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!
Who Your Tenants Are and Why They Need a Group Home
Who would want to live in a Group Home??
More specifically…who would want to live in YOUR Group Home, ran out of a standard residential house??
Aren’t there fancy facilities with top of the line medical equipment and teams of highly trained staff that people go to when they need a place to live? And isn’t all of that paid by the government and social security? That’s why we pay a nice portion of our W2 checks every other week to these government programs right???
WRONG!!!
Meet Cecile.
Luckily, she had savings and a pension on top of her SSI so she could afford a facility like that. But guess what…those facilities cost anywhere from $3,000 – $5,000 PER MONTH.
As she says, “That money has gone so quickly,” the 85-year-old said.
She was able to afford to stay at French Manor Residential Care for a couple years, but now her money is drying up.
And what about those that DON’T have savings or a pension plan??? What if they are trying to live off of $1200 per month for everything??!!
“There’s a lack of availability across the board, especially in the lower-income range,” added Kim Bauml, senior care consultant/president at Options for Senior Living.
The Alliance for Senior Housing, LLC and Options for Senior Living, LLC are two area companies that make free referrals for placement in senior housing. The two organizations try to place seniors in facilities that works for their finances. (**** THIS is the type of organization you market to!!****)
“Everybody has a staffing issue,” Hintsala said. “Some of the homes have even contracted with in-home care agencies to provide extra staffing.” (**** This is what we mean by OUTSOURCING any licensed care****)
“Most places there is a wait list for rooms, no matter how much they cost,” Wilkinson said. (****There is a HUGE demand for this, and nobody is doing it!!!****)
That’s it! THIS ARTICLEperfectly explains why Andy’s business model works, why there is a huge market for it, and why we put together OUR FREE 10-PART COURSE to teach people just like you how to capitalize on SOLVING THIS PROBLEM!! You can make THOUSANDS on a home that you RENT, by helping out people just like Cecile!!
In yesterdays Wall Street Journal Article that I referenced (retire at 40 years Old) I touched a bit on the wealth effect…now lets learn how to do this with group homes.
I received probably 10 group home subscriber emails afterwords asking about the wealth effect – so I figured that rather than responding to those 10 or so people, I would write to everyone – about 25,000 of you.
So here it is…the Wealth Effect (Andy’s explanation and how it impacts your group homes)
The “wealth effect” refers to the idea that people like you and I will spend more $ when our stocks or real estate go up in value because higher asset prices make us FEEL (note the word FEEL) wealthy. It is basically an emotional high….
And as much discipline as you or I may have….9 out of 10 of us still fall into the trap (including yours truly- But I try to be mindful)
BUT IT IS A FALLACY…A GAME BEING PLAYED ON US.
Let me explain…..
Statistically it has been proven and un-proven. (remember the book, how to lie with statistics?)….
But Guys like Robert Shiller (Case Shiller) and Mark Zandi (Chief Economist at Moody’s) will tell you via Statistics, that for every $1 increase in housing value, there is an $0.08 increase in spending…..
Now, I am not sure if they are considering property taxes or not (because you never get to see that money anyway) – but figure that if your housing goes up in value by $100,000 you spend just 4% rather than 8%….which I find reasonable. In essence, you if you have an extra $100,000 in value in your home – they say you will go take a trip to Mexico for $4,000 – $8,000.
THE PROBLEM WITH THE WEALTH EFFECT AND THE TRUE BENEFICIARIES
I have a friend that lives in a very nice part of town. His house is probably worth $1,300,000. Fortunately, it is paid off and he has no underlying debt on it. But when we chat, he often times tells me that his house is going up by 10% per year. This is the wealth effect.
Unfortunately, for every 10% increase in “value” it actually COSTS HIM an additional $2,300 due to the property taxes! Get it! So when we talk about the real beneficiaries, one of them is YOUR LOCAL COUNTY PROPERTY ASSESSOR!
So his house went up by 10% (he thinks) and yet it cost him an extra $200/month. GOT IT?
