The Myths in Residential Assisted Living – Part 3
By Gene Guarino
Can I do this hands-off?
You can absolutely operate a Residential Assisted Living home and business in a hands-off manner. Hands-on means you’re in the home every day. You’re watching the residents and the caregivers on a regular daily basis. You’re overseeing, maybe even micromanaging the manager or maybe even being so hands on that you are the manager. I don’t do it that way. I own the business. I don’t want it to own me, so my job is to hire a manager. The manager’s job is to hire the caregivers and then to find residents for the home and manage that relationship with the family. So if we do it properly, if we want to be hands-off, our job is to manage the manager. Can you do it hands off? Absolutely, there is no right or wrong way in those two options.
Do I have to do it in the area where I live?
Another myth that I want to reveal is, I have to do it in my own backyard. I want to encourage you to live where you want to live, but work and have your business where the numbers make sense. The reality is, if I have 10 people in my RAL home and they’re paying $5,000 a month, we can make a lot of money. But if I’m in a home where I can’t fit 10 people and those people can only pay half that amount, that will negatively affect my profitability. Half the number of people paying 1/2 the amount is not a good business model. So can you do it long distance? Yes. But the key to success is the right location and the right demographics. Next is having the right team in place.
Who do I hire to run the business if I am hands-off?
The manager is critical to your team and your success. Finding staff to work in your home or work for you or for your manager, that’s easy to do. Finding the right people is the key. It’s not just finding somebody who can fill the space. You are looking for those high-quality people who love what they do. The type of person we’re talking about is typically not a mercenary, they’re not just there to make a dollar. They’re there because they want to be there. They love to work with seniors and this is a part of who they are, “their calling” if you will. What should your role be? Really your job, your function, should be to find other people who can do it as good and better than you can and then to manage those people. You can definitely be hands off. Let them do what they do best, while you do what you do best. There’s no reason to do this just to create a job for yourself.
Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]
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.
