Fotos from Pixabay

In an announcement made by Airbnb, they are prohibiting large gatherings in an effort to do their part in the spread of Covid-19. Airbnb has stated that they will also bring legal action against certain unauthorized parties. This announcement comes a year after the shooting of five young people at a home–listed on the Airbnb platform– in Orinda, California.
Airbnb posted on their website, “To strengthen our hosts’ protection against parties amid concerns about a second wave of the pandemic, today we’re announcing that we’ll be prohibiting one-night reservations over the Halloween weekend in entire home listings in the United States or Canada. Further, we’ll bolster our existing protections and technologies aimed at stopping as many large gatherings as possible that weekend.”
Starting October 2nd, guests will be unable to book entire homes for a single night on 10/30 or 10/31 in the United States and Canada. For previously booked reservations on these dates, Airbnb will cancel and reimburse the guest. However, hosts that have confirmed bookings will receive a full payment. In addition to the rigid restrictions, Airbnb will be implementing technology that will curtail guests that try to book last-minute, who live locally and do not have a positive history on the platform.
Airbnb also asserted, “Also as the weekend approaches, we plan to remind guests making successful reservations to take place between October 28 and November 1 that parties are not allowed in listings. They will also be required to attest that they understand that they may be subject to removal from Airbnb or legal action if they violate Airbnb’s rules on parties.”
Airbnb will be beefing up their neighborhood support line to take calls throughout the weekend to respond to any issues from hosts and neighbors. With pandemic numbers on the rise and the recent rise in civil unrest, Airbnb is striving to protect hosts, guests, and neighborhoods from unnecessary problems and to keep everyone safe.

Holly Lynn, Queen of Capital ™ is an Airbnb and Short-term Rental Management Professional, author, and media influencer. She can be reached at www.hollylynn.com or by email at [email protected].

To short-term rent your property, you can text her at 415-317-6071.

Loans Solutions Designed for Real Estate Investors

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Finance of AmericaHere at Finance of America Commercial, we strive to be a one-stop-shop for all your real estate investing needs. We offer investment loans for a variety of residential non-owner occupied property types and needs, including:

  • Fix & Flip Rehab Property Loans –
    Short-term purchase or refi loans for rehab. These loans are available to experienced investors, with a minimum FICO of 620.
  • Bridge Property Loans –
    Short-term purchase or refi loans that are ideal for holding assets — also available to experienced investors with a minimum FICO of 620.
  • Single Rental Loans –
    Long-term purchase or refi loans for individual rental properties with the option for cash-out*. Loans are asset-based, so no personal income verification is needed!
  • Portfolio –
    Long-term (5, 7, or 10-year) purchase or refi loans for multiple rental properties (5+ doors). A minimum FICO of 660 is required. Loan amounts from $750K – $5MM.
  • Portfolio Express –
    Long-term (30-year fixed) purchase or refi loans for multiple rental properties (2-8 doors). A minimum FICO of 600 is required. Loan amounts from $300K+.

Interested? Call today to learn more and get a quick quote!

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Finance of America Commercial
Reach out for more information!
p: (855) 809-6115
[email protected]
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Exposure limits and property loans are subject to investor and business credit approval, appraisal and geographic location of the property and other underwriting criteria. Loan amounts and rates may vary depending upon loan type, LTV, verification of application information and other risk based factors. Application fees, closing costs and other fees may apply. Each loan is subject to property approval under Finance of America Commercial terms and conditions. Each property has an individual secured loan. *Approval for cash-out depends on many loan factors and may not be available on every loan. This email is an advertisement.

Questions? We are here for you.

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©2020 Finance of America Commercial LLC is licensed or exempt from licensing in U.S. states | NMLS ID #1133465 | 6230 Fairview Road, Suite 300, Charlotte, NC 28210 | (800) 227-8107 | AZ Mortgage Banker License BK #0926974 | Licensed by the Department of Business Oversight under the California Finance Lenders Law | Finance of America Commercial LLC only makes mortgage loans for business purposes.

High Cap Rates, Low Cap Rates, and Successful Real Estate Investing

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Image by Alexander Stein from Pixabay

By Rusty Tweed

Using Cap Rates to Make Informed Real Estate Investing Decisions

Don’t be fooled by the simplicity of the cap rate, or capitalization rate — this simple calculation can reveal a trove of insight on potential real estate acquisitions. Some have even argued that this number is the single most important metric for any budding real estate investor to understand.

