Why You Should Change Your View of Risk

The risk is really in the eyes of the beholder. Have you ever thought that maybe society had sold us a load of crap when it comes to risk? You can’t put it past society, though, we once believed that world was flat, that wearing seat belts were stupid, and that the media is our friend. We often realize much too late that when you go with the flow of society, you are often wrong. It pays to go against the grain, and after reading this article, you will see how the same goes for risk.

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The Realities Of Group Home Ownership

Steve Schwarzman, I remember saying once, mentioned that he liked real estate because “real estate doesn’t talk.” I love this quote. He was saying that one of the big pluses in owning property is there is less human interaction. Sadly, humans can be error-prone, whiny, wild, crazy and a million different other things (or emotions)…Welcome to the wonderful world of business! Here is why I welcome you with open arms to group home ownership: When you start servicing your customers – especially in the affordable housing realm, group home arena, assisted living arena, memory care arena, sober home or whatever particular niche you play in; you are dealing with human beings!

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Why Now is The Time to Start Group Homes

 

We have seen this scenario play out many times before. You decide that you want to change your life for good. You start looking for ways to do this, and you come across the niche real estate industry of creating group homes, retirement homes, etc. and decide that you want in. You start reading and researching, and your desire to change just gets larger and larger. The problem is that researching is the first step, but it is not the last step. You have to go and take action, and I want to make sure that you do just that. There is no time better than the present to start group homes.

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Do You Tap Dance to Work? If You Don’t Make a Change

When your alarm goes off in the morning what do you feel? What runs through your mind? Are you happy? Or do you often wish your life played out much different? Do you always wish you could just go back to bed? These are the questions you need to answer because they will decide whether you pass or fail the tap dance test. The tap dance test is a quick way to figure out whether you are living a fulfilling life or not.

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WHY FLIPPING HOMES IS DANGEROUS AND THE SMART MONEY PLAY IN GROUP HOMES

In a recent article in the Wall Street Journal, a lady by the name of Kathleen Wolf from Monterrey, California is discussed. They mention that she was a “Millionaire” (More on this later) who was flipping homes in California and who eventually lost everything. It reminds me of the article/blog posting I wrote last week about the couple that I met (also from Northern California) that was “simplifying” their lifestyle. Remember, simplifying is the code word for – “we don’t have enough money saved up and we don’t generate any income to live off.” That said, in the Wall Street Journal article, this 68-year-old lady had “built her fortune on buying and selling homes, ” and then everything collapsed during the great recession. It goes on to say that her bank balance fell to $15. Yes, $15.

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SINGLE ROOM OCCUPANCY GROUP HOMES

WHAT is Single Room Occupancy and Will HUD pay me for learning how to start a group home for adults with disabilities?

Quick answers:

SRO = SINGLE ROOM OCCUPANCY. Why is this important for you (or I) to know? What is the benefit of this knowledge for you? Well to begin with, let’s think about why you are here in the first place, reading this blog and website. There are really only two (2) reasons:

  1. To help others
  2. To help yourself (either spiritually, emotionally or financially)

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Group Sober Homes & Additional Revenue Streams

Are there other ways to generate income and revenue from sober homes other than through Rent?

In a simple answer Yes! However, it really depends on what type of group home or sober homes you are operating as well as the location.

For starters, let’s assume that you are interested in starting a group home or a halfway home. Initially, you would like to simply get into the business because you realize that you can have a direct impact on people’s lives and help them improve their standard of living. You also realize that you do not yet “know all there is to know”, so you have decided to start small – with a minimal investment – in order to get your group home started up and therefore go after the higher functioning population rather than starting up an ICF/MH home which requires a lot more knowledge and insight. For example, maybe you would like to go after people with disabilities such as alcoholism.

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Interested In Starting A Veteran Group Home?

What is CWT and how does it allow me to open a Veteran Group Home?

You will hear this over and over in our articles. You need to NICHE to get rich. Well, remember, within “niches” you also have “sub-niches.” So you are obviously interested In real estate. Otherwise, you would not be on this website.

