Business Plans For Opening An Assisted Living Home

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By Gene Guarino

Why do I need a Business Plan?

The number one reason to have a business plan is for you, so that you have clarity of vision of who you are, what you’re doing and where you’re going.

why-1780726_1280The second reason, is to help raise capital. No private investor or a lender is going to give you the money you need without a business plan. You need to be able to show to other people that you know what you’re doing and where you’re going. You need to know where it starts, where we break even, where we’re profitable, what’s my reserve and all of the details. You want to give them a clear vision so they can buy into or lend to you.

What are the 5 Ps?

People. Me, you, whoever is inside and operating within this business. The first thing a lender is going to look at is, who are the people involved? What experience do they have that is related to what they’re giving the money for? What do you do now that relates to what you’re raising the capital for? And if you don’t, who else can you put inside your Business Plan as an advisor? A team of people is better than one person.

meeting-2284501_1280Product. In your business plan you have to lay it out. What is it that you’re doing? Is it a product, a service, Is it whatever? You need to explain that clearly. With senior housing we’ve got it down to a T. We know exactly what it is.

Position. Are you the most expensive and that’s what makes you better than everybody else? Or are you the least expensive, which makes you available to everybody and everybody, however you don’t want to be the cheapest because then you’re always battling on price, and to be at the top? There’s very few clients or customers at the top. The best position is to be a high quality, somewhere above the middle. That’s what we call the sweet spot.

Projections. If you’re buying an existing business, there’s a past, a present, and there’s the projections into the future. The projections are, this is where we’re at and this is where we’re going. I’m going to encourage you to be conservative. Whatever you think it is, reduce it a little bit more. Don’t go overboard, make it more conservative to give you some breathing room so that you can under promise and over deliver when it’s all done.

door-1590024_1280Plan. An exit plan is one of the key elements that most people miss. That lender doesn’t want to know how much money they’re gonna make. They need to know their money is safe. They need to know there is a purpose. A two to five year exit plan means their money is committed for two to five years and our plan is to either sell or refinance once that business is stabilized. And that investor wants to know that they’re going to eventually get out of that deal. So two to five years on an exit plan is that key.

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 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.

REAL ESTATE: USING INFLATION TO YOUR ADVANTAGE

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By Glenn Mananeng

Inflation is an increase in prices for goods and services. In other words, as time goes by, your buying power becomes less compared to the previous years with the same amount of money. Picture yourself in the 90s and you have around $1 million dollars. Seems like a hefty amount of money especially if you’re thinking of settling in for retirement. Fast forward to the year 2019 and that same amount of money wouldn’t be as lucrative to save you up for the next few years to come. Inflation is something that has proven to be detrimental for most people. If we’re talking about investments though, a good investor can turn the negative face of inflation into something positive – and use it to their advantage. Strategy Properties is here to guide new and seasoned investors on how to deal with inflation and that they should actually welcome it.

Understanding Inflation

statistics-227173_1280A deep dive into inflation shows that it’s more than just an increase in prices. Reduction of interest rates, changes in demographics, and an increase in the rate at which income is generated are several factors that come into play. Like what we’ve mentioned, the oversimplified result of it is an increase in the price of goods and services such as food, rent, real estate prices, and stocks. What doesn’t rise with inflation though is your money. To put it simply, your cash is worth less as time goes by, which is why holding it for long periods of time isn’t a good strategy when it comes to investing and inflation kicks in.

Real estate has been a popular choice for investors because the rising prices increase the value of a property over time. As the price escalates, the rental payment of tenants can also increase which would benefit property owners and landlords. Inflation is inevitable. It can either be at a high rate, a steady rate, or something in between. The best way to win against inflation is by using it to your advantage.

Why real estate is the best investment

key-2114455_1280Properties are more immune when it comes to recession. To put this into detail, let’s take stock market investing as an example. The stock market can offer big returns in a predominantly strong economy but becomes very risky when it dips down to a recession. Your investments, no matter how strong they are, can easily shift on a volatile market. In real estate, you become less prone to a loss when recession hits since properties are generally almost always in demand for housing or other purposes.

Real estate investment trusts (REIT) are companies that own and operate income-producing properties. Publicly traded REITs can give you the upper hand in the long-run. It also helps you broaden your investment choices with less capital involved. Some may argue that they can suffer losses due to inflation but the liquidity of these investments can even things out over time in terms of profits.

If done right, your investments will give you steady cash flow. The rental income from your tenants can go straight to paying down the loan principal, which accounts for most of the value in conventional loans compared to other investments that can’t offer a high enough return during inflation. Aside from that, the appreciation of your property increases in value especially when improvements have been made to it.

money-1428587_1280Choosing the right location for your investment property shouldn’t be underestimated too. Settling on an area that is in a strong and economically resilient market is more likely to achieve inflation offsetting returns rather than one with a non-diverse market with weak demand.