Our guide makes it easy to wrap your head around cap rates and use them to your advantage. So, without further ado, let’s jump in and learn.

choice-2692575_1280Image by Gerd Altmann from Pixabay

What Can a Cap Rate Tell Me?

In a nutshell cap rates provide a quick and simple way to help get a feel for a property’s overall investment potential and a balance with the property’s levels of risk and return on investment. To better understand how to achieve this, we’ll look at a few examples.

Cap Rate Formula: How to Calculate Cap Rate

The cap rate formula is simple: Divide net operating income (NOI) by the property value (or the purchase price).

Cap Rate = Property’s Net Operating Income/Property Value (or Purchase Price)

We can find net operating income by subtracting the property’s annual expenses from its annual gross revenue. Expenses will include things like operating expenses, management, taxes, and anything else you must pay to keep the property running.

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Careful though — debt payments, capital expenditures, and depreciation deductions are NOT included in the calculation. This is because we are trying to get a sense of the property’s performance irrespective of any mortgage arrangements, improvements we might make or depreciation schedule that may be selected.

For revenue or cash-flow, you’ll simply plug in what tenants currently pay in rent (total rental income), as well as any other sources of income (Ex: a laundromat or a parking garage).

Should I Use Market Value or Purchase Price as my Denominator?

For the bottom of our capitalization rate fraction, market value is generally preferred. A purchase price can be used if the property has sold recently, but using a purchase price from ten years ago won’t result in a meaningful cap rate. If we are considering purchasing the property, it would be very useful to plug in various possible purchase prices to see what rate we’ll achieve. This can be a helpful guide when determining an acceptable offering price.

Examples

Suppose you’re an investor considering buying Property A. The property is valued at $1,000,000 and generates an NOI of $50,000 annually. Plugging this into our equation we get:

Cap Rate = $50,000/$1,000,000 = 5%

Suppose you compare Property A to a similar property that is valued at $1,000,000 and has an NOI of $60,000. This gives us a Cap Rate of 6%. If all else between Properties A and B is equal, the higher cap property is the better buy.

Investors can also think of cap rate as a measure of their rate of return on their investment. For example, with the 5% rate, an investor earns 5% of their purchase price annually and will recoup the purchase price in the 20 years.

What Does a High Cap Rate Mean? What About a Low Cap Rate?

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There’s a lot more to cap rates than “higher cap = better investment.” No two properties are created equal, and in practice, properties with a very high cap rate often turn out to be higher risk as well.

Let’s think about our capitalization rate equation again, and what factors might contribute to driving it higher. We’ll look at Property A again, which had an NOI of $50,000, a property value of $1,000,000, and a 5% cap rate.

If we want to raise our rate by changing NOI, then NOI will have to increase. This could be accomplished by increasing revenue, or lowering expenses. In either case, increased NOI is typically a good thing.

Now, let’s say we want to raise our cap rate by modifying property value. In this case, property value will have to decrease. A decrease in property value could be driven by several things, including the worsening reputation of a location or the revelation of some costly deferred maintenance.

To summarize: high cap rates are great, but they can also point towards factors that increase the risk of an investment. A property with an 18% cap rate might need work, and might not be in a highly desirable area. Ask yourself, “Is this amazingly high cap rate stemming from high NOI, or low property value?”

What Drives Cap Rate Lower?

Let’s consider what factors might contribute to driving a cap rate lower. If NOI decreases, our cap rate will decrease as well. We also see lower cap rates in the case of property appreciation — and appreciation is a very good thing.

If a property appreciates significantly, but revenue trails this appreciation, the property’s cap rate will go down. Lower cap rates can indicate high-value properties, suitable for investors seeking lower risk. Generally, better neighborhoods trade at lower cap rates.

High vs Low Capitalization Rates

scale-2635397_1280Image by Arek Socha from Pixabay

High cap rates are driven by two things — higher NOI, and lower property value. If a building needs renovation, this could result in a lower property value and, therefore, a high cap rate. With large amounts of maintenance needed to bring a building up to date, that high cap rate might mislead the investor and leave him with far more work and expense than he bargained for. But, if an investor is interested in updating a property, these high cap properties can potentially provide large rewards.

These property types are best left to investors who have experience, or who have a trusted guide that can help them find the right properties that balance their investment goals with their risk tolerance.

