3 Outsourcing “Tricks” to Scale Your Group Home Business
Do you want to work ON your Group Home Business, or IN it?
There is no right or wrong answer here but it’s a simple question you need to ask yourself before moving forward in this business.
We have some 10-PART COURSE MEMBERS who are licensed to perform health care for their clients and love doing so. Their goal is simply to do what they love and be their own boss. Working IN one Group Home that they own while performing all of the daily tasks themselves satisfies this desire. Just one home where you are charging for the housing AND care will provide a great lifestyle if you keep your personal costs down.
On the flip side of the coin we have many 10-PART COURSE MEMBERS who are NOT licensed but still want to serve their community with a Group Home. They recognize that the lack of affordable housing in their area is a HUGE problem and are ecstatic to find out there is a simpler way to solve it!
We use this model and also have much more than just one property. This will avoid a lot of extra rules and regulations, and is much easier to scale. In fact, many of our One on One Coaching clients are shocked to hear that just one person using the systems in THE 10-PART COURSE, can manage anywhere from 15 – 20 Group Homes!
This is because we choose to work ON the business and not IN it.
This serves the community, and in return our business accounts, MUCH BETTER in our opinion.
One of the keys to this 10-PART COURSE SYSTEM is “Outsourcing”.
We focus on the Real Estate side of the things for the most part. Finding discounted properties, fixing them up, and then rather than “flip” them or “rent” them the traditional way, we often just let the organizations we market to for our Group Homes service their clients while using our properties.
We charge around $600 per bed, per month. On average there are around 10 beds per property. About half of that goes to expenses (including the market rent for accounting purposes).
Pause. Slow Down. Re-read and…
*** DO THE MATH ON THAT***
***NOW MULTIPLY BY 15 – 20 PROPERTIES TO SEE HOW MUCH FULL TIME EFFORT CAN BRING IN ***
That is PER MONTH.
Multiply by 12 and that’s the potential ANNUAL AMOUNT 😱 😱
Now that you’ve figured that out, double checked your math to see if that’s really true, found it was, and your wheels are spinning a little bit, let’s move on to 3 ways you can utilize outsourcing in order to run an organization like this:
#1) Outsourcing of “Services”
Many of our tenants are enrolled in numerous “services”. Counseling, meals, employment assistance, case management etc.
We do not own companies providing these services or charge our tenants directly for them. Are we leaving bread on the table? YUP. Have you done the math though? Have you seen what we bring in just by providing the housing? Pause, rewind, and do the math if you haven’t already. Moving forward…
Get a website for a professional image, follow the marketing material in THE 10-PART COURSE, and find as many organizations like the one above that we found for one of our coaching clients in Florida. Using funds typically from the Government, they provide all of these services as well as one that is key to YOUR Group Home business…
Housing.
“Rapid Rehousing” is just like it sounds. This organization works with homeless vets to get them back on their feet and into civilian life. Part of this process is transitional housing that the organization pays for, but they need YOU to provide the housing! They are not in the Real Estate business and don’t want to be. Most of the “landlords” who are in the Real Estate business DO NOT work with these populations. Think about it, you’re motivated to care for people and spend the time reading all of these emails. Do you think the average landlord is?
These organizations NEED YOU!! Listen to THIS CALL if you don’t believe me.
#2) Outsourcing of any Licensed Care
If you guessed “Outsourcing”, give yourself a pat on the back! As you can see in the pic above, there are hundreds of companies in a metropolitan area that you can use. They handle the billing, insurance, scheduling, payroll, licensing, regulations, and care!
Again, are we missing out on a stream of revenue? You betcha! Hopefully you have figured out why we haven’t felt the need to establish a medical services company. If not, GO DO THE MATH!!
#3) Outsourcing of Collections
Many of our tenants and/or their loved ones find us via our website. They might not be working with a caseworker at one of the organizations we market to that is paying for their housing. They need affordable housing though! Do you know how much the average Social Security check is?
$1300 Per Month!
SSI has not kept up with inflation, so the safety net that many of our Seniors have been paying into their whole working lives, is NOT SAFE! It’s very hard to live off of such a tight budget, and for many people this is all that they have.
Unlike most traditional “landlords”, we do not require our tenants to have good credit, good rental history, background checks, and a full-time job making 3x the rent amount.
Now, could you imagine what our Operational Managers’ lives would be like needing to collect rent from 150 – 200 unqualified tenants every month?
How do we avoid this?
Did you guess “Outsourcing” and just earn another pat on the back???
That’s right! We outsource the collections. This does not mean we have loan sharks calling all of our tenants and hunting them down. It’s much simpler (and nicer) than that.
Little do most people know, but you can become a Social Security Recipient’s “Payee”. There’s a process to go through so the funds go directly to you. Then you help the tenants pay their bills (including their housing payment).
Little do even less people know, is that there are companies out there IN THE BUSINESS of doing this. They charge a small fee, typically 1 – 3% of the overall funds managed.
They are called “3rd Party Representative Payees”. We found iLife for one of our One on One Coaching clients in Wisconsin and their website explains the business perfectly. Check out the circled part of the picture above. Part of the service they provide is “paying bills”. The housing payment to YOUR Group Home is just one of these bills!
This is another 10-PART COURSE’s secret way of getting a guaranteed payment by Uncle Sam!
These are just some of the techniques we use to
10x the cash flow of a rental property
Without a license
And without needing to chase tenants down for payments!
All while helping the community out at the same time!
