Covid-19 and Airbnb

/in , /by

By Holly Lynn

The outbreak of the Covid-19 Virus has put a damper on short-term rentals around the world. With travel restrictions tightening the necks of travelers; Airbnb is experiencing a downturn in rental stays. Especially in affected areas.

Airbnb has reformed its cancellation policy to both hosts and travelers. If you are an Airbnb host, you may experience a fluctuation in rentals and cancellations. Reviewing the updated policy is essential. Airbnb is also announcing More Flexible Reservations In Times Of Uncertainty. This is a program that Airbnb is developing to assist hosts and guests when situations like the Coronavirus outbreak happens and to help them cancel or postpone their plans.

airbnb-3399753_1280Along with these changes, Airbnb is also offering incentives for hosts who are willing and able to offer refunds on cancellations that would have otherwise been subject to charges. They will also provide promotions to boost listings and bookings.

As an Airbnb host, there are things that you can do to make the guests you do have to feel safe and assured that their accommodations are up to standards set forth by common sense and the World Health Organization or WHO.

Here are some ideas that may help you:

Post Hygiene Standards List

hand-washing-4818792_1280

  • Post proper hand washing techniques in the kitchen and restroom.
  • Clean your hands often
  • Wash your hands often with soap and water for at least 20 seconds especially after you have been in a public place, or after blowing your nose, coughing, or sneezing.
  • If soap and water are not readily available, use a hand sanitizer that contains at least 60% alcohol. Cover all surfaces of your hands and rub them together until they feel dry.
  • Avoid touching your eyes, nose, and mouth with unwashed hands.

Supply Surface Wipes and Sprays

spray-315164_1280Supplying surface wipes or sprays such as Clorox, Lysol, and Purell for daily cleaning of surfaces that are touched often as a preventative measure. These include counters, tabletops, doorknobs, light switches, bathroom fixtures, toilets, phones, keyboards, tablets, and bedside tables. Surfaces that may have blood, stool, or body fluids on them should also be cleaned.

Wash All Bedding, Linens, Towels, And dishes

Washing all bedding, linens, towels and dishes is important even if the guests did not use them. You can’t be certain if an ill guest has coughed or sneezed on a dish or a throw blanket. Better safe than sorry. Putting dishes in the dishwasher is extra work but satisfying knowing that you are doing all you can for the health of your guests. Assuring them that these practices are in place will give the next guest a feeling of security and comfort.

Provide Snacks, Coffees, Cereals In Single-Serve Size

coffee-791919_1280Providing snacks, coffees, cereals, and single-serve packaging will prevent cross-contamination. Using bins to hold oatmeal or coffee can spread germs from one guest to the next. In actuality, it should be practiced all of the time.

These are just some of the things that you can do to keep the coronavirus at bay. With ever-evolving information made available through sites such as NIH, CDC, and WHO, a daily check-in will keep you updated on changing information and areas affected.

Just remember that this too shall pass. We always bounce back from adverse situations. The human race is enduring.

If you need staging and Airbnb management, hard money loans, or private lending, email me at [email protected] or call me at 415-317-6071.

holly-lynn-square

Holly Lynn

Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Team Building, Television, Leadership, Marketing, and Digital Marketing. Strong business development professional who graduated from San Francisco State University, College of Business.

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Her authentic, personal relationships with both lenders and investors coupled with her vision, work ethic and endless desire to make the deal work position her as a sought-after, leader in the industry.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

She is a self-taught deal maker who has always had a keen business sense. She works with investors and syndication across the board who are looking for real estate investments that produce passive income streams.

She built B.A.M.F into the single most recognized name that is designed to build strong relationships and invest in multifamily projects to create massive cash flow and wealth. B.A.M.F monthly meetups in San Francisco, San Mateo, Fremont, San Jose and those conducted through webinars are open for everyone. As the multifamily properties continue to be an investment megatrend, She gives everyone an opportunity to learn about multifamily property investments and opportunities that would only be otherwise available for top dealers and those who met the qualifications by SEC. But through B.A.M.F, you can meet with experts and deal organizers who can provide you with great investment options.