Figure Out What You Need to Know

If you know any two of the three variables of the capitalization rate formula, you can figure out the whichever variable you’re missing. This can be useful in a range of situations. For example, suppose you are trying to determine what you should offer on a property. If you know the property’s NOI and have a cap rate goal you want to target, then you can calculate what purchase price will give you the result you’re looking for.

For example, suppose your target is 8%, and you’re looking at a property that generates $100,000 in NOI:

8% = $100,000/Purchase Price

Purchase Price = $100,000/.08

Purchase Price = $1,250,000

Or, if you have $500,000 to spend on an investment property, and are targeting a 7% cap rate, you can figure out what level of NOI is required for you to meet your goals:

7% = NOI/$500,000

NOI = 7% * $500,000

NOI = $35,000

Re-Cap

There’s no set range for which are “good cap rates” — they’re most useful as a comparative tool between a few potential purchase opportunities that are similar in terms of location and kind.

High cap rate properties can be lucrative, but also come with an increased level of risk. If you’re new to high-cap real estate investing, it’s best to partner with someone who has the experience and know-how to get a deal done right. At TFS Properties, we specialize in pairing investors with properties that match their investment profile and risk comfort-level while guiding them through the journey of building a secure investment portfolio.

Wondering What to do NOW In Real Estate? (Part 2)

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Image by Gerd Altmann from Pixabay

By Jimmy Reed

So, what do you do when the market is flooded with so much Competition? How do you really get Wealthy in Real Estate? Getting fed up!?? How about Real Wealth Deals???

