Why Group Home Is Better Than Rental

Group Home or Rental???

We all know Real Estate is one of the most commonly used paths to long term wealth right?

Depending on which article, study, or meme you see out there, around 80-90% of all millionaires have gotten there by what?

You guessed it…

REAL ESTATE

It’s not just as simple as heading to the MLS, buying a property, and sitting back counting your dough as many gurus out there want you to believe though.

A lot of “Landlords” think they can just buy a property, rent it for $200 more than their mortgage, get 10 of these, and you got over $20,000 coming in without lifting a finger right??!!

WRONG

First and foremost, you need to find a deal  like our OUR FREE 10-PART COURSE teaches and this is extremely competitive. You will often need to fix the property up. You need to market the property and the downsides are encapsulated in this video.

Even if you do have tight guidelines, you always run the risk of having someone doing drugs, subletting your property, tearing it up, burning it down etc. etc.

You have no idea what’s going on in there!!!

In the video, Andy breaks down how one of these tenants actually created a METH LAB.

Got raided by the Swat team.

Tore up the property causing ~ $5,000 in damages.

And then SUED ANDY FOR THEIR DEPOSIT BACK!!!!

The NERVE!!!

But this is the type of stuff Andy has to deal with in his regular rental properties! Believe it or not, he actually has to go to court, hire a lawyer, and spend a lot of time with this situation.

So what’s different and better about Group Home?

1) Supervision – You can install security cameras and House Managers to ensure the rules and regulations are being followed.

2) Legal Protection – You are not LEASING this property to your tenants. You are LICENSING SPACE to them. Think Airbnb. Hotels. If a hotel guest throws a loud, obnoxious party does management go through a 30 – 90 day eviction process to get the guest out of there. No!!! And you won’t need to either with your license agreement. You can use the same one we do with OUR GOLD COURSE. That alone is worth the price of the course!

3) Cash Flow – Look, you can’t feed other people if your plate is empty. This is a way for your “plate” to be OVERFLOWING. Think about it? How can so many of our FREE 10-PART COURSE MEMBERS earn a living by LEASING their properties??

You mean to tell me that after the landlord pays their mortgage, and get’s their cut, there is still enough left over for the Group Home Owner?

YESSSS

How does that even work??? Just as an example, in the areas we operate out of we look for homes with 4 or more bedrooms. These would normally “rent” for around $1800 – $2000.

Using the same systems you can use with OUR FREE 10-PART COURSE, these group homes now generate on average $4000 – $6000 PER MONTH!!!

4) YOU HELP THE COMMUNITY!!! This is the main reason you came to us anyways right?? There is MASSIVE demand for this type of housing and very little supply. Most real estate investors are misinformed about the business model, and many that do figure it out unfortunately take advantage of the system. Their heart’s are not in it for the right reasons.

THIS IS WHERE YOU COME IN

How do you start? Do you need a license? What systems do you put in place? How much do you need to find a home? Where will you find your tenants?

THIS IS WHERE WE COME IN

In Today’s Blog, on your Group Home Journey, I want you to do something and make it a habit every Sunday….

TOUCH YOUR DREAMS!!!

The stuff we teach in Group Home Journey is not easy to implement. It is SIMPLE – but it is not easy.

Why?

Because you will face challenges and hurdles on your journey to success.

We teach our Group Home Riches members how to overcome them in our step-by-step group home course.

Remember, I have been doing this for over 20 years – there is almost nothing I haven’t seen!

But in life, when you embark on your Group Home Journey, you need motivation to get you started and great habits to keep you going.

One of those great habits is reflecting on your accomplishments every Sunday while also finding ways to stay motivated.

One thing that I personally try to do every Sunday is focus on what I want in life and find ways to get in front of things that inspire me.

In much the same way that a tree gathers up sap during the winter months in preparation for spring, your ability to reflect and internally motivate yourself is akin to you gathering up sap just like a giant oak tree.

See this video – BE INSPIRED!

As I run up a street in the American Riviera – I will show you a $100,000,000 Compound owned by an amazing business entrepreneur.

Check out his mansion. Check out the view! Come with me on this quick little run and TOUCH YOUR DREAMS. BE INSPIRED.

