Category: Uncategorized

Group homes are considered to be a basic part of the community, much like your typical home. The only difference they have with normal homes is that their occupants are total strangers—unrelated individuals who are undergoing therapy, training, or elderly support.

While this may seem like an unusual setting for some, it actually has a good purpose. For example, a person with a disability may feel isolated if they’re undergoing physical therapy alone. Given that, what better way to motivate them than to be with a group of people who are also experiencing the same endeavor!

This works for the other groups of people who are currently in need of assistance as well. The most common groups that can be found within a group home are those with a physical or mental disability, those under a drug rehabilitation program, those in an alcohol rehabilitation program, and juvenile offenders. Take note that there are separate group homes for each of them. They cannot be treated in a single group home as the ones tending to them have their own expertise as well!

Pointers and Preparations for a Group Home

If you would like to serve your community by opening one near you, then congratulations! You are one of the many who are contributing to the overall well-being of your community’s senior citizens, juveniles, and disabled. 

However, the process of opening one isn’t a very simple task. There are various things to prepare and consider before you could even open one in your neighborhood. The following are just some of the most common examples of these needed qualifications:

• Determine What Type of Group Home You Would Establish

You must do your own research and analyze which group of people would need your help the most. If your community has a  huge offset of senior citizens, you may opt to establish one for them. On the other hand, if the neighborhood is rampant with juvenile delinquency, then they must be your primary focus. 

Listen to what your community needs, ask around if you must, and talk to those affected most by their issues.

• Acquire All of the Needed Requirements

Finding a venue for your group home is a lot different than being qualified to tend to those in need. For the most part, you must have a specific license, depending on the group of people you will be assisting. Not complying with this prerequisite may result in your group home being shut down! You may also be charged and sent to prison due to fraud.

• Register Your Group Home as a Legal Business

This is another requirement that compels you to abide by the law. Basically, you are asked to register your group home as a legal business. While it may be a lot different from your typical venture, it is still considered one since you are compensated for your services.

• Create a Business Plan

How would you take care of the elderly? What would you do with a troublesome youngster? What is the proper way of sitting a disabled person on the toilet? 

Depending on the focus of your group home, you are required to answer these questions through your business plan. You should also tackle the other aspects that would show how you’d keep your venture afloat.

• Create an Operations Manual

No process would ever be made clear without a properly written operations manual. This is similar to your business plan, but on the level of micromanaging things. This would usually involve your daily tasks, information about the medicine storage, and all the safety procedures, among others!

Conclusion

Opening up your own group home is not an easy task. There are a lot of crucial things to consider and plan out before you even decide to accept new patients. No matter the age range, the condition, or the disability, you are required to prepare all of the necessary paperwork and license to treat your preferred patients. 

Ask around and do your own research. Know what your community needs and prepare all of the requirements to qualify in no time!
Are you hoping to initiate your own group home startup? Look no further than Group Home Riches. We provide free content on our blog and website, as well as a free 10-part course on starting your own group home. Contact us for more information about our services!

From the hub of the affordable housing crisis, Los Angeles, on this episode we are joined by Dave & Felicia (Group Home Owners) with Uncle Dave’s Housing.

Dave & Felicia met in drug rehab and started their life’s journey in transitional, affordable, sober housing after they became sober themselves.

Felicia was an attorney who was actually hired by a Group Home owner. She did NOT have the proper systems in place like we teach in our FREE 10-PART COURSE, but essentially was a slumlord with a business that had gotten out of hand.

She needed Felicia to help with some paperwork but also needed a stern, management type personality to straighten things out in the homes. Felicia had the perfect person, Dave, he cleaned things up and eventually became the house supervisor for Felicia’s client.

It soon dawned on Dave and Felicia that they could run the business better, more passionately, and be their own bosses while also increasing their bank balance a little. Uncle Dave’s Housing was born.

This was 10 years ago and Dave and Felicia now own, run, and operate multiple properties in Southern California. Uncle Dave’s Housing is a household name in the community & industry, and they are living their dream of getting paid well to help out those who are in need.

If you want to get 1st hand knowledge about the Group Home industry from 2 vets in the trenches, then you do not want to miss this episode!

We talk about how they got started by leasing their 1st property, what they look for in a property to make it profitable in one of the most expensive areas of the country to live in, their legal battles about housing discrimination, management tips and much more!

Even though they dropped a ton of gems here, we only scratched the surface! Luckily, if you are in the Los Angeles area then you can pick their brains yourself! They are actually starting a new business to help new Group Home owners. Check out their website HERE and contact them if your interested in hearing more about their new Group Home auditing business.

If you want to get started in this amazing business then you have 2 options:

1) Learn the hard way like Dave, Felicia, and our Founder Andy did or

2) Save a ton of time, energy and funds by learning from them!