Hope you enjoyed the last article! Part 1 of “What to do NOW in Real estate?” As we ended last time, we started to mention VRBO’s vs a Standard Rental. We also talked about Hot Markets and that the Dallas/Fort Worth (DFW Area) is one of the Hottest in the country. Since the last article we have also had the Covid-19 Virus which at this time has literally shut our economy down. The timing however is really interesting since we are now about to go into a market that is only 3 hours away from the DFW market and growing at the same pace. Now last time I talked a lot about the Granbury market which was only 30 minutes South of Fort Worth where we are building brand new Constructions all Brick for Rentals. But let’s now switch the mind set to VRBO where we can Double & Triple our Cash Flow! You heard me right! So now we move North of DFW to Broken Bow Oklahoma. And to help me out I want to introduce you to a friend, former student, and a Rock Star on VRBO’s in Broken Bow, Miss Kelli Haus. I asked Kelli to help contribute to part 2 of this piece since she has literally taken the VRBO in Broken Bow to a new level. So first keep in mind we are looking at cabins now verses a standard house. We are looking at Nightly rent vs Monthly rent. And this is where you will see how you could nearly triple your Monthly Cash Flow with a VRBO in Broken Bow. Now I meet Kelli a few years ago when she signed up for our Platinum Program here in the DFW area. She soon informed me she was wanting to move into Vacation Rentals, I told her it was not my specialty at all. A few years later and Kelli has become a Rockstar of VRBOS! So here is a little about Kelli, and some info on Broken Bow, OK.
The How Toos of Finding Deals
Kelli has 6 years’ experience in the real estate field, she is known as the Beavers Bend Realtor. However, Kelli does more than just help her clients buy and sell cabins, her secret sauce is her step-by-step plan for her clients so they can not only enjoy a vacation at their cabin but also turn it into a big money maker. Kelli uses this same plan on her own Beavers Bend investment properties so she practices what she preaches, and she can not only show you how the plan has worked for her, but so many of her clients. Her ideal client is someone who is looking to make memories and extra money.
Hello all, I’m Kelli Haus and I am a cabin investor in Broken Bow, OK and a full time Realtor in the Broken Bow area, specializing in helping families’ and investors purchase an income/second home/vacation luxury cabin that pays for itself.
Did you know that according to a recent VRBO report “71% of millennial travelers say they consider staying at a non-traditional vacation rental”? VRBO rentals are up 30% from last year! Broken Bow, Oklahoma. I am going to assume you’ve never heard of it. It is an outdoorsman’s paradise! It is only three hours away from the DFW metroplex. A perfect family getaway that makes most feel like they arrived in Colorado. The area is also known as Hochatown, Oklahoma which is a few miles north of Broken Bow. Through good economies and bad economies, this place is always a hot market with vacationers packing the area every chance they can. As long people in the DFW want a quick getaway from the metroplex, this market is going to continue to be on the rise until there are enough cabins to accommodate the mass influx of vacationers. Hochatown is approximately 95% luxury investment cabins that are occupied by residents from Texas, Oklahoma, Arkansas and Louisiana that flock here YEAR-ROUND. That’s right, there is not a down season! VRBO’s travel trend report projects that the Broken Bow/Beavers Bend State Park lake area tourism will grow 50% in 2020. If you have never heard of Broken Bow, Oklahoma your first question is going to be why the heck would anybody want to invest in this remote area? The answer is Broken Bow Lake is one of the most gorgeous lakes in the country. Its pristine natural shorelines are not riddled with boat docks and lake houses. Ten years ago, this lake was a hidden gem of a secret for the locals to enjoy. This lake is crystal clear and provides some of the best fishing in the country. The lower Mountain Fork River feeds off the lake has some of the best fly-fishing in the world. Believe it or not most people never even see the lake when they rent a cabin. They’re too busy hiking some of the most gorgeous trails in the state park, hitting up the local breweries and wineries, roasting s’more‘s on the campfire, renting ATVs, horseback riding, kayaking or canoeing on the river, grilling out on the back porch and hitting the cabin hot tub! The Choctaw Nation has recently purchased 700 acres here in Hochatown and they will be building a family friendly casino right here amongst these luxury cabins. This casino is going to draw so many more visitors to the area that have not heard about Broken Bow. It’s rumored to believe that only 50% of the DFW metroplex is aware of Broken Bow. There are more than 7 million people in DFW and Broken Bow is growing in correlation with the growth of DFW. There is certainly a buzz in Texas about Broken Bow and in my opinion, there are not near enough cabins in the area to support the demand of people that want to vacation here.
The How Toos of Finding Deals
Even during this Covid crisis, all the cabins here are full of people “sheltering” at a cabin. And there has been no slowdown of investors inquiring about investing in Broken Bow either.
The question I get asked the most often is which is the best size, price, and type of cabin for an investment? There is not a good answer to that question. One-bedroom cabins are booked more nights per year but at a lesser nightly rate. The big cabins that sleep 25 to 30 people are booked less nights per year but at a much higher rate, up to $2,000 a night!
If managed properly every cabin in Broken Bow can be paid off in 8 to 10 years. So, would you rather have a $300,000 one bedroom or a $1.5 million cabin paid off in 8-10 years? Every single cabin here pays for itself every…single…month. Some months, like February and April, can be a little slow but this year they have not been at all! Each year this area is growing more and that means more net profits, even in what used to be known as the slow months. Cabins are booked every single weekend, every holiday, and every time school is out of session, I encourage all cabin owners to raise their nightly rates 10-30%. Both of my two-bedroom two bath cabins that have a loft, both sleep eight or nine people are booked 18 days a month on average year-round. June and July are the busiest months of the year. Both of my cabins were booked solid in the summer months except for the rare times of a one-night opening between bookings.
The How Toos of Finding Deals
Generally speaking, a cabin will make 45% net profit. If you hire a management company, they are going to expect 25% to 40% of your gross income. 95% of my client’s self-manage their cabins with my proven method of doing so. But that is a whole other and I am certainly happy to answer questions like them, such as:
  1. How do I manage my cabin from 2000 miles away?
  2. How do I minimize phone calls from my guests to the point where I do not get any?
  3. How do I maintain five-star reviews on Airbnb and VRBO?
  4. What do I do if I have a maintenance emergency in the middle of the night?
  5. Do you share your team of people on the ground in Broken Bow to help Cabin Owner’s?
So, let us talk about real numbers. I purchased my “Kiss and Angel Good Morning Cabin” in April 2018. It came fully furnished from a new construction builder with a sales price of $310,000. It appraised for $329,000 and today it would appraise for $360,000 or more. I put 10% down. Mortgage, taxes, insurance as well as PMI totals$2,050 a month. Property taxes are low at about 1%. My monthly average expenses to run my cabin business is $500 a month.
The How Toos of Finding Deals
In my first year I paid down the mortgage with 100% of my profits. I did not pay my mortgage down in 2019. Instead, I used my profits in 2019 to purchase my second cabin. Right now, I have $100,000 equity in this cabin. Nightly rates are between $199 and $350 a night. My first year I grossed $50,000 with $20,000 net profit. My second year I netted $27,000 profit.
I encourage my clients to purchase new construction or a cabin that is less than three years old. That is another discussion for a different day. About70% of cabins for sale can be found on Realtor.com. Not all real estate agents list their cabins on any MLS. New construction cabins cannot be found online anywhere. You must have a connection to a builder to find those hidden gems! 80% of my clients purchase a new construction cabin that has not yet been completed.
The How Toos of Finding Deals
I know I have just scratched the surface with this article and there are many more questions to be asked. I am extremely grateful I discovered the Broken Bow area. I have two young children and with the two cabins that I do own now, I will be able to use the $2,000 monthly net profit to pay for my children’s college education.
I do not see this market slowing down anytime soon as I do not see the DFW market slowing down. It has been rumored that Broken Bow will be the next Branson, Missouri, or Lake Tahoe.
I do not have enough cabins to show my clients even during this possible recession. Construction has not slowed down either. Can you think of a hotter market? I hope to hear from you soon, and Thanks Jimmy for allowing me to contribute to your article! Well I hope you just realized the opportunity you have been presented with. How regardless of where you live you can own a Vacation/Investment Cabin that can produce up to nearly Triple the Cash Flow vs that from an ordinary rental. Yes, I know if you are Old School you understand Monthly Rentals. Trust me I’ve had rental for over 30 plus Years! But go back and read the last article “Part 1”Remember the Make Money vs Wealth? Wealth is what you are looking for in real estate. But I understand if you want a rental, we have them for you as I said back in the first article down in Granbury. By the way you could VRBO the Granbury properties. See these articles were written to open your eyes to see the opportunity of not so much what you invest in but where! Hot, Emerging Markets will always out pace Appreciation and Cash Flow due to demand, and the location with in what I call the Hot Zones. Texas is a Hot Zone always has been and even more so today. Make sure you go back in read the first article from last month in Realty 411. Refresh yourself to what our Goals were. Buying and Selling vs Buying and Holding, real Wealth! Look back at some of those trainings we offer on my site at www.JimmyReed.net. Create some Cash but parlay that into Creating Wealth through Rentals are maybe even VRBO’s so you can Double & Triple that Cash Flow. Well I hope this opens your mind up to investing in Hot Zones. To understand so many people come from all over the World to invest in America because of all the opportunities. My question to you are you willing to travel a few states and end up in the middle of the country and the most lucrative Hot Zone, TEXAS! So if you’re still riding the fence here’s a thought make sure to keep an eye out in the magazine and Realty 411Marketing emails so you can make it to Texas for the Lone Star Expo! Yes in October the Lone Star Expo is right here in my backyard, Arlington, TX. And if you remember from the first article we plan on doing a bus tour down to Granbury to look at those New Construction Rentals. Who knows Kelli may be at the Expo to answer questions about Broken Bow. Fact stay a few extra days and rent a cabin in Broken Bow! In Closing, the main thing is position yourself so you can maneuver positively so no matter where the market turns. If you keep your eyes on the market and not so much on the quick buck, you can become very successful even Wealthy at this real estate game! Be Blessed with Success! Jimmy Reed
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Jimmy V. Reed