TODAY’S DREAMS ARE TOMORROW’S REALITIES….JUST LIKE WE TEACH IN OUR FREE 10 PART COURSE (CLICK HERE).

Why You Must Write Down Your Goals

Group Home Riches Practical Tip

As those of  Group Home Riches members know, I am a true believer in writing down your goals.

EVERY. F*******. DAY.

I remember driving 3 hours to a sales call back in 2002 in the wee hours of the morning from Austin TX to Dallas. Now its probably closer to 4.5 due to the growth and traffic.

A real estate colleague had given my some Brian Tracy CD’s (remember CD’s??) and I listened to them all the way up IH 35 in pitch black as huge 18 wheelers nearly blew me off the highway.

THOSE TAPES SET ME ON THE RIGHT PATH. TEACHING ME HOW TO WRITE DOWN MY GOALS LIKE A HOMING PIGEON.

The goals didn’t become reality overnight. In fact, one of my goals was $4,000 per month in passive income through real estate within a year. (Good F’n luck).

But I was young, naive and PERSISTENT.

I kept writing my goals down every single day.

Quite frankly, most people would have given up. “This stuff doesn’t work”.

Dudes and Dudettes – Things are not supposed to happen immediately in life. This is tough to understand as a young person. But I had faith and vision and I kept pushing forward.

This faith and vision allowed me to push forward but also propelled me into other endeavors that could get me there faster. Knowledge was the main one.

Unfortunately, I never had a mentor or a coach. I had mentors from books, tapes and CD’s, but I never had a direct mentor that could have fast-forwarded my success.

Looking back, I wish someone had told me this:

“You want $4,000 per month passive from real estate? Then you need about $872,727 of cash or legitimate equity.”

I would have then asked them to explain further and they would have given me a simple equation:

$4k per month = $48,000 per year. Divide this by a yield (cap rate/interest rate of 5.5%) and that equates to $872,727.

BUT NOBODY EVER TOLD ME THIS

Thank goodness I stumbled across my first real passive cashflow stream. GROUP HOMES AND CARE HOMES.

I was lucky because I already had been acquiring real estate so it was easy to turn them over into GROUP HOMES.

Within 2 months, I had hit that $4,000 per month number. Then I perfected a system and cookie-cuttered it one after another. Each group home generates about $60,000- $75,000 per year in gross rents. The margins are HUGE. We joke that they are Pablo Escobar margins.

The point is that none of this would have happened without me writing down my goals on a daily basis.

I have been doing this for well over 20 years. I started doing it the Brian Tracy way in 2002 and I can tell you it works.

JUST DO IT.

What are your goals?

If you are serious about achieving them, WRITE THEM DOWN EVERY DAY! First thing in the morning and right before you go to bed at night and let your subconscious mind work on them while you sleep.

This is a secret to success that all the top performers do yet nobody wants to really talk about. It seems hokey. Don’t think that having them in your head is all you need. You must WRITE THEM DOWN!

DON’T BE A DOG THAT DOESN’T HUNT! MOTIVATION WILL GET YOU STARTED, BUT HABITS KEEP YOU GOING.

MAKE THIS A DAILY HABIT.

YESTERDAYS DREAM ARE TODAY’S REALITIES.

TODAY’S GOALS AND DREAMS ARE TOMORROW’S REALITIES.

Start Marketing BEFORE You Have a Group Home

We get this question a lot and it probably causes one of your biggest hurdles if you haven’t gotten your first Group Home started yet:

ANALYSIS PARALYSIS

Can you start marketing before you have a home to operate out of?

How do you market something that you don’t have yet right?

You don’t have pretty pictures of a home yet, because you don’t have one yet?

So why would you even make a flyer or design your website?

Now, you don’t have anyone ready to live in your home. You don’t even have any solid referral sources or contacts.

So why would you rent or purchase a home if you’re on a tight budget?

And the cycle continues.

This is why we recommend you market FIRST.

Think about it, imagine if you had THIS WEBSITE, you had built a contact list with hundreds of organizations and case workers in your area, you started your email marketing campaign, and you started to get PHONE CALLS LIKE THIS?

Have a conversation with them! Let them know why you are doing this and that you’re looking for a location now. Do you think that social worker would tell you off? Would she yell at you?