Holly’s reputation has been earned one transaction at a time with no substitute for hard work and honesty. Take advantage of her deep proven experience in the real estate and investment market by joining her events and mixers. Mixers that are organized by B.A.M.F is sought after by reputable individuals in the investment and finance field. It is your chance to learn and grow.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

Wondering What to do NOW In Real Estate? (Part 1)

/in , , , /by

By Jimmy V. Reed

So what do you do when the market is flooded with so much
Competition? How do you really get Wealthy in Real Estate? Getting fed up!?? How about Real Wealth Deals???

It seems everyone has started buying any and everything in real estate and the worst part is everybody is in real estate and everyone in real estate is claiming to be some kind of Expert! There is so much overload on what you should do and how you should to do it. It can certainly drive a person crazy just starting out in the business. Well it can also drive a 30 plus year Seasoned investor crazy too!

human-3175027_1280So, what happened? Well Social Media and the Internet has given everyone access to everyone and everything real estate. To top it off you can get a lot of new wanna be investors mixed in with those who are really serious and interested in investing, that in return creates so much run around that it sometimes all seems like a big waste of time. All these Experts are saying you need to be on Facebook, Craigs List, every Internet site there is. Market everywhere & to everyone, and yet I think when you send an email these days everyone just gets use to hitting the delete button from all the overload of emails, they no longer even really read them.

Now let’s step back to the days of old, by the way everyone out there will also tell you old stuff wont work. But give me a minute and I can explain, “yes it can”! See there is a higher level of investing from what I call Real Networking. You see most investors today go to all these free Networking events, well because there free! Broke people tend to be the majority at most of these Networking events. Go back in time yet even still today and you find that the Wealthy still Network like they always have. They’re at their Monday Golf games, or their every Tuesday lunch meeting with the 2 to 4 people that they have done business with over the years.

yacht-4292334_1280You see the Wealthy hang out with other wealthy people. They want the people around them to be smarter & wealthier than themselves. And no matter what the investment or the technique they use to get it done there are some basic principles that never change. So, let’s talk about some of the most important.

First most people may start out just like I did, broke! So, they go straight for the greatest technique Wholesale! But now days it’s changed a lot. If you are in a market where prices are soaring and everyone and their mother is your competition, then it’s going to be tough! You also must look at where you are looking for your potential deals? Is it on Social Media? MLS? Keep in mind now days everyone likes to market that they have an “OFF Market Deal” as they scream that out over the Internet to the whole world. So, what do you do?

Well first let’s list other ways to make Money vs get Wealthy. Second thought lets just go for Wealthy! However, before I do let me help a little with Wholesale. How about Wholesaling Notes. You may have less competition. Or look at Probate but not a list! Check out other articles or our website about these and other ways to find deals with less competition at www.JimmyReed.net.

Now Wealth, real Wealth is really just this simple, whether you like it or not. “You Buy & Sell to create Cash! And You Buy & Hold to Become Wealthy!” If you just keep buying and selling you will always be working a job. Regardless if you are Wholesaling or Flipping Rehabs, it’s just work, a JOB!

sale-3701773_1280Holding Houses or any real estate that pays you Monthly is the first step to becoming Wealthy. By the way holding houses verses holding notes both are great, but the notes do eventually come to an end. Holding assets that produce income in the right Markets will always keep you in the Cash Flow regardless if you work or not.

I’m sure you’re asking yourself well how are you going to do that with no money, well you’re not, but someone may be able to help you. That is exactly how I got started back in the late 80’s. I found a partner with money to put down to get a house we could buy, fix and sell. However about 6 months in it became a buy & hold asset instead. I won’t go into all the details but basically it became one of my first rentals.