Jimmy V. Reed of Fort Worth, Texas has been investing in real estate since 1987.  In 1991, he started conducting full-day training sessions on Wholesaling.  He then began teaching and mentoring others throughout the country. He is currently the founder of the Fort Worth Real Estate Club www.1REclub.com and has his own real estate training company that includes Wholesale, Probate, Mentoring & a Biblically based Debt Free training course and more! More info available at www.JimmyReed.net

Pro-Tips For Working Together in a Business as a Family

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By Gene Guarino

Here’s some lessons I’ve learned to help you to grow closer as a family when you’re working together in business.

Each family member is unique…embrace it.

Utilizing a “personality profile” can be a great objective tool to help identify each person’s unique skills and talents. We use the Predictive Index tool for hiring and to make sure everyone is in the right seat on the bus.

Communication is critical to your family’s health

We use the EOS system to help us with business organization and communication. It’s been an invaluable system us as we’ve grown by over 400% over the past 7 years.
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Image by Anita Oosting from Pixabay

The Family that Plays Together Stays Together

I’ve been asked “what’s the best investment you’ve ever made?” My answer is always the same, Family Vacations. Investing the time and money was one of the best investments I’ve ever made. Those “18 summers” go fast when you’re an entrepreneur. You can make an impact far beyond that if you invest the time and attention along the way.