Choosing the right location for your investment property shouldn’t be underestimated too. Settling on an area that is in a strong and economically resilient market is more likely to achieve inflation offsetting returns rather than one with a non-diverse market with weak demand.

Strategy Properties is a team comprised of professionals with extensive experience and knowledge when it comes to real estate investment and all the ways to hedge against inflation. Make the smart choice by partnering with us and contact us through (734)224-5454 or sending an email at [email protected]. Let us take care of everything while you sit back and enjoy the fruits of your hard-earned investment.

Hindsight Is 2020: What To Learn From The Last Decade In Real Estate

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By Fuquan Bilal

Hindsight is always 20/20. Now looking back over the past decade, everything that has happened in real estate is pretty obvious. What can we take from it as we move into 2020 and the next decade?

Market Recap: 2009-2019

graph-3033203_1280Even though some cities were already being hit hard by the Great Recession and housing crisis by 2005, some didn’t feel it, and it wasn’t publicly admitted until 2008. Some places still didn’t really see all of the foreclosures coming through the pipe until 2011 due to long processing times and banks trying to hide this shadow inventory and their losses. Later years of back data, including three years worth from the National Association of Realtors, would show just how bad things were.

Yet, by 2011, some markets were already turning around again. That also took some time to roll out around the country.

Few people were spared during 2008. It not only rocked people financially but mentally as well. Today, maybe 10% or fewer of those in real estate were in the business prior to 2008.

The Last Real Estate Boom

money-2724245_1280So, from 2011 until 2018 we saw a fresh boom in the US real estate market. This follows the historical pattern of phases of the market running an average of 7 to 15 years.

The big funds definitely helped fuel the fire by buying up huge pools of single family rental properties. Mortgage lenders shifted to making money easier to get for real estate investors than for regular home buyers. The regulations that created this environment really haven’t changed much. Although we have seen the FHA and government agencies begin to back away from their own subprime style loans in the last couple of years, meaning those with virtually no down payments, easy income underwriting and low credit scores.

The experienced and creative investors found ways to acquire assets at great discounts, and have done it at great scale.

However, over the past few years we’ve also seen a whole new wave of brand new Realtors, TV personalities and investors jump into the game. They’ve kept bidding up asset prices, and inventory has become increasingly more challenging to get. At least at numbers which really make sense. We’ve seen the markets that burst the worst in 2008 once again double or triple in prices.

We’ve had rumors of a new recession and warnings the stock market has been at least 60% over priced for years. Most investors seem to have become totally numb to these warnings though.

The Current Landscape

app-2941689_1280As a whole the economy has been very strong. Yet, we’ve also seen some massive IPOs that have failed terribly, and more concerns about tech companies that are losing billions of dollars. Upwork, WeWork, and Uber are just some of them. The recent exit of Google’s cofounders has also raised some eyebrows.

The retail home market appears to have already hit a new plateau in some markets. Rents and retail house prices are just unaffordable, except for speculative flippers in many markets. Even the biggest luxury brands have been ditching Manhattan’s famous retail rows. There are double digit negative trends out there in some niches and submarkets.

On the upside there are still some affordable cities and channels for obtaining discounts, but investors have to look for them.

There is still a huge appetite for US mortgage debt from around the world, to the tune of tens and hundreds of billions of dollars.

The Next Decade

binoculars-1015267_1280It’s logical to expect the next decade to be much like the last one. At some point there will need to be some type of correction. Then there will be a surge in acquiring distressed assets again.

There are opportunities to cash out, buy right, hold and make great returns in real estate. Providing investors invest by the numbers, and don’t fool themselves by buying into the hype.

Some people will always make money. You just may have to be more disciplined and creative over the next five years than during the past five years.

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Fuquan

Fuquan Bilal

Fuquan Bilal founded NNG in 2012 with the principal mission of capitalizing on the growing supply of mortgage notes in the interbank marketplace. Mr .Bilal utilizes his 17 years of residential and commercial real estate success to identify real estate opportunities and capitalize on them. To date, he has successfully managed three private mortgage note funds that primarily invest in singlefamily performing and non­performing mortgage notes. His financial acumen and proprietary set of investment criteria enable him to purchase underperforming real estate assets at a deep discount of face and market values, thereby increasing the value of the assets. This, coupled with his ability to maximize the use of leverage, enables him to build strong, secured portfolios with solid passive income flows.

Senior Housing – Big Box vs A Real “Home”

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By Gene Guarino

What would you rather live in… a “home” or a warehouse? When it comes to senior housing facilities, there are generally two types: Big Box facilities and Residential Assisted Living Homes.