Now I know many will say I don’t want a rental, or I don’t want to manage property, or even the most popular “tenants will just tear it up”. Well I can agree with you on all of that. However, after 30 plus years of investing this one strategy of Buy & Hold has truly been how we have made the most money over time. We have had every issue you can think of from damages to drug raids even fires, you name it and it has happened to us.

taxes-646511_1280-1024x538So, get over it! Here is what you need to focus on, one you have tax benefits, two you have Monthly income, and third you can refi the property several times over the years you hold title on it. Lastly you can even use that refi money to purchase more rentals. Start to build your portfolio and start creating a line of credit with the equity. So much more I can tell you, but I want to get to the bigger picture here.

After having rentals for many years including apartment buildings, duplexes etc… I decided to kick up my Wholesale machine the last couple of years, and low and behold I can’t seem to find any REAL Wholesale Deals! All those new people have driven the market up and created so much competition its just not as easy to get great deals as it use to be. However, via our Network and searching in the areas that have less competition we do find some great deals. But again, prices are nuts and the rehab has gone up all because our Market is HOT!

So now to what this whole article is really about, and that is going to Markets just outside the major Markets. See I live in what we call here in North Texas as the DFW Market. Over the last several years we went from some 5 plus million people to over 7 million plus. Outside buyers from higher priced markets such as California, New York, etc… have driven up our prices with all the demand. So, everyone has jumped into the real estate game.

new-home-1664284_1280So, as you have probably figured out, I like to be in my own little arena where no one else is playing or at lest very few. I aim for the strategy most investors are not, and buying rentals is one of those. Especially if that rental is NEW Construction. Yes, we are starting to do something a lot of Texans in the past just would not do, and that is travel outside our markets like the Californian Investor has done for years.

Only thing is we don’t have to travel that far. You see we have found some really hot markets anywhere from a 30-minute drive up to a round 3 hours outside the booming DFW Market. Best of all I’m now buying New Construction houses with all the higher end fixtures, flooring, even all brick construction. Best of all they cost less than that 1960 or 1970 home I buy in my backyard that still needs $30 to 50k in rehab on top of the purchase price. Even after those houses are rehabbed, they still are older houses.

So, let me tell you this article will be a two-part piece. This first part we will look at some of these new construction properties in these out of the Metroplex market. Yes, they still have a high demand and do cash flow as rentals. In the next issue (Part 2) we will talk about these properties and how to take the standard rental and have the option to turn it into a VRBO, for in many cases you will triple the Cash Flow!

So lets begin with the market where I am buying New Construction for rental only just less than an hour to hour and half outside the DFW Market. By the way we even have a great Property Manager we work with from our real estate club who can manage them.

What I’m purchasing are properties that are typically 2-1 or 2-2 brick houses with all the high-end fixtures and flooring and even include the stainless steel or black appliances. These properties are smaller but there is a demand for the price point as a rental and even as a resale later.

architecture-2804069_1280The little town they are in was voted as the number 1 Historic Downtown in the USA. And let me tell you the Market is rocking with just a few Investors. Many DFW Investors don’t even know about how Hot the Market is here. Here is a little glimpse of it.

Yes, this little town is booming with growth and not enough properties for the growth. More importantly hardly any affordable rentals in the area. And when you find something for rent that is close to being affordable its most likely a mobile home.

So, opportunity has arrived! We can get these homes anywhere from around $158 -$165k and they can rent from $1,300 to $1,400 a Month. Keep in mind you have a new product, so repairs are very minimal. Then, because of the lake access and the properties being less than a few miles from the Square they could also be used as VRBO and Airbnb. We will talk more about that in next Month’s article.

Imagine having brand new construction houses in the hottest little Market in the US just South of the DFW Area which is rated 4th largest Metropolitan area in the US. Just 30-minute drive from Fort Worth and another 45 – 75 minutes from Arlington, and Dallas.

Granbury TexasAt the time I’m writing this Linda the owner of Realty 411 & REI Wealth has asked us to help out at her October 2020 Texas Expo. Last year we did a bus tour for rehabbing properties. This year if all goes to plan, we will be doing it again, but this time the Bus training is going to Granbury for New Construction Investing!