FFF – Forced Family Fun

Do you remember when you responded “because I said so” when the kids were impatiently asking you that? Or those times when you were providing a great experience for your kids but they weren’t appreciating it as much as you thought they would or should? Well, I Do!

We created a term for that, FFF. Forced Family Fun.

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Image by michellerey17 from Pixabay

Today, we enjoy our FFF even more because everyone gets to pick an activity. Between Christmas and News Years, we make a list of “fun” activities that we can do together as a family. Each member gets to “pick” an activity and we do them as a family. In the past we’ve done a lot of fun things like, group massages, yoga, game night, bowling, wine and art, movies, kickball, pickleball, driving range, reflexology, salt baths, cryotherapy, frisbee golf, snowmobiling, skiing, sledding, ice skating, scooter races and contests of every kind. Passing on the traditions from one generation to the next. Try it this year and see what kind of fun things you come up with for your own FFF.
gene

Gene Guarino Founder/CEO Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

Always Think Safety

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Image by Free-Photos from Pixabay

By Randy Hughes

Sometimes I am questioned as to why I do not want to own property in my personal name. Am I trying to do something illegal, immoral, or fattening?

NO! I am just trying to protect my family’s assets from deadbeats and their contingency fee lawyers! Furthermore, I am trying to protect my family from crazy tenants. Can you imagine a tenant you are evicting getting mad enough to come to your home and confront you (or worse yet, your children who answered the door)? It happens, and sometimes worse. Case in point; In Hartford, Connecticut a tenant cut off the head of his landlord who was trying to evict him. Don’t be an “owner.” Be a property manager . . . you may live longer. It is YOUR responsibility to protect your family and its assets. Get busy, and use a trust. You will be glad you did!! Remember to like me on Facebook, join me on LinkedIn, and please leave me a Google Review!
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Randy Hughes, Mr. Land Trust

I encourage you to learn more by going to my FREE online training at www.landtrustwebinar.com/411 and text “reasons” to 206-203-2005 for my free booklet, Reasons to Use a Land Trust. You can also reach me the old-fashioned way by calling me at 217-355-1281. (I actually answer my own phone unlike most other businesses in America today!)

Residential Assisted Living Seniors Housing Statistics

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By Gene Guarino

Latest Statistics Available for the Coming of the “Silver Tsunami of Seniors”

OVERVIEW OF THE SENIOR HOUSING OPPORTUNITY

13,000,000 + People are 80 Years Old or Older Right Now

61,000,000 + Will become 80 or Older Over the Next 20 years

996,000 Assisted Living Beds Exist in the US Today

28,900 Assisted Living Communities Exist in the US Today

33 Is The Average Number of Residents Per Community

61% Of the Beds are in RAL Homes with 4-25 Residents

THE PROJECTED NUMBER OF BEDS NEEDED BY 2029

2,296,000 Projected number of beds needed by 2029

1,300,000 New Beds Are Projected to be Needed by 2029

<40,000 New Beds are Added to the Bed Count Each year.

1,000,000 Potential Additional Number Of Beds Needed

census

MONTHLY COSTS FOR ASSISTED LIVING IN THE US TODAY

$ 4,051 Average Cost for a Private Room in an AL Community

$11,288 Highest Average Rate in the US is in Washington DC

$ 2,881 Lowest Average Rate in the US is in Missouri

3.64% Average Annual Increase in the Monthly Cost of AL

DIFFERENCES IN THE TYPES OF SENIOR HOUSING AND CARE

IL = Independent Living. Age Restricted Adult Community

AL = Assisted Living. Non-Medical Care for Seniors

NC = Nursing Care. 24/7 Medical Care For Seniors

Sources:

RALNA – RAL National Association

www.RALNA.org

NIC – National Investment Council

www.NIC.org

STATISTA

www.Statista.com

GENWORTH

www.Genworth.com

US CENSUS

www.Census.gov

gene

Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

Building a Family Legacy

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How Gene Guarino Built a Generational REI Business

They say you should never work with family… I disagree.
When you do it right, a family business can be your greatest legacy of all.

