How to Make $10K–$40K a Month from ONE Home with Senior Living | Isabelle Guarino

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Speaker 4 People never believe me when I say I'm just like them. I take out the trash, do dishes, and I struggle with moderate obstructive sleep apnea, or OSA.

Speaker 4 And a lot of adults with obesity also struggle with moderate to severe OSA. You know those scary breathing interruptions during sleep? The loud snoring, choking, and daytime fatigue?

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Speaker 3 What is up, Science Science of Flipping family? I'm very excited.

Speaker 3 For those of you that like cash flow, for those of you that like investments that can create wealth and a whole lot of money along the way, this is going to be your episode.

Speaker 3 I have with me boss lady herself. She has taught thousands and thousands, maybe tens of thousands of individuals about the senior living space.
She herself owns a lot of senior living.

Speaker 3 They're also known as ALFs. And if you are interested in trying to find a business model to grow wealth and grow massive amount of income and do good by people.
Isabel Garino is here.

Speaker 28 Yes. Thanks for having me.

Speaker 3 Let's do this.

Speaker 28 Yes, excited to be here.

Speaker 3 I'm very excited. I think it's an undertaught, underspoken about sector of our space.
I've done however many thousands of deals in my life.

Speaker 3 And to this very moment, as I'm sitting in front of you, I've not done an ALF or a senior living.

Speaker 28 What are you waiting for?

Speaker 3 What am I waiting for? Off camera, we were just talking about.

Speaker 3 Friday, I got text. Hey, we have an available one here in Miami.
Common in Miami. Yep.
You're in Phoenix. Yeah.
Probably pretty common there.

Speaker 28 I would say Florida and Arizona are the most popular places. Okay.
Yeah.

Speaker 3 And so I think people that are in real estate are silly, and it includes me. Yes.
I'm calling myself out. That you don't look at this.
I mean, the reality is I have looked at it at very surface level.

Speaker 3 The returns are insane. The income is insane.
And it's real estate. Yep.
The other sector of that is also a business. Yes.

Speaker 28 And that's why I think people don't look at it because they say, I'm not a medical professional. I don't know what I'm doing.
I don't want to work in a home or be a caregiver.

Speaker 28 So they get turned away by the myths and misconceptions of what it is. It really is a business in real estate at the end of the day, but you can make the business very passive.

Speaker 28 It's not a passive business, but you can make it passive. You can become a passive owner.
And that's what we show real estate investors how to do.

Speaker 3 Talk to me like a student. Tell me like exactly what you just said.
And then let's elongate on that because the reality is. I, even me, right?

Speaker 3 After 20 years of doing this business, I would be like, man, I just said this to you. Oh, it's another business.

Speaker 3 I would be creating another another business for myself and i don't need a net right yeah and that's me trying to keep in my visionary self like corralled in because i'll be like yeah let's go buy one let's go do that yeah right but um talk to us about what it is and how you separate it and how how should people be looking at this asset so when people think of assisted living they think of that big stuffy box right

Speaker 28 long hallways impersonal staff where you're literally called by your room number and that is equivalent to prison if you ask me right like that's terrible They're getting horrible care.

Speaker 28 It's 30 seniors to one caregiver ratio, and none of us want to go there at the end.

Speaker 3 We're talking about those big, almost apartment-looking, massive 250-door things. Exactly.

Speaker 28 That's what we all think of when we think of assisted living. So, this is like what Airbnbs did to hotels.
This is a residential home that can house anywhere from six to 16 seniors in the home.

Speaker 28 It's still giving you that 24-7 care, but at a four-to-one or five-to-one ratio. So, significantly better care, right? And it's in a home.
So you don't have to go to this institutional feel.

Speaker 28 You get to stay in maybe the same neighborhood you always grew up in, and it's the same cost. So you're getting better care, better food, better location, and you're paying the same.

Speaker 28 So for the seniors and the families, it makes a ton of sense. For the real estate investor who says, well, maybe I'm not ready for multifamily or ready for commercial yet.

Speaker 28 I wouldn't even go that direction anyways. I don't care that it makes more money.
I don't feel good about myself at the end of the day if I was to own a big, big box, right? Right.

Speaker 28 In a smaller care home, the seniors are actually getting the quality care they paid for. So now your real estate investment, you're getting a check for six grand wrapped in a love letter.

Speaker 3 Yeah.

Speaker 28 10 times a month.

Speaker 3 That feels real good.

Speaker 28 Like you're like, okay, I could do this.

Speaker 3 Thank you for taking care of my mom or my grandma or whoever. My wife has her grandmother is in one right now.
Yeah. And so I'm very knowledgeable while you're talking.
It's a normal.

Speaker 3 single-family home in a normal neighborhood. Yes.

Speaker 3 I think there's three bedrooms. There's six women.
Okay.

Speaker 3 There's three nurses.

Speaker 28 Okay.

Speaker 3 And every time we go there, there's like, I mean, literally all three nurses are there on staff. Yeah.
All the women are sitting and watching and playing cards and doing. Yeah.

Speaker 3 And I'm like, God, that's great. Because

Speaker 3 listen, at the end of the day, the end of people's lives can be tough. It's very difficult.
It's almost like the Benjamin Button story. It's like you turn into it like a child, right?

Speaker 28 Yep. You're playing games, hanging out.

Speaker 3 That's right. Yes.
It's really tough.

Speaker 3 So talk to us about,

Speaker 28 you know, the idea of separating church and state and what i say is like the real estate side from the business side yes um because if you're gonna run one there is the business component you can't hide from that no talk to us about that okay so on the real estate side a lot of people what they're doing right now is buying real estate and turning it into an alf or an ral as we call it residential assisted living is that hard to turn it like if i just bought a home in miami is it hard to turn one into not necessarily but the more like the keys are right this is what really what you're looking for is the demographics of the area you want to be in where the majority population is 50 years old and older making two times the median income okay that's not the senior that's the adult child that's right because they're the ones usually paying me it's almost seal right they're the ones paying for mom or dad to go into the home right so you want to target them because they don't want to drive 45 minutes away where it's cheaper they want to drive five minutes on their way home yeah so where the affluent 50 plus community is that's where we want the home okay and then the larger the footprint the better so i really prefer private private bedrooms, private bathrooms.