Additionally, in his mind, he just made an easy $130,000 doing nothing….Might he now feel wealthy enough to go spend $25 on a nice tri-tip steak and a $50 bottle of Malbec 2X per week as a result?
That is an extra $150/week or $600 per month – OUT OF POCKET.
The point is that high asset prices often times induce a type of euphoria. This is the Wealth Effect.
It allows the government and others (the true beneficiaries) to essentially TAKE MORE MONEY FROM YOUR WALLET EACH AND EVERY MONTH even though your cash-flow has not increased.
GROUP HOMES – WHY I FOCUS ON CASH-FLOW PRODUCING ASSETS
If you have read my previous articles and blog posts, you will know that I am a big believer in watching the central banks and more importantly INTEREST RATES. Simply, when interest rates go down – prices go up – and Vice versa. You do not need an MBA from Harvard to figure this stuff out. You only need to learn the basics – and then have a proven, step-by-step system for accomplishing your financial dreams like I teach in my FREE 10-PART COURSE
The problem with interest rates, is that they are outside of your control. Chances are, you are not on the Federal Open Market Committee. But what you CAN CONTROL is your business and your knowledge. You see, Group Homes produce CASH-FLOW each and every month.
A Small 4 bedroom home with 8 beds that you rent for $600 each (cheap) produces a GROSS INCOME of nearly $5,000 each month. If your expenses are roughly $2,000 – you have $4,000 PER MONTH to spend how you wish.
This is the power of BUSINESS. THIS IS THE POWER OF GROUP HOMES LIKE I TEACH IN MY FREE 10-PART COURSE
The wealth effect has other powers-that-be like your local tax assessor getting all of your money because you feel rich. GOLD COURSE GROUP HOMES allow money to flow to YOU each and every month. See the difference?
I hope this explanation of the wealth effect makes sense. Now start paying attention so that attention can PAY YOU!.
Interest rates are rising…….what usually happens when interest rates rise?
I want you to be in charge of your financial life and live your dreams. In my opinion, one of the easiest and sure-fire ways to do that is through CASH-PRODUCING GROUP HOMES. I teach all of this in my FREE 10-PART COURSE
Don’t let interest rates matter. Don’t let the Wealth Effect Take your money. Learn how to produce monthly cashflow and help others with my
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
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.
How Much Can You Make With Your Group Home Empire? Here is one that just sold for $70,000,000
Good Morning! I wanted to add some inspiration to get your TUESDAY started on the right track.
Many of you ask me, “Andy, How Much Is My Business Worth? Other ask, “How Much Can I make With Group Homes?”
The quick and short answer is however much someone is willing to pay. That said, just like we discussed interest rates the other day, I want you to understand that all businesses and real estate are priced based on how much income they will bring in over time. That is why the second part of the above question is so important. “How Much Can I make With Group Homes?” To reiterate…..it is all about the INCOME that the asset will produce over time
CAN I SELL MY GROUP HOME AND SERVICE BUSINESS FOR $70 MILLION?
Absolutely. That is why I included the data from PitchBook above. On the left side, you will see the Company Name – D&S Residential – and you will notice that it was acquired by Comvest for $70,000,000. Yes, This GROUP HOME OPERATING BUSINESS was sold for $70 MILLION.
Look, I am not telling you this is Warren Buffett or Carlos Slim money. Its a drop in the bucket for them. But for the average UBER WEALTHY person, this is a lot of SCRATCH.
D&S Residential started off just like many of you are starting off right now. With 1 home.
In fact, I actually personally know the first banker that financed them. A small little bank about 80 miles North of San Antonio TX and 25 miles southeast of Austin. Yes, the owner started with 1 Home.
WHY AM I TELLING YOU THIS STORY?
1. Group Homes Produce Income. Businesses are sold based on the income they will produce over time. How much can I make with Group Homes truly is the question. And the answer equates to the price
2. 98% of people start small. The owner of D&S started with 1 home!