Make sure to keep an eye out in the magazine and Realty 411 Marketing emails so you can make it to Texas for the Lone Star Expo! Also don’t forget next Months magazine with part 2 of this article.

So, in closing for this first article was to help get you out of the box of doing what everyone else does. When we travel the country speaking at clubs and Expos, we always talk about how to Wholesale in today’s market and also how to look in areas most do not such as Probate. Sometimes we will even do a 1- or 2-Day Training in the area to teach on these subjects and more. This year part of our full day events we will include these new construction opportunities along with using them as VRBO and Airbnb as another avenue for increased cash flow.

We also cover how to make more money tax free with these investments using a Roth IRA. So, you may also want to consider opening an IRA to hold these Buy & Hold investments. Yes, you may not have much money in them when you start. But you can open one and then start to wholesale properties, or even wholesale notes so you can start to get some cash built up. Then you are also building your wealth for the future. Typically, with an IRA you are building that wealth tax free. So, using a Roth does have some real advantages.

The main thing is position yourself so you can maneuver positively so no matter where the market turns. If you keep your eyes on the market and not so much on the quick buck, you can become very successful even Wealthy at this real estate game!

Be Blessed with Success!

Jimmy Reed

jimmy

Jimmy V. Reed

Jimmy V. Reed of Fort Worth, Texas has been investing in real estate since 1987. In 1991, he started conducting full-day training sessions on Wholesaling. He then began teaching and mentoring others throughout the country. He is currently the founder of the Fort Worth Real Estate Club www.1REclub.com and has his own real estate training company that includes Wholesale, Probate, Mentoring & a Biblically based Debt Free training course and more!

More info available at www.JimmyReed.net

Achieve Success With Your “Dream Team”

/in , /by

By Kathy Kennebrook
(Marketing Magic Lady)

I have been asked a lot lately by real estate investors about how to create a dream team for their business. Putting your “Dream Team” in place while establishing your real estate business is one of the key steps to developing a successful real estate investing business. Your dream team is going to consist of those people or vendors who can help you find deals, provide funding, get your deals closed, fixed up and then sold or leased quickly. Having your dream team in place and being able to close deals quickly will give you a distinct advantage over your competition by allowing you to complete deals they simply won’t be able to finish in a timely manner.

The first element you need to think about is your marketing team. Your marketing dream team will include the people who can help you locate good deals, such as “bird dogs”, Realtors, mortgage brokers, promotional companies who will supply your business cards, signage, t-shirts and whatever advertising materials you need, and people who will do your direct mail campaigns for you. You also need to add to the mix the account representatives who will handle your classified and display ads in your local newspaper and shopper guides. You also need to have someone who can help with placing signs, flyers and business cards around town for you. The more you can automate this part of your business, the more deals you’ll be able to do more quickly.

african-3402716 teamNext, your dream team needs to include a title agent and/or a real estate attorney. These people are going to insure your deals close smoothly and with a clear title. A real estate attorney can help you to solve a lot of problems that can arise during a closing, such as a title glitch, a survey problem, or estate and probate issues, just to name a few. As you develop a relationship with your title agent and/or real estate attorney, they will become a major asset to your business by being better able to work one-on-one with your sellers and you to make sure all your deals close as smoothly as possible. You also need to make sure that your title agent and/or real estate attorney are bi-lingual so they will be able to work with your Spanish speaking sellers as well. This part of your team is one of the most important. If any part of a deal is going to fall apart it is going to be during the process of closing. Make sure you choose the best in the industry to close your deals from the very beginning, even if it costs a little more!

