Mar 6, 2018
After weighing the dreaded decision of placing his mother in a senior home, Gene Guarino realized there had to be a better solution than the big box retirement centers. What he found was a lucrative and underserved niche for senior assisted living homes. Gene shares how this strategy nets $10k per month, per house and why the demand should only grow in the future.
Key Market Insights
- Started at 18, was a professional musician and ended up buying the place they were renting with no money down and made 90k profit five years later
- Property was $28,500 and they borrowed $10,000 and took an assumable loan
- 15 years ago heard about senior housing, but when his mom needed help he realized options were limited
- When looking to put mom into a home, solutions were big box buildings, but mom didn’t want a hotel or country club
- Senior Assisted Living: $3,750 per month per person – can have 10 people in one house, some states can have up to 16 residents
- A single house should net $10,000+ monthly
- Average cost is $4,000-8,000 a month per senior
- Legally you can do 10 residents in a 1500 sq ft house
- Focuses on private pay, not government funding
- Senior demographic is in their 80s, their kids are 50s, 60s
- Mom is not making the decision on where she lives, it’s the kids
- Senior House Key Factors: Upper income neighborhood, single level preferred
- Students all over the country, strategy works everywhere
- 77 million baby boomers, 10,000 people turn 65 every day
- Only 1.4 million assisted living beds currently
- The Golden Girls model, 4 mature women in one house, rented by the room
- Could have one caregiver and one manager that rotate; manager hires and finds the caregiver
Bull’s Eye Tips:
Winning Your Market: The seniors are easy to work with, but be careful with the family members and their expectations
Tracking Market Changes: Networking
Daily Habit: Make a list at the end of the day for the next day
Resources:
Genworth.com/costofcare
Best Business Books:
The One Thing by Jay Papason and Gary Keller - https://www.amazon.com/ONE-Thing-Surprisingly-Extraordinary-Results/dp/1885167776
Traction by Gino Wickman -
https://www.amazon.com/Traction-Get-Grip-Your-Business/dp/1936661837
Digital Resources
Tweet This:
- A single house should net $10,000+ monthly
- Gene’s motto: Do good and do well
- Mom is not making the decision on where she lives, it’s the kids
- You don't want 100 houses, you want the cashflow that comes from it
Places to Grab a Bite:
Los Dos Molinos - http://losdosmolinosphoenix.com/
St. Francis - http://stfrancisaz.com/
Connect with Gene:
RALAcademy.com
Midwest Real Estate Networking Summit:
http://www.midwestresummit.com/
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