Check out the episode HERE and if you enjoy make sure to subscribe, like, and drop us a review!

Cooperative, Affordable Housing – Cure For the Housing Crisis?

Here at Group Home Riches we believe that affordable, cooperative living will be the next big trend in the Real Estate business.

Our founder, ANDY (CLICK HERE TO HEAR HIS STORY) was wayyyyyy ahead of this trend but Silicon Valley is finally catching up.

There is literally BILLIONS in funding and seed investments going into this niche and Homeroom is another of many new start ups offering this type of housing.

As we often say, solving problems is one of the best ways to get “rich” and one of the biggest problems facing our country today is the lack of affordable housing.

Check out this excerpt from a recent CNN article:

Households that can’t afford to own their home struggle with rent increases that are outpacing inflation, even though millions of them have been unable to pay their rent at all because of the pandemic. And higher rents are making it all but impossible for renters to save. The typical renter saves less than $500 per year, leaving many with little to cover medical or other bills, much less save for their children’s education or a home down payment.

What’s more, the lack of affordable homes to rent or own is forcing families farther from good jobs, limiting their economic opportunity and our economic growth.

There are many different ideas of how to solve the crisis.

Silicon Valley likes to burn through millions making trendy websites and apps and marketing to hipsters.

CNN is calling for billions to be printed and managed by big government so they can save the day.

We like to just stick to what has worked for Andy and our growing community of SUCCESSFUL GROUP HOME ENTREPRENEURS for the past 2 decades.

We like to invest in lower to middle income, appreciating communities where you would typically see a lot of rental properties.

Then instead of “selling” our properties with fancy apps & shiny advertisements, we locate those caseworkers and organizations LIKE THIS working with the types of demographics most landlords and silicon valley firms would never think of working with.

Counterintuitively, and to our advantage (and possibly YOURS) these demographics actually come with many advantages.

– HUGE demand. Look outside any metropolitan area. It’s not the college kids, young professionals, and hipsters who are in desperate need of housing

– Guaranteed payments backed up by Uncle Sam

– 5 – 10x the average rental property’s cashflow…most investors wouldn’t even believe the ROI that we get!

– Outsourced services like case management, supervision, job programs, counseling, nursing etc. Meaning LESS management for you as the home operator.

– No licensing

– You can start with little to NO MONEY!

Ready to get started and have your first home open in the next 30 – 60 days? Sign up for our FREE 10-PART COURSE!

Adult foster care homes are quickly becoming a booming industry due to the eventual retirement of many baby boomers. This section of the population will require varying degrees of assistance. While some have families to care for them, others are left to their own devices. Thankfully, the rise in niche clients also leads to a rise in accommodating establishments.

Starting a Small Group Elderly Foster Home

Not all retiring baby boomers have the luxury of checking in high-end elderly foster care facilities. This is why many entrepreneurs are launching smaller adult foster care businesses to match consumer demands. These offer a more private and affordable living environment for retiring baby boomers.

When setting up a business, it’s important to read the market and consider which variables will affect your business model. This applies to any enterprise, whether you’re setting up an eCommerce shop or building an elderly foster care home.

Before you set up a foster care home, here are four things you should consider:

1. Perform Market Research

Before starting a business, it’s essential to gauge the demand in your local area. This lets you scope out the profitability of setting up a small group elderly foster home in a particular location. Additionally, doing your research will show if there are competitors in your area you should take note of. These establishments can be a positive or negative presence, depending on how you market your elderly care home. Remember that competition will only be a bad thing if you’re on the losing end.

2. Plot a Business Plan

Once you’ve found the right location and market, it’s important to determine your foster home’s specifics. This includes the degree of care you offer and the price range of specific services. Plot out a revenue model on how you’ll generate income and what financing options you have to support the construction of your facilities.

3. Secure Permits and Licensing

All businesses require zoning permits when building an on-site location. Since different states have varying guidelines on elderly foster homes, you’ll need to consult with your local government. Additionally, you must coordinate with your local health department to confirm these regulatory requirements. 

Besides medical care, remember that food preparation is a priority in following state guidelines. Review these policies carefully to avoid receiving violations or penalties for your business practices.

4. Invest in Qualified Employees

The number of employees you’ll need depends on the size and scope of your foster home. This also goes back to the degree of care you plan to offer. It’s best to get professionals with a cardiopulmonary resuscitation (CPR) certificate. This, along with other medical training degrees and certifications, will raise the credibility of your business. Besides medical experts, you’ll also need office personnel, front desk attendees, and even kitchen staff to serve clients and guests alike.