Using the same “team” to close all your deals for you will give you credibility as a real estate investor both with the sellers you are dealing with and with other vendors you will count on to bring you deals, such as Realtors or mortgage brokers. When you use the same people to close deal after deal for you, they will be willing to go the extra mile to help you in any way they can to get the job done. In addition, they will be able to communicate with one another concerning problems without your having to get involved.

analyzing-3385076 teamSome of the other vendors you’ll need to have on your team include a surveyor, a pest control company (for those states that have termite inspections) private or hard money lenders, an insurance agent, an appraiser and a home inspection service. You will add to that list a mortgage broker, a Realtor and any other vendor that might be unique to the area you live in. These are all people you need to have in place to help you get your deals closed as efficiently as possible.

A friend of mine once told me, “Success is dealing with people as they really are, not what you would have them appear to be.” Know, beforehand, the strengths and weakness of your dream team. Establish a rapport and relationship first. Dream team success is greatly affected by lasting relationships. These do not happen overnight. Remember, success breeds success. Create your dream team from only successful people. The longer you work with the same vendors in your business, the more credibility you build along the way. Don’t keep switching vendors from deal to deal just because someone is a little cheaper.

handshake-3298455_1280Your ability to close quickly can make or break a deal for you. There have been many times where I was able to work with a seller instead of another investor because I was able to close within days instead of weeks. Sometimes a seller’s circumstances dictate that they need to close within days. If you can’t accommodate them, they will find someone who can.

Another reason you want to have your dream team in place is because they will work together for you without you having to be involved in any of the headaches of a closing. It’s rare that I’m ever involved in any of the details of a closing until the closing date. The way I handle my “dream team” is this: each member of my team knows who all my other vendors are and they have contact information for each of them. When a problem arises with a closing, they are able to work together to solve it without any involvement from me at all. This is a great way for your closings to be handled on “auto-pilot” almost, giving you more time to create more deals or do other things that you want to do.

teamwork-2188039 dreamteamYou’ll also want to have your dream team in place to help you to sell or lease properties rapidly. The members of this part of your team may include a Realtor, a sales person of your choosing, someone to handle marketing of the property, a mortgage broker to get buyers pre-qualified for you, and a good rehab crew to get your properties ready for sale or lease. You may also use a property management company to handle your leases for you on properties you choose to keep. Make sure that all of the members of this group are as creative as you are when it comes to getting things done and properties leased, sold and closed.

Other members of your team may also include wholesale buyers who will purchase properties from you without you having to do any of the repairs. This is a good way to make money quickly and easily in the real estate business.

sale-3701777_1280As soon as I put a property under contract to purchase, I know exactly what my exit strategy is going to be, so when I close we are ready to move onto the next phase, the rehabbing, the selling or leasing of the property. Having your dream team in place is an excellent way to streamline your business to enable you to do more deals faster and make more money.

Once you put your dream team in place, you’ll be able to close more deals more quickly and easily than you ever imagined.

For more information about Kathy Kennebrook’s products for the real estate investor be sure and visit her website at www.marketingmagiclady.com While you are there be sure and sign up for Kathy’s FREE monthly newsletter and receive an additional $149.00 in marketing tools absolutely free!!

kathykABOUT THE AUTHOR: Kathy Kennebrook is the ultimate success story. She spent over 20 years in the banking industry before discovering the world of real estate. After attending some real estate seminars this 4 foot 11″ mother of two got really excited and before you know it she’d bought and sold hundreds of properties using none of her own money or credit. Kathy holds a degree in finance and has co­authored the books­ The Venus Approach to Real Estate Investing, Walking With the Wise Real Estate Investor, and Walking With the Wise Entrepreneur which also includes real estate experts Donald Trump, Suze Orman, Robert Kiyosaki, and Dr. Wayne Dyer. She is the nation’s leading expert at finding highly qualified, motivated sellers, buyers and lenders using many types of direct mail marketing. She is known throughout the United States and Canada as the “Marketing Magic Lady”. She has put together a simple step­ by ­step system that anyone can follow to duplicate her success. Kathy has been speaking throughout the country and across Canada for over 14 years and has shared the stage with Ron LeGrand, Donald Trump, Dr. Phil, Dan Kennedy, Mark Victor Hansen, Ted Thomas and Suze Orman to name a few.