I’ve been an entrepreneur my entire life starting very early. When I was 12 or so, I did all the usual “kid stuff” like cutting grass, raking leaves, and shoveling snow. I remember my mother had us “selling things” door to door like apples and pumpkins in the fall, and decorated sugar cubes in the spring, or washing cars in the summer. It was normal for us and it was the start of a legacy of entrepreneurship, opportunity, and teamwork that I have passed down to my kids. At age 16 I had my first official “business”- a music school with a recording studio and a record label. By the age of 18 I bought my first piece of real estate and the entrepreneurial journey hasn’t stopped since.

Time goes fast.

clock-3179167_1280Image by Bruno /Germany from Pixabay

40+ years and 20+ businesses ago, I’m blessed to be able to work with my kids on a daily basis. Our focus is Residential Assisted Living for seniors. We started 7 years ago, and we own, operate, and invest in RAL homes, while training and supporting others doing it too.

Working with my kids has been an incredible opportunity to continue to be a part of their lives as I pass on wisdom, insights and get to help them become the amazing adults they are today. To be part of their lives beyond those first “18 summers” has been the best part of all.

My daughter Isabelle is the COO of the AL Family group of companies.
She’s an absolute Rockstar! That’s what everyone who works with her says, and I whole heartedly agree. Here are her thoughts on working together as a family…

“When Gene started his Residential Assisted Living Academy, I thought it was just another real estate business. I had no idea what the future impact would be from the work he was doing. I never would have imagined we could come this far, this fast.

He once asked me to come visit one of the homes and meet the residents. He explained how his heart had grown and changed since his mom, my grandma, needed care. She had already passed by this time, but his willingness to help other seniors had grown exponentially, and he shared his new passion with us. Seeing that, and all the work he was doing to grow the Residential Assisted Living Academy was inspiring!

help-2478193_1280Image by Gerd Altmann from Pixabay

He genuinely wanted to create a solution that did not exist and he saw the bigger picture. The Silver Tsunami of Seniors was coming and he knew this was the right time and the right place. Financially it made sense, but more importantly it was about impact investing and how we could feel good about making money AND helping people too.

I immediately started thinking, how I could leave my job as a flight attendant to come work for him? I had skills in event planning and I knew Gene could use my help. I asked him to hire me and that’s where my journey with the family business began. I took over the organization of the live trainings. They started small, but today we provide training for people from around the world that want to learn about this incredible industry. As the COO, my responsibility is to implement Gene’s vision as the AL Family continues to grow.

Over the past 5 years, we have also created the Residential National Convention, an annual event for the RAL industry. We launched the RAL National Association, Family Legacy Homes, the AL Network, and more! We’re launching new businesses each year. I love this industry because it solves so many problems for people that need help caring for their parents and grandparents.

It’s been such a pleasure working with my family and especially my dad, Gene. He is an amazing inspiration and leader. He has inspired us to bring to life his vision of positively impacting 1 million people through Residential Assisted Living. All along the way he’s imparting life lessons and wisdom that he’s learned. We’re all growing together and I couldn’t be happier or more inspired than I am working together as a family.

In the future I plan to incorporate my own family into this. I’m excited to bring my own kids into our Residential Assisted Living homes and show them the impact we’re having on seniors and their families. I hope my children can see the good work we’re doing in the RAL industry and feel inspired to keep the tradition and legacy going. I want to pass on to my kids what my dad passed to me. Giving them a leg-up in the world and feeling good about helping others through RAL!”

Guarino Family 3Emmanuel, my son, leads the sales division at the AL Family group of companies. He says,

“When I started working with the company it was just my dad and a few other people. I remember asking him what I could do to help. Three months prior to that, my father gave me Robert Kiyosaki’s Rich Dad Poor Dad. I read that book in what felt like 20 minutes. After I read it, I witnessed Robert Kiyosaki asking my dad all about what HE was doing. Robert wanted to learn more about the RAL model. That blew my mind! When I saw that I jumped in.

I remember telling my future wife and telling her about what I did. She jumped right in. My sister Victoria was a schoolteacher and eventually, joined the family business too, shortly followed by her husband. My sister Isabelle was already on board and was moving up in the company. She was the enforcer- doing anything that needed to get done. She quickly became the boss.

Working with family does come with its challenges. In my opinion if you do not have a business coach or an outside source that can oversee what you’re doing, you’re going to struggle. Our business coach works with us every three months. When he’s there, we discuss what we’ve done well and what we can improve. However, the real benefit of having a coach is that they have an unbiased view and that can help tremendously. Many times, it’s hard to evaluate yourself or what your family thinks of you. However, with an unbiased third-party they can see what’s right and what’s wrong. We’ve been blessed and we all work extremely hard and are extremely focused. I think the reason this is possible is because we believe we’re building something much bigger than ourselves and we see this company helping the masses.