In general they offer the same type of service, but how they deliver the housing or a “home” experience is very different. The first difference you’ll probably notice is the feel of the facilities. A Big box facility feels like a hotel or an apartment complex. They try really hard to make it “feel” like a home, but it is difficult to get that homey feel in a facility designed for hundreds of people to live there.

house-961401_1280

Residential assisted living is done in an actual single family home. It is achieved by converting single-family homes into a cozy place for a a group of seniors to live and receive care.

Another obvious difference is size. Big box facilities are big while residential assisted living homes are small. This difference in size plays a big part in the caregiver to resident ratio. That is the number of direct care staff compared to residents. In a RAL home, an average ratio is 10 residents to 2 caregivers. This is very reasonable, as caregivers can give ample time and attention to the residents. In a big box facility, the ration easily reach 20 or more residents to 1 caregiver. Ratios like this make it difficult for caregivers in bigger facilities to give each resident the full time that they need.

elders-401296_1280

Big box facilities aren’t all bad. One of their advantages is that there are more residents to interact with. These facilities also tend to be able to offer a wider array of activities for the residents. With a facility of 200 seniors, it is easy to find a group of people that want to knit together, watch a movie together, or maybe play bridge together. Big box homes don’t offer all the advantages though. Smaller homes offer more freedom to residents and their families. It is easier to arrange for a day out with your loved one at a small home. It is also much easier to stop by, with no need to sign in or show I.D. before you see mom or dad like in a big box facility.

A major difference is the cost of staying at these facilities. Smaller facilities generally charge a flat rate for residents care and housing. That cost will be determined up front based on the resident’s level of care and the actual room they stay in. Big box facilities charge a monthly rate and bill additional services a la carte style. The room rates will vary, depending on size and privacy and then they charge more based on what the resident’s level of care is.

location-3324959_1280The location of these facilities are quite different as well. Small homes are generally in residential neighborhoods. In fact, there might be one in your neighborhood and you didn’t even realize it! Big box facilities are large commercial buildings surrounded by a parking lot. These can be located near a neighborhood, but they are generally located in the busier areas or even the business districts of cities. The differences are clear when it comes to big box facilities and residential assisted living homes. One feels institutional, one is a home.

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.

Who Is Real Estate Fund Investing For?

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By Fuquan Bilal

Who is investing in real estate funds best for?

There are many ways to invest in real estate. You can try to fix and flip houses DIY style, do the Airbnb thing, rent multifamily apartments to students, and buy mortgage notes. Then there is simply investing in the real estate funds that do these things. Who is fund invest ideal for compared to these other strategies?

‘Slackers’

Being a hands on landlord, remodeling homes with your own hands and doing workouts with delinquent mortgage borrowers is real work. It may be more profitable than any other job you can do, but it is hard work. If you are drawn to invest in real estate for passive income and are not a big fan of taking big risks, then investing through a fund is probably for you.

Let someone else who has already gone through all the trial and error and years of trial by fire, and who has built teams to handle all the different parts of the business do it for you. You invest, relax and just enjoy the rewards. It’s not being lazy, just smart.

Busy Executives & High Income Earners

There are many workers out there right now who are making great money at jobs that keep them really busy. You might be a doctor, tech worker at Google, or a pilot. You get paid well, but work a lot. You know you can’t bet everything on your one employer, but don’t have time to take on another job or master direct real estate investing for yourself on nights and weekends.

A solid real estate fund can give you the diversification you need in your income and investments, without taking up more of your precious time and brain space. It may even ultimately be your best ticket to finally enjoying more time, without sacrificing the income and lifestyle you’ve been acquiring.

Entrepreneurs & Business Owners

Whether you’ve gone all in building a fantastic tech startup or small business, or are now exiting that company for millions of dollars, a real estate fund could be vital to your financial security.

Startups and small businesses have an extremely high rate of failure. There can be massive upside potential too. Yet, it is smart to have something to fall back on. A fund with tangible real estate collateral and passive income can be the ideal balance for a high risk venture which can be vaporized at anytime by macro economic factors or billion dollar competitors. If that happens, your fund investments can still ensure you’ll have an income and some assets to fall back on.

Similarly, if you’ve just sold your business for millions, you’ve got to manage that very wisely. Sure, throw some money into a new venture, take some time to travel and think about your next startup, and give a lot away. Just make sure you’ve stashed some in a solid investment that can provide some financial stability for you over the long term as well!