Speaker 28 Depending on where you are in the country, you're allowed to have between six and 16. So here in Florida, your state says 12, but most of your counties say six or eight.

Speaker 3 We're talking about people.

Speaker 28 People,

Speaker 28 residents in the home. Yeah.
In Arizona, I'm limited to 10. Texas is 16.
New York is 16. So it just depends where you are.

Speaker 28 So like my homes in Phoenix, they started as a six, five, and now they're 1010. Okay.

Speaker 28 So I renovated them to become that way, you know, didn't even have to do any addition because think like 300 to 500 square feet per resident.

Speaker 28 So for 10 minimum 3,000 square feet, upwards of 5,000 is pretty comfortable.

Speaker 3 Yeah.

Speaker 28 And we're just taking a home and chopping it up differently so that it can serve these seniors' needs.

Speaker 3 So you almost make it a

Speaker 3 the new kiddos these days, a house.

Speaker 3 Pad splits.

Speaker 28 It's similar but different in the sense that they're getting rid of living spaces, office, everything. We still keep all of that.
Like

Speaker 28 similar, but we're like the luxury version of them.

Speaker 3 So I'm only familiar with the one my wife's grant right, which is just a normal, like they didn't do anything. It's just three bedrooms, two, two women per bedroom.
They didn't add bedrooms. Yep.

Speaker 3 Which people do all the time. You could do either.

Speaker 28 You could do either. It's just for maximum profitability.

Speaker 3 They want private bedrooms. Oh, yeah.
So let's talk about numbers. Like what can you get? I mean, compared to just a single family long-term rental, the numbers are staggering.

Speaker 28 Oh, it's crazy. So average cost in our country right now today is $5,900 per month per resident.
I don't know how much she's paying because she's in a shared room.

Speaker 28 So it might be more, it might be less.

Speaker 3 But even just think of it. That would be like just the month of a tenant.
Oh, yeah.

Speaker 3 That would be, but now you have six

Speaker 3 or ten. Yep.

Speaker 28 So in my case, right,

Speaker 3 $5,900. Now we're going to get me to go squirrel on this.

Speaker 28 Let's call it $6,000 just for easy math. Okay.
So $6,000, because also remember, average includes our friends on government funding as well as our private pay friends.

Speaker 28 And we only focus on private pay. Okay.
So for the most part, that $5,900 is kind of low for me and most of our students. They're getting $7,000, $9,000, $10,000 per resident per month.

Speaker 3 Because of the government-funded?

Speaker 28 No, we don't do any government-funded. Government funding is about $1,800 a month.

Speaker 3 Oh, so you go the other way, probably. The other way.

Speaker 3 That's why you want to be in the mid-50s so the kids that can afford them to have

Speaker 28 making two times the median income, they can afford it, right? Like it. So let's call it 6,000 a month, 6,000 times 10 residents, 60,000 coming in.

Speaker 28 Your mortgage these days to get a nice home like that, it's going to cost you 10 grand, right? Like easily. Okay.
Okay.

Speaker 28 Because if you're getting a large home and you're renovating it and whatever the case is, it's going to cost you like 40,000 a month to run a 10-bed home, a very average 10-bed home.

Speaker 28 And I'm saying that.

Speaker 3 People, because all the business operational costs.

Speaker 28 Operational. Yep.
So you're caregivers, right?

Speaker 28 Insanely expensive. Okay.
Food, activities, cable, utilities, utilities, internet, just everything. Throw it all in their liability insurance, whatever.

Speaker 28 That one home still bringing you in $10,000 a month. So

Speaker 28 it's a really interesting way to take a home that maybe wasn't Airbnb before and Airbnb's being kicked out of your city or they're making it impossible for the owners.

Speaker 3 Or they're just too crowded. There's too many of them.
Or they're too crowded.

Speaker 3 You don't get a top dollar anymore. Yeah.

Speaker 28 Or you just have a nicer, larger home in a good part of town and you're like, hey, I put one family in here and I make 500 bucks a month. I want to leverage this.

Speaker 28 I want to utilize this real estate for something that actually does good and does well. And now I can do senior housing with it.
And so that's what we show people how to do.

Speaker 3 That is amazing. Yeah.
Right now, I need people to go find you. Yeah.
Where's the best place for people to go find you?

Speaker 28 On social media, we're at RAL Academy, pretty much everywhere. TikTok, Facebook, Instagram, you name it.
We're there.

Speaker 3 R-A-L Academy.

Speaker 28 Yep. Residential assisted living.
Yep.

Speaker 3 So again, let's talk to me because I'm so interested, but almost like i don't know much right because i think a lot of people are going to be like

Speaker 3 the same way i am right now yep um

Speaker 3 can you just go by i mean in a general sense yes if you're looking for a single family long-term rental yeah to some extent you could just turn that into aria or residential living yeah residential assisted living yeah yeah yeah you could it doesn't really matter you don't have to overthink it you don't have to be like i need to be within this mile of so-and-so like there's no like complicated algorithm of location and distance of things or pricing or like

Speaker 28 do we need to so the demographics is just a number one. So we really want to be in that area because if it's in the wrong area, you're not going to get those rates.

Speaker 3 You won't get the numbers, right?

Speaker 28 You won't get the numbers. If you're, if you're in too high of an area, now you're going to be getting really high numbers, but your real estate might cost more.

Speaker 28 Basically, the cost of the real estate is going to kind of

Speaker 28 go the same with the cost of care. Yeah.
So if you're saying, let me use a low-end house in a crappy part of town. Well, you're going to get low-end, you know, cost of care.

Speaker 28 That's what people can afford out there. Right.
So you want them kind of to be able to match

Speaker 3 zone.