Leaving a legacy for the future:

Guarino Family 2

It’s amazing to get to do what we do. Many times, my wife and I ask ourselves how we got so lucky to be part of this family and this company. We’re incredibly blessed to do work that really helps people. We get to help the residents and their families, but we also get to help the staff and their families.”

My daughter Victoria is the CFO of the AL Family group of companies. She says,

“I was a teacher working long, underpaid and under-appreciated hours. My dad needed an assistant and help with office work. I was about to have my second child and flexible hours sounded amazing! Some things are just meant to be. Timing in life is critical and the opportunity to work with my own family was challenging, exciting, and fun.

As a family, we all get along surprisingly well. Growing up we were a close family. I think the secret to our current success is that we all have different strengths, and we work within them. Each sibling has unique roles and responsibilities within the company and that gives us enough of a separation from getting in each other’s hair.

My favorite part of family business is that I can be myself. I know that my opinion is valued and these people know what I mean when I speak. They understand me and my perspective. I feel comfortable around them and we can address issues head-on. Residential Assisted Living is a great business model for building a family legacy. We teach people how to work on the business, not in it. Families can successfully work together if there is mutual respect and open communication.

As a child, I would watch my parents and want to be like them when I grew up. I hope I can be that example to my children. I want them to see us as positive influences and have a desire to continue the very valuable work that we do. It’s an honor and a privilege to work with my family in a business that is truly changing lives- Doing Good And Doing Well!”

I have to say that working together as a family has been a huge blessing and the best legacy I could ever provide. I wouldn’t change it for anything in the world. – Gene

To learn more about Gene and the AL Family, check out: www.ALFamily.com

What Does The Future Hold for Residential Assisted Living?

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Photo by Andrea Piacquadio from Pexels

By Gene Guarino

Where is the Assisted Living industry headed?

There are 77 million baby boomers in America alone. That is 4,000 people turning 85 every day, 120,000 every month, and 1.4 million this year alone. And this is happening all over the world. The average person living in assisted living is 82 years old, and they will live there for an average of two to three years, maybe even longer. So when we are talking about 1.4 million baby boomers, not all of them will check into assisted living but a percentage will. The fact is that 70 percent of us are going to need help with our Activities of Daily Living, ADL, for an average of three and a half years. Whether they live at home and have someone come in and help us, or they go to a Residential Assisted Living home, they are going to need that help.

So when we are talking about 30 percent of 1.4 million people, not including the ones who are turning 86, 87, 88, and so on. That is potentially hundreds of thousands of people who are going to need help.
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Photo by Expect Best from Pexels

Currently there are 1.4 million people living in assisted living and there will be that much more need each year coming, which is why you see big box facilities being built. There is a need, but when I needed help with my own mom, I didn’t want to send her to a big complex. She wanted to stay at home. But when you do need to send them someplace, you want it to be a home, which is what Residential Assisted Living is.

What is going to happen in the Future?

More and more people are going to need this help, and you want to be the alternative to the big box complex in their own neighborhood. A lot of people are going to want this option. We only need 10 to 12 who want this option over the big complex of 200 or more beds. We may charge more if we have better amenities, or less if we want the business more than the big facility does. We don’t want to charge too little or too much. However there is a sweet spot that we charge, and this works all over the country.

How do we position ourselves for success?

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Photo by Gerd Altmann from Pexels

When the big box companies start building these large facilities in your area, they will be looking to acquire market share. Which means that they are going to come to us and want to buy what we have. If you have 10 homes you are a target. If you have 50 or more homes, you become a bigger target and you are even more valuable to them. At this point you have some great options:
  1. Keep what you have and continue to make thousands of dollars in net profit each month from each RAL home.
  2. Sell your RAL businesses for a big lump sum and lease the properties back to the buyers
  3. Sell the RAL businesses AND the real estate for an even bigger pay day
The opportunity is huge and the timing is absolutely right because more people will need what we have. You can also subscribe to our iTunes for on the go listening: https://itunes.apple.com/us/podcast/assisted-living-networks-podcast/id1360517721?mt=2

gene

Gene Guarino Founder/CEO Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.