3. The owner of D&S invested in himself and obtained knowledge. Just like compound interest, he added to his knowledge base each and every day by reading and studying. Whether it was a course like theGOLD COURSE, or going to industry conferences, he INVESTED IN HIMSELF everyday
4. You need to understand the potential and have a vision. As the Old Book says, “without vision, the people will perish”
5. Anything is possible! Look, D&S didn’t turn into a $70,000,000 company overnight. It took effort and focus.
6. HE STARTED! HE TOOK MASSIVE ACTION! The owner of D&S did not waste time. He knew the opportunity was HUGE and he wasted no time. He too asked himself the question, “How much can I make with group homes?” and he obviously found the answer 🙂
I encourage you to WASTE NO TIME……
If you want to get started in the GROUP HOME business, assisted living, care home, transitional home ICF MR Home or other…….
THIS IS MY FREE, 10-PART COURSE.
Whether you do this by signing up for my free, 10-PART COURSE
or get out today and rent or buy a property you MUST GET STARTED!
ARE YOU LOOKING TO MAKE MONEY WITH GRANTS FOR VETERAN HOUSING FOR DISABLED?
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.
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!
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:
Group Homes Are About Operating Cashflow – Not financing or Capital Gains….But if you pay attention to interest rates and are a BUYER of Real Estate – you may want to continue Reading….This is a quick synopsis of how interest rates CAN impact bond prices (and therefore – often REAL ESTATE)
Today’s post is not going to be in depth. We are not going to review procedures or policies for running group homes or assisted livings. If you want that, you can simply sign up for my free TEN PART course which will teach you the step by step ways of making money with group homes
TODAY’S POST IS ABOUT INTEREST RATES AND THEIR IMPACT ON BOND PRICES
Quick Rule Of Thumb:
A 1% change in interest rates will equate to a price change equal in duration.
For example a 10 year duration will go UP, 10% if interest rates FALL by 1%
The inverse applies as well:
A 10 year duration will go DOWN 10% if interest rates go up by 1%
Remember, these are rules of thumb.
NOW LETS LOOK AT REAL WORLD EXAMPLES
Microsoft sold a 2057 bond (meaning it is DUE in 40 years earlier this month). The yield at inception was 4.5% and at the time, the ten year treasury was at 2.41%.
Currently, the ten year is about 2.88% or about 1/2 a point higher and the microsoft bond price is down about 4.1%. Using the rule of thumb, a .5% increase in rates would = a 5% change in price assuming a 10 year bond. This Microsoft bond issue is 40 years, so I’d like for you to comment on how to better understand this! Again, not all rules of thumb are precisely accurate. That is why they are rules of thumb.
IN MY GROUP HOME BUSINESS, I WOULD RATHER BE ROUGHLY RIGHT THAN PRECISELY WRONG.
I make the above statement because I am not a wall street whiz or trader. I wont teach you how to be either. In fact, quite frankly I don’t know if I really believe the majority of these Hedge Fund guys can really make money on a % basis any better than how I do, or how I teach people to with group homes. Warren Buffet placed a bet with a few of these guys like 10 years ago and asked them to beat the S&P index over a 10 year period. None of them did. Did they get rich in the process? YES! But not from returns. They got rich due to great marketing and taking 2% of assets under mngt and 20% of the upside…..But I digress.
Now lets talk about group homes and what to do if you own the real estate:
Take a look at the chart above to get an idea of how this may affect you if you are a buyer of real estate. Remember, if you can buy LOW, you will have less debt service and therefore a larger monthly profit each month which is the NAME OF THE GAME in the group Home business. You are looking to HELP OTHERS and also MAKE MONEY WITH GROUP HOMES!
SUMMARY:
In the group home business, the lower your monthly payments are for the underlying real estate the larger your monthly profits and FREE CASH FLOW.