Speaker 28 Well,

Speaker 28 it depends in our nation because obviously like 1.4 in San Jose is a piece of trash. That's right.

Speaker 3 Right. I was going to say a million here in Miami is not anything.

Speaker 28 It's not anything special. That should be.
So here's, here's the thing. There's four ways to do this.
Okay. One by land custom build from the ground up.

Speaker 28 A lot of our Midwest students do this. A lot of our Texas students do this.
That's a great way, especially if you could have more than 10 residents. It's really hard to find a home that

Speaker 28 you could renovate to really have 16, 16. Like, that's you're doing, you're doing a massive reno, anyways.
So, custom building is amazing for that.

Speaker 28 Buying a single-family home and converting, that's another option, what we've been talking about. Yeah.
Third is buying an existing care home. So, we're very lucky in both of our markets.

Speaker 28 You know, there's over 4,000 group homes here in the state of Florida. There's over 3,000 in Maricopa County alone.
Wow. Yes.
One zip code where my care home is the most in the whole U.S.

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Speaker 4 I keep telling them not to say that. I'm no superhuman.
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Speaker 3 I literally, my team just brought to attention two single-family homes in Maricopa. Yeah.

Speaker 3 Like at $4.50 price range. Both of them have four bedrooms.
Yeah. Would that potentially be

Speaker 3 could I look at that and say I'm willing to pay retail on that because of the numbers on in the LF?

Speaker 28 We pay full price all the time.

Speaker 3 Right. That's what I'm saying.
I'm totally thinking my own real estate business right this second, as I'm talking to you,

Speaker 3 there is potential to say, okay, I'll pay 450 because based around what we're talking about here today,

Speaker 3 the math works like this. Yep.
And you'll say, Justin, if you look at it like this, that would be a good deal.

Speaker 28 We're not like hunting for the best deal. We're actually just hunting for the best location.

Speaker 3 So pool or no pool.

Speaker 28 You know what?

Speaker 28 If the pool's off the house, it can be a feature, an amenity. But if it's like dangerously close where they're just going to go in their wheelchair and plump, nope.
Not ideal. Yeah, not ideal.

Speaker 28 So our three homes in Phoenix, we filled one in, turned it into an outdoor grotto. Another one, we drained it and it's an eyesore gate around it.
It's ugly, but that's our lower income house.

Speaker 28 And so it just didn't make sense to upkeep it and we couldn't fill it in. Cranes couldn't get back there.
And then the third one, it's further off the house and we kept it in eye candy.

Speaker 28 It's been used once in 15 years.

Speaker 28 But daughter Judy, as we call the adult child, right? She walks into the backyard and she goes, wow, there's a pool.

Speaker 3 Mom's going to love this, you know? So and never used. No.

Speaker 3 All right. So we went through three land,

Speaker 3 conversion

Speaker 3 conversion, one that's already built and used as an ALF. Yep.

Speaker 28 And then the last way to do it is you could be on either side of this leasing a home to use for this.

Speaker 28 So if you just want to be on the real estate side, you buy and renovate a home and then you lease it to someone who's going to operate this business in your home. Interesting.

Speaker 28 On the opposite side, you're saying, maybe I don't have that real estate experience. I don't have that capital.
I want to lease from someone and I'm just going to operate the business in their home.

Speaker 28 They know what I'm doing and we're kind of in partnership together. But that's a way that you can just be on the real estate side.

Speaker 28 Or if you're like, I don't have any money, but I need to start cash flowing, you could just be on the business side.

Speaker 3 How hard is it to find the operators?

Speaker 3 Because I'm now I'm like, okay, well, maybe I don't want to run the business.

Speaker 28 maybe I just want to go do what I know by the asset find the asset but then I would also need the operator how is it a hard market to find operators it is harder there is way more people who are comfortable on the real estate side than there are people who are comfortable on the operation side and I'm gonna say it's harder to find a good operator because 80

Speaker 28 like anything 80% of this industry is currently run mom and pop so they live in the home they work in the home they do everything themselves it's almost all immigrants from other countries who run this industry I'm like the minority that I'm like a white white girl in this doing this.

Speaker 28 There is not a lot of people who look like me doing this.

Speaker 3 Yeah.

Speaker 28 So that's that's unique.

Speaker 3 Are you bilingual?

Speaker 28 Puquito. Tiny, tiny.

Speaker 3 Me too. Yo tempien.

Speaker 28 You see, my my nanny speaks Spanish to my son. So I need to learn so he knows, I know what he knows.

Speaker 3 Yeah, that's right.

Speaker 3 Funny sidebar, but yeah, same thing. Nanny speaks to my son.
So he actually knows Spanish more in English right now because he's only 15 months. Yeah.
My daughter, nothing.

Speaker 3 We just raised her talking English. So I'm like, ugh.
But she's only four.

Speaker 3 Okay.

Speaker 28 She's got time.

Speaker 3 So, man, this is so interesting. And

Speaker 3 who are the type of people that should be looking at something like this? Like, should everyone, is it, you know, you got to kind of understand what you're looking to do? Is there a sector?

Speaker 3 Like, your students, who's your perfect student avatar? Because if you're here,

Speaker 3 you need to find Isabel immediately. But who is your perfect student avatar?

Speaker 28 You know, it's interesting. We get a lot of people who someone in the partnership or relationship has real estate background and someone has medical background, like you and your wife.
Yep.

Speaker 28 And that to me, I always, when they come to class, I'm always like, you guys are perfect. Yeah.
Because one of you understands one side and the other understands the other.

Speaker 28 And it's the, you're not going to step on each other's toes. Yeah.
Because you're involved in very different pieces to it. That's right.

Speaker 28 So I love that partnership, but we've had people as young as 17, as old as 72. We have people in all 50 states who are doing this, zero real estate background.

Speaker 28 We've had kindergarten teachers, truckers, NYPD, I mean, you name it, doing this and now fully, you know, cash flowing and going crazy.

