How These Co-Investors Continue Delivering High Returns Through Yet Another Recession

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By Tim Houghten, Staff Writer

While some are hiding out and putting their heads in the sand amidst current events, Adam Levine and Daniel Edrei are among the few who are not only thriving, but growing as the market cycles and creates new opportunities.

Real Estate In 2020

The US real estate market kicked off big at the beginning of 2020. New record deals were made and many wealthy individuals and corporations went on a buying spree.

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Interest rates were low, capital was the most plentiful it had been since 2006, and the bulls were running wild.

While experienced investors had forecast a new recession coming for years and were already prepared, the majority had their blinders on. Most were not ready for how fast the coronavirus pandemic hit the US economy.

Among the immediate impacts were disruption in the building material supply chain, bans on renting vacation properties, and talks of moratoriums on foreclosures. Quarantine and stay at home orders brought conditions not seen since in 80 years, since World War II. Perhaps even since the Spanish Flu 100 years ago.

Fortunately, we, and the real estate world have never been better equipped to weather something like this. Consider some in the past had to hide out in closets and between the walls for years just to survive with their lives. Now quarantine looks like luxury homes, flat screen TVs, 5G internet, Netflix, Amazon Prime on demand, and more than enough time to make endless memes.

These Moments That Distinguish New Leaders & Create Massive Wealth

Daniel and Adam

Via Zoom we caught up with Adam Levine, Managing Partner of Levine Capital Management, and Daniel Edrei, Managing Partner of TCS Anika Homes.

It didn’t matter that one of them was in Philadelphia, another in New Jersey and our reporter in Florida. Those who are excited about this moment are finding ways to leap on the opportunities and keep on doing business.

Zoom just happens to be one of the tools they are using to keep communicating with investors, acquire deals, and to keep operating and signing new leases. Even during a complete lockdown.

It may prove to be one of the shortest recessions in recent history, but however long it lasts, it is just another turn in the cycle for experienced real estate investors.

It is in these moments that legends like John D. Rockefeller, Warren Buffett and Sam Zell are made. It is when there can be great gains in family wealth that lasts for generations.

Tragedy, Transition, Triage & Creating An Upward Trajectory For Your Finances

There is no question that the coronavirus and its personal and economic impact come with a lot of tragedy.

It is also time to look forward. Those who don’t will be reeling from this moment for a decade or more, while others are enjoying their best lives ever.

Daniel & Adam looking at computer

Hopefully, like Adam and Daniel you were already transitioning your investment strategies, asset allocation and portfolios long before COVID-19 reared its ugly head. If not, it is high time to triage your money. What do you need to sell before it is too late to save? What can you save with some extra care and attention? What will thrive and have immunity? Where do you put your energy and resources?

Since 2012 Adam Levine has been involved in well over 1,000 transactions, and has focused his funds on capital preservation and high returns in recession resilient, risk adjusted investments.

Daniel Edrei has been investing in real estate for over 25 years. He’s been through the dot com bust, 2008 and now the coronavirus pandemic. He is no stranger to recessions and how to invest through them. After 2008 he took stock of his debt investments loans he made. He realized that his higher LTV loans actually out-performed others where they had invested in teams with the strongest sponsors and operators. So, he began engaging in ‘dequity’ deals where they would share in the equity. Then moved into equity investing.

Seeing the coming recession Daniel said he had already been transitioning his funds and assets from luxury to workforce housing, well before it hit. They already have around 3,000 units under management, and are now well positioned to become the next Blackstone. The large multi-billion dollar hedge fund famous for creating Invitation Homes and B2RFinance, and buying tens of thousands of single family rentals in 2008.

Investing For Success

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As of our Zoom interview, Adam and Daniel said they are actively investing, deploying capital, securing new leases with tenants and making acquisitions.

They continue to look for portfolios of 1- to 100 plus units to buy, and encourage those holding them to request a competitive bid from their latest fund. Today, they are mostly focused on row homes and workforce housing in Philadelphia. Though they may expand to cover Washington DC, Camden, NJ, Baltimore, MD and other surrounding areas.

While other investment providers have continuously been reducing the value of their offerings and yields over the past few years, Daniel says they are actually expecting to be able to deliver even better returns ahead. They already promote targeted returns of 15% to 24% (IRR). Access to better deals and better prices in 2020 may boost that even further.