Other Real Estate Investors

Maybe you are already a very active real estate investor or owner of a successful real estate business. Maybe you are making plenty of money in wholesaling, flipping notes, or even build to rent. What those who survived (and didn’t) learned from 2008 was that having all your eggs in one basket can be catastrophic. There are big benefits of focused diversification. Meaning, real estate is great, but having multiple strategies in play can provide far better financial security and consistency. By all means focus on and master flipping houses in your area. Just balance that by leveraging others’ expertise in notes and income properties through a fund. Slice off a portion of each of your paydays into investments like these to protect your income and net worth over the long run.
Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Fuquan Bilal

Fuquan Bilal founded NNG in 2012 with the principal mission of capitalizing on the growing supply of mortgage notes in the interbank marketplace. Mr .Bilal utilizes his 17 years of residential and commercial real estate success to identify real estate opportunities and capitalize on them. To date, he has successfully managed three private mortgage note funds that primarily invest in singlefamily performing and non­performing mortgage notes. His financial acumen and proprietary set of investment criteria enable him to purchase underperforming real estate assets at a deep discount of face and market values, thereby increasing the value of the assets. This, coupled with his ability to maximize the use of leverage, enables him to build strong, secured portfolios with solid passive income flows.

AM I TOO YOUNG TO START INVESTING IN REAL ESTATE?

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By Glenn Mananeng

Real estate investing is a journey. The earlier you muster up the guts to take that first step, the sooner you’ll reach your financial goals. Beginners in real estate usually start their careers around their 30s or 40s. It may be due to fear, inadequate knowledge about the field, or the lack of capital to start investing. In real estate, there are no age limit nor requirements. Anyone with the right mindset can invest with as little as a few thousand dollars in their pocket. Unique Wealth Education wants to pave the way for young real estate investors who want to start in the business and leave their mark on the real estate world.

How old do you have to be in order to start investing?

If you skip the cartoons and drop your phone down to skip posting your social media drama and think about investing instead, then good for you! That’s one way of being responsible and your first step to being financially independent. Take note that from a legal standpoint, you need to be at least 18 to sign legal documents. There is still hope for ones younger than 18 though cause a guardian who’s over 18 can legally sign for you. However, you won’t technically own the properties you’ve bought until you turn 18.

Perhaps the best time to start investing in real estate would be during your ripe years in the 20s. If you’re serious enough, at this age you must have mustered up enough courage and researched about the basics of real estate. Start early to earn early.

Common excuses of young investors

“I won’t be taken seriously”

This is a pretty legitimate fear but one that can definitely be worked on. Many businesses are constantly on the lookout for youthful individuals since they are generally considered strong assets. There’s a term in the business commonly known as “analysis paralysis”. Feelings of self-doubt can start creeping in right before you even make the leap of faith and causes you to get paralyzed in fear.

One way to combat this is to put in the right time and effort to gain experience and confidence so you can plow through any negative emotions you might have lingering at the back of your head. Don’t stop midway, push forward and it will bring you much-wanted results! Believe it or not, your hard work will serve as your resumé.

“I don’t have the cash”

Another common excuse especially for those currently working or fresh out of college. The reasoning behind this is that most of them are still carrying student debt or loans with no well-established credit history yet. It is true that credit score can be a factor in some real estate investments. However, you don’t even need that good of a score to start investing. Remember, the reason why you thought about investing in the first place is to make yourself financially stable, the better credit score will just be a by-product. Use this as a means to pay off your student loans. Don’t let this excuse rob you of your great potential!

“I’m too young for this”

It can be difficult when you’re young since investing isn’t something that we’ve been taught very deeply at school. You think that most of these young investors were already wealthy to begin with. However, the most recognized investors started from the bottom and they clawed their way up until they finally gained success and became financially stable throughout the years. Just to remind you again, the sooner you do it, the more opportunities you have to make money.

Benefits of starting young in real estate investing

You have more free time

Real estate branches out to a lot of aspects that may be overwhelming for some. It requires a lot of knowledge and experience to know where to invest and learn about different market trends. By starting early, you increase the time frame of you learning more about the important factors in the industry which can benefit you with making the right choices on your hard-earned money.

You get to have tax benefits

A common misconception about earning well in real estate is that the bigger part of your income goes into taxes. This is wrong though as real estate is actually a very wise choice that can help you save taxes. At a young age, you can claim tax deductions in case you have applied for loans. Tax incentives are even offered on repayment for some particular transactions.

You have the marketing advantage

This is where spending most of your younger years on social media pays off. Tech-savvy youngsters have the advantage as they can use a wide variety of online platforms to market their real estate business. No matter what age they are, people are more keen to use online sources in their daily lives – especially when they’re looking to rent, buy, or sell a house.

You can retire early

Investing at a young age allows you to reap its benefits as soon as possible. This gives you the option to tick the boxes off from your bucket list. It normally takes at least a decade (or even less) to achieve what you want when you retire. Imagine starting in your 30s only to retire around the age of 40. You have more time to let yourself grow in the real estate business, and that my friend is a ticket to the comfortable retirement everyone is dreaming of.