Speaker 28 And they've got like one or two homes and they're like, I'm good. Like, I don't, I'm financially free now.

Speaker 3 Even the economics you just gave me were essentially after all costs, you have 60 grand gross between the mortgage, the people, the, the caretakers, the food,

Speaker 3 and you net 10 grand a year. Yeah.

Speaker 28 10 grand a month.

Speaker 3 Bro, I mean, I'm sorry, a month. Yeah.
You have three and you have 30 grand a month coming in. Yes.

Speaker 28 And that's a very, like, that's not a big business.

Speaker 3 That's like, no. You probably could sleep most of the day.

Speaker 28 Yes. And I really share that 10K example because it's very like average and normal.
Yeah. But most of our students, like I said, are getting way more than that six.
Yeah.

Speaker 28 So their numbers are crazy different. I have students making 20, 30, and $40,000 a month on one door.

Speaker 3 Like price point, like at 40 grand a month, what price point of real estate are we talking about?

Speaker 28 40 grand a month. So they're paying about 20 in debt service in their mortgage, 20,000.

Speaker 3 So they're somewhere in the middle, like between one to 2 million, depending upon their loan. Yeah.

Speaker 28 Yeah. So most of these homes are like in that, I would say less than two, but right in that.

Speaker 3 That's the right frame if you're thinking.

Speaker 28 One to two, pretty much.

Speaker 3 So if you're just talking to me, which that's what I'm saying,

Speaker 3 I need to go buy, find a home, somewhere between one to $2 million, give or take. Give or take.
With the right unit mix, unless I wanted to go and remodel it. Yeah.

Speaker 28 You're going to have to remodel it a little bit anyways.

Speaker 3 Just for accessibility and stuff of that nature.

Speaker 28 Yeah, it doesn't need to be ADA compliant, but you want it as close to that as possible. So ramps, guardrails, handrails, but just no home is going to come a 1010.

Speaker 28 So like you're going to have to do a little bit of rental anyways. Okay.

Speaker 3 Describe what the house should look like after reno.

Speaker 28 Like it should be a certain look or so you actually you want it to feel as much just like a home as you can.

Speaker 28 Obviously the excess of bedrooms and bathrooms is a little bit like something weird's going on here, right?

Speaker 28 But it's it's so much more, it really should just feel like a home.

Speaker 3 How many bed, bath, unit mix? Like, so let's just say, would a four bedroom home be okay, or would you want more? Like, what would if you were going to buy one today in Phoenix? Yeah.

Speaker 3 What would you be looking for?

Speaker 28 Well, because my max is 10, I would look for something that is about 4,000 to 6,000 square feet is what I'd be looking for because the floor print and the location is really what I want because I'm going to reno it anyways.

Speaker 28 Okay. So it doesn't matter if there's already seven bedrooms or three bedrooms.
I'm good. I'm looking for the square foot.

Speaker 28 So it's that it's that rule of thumb with the square foot. And here's the thing.
The state will tell you 100 square feet per resident.

Speaker 3 That's sick. That's.

Speaker 3 They live in a coffin. Exactly.

Speaker 28 Exactly. That's terrible.
So some of these homes you walk into and they're itty bitty bitty tiny tiny.

Speaker 28 So when daughter Judy, again, comes to their home and then comes to your home and you're abiding by our rule of thumb, which is that 300 to 500, she's like, oh, this is nice.

Speaker 3 Like I could see her living here.

Speaker 28 It's like, yes, that's what I want to hear.

Speaker 28 That's right yep okay so in an ideal world for best profitability is there a number of bedrooms that gives you kind of the ideal profitability yeah I would say six is the lowest I would go bedrooms yeah uh residence residence okay yeah I wouldn't I don't like anything less than six and most of your estates allow six or more so you really shouldn't the only reason people do less than six is because they say I want to do this unlicensed which to me is like shame on you because why like a contractor doing unlicensed correct it's like you just don't want to follow rules and the rules are about the senior safety.

Speaker 28 So I'm, this is a real estate play, but I'm like very heavy on like the seniors need love and care and respect and safety. And if you're not going to do that, you should not be in this.

Speaker 3 It gives me shivers because the reality is you are taking care of someone's family. Member at the highest level at the end of the life where they probably need the most help in their life.

Speaker 3 And if you are going to shortcome or take a shortcut to doing that and serving people, don't do this business. Correct.
Just go get a long-term rental. Who cares? Let them lease it.
It doesn't matter.

Speaker 3 Yep.

Speaker 28 But don't do the business when you have someone else's family, family it like literally in your hands yes to take care of them yes 100 a lot of people hear this and they get excited oh it's money and and oh yeah i could cash flow really well the reality is you guys you could cash flow well on a lot of types of real estate of course there's a million other ways this is not one you should get into if it's all about the money right it has to be that equal balance and this is impact investing because you are doing something big when you asked who's the right person for this most of the people who come to our training they have a loved one who's in assisted living who had a bad experience, and they're coming because they either want to get them out and put them in a better home, or they're like, I will never allow that to happen to anyone else in my life.

Speaker 3 And so they have like a drawing for the right reasons, right? It's not just, don't get me wrong, we're all in business, but it's not just about the money.

Speaker 3 To your point, you can go get storage facilities that literally doesn't have a human involved. Correct.
And you can make a God a load of money. Yeah.
Oh, yeah.

Speaker 3 So, okay, so 10 people. Yep.
10 occupants. Yep.

Speaker 3 Do you ever, do you always focus on one person, one bedroom, or will you do two in one bedroom?

Speaker 28 So here's the thing. Shared is actually harder to fill.

Speaker 3 There's less people who want their mom to share it with. Mm-hmm.

Speaker 28 Yeah. So shared is harder to fill.
We had a resident or

Speaker 28 we had a student who was licensed for 16 and they custom-built a home out in Georgia, 13-bedroom, 13-bath with the intent that some people will want to share and will have that option.

Speaker 28 They've only ever had 13 residents from like the last five years, from day opening to now. Yeah.
And it's like, yeah, because people don't really love it.