What Is Co-Investing?

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Now on the third fund for TCS Anika Homes, Daniel’s firm is sponsoring access to high performing income property portfolios. His direct LPs are typically sophisticated investors committing at least $200,000.

Desiring to make these investment opportunities more accessible without compromising on service, Adam and Levine Capital have partnered to co-invest in this fund. By investing through Levine Capital, accredited individual investors can still participate, but with minimum investments of just $10,000 to $20,000. This enables them to test the waters before committing even more capital, after experiencing the results for themselves.

This is an exciting opportunity. Especially for all those who thought they missed out on 2008, and the chance to create great wealth. Few expected it to come so soon. Just don’t sleep on the chance to invest while the market is ripe.

The Keys To Navigating The Market In Times Like This

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1. Be Prepared, Move Quickly

Ideally investors were prepared in advance. Most weren’t. There is still a chance to shift asset allocation and reposition for success. Just don’t waste any more time.

2. Proven Relationships

While there are many seemingly great opportunities out there, the truth is that new entrants to real estate investing can be at a severe disadvantage if they are going the DIY route. It is going to be super hard to test out new contractors and property managers and build a trusted brand in these times. Fortunately, TCS Anika Homes was well ahead of this with a vertically integrated and owned ecosystem incorporating all facets of the business from brokerage to management and construction.

3. Partner With Veterans Who Have Been Through It Before

Even Adam says that despite graduating with a business degree, and a Masters in property management, theory and book knowledge only goes so far. He made his own greatest leaps and was able to learn the most and invest safely by partnering with others who have been through the trenches of previous cycles. This is in a large part driving what he is offering others today. Instead of packaging and selling his knowledge in a guru-like course or training program, he walks investors through his deals and co-invests side by side with them.

Adam LCM

Find out more about these funds, recession resilient investments, and their founders at LevineCapital.com and www.TCSAnikaHomes.com.

U.S. Single-Family Rental Home Market Poised for Near-Term Real Estate Growth Opportunities, According to SVN | SFRhub Advisors

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By Ruth Seigel

Abrupt global economic downturn caused by COVID-19 leads investors to seek refuge and diversification
in opportunistic CRE asset classes growth, risk-stabilization and yield.

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Phoenix, AZ – (April 16, 2020) – As the world grapples to tame the coronavirus pandemic and overturn the economic effects of this unprecedented event, commercial real estate (CRE) investors are monitoring all asset class financial positions to lessen short-term portfolio risk while augmenting investments for long-term growth. SVN | SFRhub Advisors, along with industry experts, predict ongoing consumer demand for housing will position single-family residential (SFR) rentals as an investment portfolio standout. A CRE brokerage firm, SVN | SFRhub Advisors, dedicated solely to SFR/BFR (Build-for-Rent) portfolios recorded a 650% uptick in investment activity since mid-March 2020 for SFR/BFR portfolios on their technology platform, SFRhub.com, averaging 10,000+ listed homes.

Recent data from John Burns Real Estate Consulting (JBREC) outlines CRE sectors most likely to be affected following the pandemic, especially in the short-term, are hospitality, retail and office/co-working. Conversely, JBREC states SFR (while not unscathed in the short-term) should be positioned for faster market recovery and a better long-term play. Housing rental defaults will prove painful in the short-term, but the low supply of newly built rental homes in most markets, and capital seeking safety, yield and inflation hedge, should help SFR recover earlier than other residential real estate asset classes.

Jeff Cline

Jeff Cline

“Investors have reaped financial advantages of a 10-year bullish marketplace, notably the past few years with SFR portfolios, and the newer BFR market,” said Jeff Cline, executive director and principal of SVN | SFRhub Advisors. “For the first time in U.S. history, rental household growth outpaced U.S. home ownership.” He added, “Looking ahead, consumer economic, lifestyle, and work-at-home popularity indicate global investors’ near and long-term outlook for capital growth and income opportunities in single-family detached homes for rent is better than it’s been for several years.”