Paving the way for young investors

It’s admirable to see you strapped-in and ready to take in your first real estate investment! We might want to back up a bit and think about how we’re going to do this – and we need to do this right. Let’s look at a few pointers before you take off.

Research, research, and more research

Be aggressive with your education. Aside from investing in real estate properties, spend your time and effort in books on real estate investing. For those that aren’t too keen on reading any sort of literature; podcasts, webinars, blogs, and even audiobooks are readily available for a fair price (some are even offered for free!). Make due diligence in your research because if you do, this will take you a long way.

Start small and build yourself up. Although there are a lot of real estate strategies out there, read on what would be the best fit for you. Investing in rental properties can be a good start for young investors. Learn to weigh out the pros and cons of each investment strategy which now brings us to our next point.

Risk management

A good investor knows that with every strategy that they plan to take on, risks come with it. It’s a matter of how you approach the risk and how you manage it. Every individual has their own take in cases of risks or conflict. Luckily for young investors, you will be able to handle it in a different manner compared to your older age bracket. Young ones have a fresh and appealing approach to the business. The enthusiasm and motivation levels are quite high which helps mitigate and manage any risks that come your way.

Remember, no matter how seasoned and experienced an investor is, they definitely encountered risks along the way. Managing these risks are what made these pros hardened and successful in the real estate industry. Understanding what is the worst case scenario in each investment, potential turbulence, and how to handle it if it occurs is key to mitigating risk and achieving success.

Have a mentor

You might be thinking that you don’t know anyone who might have the same interest in the real estate business as you do. People you know are probably out there partying, slaving their time playing video games, or acting out there bachelor/bachelorette fantasies which means you don’t have the helpful and motivating support from your peers.

Use your tools to your advantage. Join local real estate investing groups on Facebook or join similar conversations in twitter and actively participate in them. Your network should include a wide range of real estate investors, contractors, realtors, wholesalers, and property managers. Pick up the phone and don’t be afraid to ask for referrals.

A mentor who deals with “A-Z real deal training” is your best bet. Unique Wealth Education offers such a training program and many more which are facilitated by real estate professionals who work with you from start to finish on locating deals to selling them. Your net worth is directly proportional to your network. Start it right by having the right mentor.

If you feel like throwing in the towel, hold up a bit and let us help you. Try to do a little bit of trial and error and don’t be afraid as we’re here to guide you so you don’t commit irreparable mistakes in the first place. This allows yourself to keep things at your own pace and eventually succeed. If you want to get started but you still have doubts, Unique Wealth Education is here to help you out. Feel free to join our monthly meetup every first Thursday of each month where investors young and old share experiences and make business ventures with one another. Contact us at (734) 224-5454 to learn more.

4 Real Estate Investing Strategies for New Investors

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By Corey Tyner

Getting into the business of buying and selling homes can be daunting — especially for new investors.

However, just like any other investment, everything revolves around the fundamentals. We’ve created this infographic to guide new real estate investors and help them get started on achieving those long-term financial goals.

There are many ways to buy land and invest in real estate, but we will be going over four of our most commonly used strategies that are favored by seasoned real estate investors because they are tried-and-true. These real estate investment strategies cover most of the properties that you will want to purchase as a beginner, from a quick flip where you buy and sell your house fast, to the regular passive income you receive from a buy and hold.

When you are investing in real estate, you may hear some terms you are unfamiliar with:

  • Lipstick Flip – A “Lipstick Flip” refers to flipping a home with minimal cosmetic updates, to quickly see a return on your investment. Lipstick Flips are a fast way to get into real estate investment, but you need to be more selective when you choose a home; if the market sees homes in the area selling quickly this may be viable, however, if homes are selling slowly, you may want to consider a different type of investment, since it may be difficult to sell your house.
  • Wholesale – Wholesale real estate investments are usually done quickly. You buy low, and often sell low. Wholesale real estate often focuses on distressed properties you would otherwise overlook.
  • Buy and Hold – Buy and hold usually means when you buy a property for the purposes of renting or leasing it out, but you can also buy land you think will appreciate in value. We will be going over how to buy and rent properties.
  • BRRR&R – Buy, Renovate, Rent, Refinance & Repeat. This is the way many people build a huge real estate portfolio because it offers both short term and long term gains. This strategy is best used in areas that are still low but have property values rising quickly due to gentrification or an otherwise fast-improving neighborhood.

Corey Tyner

Corey Tyner is a writer and business owner who helps sell houses fast. He is the founder of Austin Fast Sell Home Buyers and is one of the top real estate investors in Arizona. With over a decade of experience, his work has been featured on Bigger Pockets, Real Estate Agent Magazine, and several other mainstream real estate investor publications.