OF COURSE NOT!

Matter of fact, like one of our recent Group Home Riches member found out, she would probably start following up WITH YOU to see if you’re home was available yet!

Wouldn’t you be much more confident and motivated to find a home to operate out of if you knew it could be filled up before your housing payment was due?

If so, start your marketing ASAP!

Set Your Group Home on Autopilot

++ Let’s Do Some Math ++

Let’s take a 4 bedroom home.

You can rent out this home for say $1800 – $2000 to a traditional single renter or single family. Your mortgage comes out to $1500 so this is some decent cash flow.

Now let’s say this home has a converted garage too. It’s some extra space but you can’t really rent it for more, and a lot of traditional renters prefer a garage so this conversion was kind of a waste of time.

Rather than rent the traditional way, what if you put 2 beds in each room (including the garage) LIKE THIS, and then charged $600 per bed. Break out the calculator and now how much is your home bringing in?

That’s RIGHT

$6000

BUtttttttt……Why would anyone want to live in a situation like that???

Well let’s see.

Pretend you are retired and you can’t work anymore. You had a tough job that made enough to pay the bills and just planned on living on the Social Security you thought was going to be your safety net your whole life.

Big Problem though.

Social Security hasn’t kept up with inflation and you only have $1300 to pay for everything. Food, clothes, gas, rent, electric, water. Everything. And you’re in an area where you can’t get an apartment for less than $1000 including all the bills.

Do you see how a clean, affordable, furnished, structured environment, with like minded people just like yourself could be preferred?

And the best part??

It’s only $600 with all the bills paid AND FOOD!

Now let’s do some more math:

When Andy was really rocking and rolling and scaling his Group Home business, each one of his house managers controlled around 15 homes.

We’ll use 4 bedroom homes, no garages, for this example to underestimate.

4 Bedrooms x $1200 = $4800 Gross Revenue

50% was used on expenses (bills, rent/mortgage, food)

$4800 x 50% = $2400 Net Revenue

Now remember what we said. Each manager was in control of FIFTEEN HOMES. That is a full time job for sure. Each house will have a supervisor so you don’t need to stop in every day. But there will be maintenance issues, showings, tenant issues, collections, inbound calls etc. etc. They were HUSTLING for sure and definitely putting in overtime most weeks. But again

DO THE MATH

$2400 x FIFTEEN HOMES = $36,000

Remember…that was the NET. And for 1 month.

You’re the Operational Manager in beginning, but can you see how you could partner with someone else or just pay a salary and replace yourself????

Andy was able to do this around his 5th home.

At this point, you’re day to day activities are next to NADA if you have a good manager. And of course, if no houses burn down or anything.

Now you can see why he’s able to travel with his family wherever and whenever he wants, why he has the time to run a few other businesses, blog, and make youtube videos on the beach!!!

What makes Group Home business so appealing is you don’t need any qualifications, a license or great credit!!!

You can eventually scale and run your business on autopilot just like Andy did

AND THE BEST PART???

You’re helping your community and people in need!!!

You don’t need a lot of money either!! We have a lot of members get started by leasing LIKE DUANE HERE, or even acquiring properties with little to NO MONEY like JAMIE DID HERE or SHERL DID HERE.

You can do the same thing these people did no matter where you are located, or what your financial situation is.

Why You Need Insurance for Your Group Home!

As many of you know, running a business can be a HIGHLY PROFITABLE VENTURE….but it can also be disastrous!

The great thing about business ownership and property ownership is the ability to protect your downside. The best way to protect your downside?

INSURANCE!

Fires, tenant slip and falls, lawsuits or anything similar probably will happen once you have been in the game for over 20 years like I have.

TODAY I WANT TO SHARE SOME WISDOM REGARDING INSURANCE

Last month I had an issue pop up similar to one of the things mentioned above. I like to refer to these as Sh** Sandwich Days

ANDY, DO YOU ENJOY EATING
SH** SANDWICHES FOR LUNCH?

No, I don’t.

That’s why I let my insurance company do it for me.

