Tag: assisted living

What is Your Excuse For Not Starting a Group Home??

Posted on by brandon B

What is Your Excuse For Not Starting a Group Home??

We talk to a LOT of people about Group Homes and do you know what the #1 excuse for people not starting up their dream business is?

Budget Restraints!

That’s right: Lack of funds

If this is YOUR reason for not starting up your own Group Home business let me ask you a question…When is that going to change? And what is going to happen if you DON’T create another source of income for yourself??

Let that sink in for a second….

Hopefully it stung a little bit. If not…maybe you’re just happy where you are at. That’s fine! But if you know deep down that starting a Group Home, helping out people in your community, setting your own schedule and earning an amazing income is right for you then CHANGE YOUR MINDSET.

We’ve said it before and here it is again….don’t tell yourself WHY you can’t do something, ask yourself HOW it can be done!

Where there is a will, there is a way and the above article is an infuriating example of that. But guess what? No matter how awful you might think it is, this guy makes an extra thousand bucks every weekend just by sitting on the street and asking for it. How do junkies afford drugs every day with no job??

You can use the force of your “will” combined with “belief” for good OR evil. There’s a million articles out there about much more positive uses of this force, but this was meant to grab your attention.

You don’t need a lot of money to start a Group Home. You don’t need a license. You don’t need good credit. Or a grant. Or permission from the government. OR ANYTHING ELSE you are telling yourself that’s holding you back.

OUR FREE 10 PART COURSE will give you all of the information and material you need to run your business except the home! HOWEVER, we’ll show you how to acquire a property you can operate a Group Home out of with little to NO money if you really are lacking the funds!

Listen to what other people are saying about our products HERE, and let’s get YOU on your path to Group Home Riches today!

 

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New Month. New Goals. New Statistics – And Why You Do Not Want To Become One

Posted on by admin

                       It Is May 1rst….. What Does That Mean?  It Means It Is A New Month!  (and maybr time to start a group home)

And Therefore time to start new projects and Learn New Things

Let’s Start With Some Basic Stats:

America is one of the richest countries in the world, yet


– 76 percent of people live paycheck to paycheck (these are the people you help when you start a group home)
– 50 percent of Americans have no money for retirement (again, these are the people you help when you start a group home)
– 47 percent of Americans don’t have $400 for an emergency (yup! Once again the people you help when you start a group home)

If these stats were true in Venezuela or Afganistan it would be one thing, but America is considered a Wealthy Country

There are 3 simple reasons for this:

1. People don’t know how to get money
2. People don’t know how to keep it
3. People don’t know how to grow it

 

(the above are ALL the reasons why you need to start a group home)

This is because of the financial talking heads on CNBC and elsewhere that give worthless advise and persuade you to loan them your money for 40 years with the allure of a “tax-free” retirement…..(its called a 401K)

Some of the other advise includes:

– Skipping your Starbucks and saving $500 per year

– Investing in a “Well-Diversified” Portfolio of Mutual Funds (that continues to make the mutual fund manager EXTREMELY Wealthy)

– Going to college, investing in “higher education” and taking on $40,000 – $100,000 in student loan debt in order to get a good job (which by the way, will eventually be replaced with a robot or lost when another company merges or buys out your employer)

Look, the above advise MIGHT BE right for you. If it is, then I can assure you that being independently wealthy and owning your own GROUP HOME business is NOT the path for you. You read that correctly…maybe you should not start a group home!

BUT IF YOU WANT FREEDOM, FINANCIAL INDEPENDENCE AND THE OPPORTUNITY TO GROW….. then YES, you should start a group home

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Then investing in yourself and learning more about real estate and GROUP HOMES may be the right path for you.

Where to begin?

#1. GO TO MY BLOG. (CLICK HERE) It is FREE. It has a wealth of information. In fact, I am about to post 4-5 articles on it with topics ranging from interest rates, to min-set to operations. If you don’t have $149 to invest in yourself through my GOLD COURSE, then start here. It is the ONLY resource on the internet. 

#2. If you are ready to grow this month and BEGIN INVESTING IN YOURSELF and learning about starting a GROUP HOME, running one or expanding your current GROUP HOME business, then check out my GOLD COURSE. From videos, to house manager interviews, to check-lists, to lease agreements to basic “how-to’s” this is THE 1 and only resource you need. Whether you are in CA, NY, Alabama, OH or TX….the same rules apply

#3. If you are already a GOLD COURSE member, or simply want to check demand PRIOR to starting (and you want to see how many leads actually come in per week) I highly recommend setting up a website. Do it yourself for $1,000 – $10,000 (along with the brain damage that comes with learning HTML, C++ etc) or simply let our staff take care of it for you. Click here to learn more about our GROUP HOME LEAD-GENERATION WEBSITE

                          Remember, FORTUNE FAVORS THE BOLD. 