Conclusion

It’s vital to start small with any business endeavor. Since starting a group home is more about providing a safe environment for others, it’s important to take cautious steps moving forward. Remember that your future clients will trust your establishment to take care of them with the right facilities and living accommodations. This is why you should take all the necessary preparations by learning what you can before launching your enterprise.
At Group Home Riches, we make it our priority to give you all the resources to set up your business. We want you to achieve success in the best way possible by learning the ins and outs of the industry. If you want to learn how to open a group home for the elderly, sign up for our Gold Course today!

Some people say that a Group Home is one of the best investments you can make. If you are new to the concept of Group Home, it means investing in a property and licensing it to serve as affordable housing to different sectors in need. The people residing in your Group Home would pay minimal fees and receive daily care. Their basic needs—such as food, payment for electricity, and a roof above their heads—will be met.

It could be an excellent opportunity to help other people while also growing your money. However, this investment also has its pitfalls. Before proceeding with this as an investment, you should first be familiar with the common reasons Group Homes fail.

Why Group Homes Fall Through

• Failing to Get Clients

One of the selling points for having low-cost housing is the high demand. In the US, more and more people cannot afford housing. Most might never be accepted at a standard apartment complex.

Despite this, there are cases wherein Group Homes fail to get clients. Usually, this is due to strong competition. Many Group Homes exist in the US today, and most of them are fairly established.

The state might give your Group Home one year to secure clients, or else they might take away your license. You need to have a good marketing strategy to ensure that your investment is not put to waste. After all, you have other expenses to think about.

• Quick Expansion

Having clients, on the other hand, could make any investor too excited. Sometimes, this results in rushed decisions. A successful first Group Home could encourage the investor to start another one without waiting until they get their ROI from the first. Anything can happen, and the result is not always positive. 

However, it is one of the reasons that some Group Homes also fail. The last thing you want is to lose the earnings you gain from your first Group Home because of a failing second home.

• Not Adapting to Changes

Some tenants in low-cost housing like Group Homes do not have income but receive support from the government, which enables them to stay in your Group Home. However, the support they get is also subject to change, which could affect your income. Be mindful of new regulations implemented for Group Homes and strategize how you can work around them.

• Low-Quality Service

Changes in the setup could also affect the kind of service you provide your clients. Suppose you pushed through with your decision to invest in another Group Home. That could affect your current budget and result in a reduction in quality of service. When your clients notice this and are not able to manage it, you might lose them and lose the income you get.

• Leaving Clients

There will come a time when your clients eventually leave the Group Home, and it will affect your business, especially when the reason is unexpected. You must be prepared for times like this, but it is an opportunity to get new clients.

Conclusion

These are the common reasons Group Homes fail, but it does not mean that you cannot succeed. With the right strategy and management, your Group Home could provide a nice chunk of revenue. That is why it is vital to keep yourself aware of these potential problems and the basics of handling a business.
Consider enrolling in The Gold Course today for group home startup information. The course will give you how-to guides, videos, and sample materials you can use through every step of the Group Home business! Contact us today at Group Home Riches for more information.

Lessons Learned From a Group Home Veteran

Albert has been in the game for almost 10 years, and as expected he packs this episode with knowledge that you absolutely need to hear if you want to be a Group Home entrepreneur yourself.

Through his experience in the medical field, he was fortunate enough to meet a mentor/partner who had started out running “care homes”.

Just as we teach in FREE 10-PART COURSE if you’re on a tight budget, they started out by leasing their first couple of properties.

We talk about how Albert pitched them, some negotiating points, and why ultimately we believe you should eventually want to operate your homes using what we call “The McDonald’s Method”.

**HINT** McDonald’s #1 Revenue Generating Activity is NOT selling food 😉

One of the many advantages of this industry is that once you learn the fundamentals, there are so many different routes you can take. Licensed homes, unlicensed homes, Real Estate Investing, providing services, and a number of different demographics that you can serve.

While we prefer to focus on the business side of things like marketing, networking, outsourcing, and systems to scaling, you can tell that Albert is truly energized by helping his tenants/clients and likes to be more hands on. He has some amazing pointers on providing great service, building relationships, and some pretty entertaining stories from the frontlines as well.

Even though his personality, like most in the medical field, is that of the “caretaker” with traits like generosity, empathy, self-sacrifice, compassion and service, he has also learned over time to be an astute businessman, basically falling into the position of a successful Real Estate Investor.

On the backend of his business he is building up equity in his investments, tax advantages, and looking into larger multi-family projects in the future!

Make sure to LISTEN HERE, grab your pen and take some notes! If you gain some value don’t forget to subscribe and drop an honest review about what you think!

If you’re ready to get started, with no license, no experience, little to no money, and STILL be up and running in the next 30 – 60 days then sign up for our FREE 10-PART COURSE if you haven’t already.

Want to streamline things??