If you want to learn how to MAKE MONEY with group homes, assisted livings, foster homes, care homes, ICF or MHMR homes – I encourage you to sign up for my free, 10 – Part Course. I will show you the methods you need to take to get started making money with group homes and how to help others and feel great about what you are doing
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)
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
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
The Famous George Strait (Jeff Bezos’ Cousin) once said a life living is worth living well. I say, you need to ask yourself how to Vacation Well And Create Money With Group Homes in order to get “Livin’ Well”…..
Which leads me to a thought…
A long time ago, one of my mentors told me the following:
“One Mans Trash Is Another Mans Treasure”
I listened. Why? Because the guy was worth probably $30,000,000 (Back then) and lived in a beautiful home (even he admits personal residences are liabilities)
I bring this up this morning because as I sit writing this in Napa Valley, it is ever apparent. I just looked at my phone and reviewed photos of a dilapidated property that I just acquired for probably $0.20 on the dollar……Yet here I am looking at this view
How to start a group home and vacation when you want
Yet all of this beauty is provided to me through properties like this:
Group Home Fix Up foreclosureHow to buy Distressed Real Estate For Income
A treasure that allows me to spend a week in the early part of February in one of the most beautiful places in the entire United States.
$300 dinners, wine, private limos, private wineries and 5 Star Resorts where the rich and famous live and play. Lebron James was here a few weeks ago. $10,000,000 – $20,000,000 Million Dollar homes line the hills.
I owe this lifestyle and the riches and experiences that it provides for my wife and family to my business acumen, more specifically real estate and the INCOME GENERATING POWER OF GROUP HOMES.
You see, regular real estate sounds great. People can brag. I own X dollars of real estate. It sounds great on paper. And if they sell (assuming they purchased correctly) their overall pops can be tremendous. But with capitalization rates as low as they are, someone with a $100,000,000 million empire may actually not have that much money coming in. You see, a 5 Cap building with a 4% interest (and principal) expense doesn’t leave much room. I will write on this topic at another time ( I actually know of people with $200,000,000 Real Estate Portfolios that don’t make any money)
But a $30,000 home with 8 beds and a house manager could yield you the following:
Revenues: $4,800
Utilities: $500
TV/Phone: $100
Food: $350
Rent: $500
Other: $500 TOTAL EXPENSE $1,950
———————–
MONTHLY NET INCOME: $2,850
I TEACH PEOPLE HOW TO GENERATE MONTHLY PASSIVE INCOME IN MY FREE 10-STEP COURSE
For most of my subscribers, 2 or 3 homes will set you free. Free to do what you want, when you want, with whom you want.
Want to come to Napa for a few weeks? Go for it.
Go to Maui for a Few Weeks? Go for it.
Argentina for a few months? GO FOR IT.The process takes time to get up and going and will not provide you with $50,000,000 capital gains like a 1000 unit MF portfolio very well may.BUT, it will provide you with the cashflow lifestyle that I teach people how to create….
The best part about this business is that you really don’t need any money.
You don’t need credit
You don’t need to talk with bankers
You Don’t need to put together financial statements
Those are all prerequisites when you want to buy a $20,000,000 asset.
However this business can be done with little to nothing.
You don’t need to own. You can rent the property to get started. Later down the line, I will teach you how to ramp up your game and build wealth through the acquisition of real property….but for now, LEARN HOW TO GET FREE. FREEDOM is the name of the game.
And for most people, $3,000 – $6,000 per month of passive income will do the trick.
Want to learn how to do this? Follow a free, 10-step course and get started NOW.
START LEARNING TODAY. MAKE THE DECISION TO CREATE THE LIFE YOU WANT IN 2018
This Blog post will discuss the overall economy and the impact on Group Homes. Quick Tip: The Economy Doesn’t Matter when you own and operate Group Homes Like I Teach….However, If you own the real estate where your Group Home operates – interest rates and the economy may impact your overall wealth…..continue reading to learn why CASH FLOW is the name of the game in the Group Home Business
Where Are We in this 2018 business cycle?