The path to start is not easy. In fact, starting is often the hardest thing you can do. 

                       That is why you need to START TODAY. 

                MAKE A DECISION TODAY TO INVEST IN YOURSELF. 

LEARN HOW TO PRINT YOUR OWN MONEY, LIVE DEBT FREE AND LIVE LIFE ON YOUR OWN TERMS. 

DISABLED VETERAN HOUSING GRANTS – HOW TO MAKE MONEY

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ARE YOU LOOKING TO MAKE MONEY WITH GRANTS FOR VETERAN HOUSING FOR DISABLED?

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but lately, many of you have been asking for more info….so here is some free cheese for you……

Homeless Providers Grant and Per Diem (GPD) Program (Learning how to grants for veteran housing for disabled)
State, local and tribal governments and nonprofits receive capital grants and per diem payments to develop and operate transitional housing and/or service centers for Veterans who are homeless.
How It Works

VA funds an estimated 600 agencies that provide over 14,500 beds for eligible Veterans. Grantees work closely with an assigned liaison from the local VAMC. The VA GPD liaison monitors the services the grantees offer to Veterans and provides direct assistance to them.

Typically, the maximum stay in housing is up to 24 months, with the goal of moving Veterans into permanent housing eventually (Just remember, YOU ARE THE HOUSING). So opting for grants for veteran housing for disabled can be a good idea befitting many of you!

WHO DO YOU PROVIDE HOUSING FOR?

The targeted population is chronically homeless Veterans who suffer from mental-health or substance-use problems, or who struggle with maintaining sobriety; and Veterans with multiple treatment failures who may have never received treatment services, or may have been unsuccessful in traditional housing programs. These grants for veteran housing for disabled may have not yet fully committed to sobriety and treatment.

HOW MUCH DOES IT PAY?


$45.79 PER DAY PER VET. YES, YOU READ THAT CORRECTLY. $45.79 PER DAY. 10 BEDS = $457.90 PER DAY! HOW MUCH IS THAT OVER 1 MONTH? 

THINK YOU CAN MAKE ANY MONEY WITH GRANTS FOR VETERAN HOUSING??

HOW DO I GET STARTED?

I hate to break it to you guys and gals, but you are going to need to make an INVESTMENT. An INVESTMENT IN TIME AND MONEY. First, start by getting my FREE 10-PART COURSE.

Get Started Now

 and start learning. If you want to waste time trying to learn this stuff on your own, by all means. But you will spend 100’s of hours and make no money – versus just GETTING IT FOR FREE
In the interim – IF YOU ARE IN ATLANTA – get on the phone and start calling the following contacts and begin networking! 
SALVATION ARMY
275 Pryor Street SW, Atlanta, GA 30303
1000 Center Place, Norcross, GA 30093 

Want to get on the phone and actually speak with the head of the Homeless Providers Grant for entailing your requisites with the grants for veteran housing and Per Diem Program? Call Jeff Quarles at 1-877-332-0334DON’T KNOW WHAT TO ASK HIM OR WHAT TO SAY?

Then, chances are you need TO SIGN UP AND START LEARNING! 

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WANT TO GET STARTED APPLYING FOR GRANTS FOR VETERAN HOUSING TO HELP DISABLED VETS?

1. Go to www.sam.gov

2. Create a Personal Account and Login

3. Click “Register New Entity” under “Manage Entity” on your “My SAM” page

4. Select your type of Entity

5. Select “No” to “Do you wish to bid on contracts?”

6. Select “Yes” to “Do you want to be eligible for the grants for veteran housing and other federal assistance?”

7. Complete “Core Data”, Validate your DUNS information, Enter Business Information (TIN, etc.) , Enter CAGE code if you have one. If not, one will be assigned to you after your registration is completed. Foreign registrants must enter NCAGE code., Enter General Information (business types, organization structure, etc) Financial Information (Electronic Funds Transfer (EFT )Information), Executive Compensation, Proceedings Details. Indeed, that complies to the functionalities to qualify for the grants for veteran housing!

8. Complete “Points of Contact”

9. Your entity registration will become active after 3-5 days when the IRS validates your TIN information

What’s in it for you to run one of these homes? Why wouldn’t you just provide housing to a traditional renter? Watch this video to see the amazing outcome this business model will have on your community AND your wallet:

Why A $200,000,000 REAL ESTATE PORTFOLIO SOUNDS BETTER THAN IT ACTUALLY IS – Low Cap Rates Are Killers

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Learn why a $200,000,000 (Two Hundred Million) Real Estate Portfolio MAY (MAY) sound better than it actually is. HINT: CAP RATES ARE EXTREMELY IMPORTANT. IF YOU ARE BUYING 4 CAP RATES YOU MAY WANT TO READ THIS!