Assisted Living Explained

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By Gene Guarino

What is Assisted Living?

A lot of people think that assisted living means a big institution. In the old days, that’s what it was. What it is today is completely different. When you think about living at home, all of the comforts of home and there are other people in that home. One of the things about the way we do it in residential assisted living is it’s a community. It’s a group of 8, 10, to 12 seniors in a home with peers their own age, living in that home together.

Why you should consider Residential Assisted Living

If you’re at home and maybe a spouse has passed away, you’re alone. It gets lonely. Your kids can’t come visit every single day. They’re not living with you taking care of you either. So having a community of people to be with is incredibly important. It’s not just your physical health, it’s your mental health, your attitude. Residential assisted living looks like a home because it is a home. It may be in the same exact neighborhood the senior lives in now.

Assisted Living is for when somebody has an event, they move into assisted living after that event where they need additional help or monitoring. They need help with their medication, bathing, feeding or whatever it may be. They move there because they have to. And it’s a home setting and that’s specifically what we do with residential assisted living.

It’s not a nameless, faceless situation. It’s a home.

The caregivers know the seniors who are living in the home by name, they love them dearly, they love to be with them. And it can be a fun place to be. It’s not just people sitting around in wheelchairs and getting ready to die and pass away. It’s people who are there living out those last days and many times what the families find is when they move mom or dad into that assisted living home, they come back to life.

All of a sudden they are eating better, they’re getting sleep. The families come to visit and they have a whole new attitude. They now can be the sons, the daughters, the granddaughters and the grandsons again, not the caregivers.

How do we handle death in Assisted Living?

Let’s face it, we’re all going to pass away. The question is when, not if. The manager will see that and call the family. The family will come and they’ll spend the last few days and weeks with them, saying their goodbyes. And then in a very natural way, nine times out of 10, they pass away in the middle of the night. You understand that there’s more than being here on earth. There’s a lot more that’s coming ahead of us. The opportunity to share with other people during that time is incredibly powerful. To be able to care for them during that time is equally important. The families are thankful that we were there to take care of their family member all during that time.

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 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.

OFFICER AND HANDS-ON REAL ESTATE INVESTMENT TRAINER PUTS STUDENT SUCCESS FIRST

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By Karen A. Walker

For Los Angeles Police Department (LAPD) Officer and master real estate investment teacher and trainer Alton Jones and his wife, Rocio, it’s all about relationships, helping others succeed and being your best self. Every day. Every minute.

But while Jones has helped people succeed in real estate investing beyond their wildest imagination, he doesn’t promise, and never himself expected, overnight success. His experience as a police officer prepared him for that.

He knows first-hand that success takes learning, listening, focus, persistence, a good sense of humor, a healthy dose of humility (did I mention persistence?!) and, most importantly, taking action.

That last step—action—can be the most difficult, but simply doing the right things and repeating until it become second nature marks the difference between success and none.

“It’s one thing to talk about it,” says Jones, “but a totally other thing to actually DO it!”

Did you say police officer?

Jones has been an LAPD policeman for more than 34 years. For the first 16 of those years, he served as a full-time, active duty officer. After that—to this day—he serves as reserve officer.

In the last 10 years, Officer Jones has been honored as a Reserve Officer of the Year. Twice!

“Officer of the Year is a big deal,” explains Jones. “A few officers are selected each year and honored for exceptional service during the year. About 600 people attend the honoree dinner, and it’s really a big deal, with any funds raised going to help the families of fallen officers or others in our police family who need it.”

At his more recent honoree event, the main cast and the creator of the TV series THE ROOKIE attended, which made it extra fun.

People skills

Just as in police work, real estate investing involves good training and good people skills. Relationships matter.

Knowing how to talk with a myriad of different types of people can mean the difference between life and death in police work.

“As an officer, especially on patrol, you have to talk with so many different kinds of people—victims, drug dealers, the mentally unstable, drug users on a high, the traumatized, witnesses, violent or less violent criminals,” says Jones. “Good officer safety skills are critical. You also have to be able to get accurate, useful information from witnesses. Those statements have to be able to hold up in court or identify a perpetrator, so you have to know how to ask a question and which information to pursue.

“In addition, sometimes you have just seconds to assess a situation or persons involved. Knowing how to quickly assess and talk with different people can determine if you come home that day.”

In real estate investing, regardless whether you are fixing and flipping houses, negotiating fair win-win deals, managing contractors, or teaching others your proven system for success, it’s critical to develop good people skills and to build strong relationships.

And to build any kind of relationship, you have to be a person of integrity in words and actions.