Speaker 28 When you're in a low-income area, everyone wants to share, everyone needs to share because they can't afford that. That's right.

Speaker 28 But as the business owner, you're now bringing in less income, but you still have the same expenses. Your mortgage doesn't change.
Those caregivers, you still have to pay them.

Speaker 28 So now you're just making less money. And, you know, because

Speaker 3 you're back that you fill more people. Yeah.
Okay. I understand.
So, uh,

Speaker 28 one bedroom one bath they all need their own so bathrooms can be shared okay you know again it's ideal if they have their own just gives them the sense of privacy and it's mine and you know you have to think if you are a senior and you're moving from your whole own physical home to now a shared space right and a shared bathroom yeah and a shared bed it's like it's a lot right so being able to be like okay you have a semblance of independence and this is yours and no one can touch it it really is helpful to them so you can have shared bathrooms.

Speaker 28 The state will say you can have six people sharing one bathroom. Again, like terrible.
Don't do that, right?

Speaker 3 Is that only Arizona? Is that just a no?

Speaker 28 We teach nationally. So I review all the state's rules.

Speaker 28 Some states will say you can have four in a bedroom, two in a bedroom, three in a bedroom. Like it just depends on bedrooms.

Speaker 28 It ranges, but bathrooms, almost all states say six or eight can share a bathroom. And I'm like, that is terrible.

Speaker 3 What's your website again?

Speaker 28 RALAcademy.com.

Speaker 3 If you want more info, r-alacademy.com. And then Instagram.

Speaker 28 Instagram, R-A-L-Academy. Let's go.

Speaker 3 So, all right. Now,

Speaker 3 the uniqueness of this is

Speaker 3 inside the walls. Yeah.

Speaker 3 Right.

Speaker 3 Let's talk about the business a little bit. Okay.
Right.

Speaker 3 Where do you find the caregivers? Yeah.

Speaker 3 Is there like organizations that you can call and say, hey, I just opened up an ALF. I need caregiver.
How do we do that?

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Speaker 28 So you're hiring them just like you would hire most any other job, Indeed, Craigslist, Facebook Marketplace, like you're just putting kind of the word out there.

Speaker 28 You can go to caregiver training schools and kind of get on the list for fresh graduates so that you could be a preferred place that people go.

Speaker 28 But it's also a very tight-knit industry and it's a lot of word of mouth. Most caregivers work at two or three locations of smaller homes or even bigger ones like a Brookdale or a Sunrise.

Speaker 28 So a lot of times when you open, you put the ad out there, you get a couple people coming in and then those people tell their friends And it just kind of like is very word of mouth.

Speaker 28 But indeed is great.

Speaker 3 Yeah. Yeah.
How do you verify, you know, are they good or they're bad? Like, because you hear those awful, awful

Speaker 3 people that are just gut-wrenching, gross. Yes.

Speaker 3 How do you verify?

Speaker 28 You know, in any business, you should be slow to hire and quick to fire, right?

Speaker 28 That's like rule of thumb as a business owner, but it's really true in assisted living because these are people's lives at stake, as we've said.

Speaker 3 And some of them are literally like, they're, they've lost their mind, right? Oh, yeah,

Speaker 3 dementia and all the different things like yeah it's just un like you need to make sure these people are on it yes it's not just someone that's a little bit older yes they need help yep 100 you know i think that there is a big like this is not a job where you you're not going to call the references you're going to call the references there's no doubt like that's what i was like dude how many people do you call and sit down with Because even

Speaker 3 I just think of like our families. And if you think about your mom, like you are going to go above and beyond to make sure

Speaker 3 they are taken care of by the right person that actually cares.

Speaker 3 And I understand to some extent, like if there's 10 people and three caregivers, like it's not like they're getting, but they got to care.

Speaker 28 Oh, yeah, totally. So interview process is really serious.
Have you ever done the predictive index? I have. Okay.
So I actually make all of my staff do PI. Yeah.

Speaker 28 And I have like certain profiles that I'm looking for. Yeah.

Speaker 28 Especially the patients meter. I'm looking for patients like off the chart.
Because if you are not, I am like way driving, like not patient at all. Yeah.

Speaker 3 I'd be a terrible caregiver.

Speaker 28 Right. Because to react with these seniors, you have to be okay that you ask a question and the response might come a minute and a half later.
Oh, yeah.

Speaker 28 And you can't keep asking and asking like, no, you have to just sit with it.

Speaker 3 And that is hard for me. That's hard.
It's hard for me with my daughter. Yeah.

Speaker 28 Oh, yes. Just like kids, right?

Speaker 28 So I know it's, it's a lot. So I think that we use PI.
We do a lot of other things. We do a working interview so I can see them on the the floor, see them with other staff.
We are call all references.

Speaker 28 I don't do background checks on my residents. I do them on my caregivers because I want to know what's going on.

Speaker 28 And also we will kind of like ask around because many of them have worked with each other in other homes. Like this community is kind of small.

Speaker 28 So everybody does kind of know each other. And if there's any, any, any,

Speaker 28 like even. the tiniest speck of gray, it's like, it's a no.
I'm really strict about that. We've got cameras everywhere in inside and outside of the house.

Speaker 28 So I'm watching like everything, you know, and nothing, if, if, again, if anything's in question, no, you're out.

Speaker 3 Yeah. Yeah.
Um, man, it's just such an interesting model. So what's the the

Speaker 3 burr model to me is very familiar. Yeah.
Right. I go into a burr model.
I say, okay, I want to buy the asset.

Speaker 3 I want to do the whole burr, renovate it, rent it, refinance, but probably have around a five-year exit. Yeah.
When you look at a business model like this, do you really go into it with an exit?

Speaker 3 Because

Speaker 3 you're running a business, like unless you buy the real estate to lease it to the business. Yeah.
But if you're running both sides of it, do you really kind of go into it and exit?

Speaker 3 I feel like this would be like kind of a forever type of investment just having it. Having to go forever.