Marketing Offline Helps Build Personal Relationships

/in , /by

By Gene Guarino

What is Offline Marketing?

Offline Marketing is having a brochure, flyers and business cards. They should look professional and be accurate and clear. You only get one chance to make a first impression. The brochures should match your website and your online presence. In addition to that, one of your biggest and probably the most important way to market your business is referrals. Getting the word out to other people who can bring business to you.

business-card-943997_1280How do you get referrals?

When somebody is thinking about Assisted Living, they’re going to ask someone they trust. who do you know? Where do you think I should go? If they have a friend that’s in a care home right now, they can invite them over for a visit to see for themselves. We need to create and maintain those relationships.

There are professional referral sources.

There are placement agents that refer seniors to homes. They went out and created the relationships. They typically get paid one month’s fee for those referrals. That’s expensive however if the bed was vacant last night you would have earned zero and you’ll never get that revenue back.

tie-690084_1280There are attorneys that specialize in working with seniors. Insurance agents that work with long-term care insurance. Financial planners that specialize in working with people’s estates as they get older. They’re the ones who are getting ask for a referral and they can direct those people to you.

Hospitals and doctors offices are your two other primary sources for referrals. People don’t go into a hospital for fun. They go there in an emergency or because they’re sick and they need to, not because they want to. The hospital has doctors, nurses, and orderlies that are potential referral sources for you. It could be something as simple as having your brochure in the waiting room or building a relationship with the nurses and staff.

You can build offline marketing relationships yourself!

chocolate-744337_1280Imagine if you just showed up once a week for a month where you just bring in a flat of coffee, a small box of chocolates and a handful of brochures. Everything I just described costs about $25 or $30. I suggest that you go there once a week at about 10 AM, when they need a little pick me up. Nobody’s ever going to turn down coffee and chocolate. You just say, “Hey, just wanted to stop by and say a quick hello.” Get to find out what their favorite coffee is. That’s about $100 per month. You’re going to get one, or two, or maybe many more referrals from that. Every one of them is worth thousands of dollars to you,

It doesn’t have to be you building those relationships either. It could be your manager or somebody that’s got the personality and is willing to get the word out and build those relationships. Set a budget, give them a business credit card or debit card for these types of expenses to help build those relationships.

Referral marketing is the best way to get new business in Assisted Living and Residential Assisted Living.

You can also subscribe to our iTunes for on the go listening:
https://itunes.apple.com/us/podcast/assisted-living-networks-podcast/id1360517721?mt=2

gene

Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

How EASY Is It To Open An Assisted Living Home?

/in /by

By Gene Guarino

Is it easy to start an Assisted Living home?

How easy is it to start an assisted living home? To those of us that own and operate these homes, we get asked that question quite often. The answer is “it depends”.

I don’t know you, your background, what you’ve done, what makes sense to you, what doesn’t, or where your heart is at. I don’t know what you’re willing to do to make something happen. I do know you can do anything you want in life if you’re willing to do it if you’re committed to making it happen. If you’re not truly committed and willing to do whatever it takes, at some point you’re simply going to give up. Now I want you to think back to something where the first time you tried it, it was not easy at all and now it is as easy as “riding a bike.” The 1st time was the hardest and after that, it became “easier.”

We can “tell” you that it’s easy, but when we can “show” you how it is done, providing the “context for the content” that’s what makes the difference for most people. Seeing IS believing.

How do you learn about opening an Assisted Living home?

write-593333_1280When you learn something new, you probably watched somebody else do it. It became easier and easier until the time where you can’t forget it. It’s muscle memory. And then the next time you do it, you’ve got it down. Before you know it, you’re making it look easy to somebody else. There’s always effort that you have to put in. Out of the thousands of people that I’ve had the privilege of training how to do what I do. I know that I’ve helped them save time, effort, and money by learning what to do and what not to do.