Honestly, I don’t know. Quite frankly, if you are running and operating group homes, it really does not matter. The care home, assisted living, sober home, retirement home and other group home type industries literally will not be affected by a downturn in the economy unless the USA turns into Venezuala.
Why?
Because the trend is your friend. Demographics are destiny in today’s assisted living and group home world. Whether you live in Atlanta, Dallas, Los Angeles, Nashville or Miami people are retiring, people are abusing substances and all these people need group homes and care homes where they can live CHEAPLY. Yes, $400 – $800 per month. They will continue paying whether or not the stock market falls. This is what I teach in my free, 10-part course
group home business cycle
BUT WHAT IF I OWN MY REAL ESTATE AND MY WEALTH IS STORED IN REAL ESTATE?
Ok, great question. Look, I am not running a hedge fund or a PE Fund. I am a main street guy off wall street that shows individuals LIKE YOU how to do what I have done. That said, here are my thoughts:
In the later part of the business cycle when the demand from businesses and consumers is picking up at a fast clip – basically faster than businesses have the ability to produce the goods and services wanted or needed prices begin to climb.
EXAMPLE: Housing in a supply constrained area like Northern Ca. Consumers (i.e. tech workers) are making lots of money and builders cannot produce more houses due to land scarcity, lack of labor, material shortages and of course Government Bureaucracy.
During phases like this, the profits become tremendous for builders or others that are producing what the end consumer wants. At that point, the government and the Fed will often get involved to slow down the increase in prices. They do this by increasing interest rates. In fed parlance, this is referred to as Monetary Tightening. This is the opposite of what we say during QE 1, QE2, QE 3 etc. When this happens, the stock values go down as do the value of other assets like real estate and entire businesses.
In the last few weeks, Mr. Market has been teaching those who listen how this works. The economy (from the stats we are provided from the GOVT.) is apparently pretty darn good. So the fed comes in and says, OK, time to lift rates or TIGHTEN. Notice how the stock market has gone down a bit….. Eventually this will cause a downtrend in prices and eventually demand will fall which leads to the next phase:
DEMAND WILL BE SIGNIFICANTLY BELOW THE ABILITY TO PRODUCE (THE OPPOSITE OF THE EXAMPLE GIVEN ABOVE RE: NORTHERN CA. REAL ESTATE)
EXAMPLE: How much can you afford per month if interest rates are 3% VS. 6%?
A million dollar home (give or take) would cost you $3,000 per month VS. $6,000 per month.
THIS IS WHY DEMAND FALLS WHEN INTEREST RATES RISE
At this point, the cycle would start all over again and the Fed would begin reducing rates making assets more affordable again.
This is why it is smart to pick up assets when the economy is weak. In essence, there is excess capacity on the end of the asset owners (think businesses, developers etc). Basically, they have employees to feed and not much demand so they lower prices. THAT IS WHEN YOU WANT TO BUY!
WHY 2018 IS AN INTERESTING TIME
The above is a very simple illustration of how things work. The reality is a bit different for a number of reasons. Here are a few:
Lower Taxes. You all just saw what happened with the tax bill. AT&T and other large companies are giving out bonuses. This is HUGE
Monetary repatriation. Trillions of overseas capital could come back to the Unites States
Interest Rates Are Already SUPER DAMN LOW! Central Banks cannot really lower rates at the moment due to how low they currently are
Obviously, if you hold your wealth in real estate, own a large group home business or other means of production now MAYBE a great time to sell. Especially if you are nearing retirement.
But my method for how to operate Group Homes, Care Homes and other Assisted Living type properties focuses on producing CASH FLOW. Each and every month, my goal is to produce MONSTER TIDAL WAVES of recurring income from these group homes. Do I own real estate? Yes, lots of it. But the cash flow that comes in from the group homes is what allows me to live and be free.
THE END SUMMARY:
Don’t worry too much about the overall economy and the value of your assets. Focus TODAY on getting your group home up and going or expanding your group home empire.
I teach people how to do this in my FREE, 10-Part Course. If you haven’t signed up, I urge you to do this today.