I actually phoned an attorney friend who is one of the largest class action lawyers in the country (think suing Monsanto for Round Up etc.) and I asked him what his goals would be as an attorney with 200+ lawyers and paralegals (HE OWNS THE FIRM)

Here is what he said:

WE WANT YOUR INSURANCE OR WE WANT THE PROPERTY.

This is coming direct from the mouth of one of the most successful lawyers in the country

So each and every month, I write a check (actually everything I do is auto-draft) to the insurance company.

When an issue pops up (knock on wood, I don’t want them to) I simply forward it to the insurance company.

IN OUR FREE 10-PART COURSE, I go over all of this. Where to get the insurance, why you need the insurance, the TYPE of insurance (property, GL, Excess Liability, etc.)

It took me probably 3 years of searching to find this type of insurance. In fact, I did not get it until I received a CONTRACT WITH THE STATE FOR GUARANTEED RENTS and I asked the contract manager who other contract recipients were using.

The reason this information is so valuable is because when you are in Hawaii, Brazil, Napa, The Bahamas or your home town chilling out and checking your bank statements – You want to be cool, calm, collected and RELAXED!

You want to feel great helping others AND CASHING CHECKS without any worry…That is the beauty of insurance!

And that is why WARREN BUFFET LOVES IT! (see the above screen shot – he is getting my money each and every month)

These are some of the tips, tricks and strategies we teach in OUR FREE 10 PART COURSE (CLICK HERE).

Not just insurance tips, but also how the Billionaires like Buffet do things….. think COLLECTING each and every month on auto debit (just like we show you how to do with your GROUP HOME CLIENTS).

California Board And Care (Group Home) get $500 Million!!!

First of all, thank ALL of you for your responses the other day regarding HOW YOU STAY MOTIVATED and how you set your goals at the beginning of the year.

$500,000,000!!!

“ANDY, ARE YOU F***ING KIDDING ME!!!”

Nope. Not one bit. The money doesn’t stop rolling into this space nor will it stop anytime soon.

Just last week, I was in the American Riviera making a video (click here to watch) about the new 20% pass through tax deduction, advertising costs and the other benefits of owning your own company.

While I was out there, I saw EXTREME POVERTY and HOMELESSNESS. In fact, when walking down the road, I showed people how I could easily fill up 3 group homes in 3 minutes!

Yesterday, one of our FREE Training members and a Group Home owner sent me this article about the BOARD AND CARE INDUSTRY in California set to receive another $500 MILLION to house the homeless.

Apparently, this particular program pays $1,058 PER MONTH per person.

Do the math!

Many people say that is not enough – and I will be the first to admit that in CA I would want more as well, but if you assume you have a $2,500 per month rent and $10,000 per month coming in – there is still ample profit left over!

Need to know more about Group Home, sign up to get started.

WE ARE HERE TO HELP AND WANT TO SEE YOU SUCCEED!

Disabled Veteran Group Homes – How To Get The Funds. Bernie Sanders, Eliz Warren, Apple Computer…The grants don’t step

Unless you are living under a rock, there is no doubt in my mind you have seen the MASSIVE FLOOD OF FUNDS coming in to help the homeless, disabled vets and other special needs populations over the last decade
The amount of money is literally ASTRONOMICAL…..
One of my FREE 10-PART COURSE students sent me 6 text messages the other morning….

AUSTIN TEXAS ANNOUNCES 75 MILLION (they say 63, but he showed me how it was really 75 MILLION) to help house the homeless and disadvantaged

APPLE COMPUTER PLEDGES 2.5 BILLION (Yes Billion) and Bernie and Elizabeth say it isn’t enough!!

America’s Largest Health Insurer IS GIVING APARTMENTS TO HOMELESS PEOPLE!! (read – they want to contract with group home owners to keep people housed!)

Why you may ask are insurance companies paying group home providers to house these people???

The same reason we’ve been talking about for years….

GROUP HOME HOUSING
IS THE SOLUTION!

” Steve went to the ER 81 times, spent 17 days hospitalized, and had medical costs, on average, of $12,945 per month. In the nine months since he got a roof over his head and health coaching from Brenner’s team, Steve’s average monthly medical expenses have dropped more than 80%, to $2,073.”

GROUP HOME RICHES ENTREPRENEURS…..THE PROOF IS IN THE PUDDING!