Speaker 28 So my dad started this industry with me, right? Like we like back when my grandmother fell and needed care, we got into it for her with the intent to move her in.

Speaker 28 She passed before we can move her in, but we kind of fell in love with the concept. So he stopped everything he was doing in real estate investing and went all in on this.

Speaker 28 And that was about 15 years ago.

Speaker 28 And I joined alongside him maybe 10 years ago when we started training people how to do it. Cause I was like, oh, I want to help with this.

Speaker 28 I helped a little in the care homes, but I was like, I'm not cut out to care for seniors. This isn't for me.
So I'd help with other things like activities and decorating and whatever.

Speaker 28 But, you know, when we got started in this, it was his play that, hey, this is so that it's for my mom. It's for any of my siblings.
It's for, you know, my mom's parents if they needed it.

Speaker 28 And he's like, and it's for me and your mom, if we ever need it. Now, my dad passed in 2021.
And so he never needed that, right?

Speaker 28 But my mom might, you know, she's like doing red light therapy every day. She's going to live forever.

Speaker 3 I love it. I love it.
I think we all are. I mean, the way the world's going with health.
Yes. You do it right.

Speaker 28 People are living longer and longer. So our plan is that whenever she does need that 20 years, 25 years, okay, great.
She can move right in, live for free. We're still cash flowing.

Speaker 28 And then one day I can pass it to my son and I can do the same thing. So it can be a generational business.
That's how it ended up being for us.

Speaker 28 When he passed, it's like, I got left three cash flowing businesses. That's pretty cool.
Yeah. So it can pass.
We have other students who their plan is they're on home number 28 out in Colorado.

Speaker 28 Their home's to package 100 up, sell it to the hedge funds. So the hedge funds buying it? They will, if you have that volume.

Speaker 3 No kidding. So now let's talk about that.
That's really interesting. So there is an exit.

Speaker 3 there's an exit so the reason why i don't love pad split isn't because i don't like the concept or the economy like i just believe it's new enough that i can't see where's the exit yeah like who who buys a home that has like a sink in 12 bedrooms yeah like who buys that besides someone else that would want a pad split yep which i believe potentially down the road but also i want to know are hedge funds buying het pad splits and is too early of a concept now alfs and this is not assisted living's not so let's dive into that who is like are they buying how do they buy what are they looking for yes so they would buy but it would probably be 50 doors or more yeah the more you have the better right and having them all under a brand like that is also

Speaker 28 they want the brand of it yeah so that's also important so that's exactly what our students are doing they're like hey we're gonna like brand this and that they're doing an incredible

Speaker 28 28 28 and they want to get to 50 and see if the hedge funds will buy 50 but really their goal is 100.

Speaker 3 yeah because why slow down?

Speaker 28 Yeah, their goal is 100.

Speaker 3 So talk about them.

Speaker 28 Okay, they started in, they came to our training in 2017.

Speaker 28 And he was the, they were both flippers. And that's, that's all they did was just flipping.
And they came and they.

Speaker 28 totally jumped in on the concept, went through our mentorship and coaching. So we've been working with them, opened their first home, and then just scaled, scaled, scaled.

Speaker 28 And really what they focused on was systems. Because currently, if people hearing me say this who are in the industry might be like, there is no way you could do that.

Speaker 28 And it's because they built themselves a job.

Speaker 28 They did not systemize it. They did not set it out like, no, how do you want it year five? Build it that way day one.
Even if you take a little bit less money, it is worth it.

Speaker 28 Like pay for speed, pay for someone else to do all these day-to-day jobs, whether that's VAs or whatever it is. We really help people build systems so that they can become hands-off.

Speaker 28 So it is possible. I mean, they wouldn't be able to do 28 if they didn't have that, but the more you have, the more levels that you're getting.
Now it becomes even more systems in place.

Speaker 28 So in one care home, you're the owner in the owner's box, right? And then you have a licensed administrator, which is kind of like your PM in the real estate world.

Speaker 28 They're hiring your licensed caregivers.

Speaker 3 That's at three levels, right?

Speaker 28 Owner, admin, caregivers. Okay.
Now, when you have more homes, let's say three homes, you might have someone on top of all of them being like the executive director who's overseeing all three.

Speaker 28 And you have each one with an administrator and then caregivers and so on. Now you've got 10 homes.

Speaker 28 You might have another level where it's like, hey, we have an activities director who's overseeing all of these and coordinating, you know, all of these systems for us.

Speaker 28 So it just becomes more and more levels, similar to corporate, right? And that's how you can really help systemize it.

Speaker 28 And again, keep yourself out of the weeds, is you're hiring someone else to do this job at a mass scale. And so you can scale and grow like that.

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Speaker 3 Every the podcast, do you have a podcast? I do. It's the greatest thing in the world.
You learned so much. I have such amazing guests like yourself.

Speaker 3 I sit here and go, every time I just go, should I be doing something?

Speaker 3 And I'm like, oh. So, all right.

Speaker 3 I have so many questions. So

Speaker 28 I will say this. If you just wanted to sell one, if you just had one and you wanted to sell it, it, just so you know, numbers wise,

Speaker 28 it's the transaction looks like this. It has to be a commercial broker.
So it's the real estate is the one sale. The real estate's worth whatever it's worth.
Right.

Speaker 28 And then the business is two to five times the EBITDA. Okay.
So obviously, if I'm selling, I want it five times. If I'm buying, I want it two times.
It's worth what someone's willing to pay.

Speaker 28 We usually see that three to four multiple. So you can sell these and we help people buy and sell them.
I mean, you, you know, got a deal that we were talking about earlier. We help people.

Speaker 3 How about this? One of your students.

Speaker 3 It might have been. I almost, I I mean, because I don't even know who it was.
I got attacked. Hey, I know you're in Miami.
They know me. Yeah.

Speaker 3 They're in my phone or I don't save them, but they're like, hey, I know you're in Miami. Yeah.
Are you interested in ALF? You never know.