BFR communities encompass single-family homes built from the ground up specifically for renters and not home owners. These homes help to fulfill the vast housing need and rental shortage occurring across the U.S. According to JBREC, recently surveyed BFR projects had a very strong 97% stabilized occupancy rate prior to the COVID-19 pandemic.

U.S. homebuilders may turn to REITS, private equity and individual investors to purchase completed or near completed single-family communities for rental investment should the new home buyer market continues to retract. “For the first time, we now have several private capital group clients with tens of billions of dollars to specifically invest in the BFR space,” said Michael Finch, executive vice president of SVN | SFRhub Advisors.

Michael Finch

Michael Finch

Demand from millennials and older adults/retirees has destigmatized renting and touted SFRs’ benefits like increased space, yards and amenities representative of living in a single-family detached home. Skyrocketing unemployment, job uncertainty, and hefty student debt loans imply the SFR/BFR market should remain strong among millennials as home ownership moves farther out in time and remote working becomes more popular.

Cline notes, “SFR/BFR investors’ main concerns are rent revenue and occupancy. In the short-term, unemployment may impact rent rather than occupancy issues. As the economy recovers, demand for SFR/BFR will be a favorite among alternative investors with capital on the sidelines seeking refuge and stock market diversification for growth and income.”

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About SVN | SFRhub Advisors

SVN | SFRhub Advisors, based in Phoenix, is an independently owned and operated SVN® office. SVN comprises over 200 offices with 1,600 advisors. SVN | SFRhub Advisors is the only national single-family residential (SFR) & Build-for-Rent (BFR) dedicated brokerage that introduced the first-to-market digital commercial real estate fully transactional platform, SFRhub.com. SFRhub.com is the only SFR/BFR industry data provider with clean and verified data. SVN | SFRhub Advisors currently features a pipeline of over $2 billion SFR/BFR investment portfolios consisting of five or more homes and is also a member of the Forbes® Real Estate Council.

# # #

Ruth Seigel
President – RS Marketing & Assoc.
[email protected]
602 320 4182

Rentals 2 Retirement: Bulletproofing your retirement with real estate

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SPECIAL SPONSORED POST

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Webinar on Wednesday, 4/29 at 6pm PST
Rentals 2 Retirement
Bulletproofing Your Retirement with Real Estate

Join us for this informative webinar where we will show you how to build a safe, secure and predictable stream of income/retirement through conservative real estate investing.

As the CoronaVirus works its way through our communities there are two things you can be sure of: first, we will survive this Pandemic and come back stronger than ever (that’s what we Americans do) and secondly, as we return to the “new normal”, preparing for retirement and the future will be more important than ever.

Whether you are looking to replace your current income and build equity, diversify your stock portfolio by investing in real estate or create a stream of income to supplement your retirement, this webinar will show you how to get there!

Since 2009 Invest 1 Properties has been one of the nation’s leading turn-key investment property providers. Focusing on the dynamic Kansas City market with over 900 properties sold, we have the systems in place to assure your success.

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Our process is simple:
-We find the property for you
-We fully renovate the property
-We partner with local property management to place a qualified tenant and manage the property
-You just COLLECT THE CHECK

This is truly “hands-off” turn-key investing. We even include a rent guarantee and renovation warranty on every property we sell!

So join us to learn more about this incredible real estate investing opportunity and why we consider the Kansas City market a true hidden gem that has produced outstanding results for our clients over the last 11+ years.

Here are just a few of the reasons why:
-6.9% appreciation in 2019
-3.1% unemployment (Jan 2020), well below the national average
-Low cost of living and population growth is increasing year over year
-10%+ average cap rates
-In house financing available with no tax returns or W2’s, no bank qualifying

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The Myths in Residential Assisted Living – Part 3

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By Gene Guarino

Can I do this hands-off?

You can absolutely operate a Residential Assisted Living home and business in a hands-off manner. Hands-on means you’re in the home every day. You’re watching the residents and the caregivers on a regular daily basis. You’re overseeing, maybe even micromanaging the manager or maybe even being so hands on that you are the manager. I don’t do it that way. I own the business. I don’t want it to own me, so my job is to hire a manager. The manager’s job is to hire the caregivers and then to find residents for the home and manage that relationship with the family. So if we do it properly, if we want to be hands-off, our job is to manage the manager. Can you do it hands off? Absolutely, there is no right or wrong way in those two options.