Everyone loves to brag. The guys in the local business journals. The guys in the Wall Street Journal. The guys on YOUTUBE. What do they say?

“I have a 200 Million real estate portfolio”

To the average neophyte, this sounds impressive. And it very well maybe. Especially if it was purchased during the previous recession – or possibly you are an OLD SCHOOL Billionaire like Donald Sterling with tens of thousands of units. Someone in either of those positions is DEFINITELY in a position to brag.

BUT WHAT ABOUT THE GUY THAT STARTED BUYING IN 2014 and brags about his 200 MILLION PORTFOLIO?

Lets consider the facts:

Cap Rates in most tier 1 and even popular tier 2 markets around high 4 cap rates or maybe low 5’s. Of course, everyone thinks that they are buying an 8…..until the numbers actually present themselves in the lack of distributions.

So here is some quick math:

  • $200,000,000 Million of real estate that was purchased on CAP RATES of 5% will yield a net operating income of $10,000,000 per year. 
  • Assuming an all debt transaction (No Equity) the annual (P&I) payments assuming a 4% Interest Rate over 30 years are $11.457,967.09
  • At the end of 12 months, you have lost $1,457,967.09

YOU READ THAT CORRECTLY

THE GUY BRAGGING ABOUT HIS $200,000,000 REAL ESTATE PORTFOLIO IS LOSING MONEY because he is buying stuff like this (and these advertised cap rates are way higher than actual)

http://www.loopnet.com/Listing/533-Evergreen-St-Inglewood-CA/11386063/

Can he make this up by selling if the property value goes to $250,000,000? Yes! But from a pure cashflow standpoint, it is risky.

Interested In Learning How To Make 100% Returns On Your Money? Get My Free, 10-Part Course

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LETS TAKE THE RISK OUT OF THE CAP RATES AND INCREASE THEM A BIT. LETS ALSO PUT SOME EQUITY INTO THE TRANSACTION. 

OK, now lets assume that the 200M of real estate was bought on an average of 5.5 – basically cap rates that avg out to 5.5%. Lets also assume that the owner (owners) injected 20% equity into the project:

TOTAL DEBT: $160,000,000

Interest Rate: 4%

Cap Rates: 5.5%

NET OPERATING INCOME: $11,000,000

Monthly P&I payments: $763,864.47

Annual P&I Payment: $9,166,373.67

NET INCOME BEFORE DEPRECIATION ETC = $1,833,626

Look, this is BIG MONEY. And the guy pulled off about a 9.1% CASH ON CASH RETURN on his money when he bought the portfolio with a blended avg. of 5.5% CAP RATES…..

BUT HOW MANY PEOPLE ACTUALLY HAVE $20,000,000 to put down?

If they raised $20,000,000 what guaranteed return would they need to offer their investors? And what % of the deal would they get for themselves?

Obviously, people have gotten tremendously wealth with this formula. But for the avg individual, this is very HARD to pull off. Assuming no appreciation and assuming an 8% pref, there is roughly $18,336 left for the GP’s to divvy up with their LP’s…..hardly a feast for anyone – unless you live in Venezuela!

I show people a very simple formula that I have used to create monthly passive income. You won’t become a millionaire overnight. And quite frankly, this is not a formula for someone that already has 7 figures saved up. This is the exact formula that I used to retire by first creating a $3,000 passive income stream and then repeating the process 10X over. Just 2 little properties can get you to $6,000 per month which is enough for most people to live comfortably on…..ESPECIALLY IF THEY DONT HAVE TO WORK FOR IT!

Sign up today for my free 10-part wealth building course. You Will Be Glad You Did

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One Mans Trash Foreclosure Is Another Mans Treasure

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HOW TO BUY FORECLOSURES FOR PENNIES ON THE DOLLAR AND TURN THE FORECLOSURE INTO A MONTHLY OIL WELL THAT PRODUCES BIG PROFITS

I will buy 30 – 40 or so homes like this (buy foreclosures) in 2018. These houses may look like trash, but with a bit of knowledge you can turn them into TREASURE. Yes, foreclosures can be your GOLD

Let me give you an idea of what can be done with a foreclosed house like this and for what price you can pick up foreclosures for depending on your city

                              This foreclosed property was purchased for $28,000.

I will spend probably $10,000 on labor and another $5,000 – $10,000 on materials fixing it up. Rounded up, this house will cost me roughly $50,000 when it is all said and done. The final value? Probably $130,000 on the low  to $160,000 on the high. To me, it really doesnt matter. What matters is the income that it will generate.

 I WILL RENT IT TO MY GROUP HOME BUSINESS FOR $1,000 per month.