Speaker 28 So, so we help people buy and sell them all the time, but I really think that the exit plan, if you're going to scale this correctly, could be that large buyout,

Speaker 28 something like that to a hedge fund. Or if you're saying like, hey, I want three of these.
I want to hold them until my mom or I need care. And then I want to package them and sell them.

Speaker 28 Somebody will still still buy a three pack, a five pack, a 10 pack, but it'll probably be someone like me or my students who's like a smaller level person, not a big fund.

Speaker 3 So someone like me who

Speaker 3 like all I would have to actually do is the two things that I'm best at. Find the real estate and raise the capital.

Speaker 3 I then go find someone to fill the seats of the caregivers and whatever. Yep.
Give up some more money on the front end to pay the people, the right people. Yep.

Speaker 3 So then I can go do more real estate and more capital. Exactly.

Speaker 3 that's what i want to keep you in your box right and i just rinse and repeat find the capital find the real estate find the capital find and i overpay suzanne who has 15 years of doing this to go find the caregivers yep and i'm happy to do that on the first couple because then i can get to five or ten exactly and then you can have a big salon and so have a real business yeah i mean it is a full-blown business you know i was just in um new orleans just like two days ago with one of our students and he's just turned 30.

Speaker 28 he's got two care homes in wisconsin One's cash flowing him $19,000 a month, the other one $21,000 a month. And he was a travel nurse before he did this, zero real estate background.

Speaker 28 He heard me on bigger pockets.

Speaker 3 And he was like, okay, I got to do this. Right.

Speaker 28 And I feel like, like, I'm like, when are you getting your other one? He's like, why?

Speaker 3 I'm good. Like, well, 50 grand a month for most people is.
Yeah, he's like at this point you go, he's like, I'm 30. Like, I'm happy.
I'm fine.

Speaker 28 He's like, I'm actually going to go move to New York City and just salsa dance and have fun and, you know, mess around. I'm like, okay, cool.
Good for you.

Speaker 28 So everyone comes in with different game plans. Other people think huge.
Some people are like, let me just cash flow and so I can chill and live my life, you know?

Speaker 28 And other people, they want something that they can be involved in and a business they can be active in. And that's the cool thing about this industry is it can be whatever you want it to be.

Speaker 28 It could be a couple of assets that cash flow you well that you don't have to really attend to very often. I would say I visit my homes once a quarter.

Speaker 3 So out of your real work life. Yeah.

Speaker 3 How many hours a week or a month do you think you actually genuinely are focusing on those assets?

Speaker 28 Five hours.

Speaker 3 A week or a month? A week.

Speaker 28 Yeah. It's like a weekly meeting with my manager.
So my, my PM.

Speaker 28 And then I like to do like look at payroll and stuff like that and social.

Speaker 28 Yeah. But almost everything else is dedicated to teaching other people how to do this.

Speaker 3 The thing I think is so important for most people to hear hear from what we're talking about, there's no one size fits all.

Speaker 3 You don't need to build a business like mine or like yours at scale. You don't need to go one or two and stop.
Like, there's no one size. You have to understand what you actually want from it.
Yes.

Speaker 3 So, what I always will tell people is figure out what you, like, I have the five pillars of success. The first pillar is decide what you want and who you need to be to get it.

Speaker 3 So, in the example that you just gave with your student, he's like, I want some financial freedom. I don't need to be Donald Trump, right? I don't need to have a whole empire.
He goes and buys two.

Speaker 3 He makes 50 grand a month. Literally, that is lifelong income that will pay for probably anything he wants for the rest of his life.

Speaker 3 He may not be extreme about his spending, but 50 grand a month is 50 grand a month. But that may not work for someone like me.
You might go like, okay, I need two a week to buy. Like, I can't.

Speaker 3 Exactly. Right.
But there's no one size fits all.

Speaker 28 There's no one size fits all. And that's what I love too is when people come, we get to kind of be like, what's your vision? What do you want?

Speaker 28 And some people, it's genuinely, it's one home for my mom. That's all I care about.
And it's like, great. Other people, it's financial freedom.
It's a couple of homes. So I don't have to work anymore.

Speaker 28 Other people, it's, I want to take over this industry and I want the biggest cash out you've ever seen. And it's like, okay, cool.
Like you can do whatever you want.

Speaker 3 Have we seen, or we by you, have you seen an actual exit with a hedge fund yet?

Speaker 28 I have. I've seen someone in who in Texas, they had 400 doors.
I don't know what multiple in this space.

Speaker 3 Yeah. Sheesh.

Speaker 28 I don't know what multiple they got, but I know that they're sitting pretty.

Speaker 3 Oh, yeah. I don't think they're working very hard right now.
Now, your students who do have 28, where what state are they in? Colorado. Wow.
Okay. Is that a.

Speaker 28 It's actually kind of a tougher state for this.

Speaker 3 I would have thought.

Speaker 28 Red states are better than blue states when it cuts to real estate investing, and especially this, because it's business, it's small business. Yeah.
So Colorado's not the most friendly to this.

Speaker 28 But I will say this. Some people who are watching are probably thinking, well, can't they deny this in a neighborhood? Can't they say you can't do this?

Speaker 28 An HOA, a city, a state, an angry neighbor can't say no because we are a federally protected class the seniors are considered disabled by the time they're moving in and so under the federal fair housing act we're protected so no one can deny you now that doesn't mean they won't try right so in colorado they are all about trying to deny right so almost every house they've gone after it has been a battle.

Speaker 28 But we actually created the first and only national association that represents all 30,000 group homeowners across the country. So we have legal backing and power there.

Speaker 28 So they've just partnered with them, got their lawyers involved, and basically won every single case.

Speaker 3 So it does not matter what neighborhood you live in. I could go do this to my own personal home and move tomorrow back to Scottsdale.

Speaker 28 They can't stop me. They can't stop you.
They might fight you. Like I said, you might have a fight, but they can't stop you.
That is. Because a neighborhood can't fight a federal law.