I have been providing stable, safe & affordable housing to my clients for nearly 20 years. I have housed THOUSANDS. And HOUSING FIRST is the model.

This is the model that I teach in OUR FREE 10-PART COURSE and the model that all of my 1-ON-1 Coaching clients learn to live and love.

This Friday, do something for yourself AND for those in your community. GET OUR FREE 10-PART COURSE and learn how to get the money and help those in your community that need it most.

You Don’t Need A License
You Don’t Need Money

All you need is a HEART, the desire to help others and a burning drive to WORK!

The EASIEST Workout Routine EVER & How it Applies to Your Group Home Business

You’re looking at Frank.

Frank wanted to get SHREDDED! He wanted to lose fat, gain muscle, get six pack abs and BULGING arms.

The thing was, he didn’t really want to change up his diet…or even workout for that matter.

So he followed the simplest, EASIEST workout routine EVER.

He joined the gym….

And he never went!

That’s right! He didn’t spend any time on the elliptical machine, never learned how to squat, bench, deadlift or even lift a weight! He didn’t change his diet either!

EASY

Was it EFFECTIVE?

Take a second look at those before and after pictures if you haven’t figured it out yet.

Sure there are some scams out there, but in general whether you are looking into fitness, self improvement, or business the secret that no guru will ever tell you is that THEY ALL WILL WORK. You just have to pick one, implement what is taught and stick to it!

Don’t bounce around! You can’t do keto one week, then paleo, then vegan. And you can’t change your workout routine every week.

It’s the same with business!

If you want to get your mind right, lose weight, gain muscle, build strength, flip houses, wholesale houses, or rent houses let me know and I’ll send you some recommendations.

But if you want the simplest business model for Group Homes that you can apply to any segment of the population, then this is it.

OUR FREE 10-PART COURSE

This is an online library with how to guides, videos, and sample material for every step of the process! Whether you need to learn how to acquire a home with little to no money down, find tenants, learn simple systems to make your life easier, or scale to a full blown organization…WE HAVE YOU COVERED.

BUT DON’T BE FRANK!!!

Think of OUR FREE 10-PART COURSE as a gym. If you don’t get in there, learn how to use the equipment properly, and actually exercise….you’re not going to get see results!
CLICK HERE TO GET IN FINANCIAL SHAPE!!

How Much Can You Charge For Your Group Home?

If you are like our founder and many group home owners, you are just going to provide housing and outsource any licensed care.

This way, you do not have to go through the costly, confusing, and time consuming process of becoming licensed yourself.

Your fee is going to be based heavily off the local market. Here is a quick formula you can use to determine how much you can charge:

Figure out how much an average 1 bedroom with water, electric, cable, internet, etc…all bills…goes for in your area, then charge 60% of that for each bed.

This will vary depending on your market but these are our rough numbers:

Average of $1,000 for a 1 bedroom with all bills paid

$1000 x .60 = $600

$600 is going to be roughly how much you can charge each tenant for a roommate situation.

Now let’s say you get a 4 bedroom with a converted garage. You have 5 bedrooms, 2 tenants in each bedroom, and a total of 10 tenants.

Your revenue now is $6000!!

Now, some things to keep in mind to keep you motivated. We just broke down how 1 home can bring in $6,000 right?

Using the same systems that we teach in OUR FREE 10-PART COURSE to cut down on management duties, each operational manager will be in charge of around 15 homes.

This will be YOUR role in the beginning and will definitely be a full time job with that many properties.

But re-read what I just said….each Operational Manager will be in charge of FIFTEEN HOMES. One person, managing 15 homes.

Do some simple math on your phone right now and figure out how much revenue you could bring in if you wanted to dedicate yourself to this full time.

****Hint it’s your monthly revenue of $6,000 in this example, now multiply that by 15. You can then multiply by 12 to figure out your annual revenue***

Do you think that will give you some operational income you could work with to replace yourself with someone to manage your properties and handle all the day to day activities?

Now you can work ON your business and not IN it!

Do you see why our founder can now run his other businesses, work on our blog, and go on vacation whenever he feels like it?

This is the true POWER of this business and on top of that, you will be helping out HUNDREDS of people in need in your community AND eventually building up long term wealth with your Real Estate holdings!