Do I have to do it in the area where I live?

Another myth that I want to reveal is, I have to do it in my own backyard. I want to encourage you to live where you want to live, but work and have your business where the numbers make sense. The reality is, if I have 10 people in my RAL home and they’re paying $5,000 a month, we can make a lot of money. But if I’m in a home where I can’t fit 10 people and those people can only pay half that amount, that will negatively affect my profitability. Half the number of people paying 1/2 the amount is not a good business model. So can you do it long distance? Yes. But the key to success is the right location and the right demographics. Next is having the right team in place.

Who do I hire to run the business if I am hands-off?

The manager is critical to your team and your success. Finding staff to work in your home or work for you or for your manager, that’s easy to do. Finding the right people is the key. It’s not just finding somebody who can fill the space. You are looking for those high-quality people who love what they do. The type of person we’re talking about is typically not a mercenary, they’re not just there to make a dollar. They’re there because they want to be there. They love to work with seniors and this is a part of who they are, “their calling” if you will. What should your role be? Really your job, your function, should be to find other people who can do it as good and better than you can and then to manage those people. You can definitely be hands off. Let them do what they do best, while you do what you do best. There’s no reason to do this just to create a job for yourself.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]

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.

 

Breaking: Demystifing CARES Act and Other COVID-19 Resources for Investors

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By Stephanie Mojica

The $2.2 trillion CARES Act is the largest economic relief program in the history of the United States and has two primary programs to offer — the Paycheck Protection Plan (PPP) and the Economic Injury Disaster Loan (EIDL).

These programs, offered through the Small Business Administration (SBA), provide unprecedented economic relief for entrepreneurs, according to Rony Marootian. He is the Marketing Operations Manager for the Los Angeles-based tax preparation and financial consulting firm Robert Hall & Associates.

PPP loans are based on the average monthly payroll expenses of a business, multiplied by 2.5 and capped at $10 million, according to Marootian. They are intended to cover expenses for a business during any eight-week period between February 15, 2020 and June 30, 2020. PPP funds can be used for payroll costs, rents, mortgage interest, and utilities. If a business owner maintains a certain level of payroll expenses and employee numbers during that eight-week period, the loan is 100% forgiven; as employee numbers fall below those levels, the forgivable amount is phased out.

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While business owners can get both the PPP and the EIDL, both loans cannot be used for the same purpose, Marootian said in a recent email interview with Realty411.

According to the U.S. Chamber of Commerce, “if you are able to secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount.”

EIDLs (also known as emergency advance grants) are to be distributed within three days of a business’ application; however, the PPP program does not have deadlines for lenders to disburse loans, Marootian said.

“However, the purpose of these new programs is to get funds to small businesses struggling to stay open and keep employees paid due to COVID-19, so the CARES Act has provisions to reduce burdens in the processes and increase efficiency,” he added.

SBA PPP loans are disbursed by SBA-approved lenders. Due to the circumstances of the COVID-19 crisis, the SBA has given the U.S. Department of the Treasury and the SBA the ability to grant temporary SBA-lender status to lenders that do not currently participate in the program; this will allow more loans to be approved and disbursed as quickly as possible. The SBA does not issue PPP loans, but instead guarantees them to the lender. However, the SBA directly administers EIDLs.

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“Based on our experience, we’ve not seen the government provide such a rapid response to help small businesses,” Marootian said.

“The purpose of these new programs is to keep small businesses afloat and get funds to small businesses who are struggling to continue to pay employees, so it was imperative that they responded quickly.”

According to the CARES Act, a small business is any business that operates with 500 or fewer employees. In some industries, the size may be expanded by the SBA. Self-employed professionals, independent contractors, and sole proprietors also qualify, according to Marootian.

“The SBA does not currently have an industry size standard for employee numbers for real estate brokerages, property managers, appraisers, or other activities related to real estate,” Marootian said.

Sole proprietors and “gig economy” workers will have to provide documentation to prove eligibility, including payroll tax filings to the IRS, Forms 1099-MISC, and income and expenses from the sole proprietorship, according to Marootian.

Marootian emphasized the importance of not pursuing any financial programs or making any business-related expenditures without some level of professional guidance.