Knowledge alone isn’t enough

“It’s one thing to talk about it, but it’s a totally other thing to actually DO it!!” says Jones, who gets his students quickly to action.

Again, the comparison to police work is clear.

In the training process you learn how to talk to different people, what you need to ask and what to do in different situations, what information you need, and so forth. But learning it in a classroom doesn’t make you successful.

It’s a different story when you get out on the streets and you’re talking with real people, or in the chaos of an incident and trying to sort it out.

Same for the investor.

Practice (i.e. taking action) sharpens people skills until the right thing to do in negotiating an opportunity or managing contractors becomes second nature.

Never stop learning: Mentors matter

Alton always says, “It’s OK to copycat, as long as you copy the right cat.”

Jones got into the rehab, fix and flip business in 2009. But he didn’t do it alone. He chose his mentors well. He invested in himself and in his success, and he hasn’t stopped to this day.

Even with the success he and his wife have achieved and continue to achieve… even with his rapid rise to being asked and encouraged by his mentors to become a teacher for others, beginning in 2013… even with his popular books and with the success he and his wife continue to nurture and grow in themselves and others… even with all that, Jones continues to listen and learn from others.

Two of his stand-out mentors are Ron LeGrand and Dan Kennedy.

From his mentors, Jones learned early on that to be successful you must be purposeful in all you do. You must run your business as a business, not as a hobby.

He learned what to do and how to do it.

He also learned to expect uphill battles and set-backs, even after you’ve achieved remarkable success.

It is what it is.

Be prepared. Go forward. Keep your eyes on the prize, on doing the right thing, and on serving others.

Knowledge alone isn’t enough

“The majority of people will tell you ‘no,’” says Jones. “So what? You have to rise above. There’s EGO, but you gotta drop the “e” and just GO!

“In the police department you have to have the will to live. You learn and you have to face the reality every day that there are people who want you dead, but you have to — you MUST — have the will to LIVE. That keeps you doing the right things, following the good skills and training you received.

“In developing a real estate business, you have to have the will to WIN. That keeps you focused on the end goal. It keeps you going forward.”

Good mentors tell you the truth. They also practice what they preach.

The best mentors don’t just deliver knowledge. They don’t teach swimming lessons while standing on the edge of the pool. No. The best mentors lead by example. They get in the pool with you and show you how it’s done. They insist you get into the water and learn how to swim for yourself. And they’ll be with you every step of the way, IF you allow it.

When Jones holds training sessions and boot camps, he tells it like it is. With a smile, he calls himself a minister of truth. He doesn’t deliver what attendees might want to hear. He delivers the reality, the truth.

Rehab 2 Riches

It was an unexpected honor when Ron LeGrand, in 2016, not only praised the system for success Alton and his wife had developed, but when he also strongly encouraged Jones to launch his own training courses on that very system.

Alton’s Rehab 2 Riches courses, bootcamps and more soon followed, to popular acclaim by attendees.

“I believe what we do changes lives,” says Jones. “People who come to one of our events, they’ll make a life-changing decision at that event. Those relationships made at our events can take you from $0 to self-sufficient.”

Jones smiles when he talks in his bootcamps about the importance of building a Million Dollar Rolodex of exceptional resources for your business. “These days there are a lot of people who don’t know what a rolodex is,” he says. But it hasn’t held any of his students back. They still understand the point.

Jones practices in three markets—southern California, Dallas and Memphis. Of all these, however, his preference is his beloved southern California.

For more information, go to Rehab2Riches.com.

Alton Jones says that in this business there are five things you have to do to succeed:
1. Locate prospects
2. Pre-screen prospects
3. Construct and present offers
4. Follow-up
5. Close quickly

Books by Alton Jones include:
• Ask Me How I Know? Four biggest house-flipping mistakes that made me millions, by Alton Jones

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Karen Walker is the founder and executive producer of The Mentors Radio Show (TheMentorsRadio.com)

Real Estate Investing: A Market Correction is Coming

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By Tim Houghten

It’s inevitable. A market correction is coming. The market has been on a high for years now. In 2018 alone, the Dow Jones Industrial Average broke a record high 15 times. If history has taught us anything, it’s that the market cannot sustain those highs for that long without a correction. Real estate markets across the country are still very hot. Even with the “cooling” that some markets are seeing, real estate prices are still well above records and competition is hot. “A cool-down has been predicted for over in a year in our local market. However, I’ve yet to see it. Sure there are some longer list times for sellers but properties are still selling in record time over asking price. It’s still a hot market,” says Eric Jones, Director of Sales and Marketing for Freedom Real Estate Group.

With all that being said, the question on every wise investor’s mind: how can I prepare myself for the next recession? The short answer, diversify. The long answer, diversify into buy and hold, long-term strategies.