If you are considering opening a halfway house, it’s probably for two reasons. It’s because you want to give back to your community or because you think it can be a good investment. Now, you probably have some idea about this financial incentive, but you might still have one question in mind: Do halfway houses make money? 

Let the experts at Group Home Riches answer that question and give you some reasons halfway houses can be an excellent investment for you:

Can You Make Money From It?

To answer your question, yes, this type of income property can earn you money. The potential earning from a halfway house is related to whether it’s recognized as a for-profit or a non-profit entity. Note that if you file as a non-profit organization, you need to submit your documents to the state and the IRS. The income made will then be protected from being taxed, but you won’t personally benefit from those profits either. 

A for-profit income potential should always be considered subjectively. This is because it depends on the property’s location, the number of residents you have, the house’s maintenance cost, utilities, food, and everything else that your potential residents are willing to pay.

Here are several excellent reasons you might want to invest in a halfway house:

1. You Can Help Your Community While Making Money

Keep in mind that not all sources of income allow you to help other people. If you want to do something meaningful with your money and still grow it, opening a halfway house is one of your best options. 

Halfway houses play such an essential role in the community as it allows people to transition back into the community at their own pace and with all the support they need. These are people who need their second chance, and by opening a halfway house, you are giving them the opportunity to enjoy that chance and make the most of it. 

2. The Property Will Always Be Your Investment

For sure, you are going to make money as a halfway house, but aside from that, you need to remember that the facility is still real estate property and one that you own. This means that if you wish to make even more money in the future, you can sell the property and the business together.

You can even do it several times. You can buy a property, turn it into a halfway house, and then sell them. With the money you get, you can invest in another halfway house and take care of it until it becomes established. It’s not that different from the concept of flipping homes. But then again, you can simply save your money after the sale and enjoy your retirement!

3. You Can Try Applying for Funding and Other Grants

There are many halfway houses out there that regularly receive donations, funds, and grants. This means that if your intention of opening one is primarily to help your community, you wouldn’t have to worry too much about profit when you get fundings. 

Getting grants and funds also means that some of the expenses associated with running a halfway house could be covered without you or the residents having to spend their own money for their basic needs. 

Conclusion

Running a halfway house, just like a group home business, comes with its own ups and downs. But it can be a fulfilling source of income, not only financially but also emotionally and mentally, as you know that you are instrumental in helping people get back on their feet!

If you want to know how to open a halfway house and everything that decision involves, Group Home Riches is here for you. We can provide you with free training, or if you wish to progress faster, we have a Gold Course that will cover everything you need to know about opening and running a halfway house. Get in touch with us today to see how we can help!

How to Get Your Piece of this $12 Billion Pie

Take a look at this from the article above:

“Newsom’s proposal includes 8.75 billion to expand a California program created during the pandemic that converts hotel and motel rooms and other properties into housing for people in need. Roughly half of that would go toward creating housing where mental health and other behavioral services are provided on site to people living there.”

The nation’s most populous state has an estimated 161,000 people experiencing homelessness, which is more than any other state.

Beyond converting hotels, Newsom proposed 3.5 billion on new housing and rental support for families”

Note the underlined sections. This is where you come in. Here is another reason you are needed, from the article:

“A new state database shows that nearly 250,000 people sought housing services from local housing officials in 2020. Of that number, 117,000 people are still waiting for help while nearly 92,000 people found housing.”

More than HALF of the people that signed up for these services were not placed in housing.

Why is that you ask?

Well take a look at one of these programs from the state and note what one of their biggest issues is:

Most landlords are not like you! They are not driven to help their community, and quite frankly they don’t understand the benefits of working with programs like this.

This is why the very first thing we teach in our FREE 10-PART COURSE is to locate these organizations!

You see that big headline that says TWELVE BILLION 💰 right?

Well that is going to flow to these nonprofits and social service organizations, and then we teach our  students how to market to them.

Listen to the following video to see how it’s done. This is the very first thing we require our ONE ON ONE COACHING students to do BEFORE acquiring a property. Note the pitch…

“Hi, I’m a real estate investor looking to get a home in the next year or so. I’d like to help with the affordable housing crisis and see you have a rapid rehousing program, I’m just calling to get more information on that”

See how easy that is!!!

Now imagine if you did this 10 times and understood the following:

The simple FEDERAL guidelines that we adhere to when it comes to housing

How and Why to get started without going through the licensing process

How to find hundreds of organizations in your area that are not looking for medical experts, experienced Group Home Owners, or Licensed Facilities but

LANDLORDS

But instead of being an average “Landlord”…

You will be 10x’ing the average rental property, get guaranteed checks from the gov’t, have much more control over your property and help out your community.

The only thing holding you back from doing this is FEAR and LACK OF KNOWLEDGE!

Get the knowledge that will help you overcome your fear and get started today!

The Group Home Blueprint with Tasha and Tamara