“With so much uncertainty, be sure to speak to your accountant and financial advisor to review your options before you spend any money during this time,” Marootian added.

To find more information about the PPP loan program, please visit: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

To find more information about the EIDL, please visit: https://covid19relief.sba.gov

Robert Hall & Associates is currently offering complimentary consultations about taxes and other financial concerns. For more information, call 818-242-488 or email [email protected].

The Myths in Residential Assisted Living – Part 2

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By Gene Guarino

Where do we find the seniors?

There are tens of millions of seniors in our country today who will need assistance with their Activities of Daily Living, according to AARP. That doesn’t mean they’re all going to move into an assisted living home or facility, but they will need help. The question is how do they get that help? How are they going to find you? Are you going to help with that assistance by providing a home for them to live in and or the care for them? If so, that’s what Residential Assisted Living is all about.

Do seniors want to live with other seniors, and are they going to get along?

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Yes. There’s a lot of seniors who are aging in place at home right now. Their kids have moved away. They’re at home all alone and maybe they can take care of themselves, but frankly, they would much rather have people around them. Being with other seniors their age is vital to their health and their mental stability and wellness as well, so it’s a great thing. Are they going to get along with strangers? People ask us that all the time. The answer is yes. The reality is they get it. They understand, they would rather be in their own home with their own family all around, but they know that’s not their reality. They do need help in a different level, different kind. They want to be with peers of their own age and there’s give and take.

How can they afford Residential Assisted Living?

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You know, a lot of people think the government’s going to take care of the long-term care needs of the parents or grandparents in their life, and the answer is, well, the federal government does give money to the state government. The state then comes up with a program. They basically say to their citizens, show us that you’re of age, let’s say 65 and above, show us your assets, your income, your age, and we’ll determine if you qualify for our program. That state’s program may pay out $2,000 a month for long-term care or assisted living, but that amount is going to be reduced by whatever income they have. We focus on private pay. Private pay is where that senior’s assets are being used to pay for their care or the family is subsidizing it privately, but it’s private money, not government money, not an insurance program. Now there are long-term care insurance programs, which are wonderful. The reality is less than 10 percent of the people that come into our homes have those long-term care policies. Most of them are using private resources, the senior’s home that’s been liquidated, a retirement account IRA, a pension fund that they or their widow, spouse are now receiving and collecting. It’s usually those three things, liquidating any other assets they have and once that money runs out, then it’s the kids who are supplementing whatever it is they need to take care of mom and dad.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]

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.

 

The Myths in Residential Assisted Living – Part 1

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By Gene Guarino

Is this considered commercial or residential?

The first myth that I want to cover with you is commercial versus residential. We talk about Residential Assisted Living because it’s a single family home, in a residential neighborhood. The home itself might be a little bigger than your average home. Instead of a three bed, two bath home, it might start with a four bedroom, three bath home or maybe a five or six bedroom home. It’s a residential home, but we are using this for a commercial purpose. Now be careful how you word it and think about a RAL home. I didn’t say we’re running a business or operating a business out of a home, that’s different because many places that have an HOA, and have CC&Rs or covenants, codes, and restrictions, are going to have some kind of wording in there that says you can’t operate a business out of your home. When we talk about Residential Assisted Living, it is a residential home and a group home for the elderly, so it’s not a business. We don’t have a lot of customers coming and going all day long. You have to understand that’s what most of those restrictions are for. They don’t want to have a retail establishment in the middle of the neighborhood, but it definitely is residential and we’re using it for this specific purpose.

Is it hard to get financing?

financing-3536755_1280 Now when it comes to the lending, It’s a residential home. It’s non-owner occupied, so you could pretty much go to any bank as if you’re just going to buy a house that you’re going to use as a rental property, it’s called non-owner occupied because you’re not living in the house. This might be 20 percent down and then the bank will finance up to 80 percent LTV or loan to value. That can be a Fannie Mae or Freddie Mac loan or other types of residential loans the bank is offering, so again it is a residential, not commercial property. Now we can also use private lenders, investors and joint venture partners, people who will provide the capital that’s needed.

What will it cost to renovate it into Residential Assisted Living home?

