I asked Isabelle Guarino, our speaker at Traction REIA tonight, some very pointed questions about investing in single family houses and turning them into Residential Assisted Living facilities.
QUESTION #1:
Why would someone pay TWICE the fair market rent?
ISABELLE GUARINO’S ANSWER:
The answer is your tenant, the operator of the Residential Assisted Living (RAL) facility, will still be able to make a lot of money even after paying you twice the Fair Market Rent.
Let me fully explain that by crunching the numbers.
The national average for a private room in a residential assisted living care home is $3,500 per person, per month. Keep in mind that there are people paying two and three times that and there are people paying half that amount. (You get what you pay for of course.)
Remember that 70% or more of the wealth in the U.S. is controlled by seniors. You may not be able to afford or provide for your own long-term care needs, but they can.
Using my systems, you can also live for free when you need your own long-term care.
QUESTION #2:
How much can I really make?
ISABELLE GUARINO’S ANSWER:
With a home that is licensed for 10 residents, at an average rate of $3,500 per resident, that is $35,000 per month in potential gross income. The expenses, including debt service or rent and even vacancy is about $25,000. That leaves a net profit of $10,000 per month for an average home.
That is for an average home and an average clientele. I have homes that gross $40,000 and $50,000 per month and more. The reality is the expenses are virtually the same for an average home as they are for an above average home. The difference is the cost of the real estate.
As a landlord, you could be very happy to have a couple thousand dollars per month in positive cash flow. As the operator of the RAL you can earn $10,000 to $20,000 net per month. That is a true win-win situation. You can profit either way.
QUESTION #3:
How long will this opportunity last?
ISABELLE GUARINO’S ANSWER:
This is not just another real estate “fad” that comes and goes. This is a massive shift in housing demographics. You will either be riding on top of this unstoppable wave, or you will hesitate, procrastinate, and potentially miss it completely.
That choice is yours, but you will be a participant one way or the other. Meaning you’ll either invest in it, or live in it!
QUESTION #4:
How much competition is there? Why doesn’t everyone do it?
ISABELLE GUARINO’S ANSWER:
I have comparatively little competition. How many people do you know that are in the business of RAL?
With RAL it doesn’t matter whether the real estate market is at the peak or coming down from it, cashflow is cashflow.
After 30 years as a real estate investor, doing everything from fix and flips, short sales, REOs, lease options and more, my goal is now just one thing: Significant long-term residual cash flow.
Residential Assisted living gives you the opportunity to do one deal and you are done. For life.
Why doesn’t everyone do it? Why doesn’t everyone do anything? People just don’t get off their butt and learn what needs to happen. It’s their choice to stay stuck and miss out.
QUESTION #5:
What is the key to success in Residential Assisted Living?
ISABELLE GUARINO’S ANSWER:
The key to success in RAL is in the details. You need to know which type of home works best, what location is best, how to find the home that no one else wants that will work perfectly for a RAL home and how to do it quickly without all the guess work.
You need to know how to find the right team to make your life easy and to fill the home with high-paying residents.
I’m sure there are more questions coming to mind for you like: What about the liability? What about a two- or three-story home? What about… There is a lot to know, but the good news is you are not on your own.
If you want help in learning how to do this, it is available.
That’s why I’m coming to Traction REIA Online TONIGHT April 18th.
The phrase, “paying for speed” is not just an expression, it’s a reality. That’s why I teach people. To show others what to do and what not to do in an easy to follow, step-by-step process. I’ve done it, and I show you how you can do it too.
Imagine having one RAL home providing your family a $10,000 per month POSITIVE CASHFLOW…
Now, imagine scaling a bit and having two or three…
Now you’re getting the idea.
It’s a new world out there. The days of making a few hundred dollars a month in cashflow per house are history.
If you’d like to learn how to do one deal and make $10,000 per month or more, let me show you how you can make that happen.
Attend my training with Traction REIA Online TONIGHT Thursday April 18th.
TOM ZEEB:
Thanks for answering all the Q&A.
Join us for Isabelle Guarino’s Traction REIA event TONIGHT.
Works nationwide. Join us on Zoom from anywhere.
Main Monthly Meeting ONLINE
TOPIC: “How to turn one single family home into a $5-$15k/Month Cash Flow with Residential Assisted Living”
SPEAKER: Isabelle Guarino
***ONLINE REIA MEETING***
Thursday April 18th ONLINE using ZOOM.
6pm Eastern
5pm Central
4pm Mountain
3pm Pacific
Works nationwide. Join us from anywhere.
Click here to RSVP & Get the Zoom Link
See you soon!
Tom Zeeb
President
Traction REIA®
14+ Consecutive Year Recipient of the National REIA “Honors of Merit”
and the “Award of Excellence”
For Best Real Estate Investor Association!