“The short-game (fix and flip) is good. It’s instant return. But you get hit hard by the tax man. Buy and hold has some of the best tax advantages of any asset class,” Jones stated. “Depreciation, property taxes, mortgage insurance and more are all deductible expenses. Plus, with fix and flips, it’s simply not a long-term strategy. It’s not a way to build true wealth.”

To lessen the risk of any big swing in the market, the answer is to diversify your investment portfolio so all your eggs aren’t in one basket. The problem many individuals faced in 2008 was that most of their 401k or other retirement accounts were tied up in stocks and mutual funds. When the market tanked, so did their accounts. Now imagine if half of those funds were diversified into buy and hold real estate. For many, the outcome could have been vastly different. Here’s why.

The key to cash flowing, rental properties is that even during a down economy, they’re still cash flowing at the same amount. In some cases, even higher. Let’s look at it this way. If you were getting an 8% return on your stock investments, and the market crashes, you’re likely going to be reduced to 2%-4% if you are lucky. With rental properties, the rent amount stays the same. Your mortgage stays the same. Your property management fees, if you have them, stay the same. Essentially, if you were getting 8% returns on your property before, you’re still getting that. In a down economy, rents rarely go down. You may not be able to get rent increases during that time, but you will at least have a steady, consistent amount of cash coming in each month.

Rental properties tend to weather a down market in a consistent or even appreciating way. Not necessarily appreciating in value of the asset but appreciating in terms of cash flow being received. In a bad economy, a few things are happening. People simply aren’t buying homes. Credit is tighter. People are scared. The pocketbook is squeezed. Instead of purchasing, individuals and small families tend to continue renting during a recession. In addition, those that may be losing their homes to a foreclosure turn to single-family or duplex style rentals since it’s more private and familiar than a large apartment complex. Therefore, demand may actually increase in a down market which is a huge win for rental property owners.

With all that being said, a down market is definitely not the time to sell your rental properties. It’s a buy and hold strategy. During a down market, it is always best to hold these properties unless there is some absolute reason you must sell. When the market begins to climb again, then you may want to consider selling to upgrade to another investment property in a better neighborhood or better yet, purchase two and double your cash flow.

The best part of investing in rental properties is investors are wealth building while cash flowing. Very few investments offer this kind of opportunity. With a buy and hold strategy, you are receiving the benefit of monthly cash flow while also building a portfolio of tangible assets that will always – no matter the market – have value. “If you have the right plan, with a decent amount to invest, you can quickly scale up to a very healthy portfolio. We worked with a dentist who had $400k to invest and wanted to receive $10,000 a month in cash flow so he could retire. We built a plan and got him to his goal in three and a half years. He was able to retire early. However, not only did he keep receiving the cash flow each month, now he has tangible assets that he can sell off if he ever needed to and can pass on to his children and grandchildren,” Dani Lynn Robison, Co-Founder of Freedom Real Estate Group stated.

Something else to consider is how you are using the power of inflation to your advantage. Most 401k plans aren’t able to keep up with inflation. With the small returns and high managements fees, unless you are able to invest a lot in those funds, you may not even be able to keep up with the rate of inflation. However, with rental property, you are working with inflation to win in two ways. First, your mortgage payment doesn’t change. Let’s say when you purchased the property it was a $500 per month payment. If the market tanks, it’s still a $500 payment on a fixed rate loan. If the market is great, same payment. When the market is doing well, your asset, if all goes as planned, is increasing in value. You’re actually earning value on the asset while effectively reducing the value of the money you’re paying due to inflation. Second, you will likely be able to increase the rental amount between 1%-5% per year. That’s additional cash flow and value you will be receiving yearly.

Finally, it’s important to note that this is an investment and with any investment, there is inherent risk. No investment is guaranteed. However, real estate is one of the most proven, asset-based investment classes in history. Most millionaires were either made through investing in real estate or find large value in investing in real estate. As you explore this investment opportunity, look for markets that do not have super highs or super lows in market crashes (like 2008). States affected greatly were Florida, California and Arizona. One of the cities most notorious for being hit hard in the crash was Las Vegas. These may be markets to steer clear of. If a market crash occurs again, it may cause migration out of those areas resulting in rent losses. “Consider markets that may seem ‘boring’ like many in the Midwest including our market – Cincinnati and Dayton, Ohio. These have proven to weather a down economy and not have big drops in real estate values or population. These are the markets where you truly win.” Eric said.

Diversification is the key to weathering a down turn in the market. More specifically, investing in buy and hold rental properties not only is a proven strategy to survive and even thrive in a down market, but one that holds many positive attributes such as consistent cash flow, numerous tax benefits, and true wealth building.