It depends on where the home starts. What does it already have? Do you want to add space, maybe convert a garage into bedrooms or a living space? That would all cost money, but at least we’re starting with the concrete floor, the walls, the ceiling, the electric. We may have to upgrade the HVAC, level the floor, put in walls, closets, doors, and windows. You can convert 20 x 24 garage for approximately $20,000 to $30,000 depending on your location. Always get permits, use proper contractors and so on.

Keep this in mind.

rocking-chairs-522757_1280Keep in mind that it is a residential home. It’s a group home for the elderly, but it’s a residential setting. Remember, step one is location. then find out what the rules and regulations are, and then begin. There are a lot of myths regarding Residential Assisted Living, and we are going to help you through it.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]

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.

 

Senior Activities within Residential Assisted Living

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By Gene Guarino

Seniors may be starting to slow down, but it’s just as important for them as it is for you to stay active! They need to move and be engaged to stay healthy and happy. The types of activities seniors can do come in two main categories: the mind and the body.

hand-3672941_1280Activities that engage the mind are ones that offer seniors social, spiritual or intellectual interaction, with themselves and with others. Activities that engage the body are physical ones, exercises that get the senior up and moving around. Having both kinds of activities is incredibly important for healthy aging. Here’s a quick look at some types of activities in each category.

rollator-2298056_1280Body Mobility is one of the biggest issues that seniors face when participating in body activities. There are just certain things that seniors are unable to do, and these limits vary between people. One person may be able to get around with a cane, while another needs a walker and a third uses a wheelchair. All three of them need to exercise and move their bodies. They can all do activities, just at different levels. Physical activities are important because they improve balance, strengthen muscles, and stimulate blood flow – all important things for a senior! These seniors may not start out with much endurance, being able to only do five minutes a day, but with consistency they will gain endurance. A senior can build up endurance to participate in body activities from 5 minutes to 10 to 30 and even higher, it just takes working a little bit every day.

man-4229198_1280Mind Stimulating the minds of seniors is equally as important to their health as moving their bodies. There are many activities that any senior can do to engage their own mind as well as those around them. Art therapy is incredibly popular, especially with colorful and tactile projects. Crafting and arts can help improve seniors’ mood, dexterity and focus. Another great activity is to read a book aloud for the seniors or have them listen to audiobooks. Listening to a story really allows them a chance use their mind. Playing games is something everyone can enjoy! Some of the most popular games among seniors include classic board games like checkers, chess, and parcheesi or popular card games like spades, rummy, and canasta. Activities like games that engage the whole group make for some real stimulating fun. One of the best and most effortless ways to mentally engage a senior is to play music from their generation, from when they were teenagers. It really helps bring clarity and spark memories from their youth, and has even been shown to help those diagnosed with Alzheimer’s. An active senior is one who is being stimulated physically and mentally on a regular basis through exercising, creative activities and social interaction. Consistent mind and body activities can really help improve mood, focus, dexterity, mobility, flexibility, endurance and so much more! Keeping active as a senior is vital to leading a happy and healthy life.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]

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.

 

Transforming Your Home Into Senior Housing

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By Gene Guarino

What exactly is senior housing?

Senior housing can be anything from independent living to assisted living or even memory care or a SNF (skilled nursing facility) . For independent living, it is a home that would be considered “senior safe” with grab bars, smoke detectors, wider doors and the like. To really make it safe you would potentially remove the obvious trip hazards of uneven floors and small steps or transitions within the home. There maybe safety features like smoke detectors or cameras within the house, being monitored by an outside service. It could even include fire suppression. All of those things are potentially a part of providing safe senior housing.

What is Independent living?