One of the best suggestions I could give you is to find somebody who’s done whatever it is that you want to do and have them show you how to do it. They’ll make it look easy of course but when you try it, it will be “harder” than it looks. That’s normal. If they are a great teacher they will be able to communicate what to do step by step. If they’re willing to give you the key information, you will benefit greatly and speed up your process significantly. That is what a “mentor” can do to help you.

Once you apply the knowledge they have shared with you and you come back and show them what you have done, they give you more information and they take you step by step through this process.

It now becomes easier for you to do it. The “proof” is in the pudding as they say. As a mentor, I know that someone has truly learned something when they can share the information with somebody else and show them how to do it successfully.

How do you make it look easy?

easyThe answer is easy for me because I’ve done it before. I was talking to some of our students that we’ve trained and they were we were talking through the different steps to open their 1st home. Each one had challenges and needed help along the way. Some needed more than others but they all needed some assistance. Easy? It’s never easy. But the second time is easier than the first time. That third time is easier than the second time, but it’s never easy. I am truly a believer in education. I’d much rather learn from your experience than mine.

You can also subscribe to our iTunes for on the go listening:
https://itunes.apple.com/us/podcast/assisted-living-networks-podcast/id1360517721?mt=2

gene

Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

Business Plans For Opening An Assisted Living Home

/in , /by

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.

Millennials and Short-Term Rentals

/in , /by

By Holly Lynn

Millennials or Generation Y are a demographic that range in birth dates between 1980 and 1996. They are becoming an increasing group that is opting for short-term rentals instead of purchasing homes. Especially the younger members of the millennial group.

There are many reasons why this is a growing trend among young people. One reason is that millennials are staving off parenthood until later in life if at all. This brings about change in the family dynamic. There are more single people now than ever. With the decision to go solo, a millennial might choose to go on more vacations or work outside of their community. Short-term rentals are being favored by millennials for business as well.

living-room-3539587_1280Short-term renting provides patrons with access to full kitchens, larger living spaces, and a home away from home feeling. More often than not, these rentals are easier on the pocketbook than traditional hotel stays. Hotels may offer more services for additional upcharges, but more millennials prefer accommodations that offer much more than a set of towels and bathroom coffee.

According to a report published in 2016 by Airbnb, millennials when asked the question “How likely are you to consider staying in a home as opposed to a hotel, hostel, etc on future trips?” They answered 67%. This makes sense when you factor in that millennials are spending their money on traveling and vacation in lieu of purchasing homes.

girl-4530426_1280Some of the decisions to travel may be due to the “Instagram lifestyle.” Everywhere you turn there is a post showing somebody living their best life on a beach somewhere. Or videos panning far and away places in New Zealand or the south of France. This would inspire anyone to want to vacation or work abroad. In addition, these travelers often partner with friends. Which makes staying in a short-term rental a wiser, financial decision.

Many companies are now offering their employees short-term rentals as housing. There are sites that provide a platform for traveling nurses, medical and business professionals. This tends to be a more cost-efficient way for companies to provide housing in lieu of hotels.

There are some millennials who choose to purchase homes just for short-term renting. The idea of roommates it’s still a viable option. Many people take on roommates to offset mortgage payments. Now they have the option to rent their spare rooms to travelers instead of permanent renters. This is a great way to make more money by charging by the night, rather than by the month.

airbnb-3399753_1280The very idea of Airbnb was founded by young men trying to make an extra buck by renting out an air mattress in the living room. These entrepreneurs are in fact Generation Y. So the fact that the leading platform for short-term rentals was founded by millennials is a good indication that the market is here to stay.

For more information on how I can assist you with your short-term rental, private lending, or hard money loans, contact me at: www.hollylynn.com or [email protected]

holly-lynn-square

Holly Lynn

Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Team Building, Television, Leadership, Marketing, and Digital Marketing. Strong business development professional who graduated from San Francisco State University, College of Business.

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Her authentic, personal relationships with both lenders and investors coupled with her vision, work ethic and endless desire to make the deal work position her as a sought-after, leader in the industry.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

She is a self-taught deal maker who has always had a keen business sense. She works with investors and syndication across the board who are looking for real estate investments that produce passive income streams.