 

Market Rents would be about $1,200 / month

Buy Distressed Real Estate For Income
How to buy Distressed and foreclosed Real Estate For Income

Whether you want to use foreclosed houses like this for your group home or care home business, rent them out, sell them on terms or flip them for cash –

                                                  YOU HAVE A LOT OF OPTIONS. 

This website is dedicated to showing people like you how to set up and operate gr0up homes. One part of the wealth building formula that I teach is

 

                                            FINDING FORECLOSED PROPERTIES

like this, fixing them up and then holding onto them.

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Look, the houses dont even need to be foreclosures. They could be short sales or simply distressed property. Another secret is knowing WHERE to look. If you are in Los Angeles, chances are you are going to have a tough time finding foreclosures at the moment. The banks are holding onto them. So you need to look elsewhere. But once you find the location – AKA your farm area, you can find an ABUNDANCE of motivated sellers. Just remember, the window of opportunity usually doesnt last long. Heck, just look at Detroit!

In a nutshell, you need to learn how to market for these types of properties. After you learn how to find them, you need to learn how to fund them.

 

                                               After that comes the HARDEST PART.

                        Learning how to fix them without getting taken advantage of.

                                                   YES. THE CONSTRUCTION ASPECT

This is where most people lose their asses. The final part is EASY. Renting, Selling or Financing them out.

I have compiled all of this in my step by step system. Continue checking in on the Blog or simply sign up for my FREE, 10-Step GROUP HOME COURSE

 

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buy foreclosures and make money
Learn to Buy Foreclosures and turn them into income

Questions? Comments? LET ME KNOW YOUR THOUGHTS or sign up for my free 10-part course below

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CAP RATES FOR MULTI FAMILY REAL ESTATE AND GROUP HOMES

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WHAT ARE REAL ESTATE CAP RATES AND HOW TO EASILY THUMB-NAIL A MULTI FAMILY CAP RATE CALCULATION

One of my students in Los Angeles reached out to me the other day. I have been coaching him since the recession back in 2008 or so. At that time, I pushed him HARD to get into the multi-family real estate game because the CAP RATES WERE (past tense) amazing. Fast FWD to 2018 – the cap rates suck. Will they go down further and may you be able to sell to the “Greater Fool”? YES! It very well may happen. I do not have a crystal ball. But what I DO, is play conservative and invest for YIELD. GROUP HOME CAP RATES are HUGE…..READ ON!

Although it is a bit more work than class A or class B; the yields (CAP RATES) and opportunities were very lucrative in the C and D grade space back then. He had the capital, the time and the energy to build up a strong portfolio – although he opted NOT to get into the Group Home game as he didn’t feel like he had the management experience at the time or the personnel resources available to act as house managers.

At the time, he was buying stuff for $60 – $80 per square foot in downtown LA. Heck, even back then the build-costs were upwards of $200. I figure his buy-in cash yield (cap rate) at the time was 9-11%…To give you an idea, nowadays, people are buying stuff in Inglewood and elsewhere out there in the mid 3%’s (although they are probably marketing them as 5%’s)

Today I want to give you a quick tip on how to easily compute a cap rate (or yield) on your total investment and then also give you an idea of what type of return you can generate if you set up a group home

 

 

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HOW TO EASILY THUMB-NAIL A CAP RATE (CAPITALIZATION RATE OR YIELD)

Step 1: Determine total annual revenues (tip: take monthly gross rents X 12)

Step 2: Divide by 2

Step 3: Take that number and divide by your all-in cost (purchase price + repairs + fees)

EXAMPLE:

Revenues are $100,000 per year. Divide by 2 = $50,000. Your all in costs are $1,000,000.
$50,000 / $1,000,000 = 5%

That is your return or CAP rate

Those types of returns are pretty typical in non-tier 1 markets (assuming tier 1 = San Fran, LA, NYC etc) for C grade properties. As you can imagine, it will take A LONG TIME to get your money back and get rich this way (unless you plan to fix and flip or add value in some capacity)

GROUP HOME RETURNS

I am a strong advocate of locating deals (10 CAP RATE or better) and then turning them into group homes. Once your group home is up and running, you should be able to increase your net yield on that property to 20% – 30% or better. In fact, most of the time, I don’t even bother calculating it.

As Warren Buffet says, “If you need a calculator to determine your return….chances are it is not a good deal!”

                                                                                    SUMMARY

When you operate group homes, you are operating a business. Most small businesses should enjoy 20-35% returns.– REMEMBER, these can be calculated using the cap rate formula I taught you above.  Often times even more. With Group Homes, you should be able to generate 1000% returns (not including the real estate) which should bring your net ROI / CAP RATE / YIELD of your group home and the real estate to anywhere between 20% – 40% depending on your location.

Stay Strong,

Andy

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