From the real estate perspective, Independent living is providing a home that is “senior safe”. That may mean grab bars, smoke detectors, wider doors, trip hazards removed. Think about the “Golden Girls” The TV show from the 80s. The home itself may have 3 or four bedrooms with 3 or 4 or more people living there. If you have a home right now that is on a single level that could be converted to four bedrooms with at least two bathrooms, so there’s two people to a bathroom or maybe you add some extra bathrooms. That could be a good transformation or conversion from your current home into “Golden Girl” style senior housing.

smoke-315874_1280In that golden girls or golden boys model, the rent that you’re charging can be anything that you want of course but it’s higher than normal rent. That is because you’re including things like utilities, upkeep on the house, maintenance. Now imagine if instead of renting the house for $1,200 or $1,500 a month, you are renting each bedroom for $1,000 a month and it includes all of those things. That is $4,000 instead of $1,500. Even with the utilities accounted for you are potentially netting an additional $2,000 a month. So a senior wouldn’t have to worry about the upkeep and the uncertainty of the maintenance on the house. Even the utilities become a fixed cost because its included in the rent. They can be confident that all of their housing expenses are taken care of. Now they can just call a number and somebody comes and fixes whatever is needed. Peace of mind knowing that their housing is taken care of is very important to seniors.

What is Assisted Living?

No one moves into Assisted Living unless they need assistance. People that needed some help or assistance with 2 or more “Activities of Daily Living” or ADLs, would be the market for a AL Home. There is 24/7 care provided by properly trained caregivers. These are not nurses and doctors but rather people that are trained to help seniors and assisted them with their ADLs.

hospice-1902144_1280In residential assisted living we have residents not tenants. They pay a monthly fee for the care they receive and they are provided with a place to live but they are not tenants paying rent. Assisted Living means there’s going to be caregivers there. They’re not necessarily living in the house with them as live in caregivers though. If the caregivers are living there as “live in” caregivers, there might be a room that’s designated for the caregivers. But the conversion itself is fairly similar to Independent Living. The home needs to be “senior safe” but not ADA compliant. There may be a few more requirements to make sure it’s appropriate for assisted living.

Transforming your home into senior housing, whether it be golden girls and golden boys, or whether it be assisted living and all of the benefits that come with that, is an option that create tremendous cash flow. Being in a location that is close to things like Libraries, grocery shopping, movies and those kinds of things are more important for independent living, golden girls, golden boys, than it is assisted living. In Assisted living they’re going to be in the home, and their families visit them there.

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.

 

Making Money Or Helping People – Do You Have To Choose?

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By Gene Guarino

Can I do a RAL home as a business?

20 years ago, when I first heard about assisted living, I learned about the silver tsunami that was coming. Because when you think about it, the baby boomers have been driving our economy for decades and decades. The next move in our economy is in, taking care of seniors, those that need the help, that are aging in place and getting older every single day. It is the fastest growing demographic in the US and throughout the world.

tree-97986_1280When I 1st heard about the opportunity in the aging of the baby boomers, they were sharing it from the business perspective. I wanted to learn more but there was nobody willing and able to show me how it’s done. Six years ago, when the real estate market had virtually crashed all over the country, I said, “now is the time to get in.” But when it comes to the real estate part of the RAL home, it’s just bricks and sticks. You can fix it, flip it, buy it, hold it and rent it. That just feels kind of cold and meaningless. My next thought was “is there more of a personal side to this?” I was really looking for something besides the money that could be made.

What if taking care of people is my priority?

Taking care of the elderly could be your priority or focus in life. They are the greatest generation, and they need help with the transition. It’s more than that though, it’s personal. It’s your mom, dad, grandma, and grandpa too. It gets emotional for many people.

hospice-1821429_1280Make sure that your heart and your eyes and your focus are in the proper balance. You have to take care of business, but you also must have a heart. We’re taking care of people, but it’s okay to make money. This isn’t a charity and it’s a not a nonprofit.

You can help people and make money at the same time!

Making money is why we do it, but we can choose to do it in a way where we can make money and help people. The more money you make, the more you can give and it flows through you, the faster it comes.

Many of you would like to help more charities or provide more support for other people. If you need money, we can show you how to do that and if you want to help other people, you know you can do that as well through residential assisted living.

You can have the best of both worlds and take care of your own family.

couple-4871069_1280We are all getting older and have parents or people who are older than us. Eventually, somebody is going to need to take care of them. So on one side, you can start your own home so that they can move in and live for free. Or you can move them in and you can charge them whatever it is that they can afford and that you are willing to accept.

You see, it’s about the care. You want to take care of them. You want to have a little bit of control over the caregivers and managers, but not be the caregiver or manager. So by owning the Residential Assisted Living home, you can have that control, and you can help them do good and do well. It is truly the best of both worlds. Making money and helping others.

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.