She built B.A.M.F into the single most recognized name that is designed to build strong relationships and invest in multifamily projects to create massive cash flow and wealth. B.A.M.F monthly meetups in San Francisco, San Mateo, Fremont, San Jose and those conducted through webinars are open for everyone. As the multifamily properties continue to be an investment megatrend, She gives everyone an opportunity to learn about multifamily property investments and opportunities that would only be otherwise available for top dealers and those who met the qualifications by SEC. But through B.A.M.F, you can meet with experts and deal organizers who can provide you with great investment options.

Holly’s reputation has been earned one transaction at a time with no substitute for hard work and honesty. Take advantage of her deep proven experience in the real estate and investment market by joining her events and mixers. Mixers that are organized by B.A.M.F is sought after by reputable individuals in the investment and finance field. It is your chance to learn and grow.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

This Is What Will Really Cause The Next Housing Crash…

/in , /by

By Fuquan Bilal

Whether you believe we are already in a correction or not, here’s the one thing that may really be responsible for tipping the housing market over the edge.

It’s sellers asking too much.

Who’s to Blame for the Housing Crash?

There were lots of people, groups and organizations blamed for the housing bubble and crash in 2006-2008.

crisis-2061342_1280At first they tried to blame investors and house flippers. At least until the government needed them to take on all the distressed properties, and actually loosened lending regulations to sell and finance more houses to investors.

Appraisers, too, were blamed for overinflating values, often in collusion with banks. Banks were committing all types of fraud. And then forced insurance and foreclosure fraud really put the icing on the cake.

To top it off, interest rates through 2006 were on the rise, which really stalled the market. Especially in tandem with cutting back on lending and ending easy to get loans. Something which the government has just done again with the FHA, after years of subprime type lending.

All of the things are happening again now. However, probably most significantly of all, is that property owners ran into problems when they owed too much, cash flow started slowing, and people stopped buying because prices just didn’t make sense anymore. The only people they made sense for were speculative flippers, and eventually they hit a ceiling too.

Uninformed & Unrealistic Sellers

All you have to do is hop on to Zillow or Realtor.com for a few minutes, and you’ll see plenty of examples of owners and agents listing for as much as double as the value estimates right alongside their asking prices. Often this is right next to a graph clearly showing a recent steep dive in that property’s value. One property in Florida shows it was recently bought for $21,000, is valued around $70,000, but the seller is asking $124,000 for it. There are plenty of other public listings out there that you can see have been vacant and listed for a year. The sellers have barely budged in lowering their asking prices.

chart-1585601_1280For easy math, take a house that may be worth $100,000, but the seller and realtor have been demanding $120,000. After a year, they finally fold and reduce the price to $100,000. Only now it may only be worth $70,000. So it sits on the market for another year. Finally, out of desperation they lower the price to $70,000, but now no one wants to pay more than $35,000 for it, because of the market and economy. They are completely stuck. They may have put in more than the property is now worth just to hold it all that time. They may owe more than anyone is willing to pay right now. They are financially tapped out and frustrated. It gets foreclosed on, and they lose everything.

There are probably several hundred thousand sellers in this situation right now, at least. Millions if you count all phases of the journey we just outlined.

shopping-1724299_1280It could easily be avoided by pricing right. Of course, in a few years this same property will probably be worth $150,000 or more, and could be generating $1,000 a month in rents in the meantime. Most just won’t be able to manage through it though.

So, we’re ending up with a lot of new deal flow coming through. Again, we’ll see local governments and banks flush with distressed mortgage notes and REOs for qualified funds to acquire at discounts. We’re also seeing investors selling off portfolios of hundreds of units to cash out.

It’s a shame that some sellers will have to go through this journey. Yet, there is great opportunity for investors who have the connections to acquire right priced assets and know how to manage them.

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.

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

/in , /by

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”

/in , /by

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.