Speaker 3 Well, I, cause, so you're obviously in Phoenix. And so I just moved here from Phoenix 2021.
So me and my wife are literally like, oh, you know, I have so much. I'm leaving Phoenix tomorrow.

Speaker 3 I go to Phoenix all the time. Like, should we probably move back to Phoenix? Our home would rent for about nine grand a month, just normal.

Speaker 3 Yeah, here in Miami, just normal rent. Yep.
And now I'm hearing your numbers and I'm like,

Speaker 28 do we turn this into a

Speaker 3 60 grand?

Speaker 3 You know, maybe what's the, what's the, well, 3,000 square feet, five bedroom. Okay.
About a 2 million valuation. Okay.

Speaker 28 And

Speaker 28 the neighborhood area, affluent?

Speaker 3 Super. Okay, great.
This is good.

Speaker 28 So, yeah, you could probably do, even if it's licensed for you.

Speaker 3 I have to probably change the, because it's a U-shape.

Speaker 3 Why not? Five bedrooms. I don't know.

Speaker 28 What you don't want is long hallways because that's reminiscent of a big box.

Speaker 3 Right? Yeah, sure.

Speaker 28 You want it to feel like a home. Like, you know.

Speaker 3 Yeah. I mean, it's very homey.
Yeah. Anyways, it just makes me think, like, wow, okay.

Speaker 3 I could, I, you know, it's funny because if I even think about what I'm buying right now and raising capital for and the returns and I'm like, God, this would make sense just for the long-term exit.

Speaker 3 Even if I didn't have a big term exit to the hedge funds. Yeah.
You have all this real estate for 15 years and it's running at such a high income.

Speaker 28 That's that's the beautiful thing is so many people are like well let me just hold this and make 200 bucks a month on something and I'm just gonna hold it and one day I'll cash out big or one day I'll pass it to my kids.

Speaker 3 Why one day?

Speaker 28 Cash flow now and have the big cash out.

Speaker 3 And do you like even do um your students work typically and do this part-time or do they typically more full-time doing this it it it's it ranges the gambit but i mean we've had people who literally work on wall street who've opened their care homes well that's the point is if you didn't like that guy or me for example i might not need the income in terms of the cash flow right but could i just go pay down whatever debt i have on that home and then when i do want to exit in 10 or 15 years i have a free and clear two million dollar asset but i have 10 of them yep that's 20 million dollars in the next 10 years they just because i just paid down the asset yeah i didn't have have any loans on them.

Speaker 3 I exit them all.

Speaker 28 Yep. That could be a beautiful way to.
Right.

Speaker 3 I mean, there's just different, that's what I'm saying. There's no one size fits all of this.
You can kind of work this.

Speaker 28 No. Some people like get into it like that.
They say, hey, I've got, I've got homes I want to pay off or this or that. And so they kind of want to use it to do that.

Speaker 28 Other people say, you know, we get a lot of people who actually come and they say, oh, I have a heart for seniors. I actually want to open a low-income home for seniors.

Speaker 28 But what I teach is pretty much private pay and more high-end. So they're like, it doesn't really fit.
And I'm like, no, it does fit.

Speaker 28 Open the high-end home. Use this capital to go open a low-end home.
Serve those seniors. Don't let them not pay anything to live in the home.
Like just, just accept whatever from the government.

Speaker 3 Okay, great.

Speaker 28 Now you can serve both, but there's a there's a method to the madness. So I have to open the high-end one first to make the low-end.

Speaker 3 You got to be able to afford the money to go do that right. Always.
It's good to be altruistic, but you got to be able to afford the altruism. Yes.
Right. Yes.

Speaker 28 So there's so many ways.

Speaker 3 This is so fun. So, guys, again, make sure you are finding Isabelle everywhere.
Yes. Right Right now, by the way, don't wait.
Find her all over Instagram, your website.

Speaker 3 You guys need to learn. If you're interested, I'm telling you, I'm sitting here.
I'm basically using this as my own little coaching session right now. This is amazing.
Yeah, thanks.

Speaker 3 So get with Isabel. It's been a pleasure having you.
Thanks for having me. Thank you for coming all the way out.
Again, what is the website?

Speaker 28 ralacademy.com.

Speaker 3 R-A-LAcademy.com, all over Instagram. Go to the website.
If you thought this was pretty interesting and you know some people that need to know Isabelle, not just yourself,

Speaker 3 share this with two of your friends.

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Speaker 4 I keep telling them not to say that. I'm no superhuman.
Believe it or not, I struggle with moderate obstructive sleep apnea, or OSA.

Speaker 4 In adults with obesity, moderate to severe OSA is a condition where breathing is interrupted during sleep with loud snoring, choking, gasping for air, and even daytime fatigue.

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Speaker 29 Fidelity active ETFs have the flexibility to shift and transform as markets do the same.

Speaker 29 So instead of just riding an index, they can seek to outperform it by adapting to market conditions and pursuing new opportunities as they emerge.

Speaker 29 And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms, just like any other ETF. Markets can change in real time.

Speaker 29 Make sure your ETF can too. Learn more at fidelity.com/slash active ETFs.
Before investing in any exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses.

Speaker 29 Contact Fidelity for a prospectus, an offering circular, or if available, a summary prospectus containing this information. Read it carefully.

Speaker 29 While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs.

Speaker 29 ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.
Fidelity Brokerage Services LLC member NYSE SIPC.

Speaker 34 PNC Private Bank doesn't take unnecessary risks managing your wealth because we know that maintaining its integrity is important to you.

Speaker 34 But as humans, we crave a little adrenaline, so our advisors have some ideas.

Speaker 3 Sometimes I book a hotel without reading the reviews. Occasionally, when no one is looking, I double dip.

Speaker 1 Once while driving, I came to a full stop for two seconds instead of three.

Speaker 34 However, you get your kicks, just know your wealth will remain steady and secure with us. PNC Private Bank, brilliantly boring since 1865.
PNC Bank National Association member FDIC.

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