Real estate is a niche. You have evaluated many different real estate options or opportunities including “flipping” and “wholesaling, ” but for some reason or another, they just aren’t for you. You might have realized that a lot of these so-called “flippers” really aren’t making much money at all. Maybe you have realized that many of them are possibly buying correctly, but then getting taken advantage of by the contractors.

Maybe they are buying precisely, have the contractors in place to do the work, but they are paying out 13% hard money interest (Not including the up-front points!) and have no money left-over after selling. Heck, maybe they have cheap financing in place, great contractors and they are buying right…..but they do not have any retail buyers. Wow! See how much can go wrong in this equation?  Heck, maybe they have the retail buyer already lined up, the contractors are great, they bought the property for cash with an equity partner and they are in it at 70% LTV…….but now the federal government is shut down and the govt. backed loan programs have been put on hold!

Do any of these problems sound familiar?

Well, if you look around at the wealthiest guys out there – Warren Buffet, Carlos Slim, Donald Sterling, etc. you will find that these guys are not asset traders. As a general rule, they are looking to get their initial investment back in as short a period as possible. After that, they are essentially playing with the house’s money. So what does any of this have to do with finding your niche?

Well, group home, transitional living homes, care homes, sober homes and other “care-related” group homes are a niche within the real estate industry. Now, if you want to focus in on a “sub-niche” of this sector, you could begin targeting particular types of people. One great niche to target are the returning veterans that need housing!

Why not help out not only your community but also your country and provide group homes and housing for this population?

Programs for Veteran Group Home Owners

Great question. And the more you learn about these programs, the more you begin specializing in a niche. Much the same way doctors specialize in orthopedics, dermatology, etc. you can now begin specializing in VA group homes that provide housing for veterans. Quite possibly, you may specialize in providing group homes for disabled veterans. Another niche.

CWT

 The CWT program stands for compensated work therapy. Veterans in the CWT program are paid for vocational re-training. They are then provided a group home environment (THIS IS WHERE YOU COME IN!) so that there rent is paid for.  For example, let’s say that you live in Colorado and you are interested in helping out veterans and providing group home transitional living for them. You would want to check out this link

http://adm.elpasoco.com/VeteranServices/Pages/HomelessVeterans.aspx

and then reach out to the primary point of contact at the local VA to make your introduction. How do you know whom the person is that you need to speak with about opening up your group home for vets or even disabled vets? It would be Jack Freeman, in Colorado Springs! How do we know? Because we have done the research and can help you with this!

GPD

 GPD is the VA’s  grant per diem program which pays you a daily rate for each veteran that you provide housing for at your transitional living or group home!  From the governments website:

“ For supportive housing, the maximum amount payable under the per diem is $43.32 per day per Veteran housed. Veterans in supportive housing may be asked to pay rent if it does not exceed 30% of the Veteran’s monthly-adjusted income. “

Again, the goal and mission of group home riches is to provide you with the information that will allow you to become rich not just financially, but spiritually as well. By providing housing for veterans you would receive $1,299.60 per veterans for each 30 day month. Now, assuming you are providing housing for 7 veterans in one of your homes, you would have a gross income of $9,097.20! This is why there are riches in the niches!

HCHV

 The government’s goal is to end homelessness, and they are looking for you to help them out. Don’t believe it? Just check out the number of RFP’s for contracting opportunities with the VA! They have MILLIONS AND MILLIONS of dollars budgeted to assist with this…..and the best part? Even if there is not a formal RFP in place, they still need people like you to assist with providing group homes and transitional living in a residential environment for vets and disabled vets.

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:

If you are looking for additional information on how to start a veteran group home, halfway home, transitional living home, sober home, foster home, ICF/MR home, DADS Home or other type of care home for people with disabilities; check out our FREE 10-PART COURSE on starting your very own income-generating group home

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Interested in Starting a Group Home for Foster Children?

Starting a group home for foster children can be incredibly rewarding. Both emotionally, spiritually and financially. However, it can also be sad, as often you will build a bond with the child who will usually only live at the foster home temporarily.

Although you may be interested in starting a foster home, you might be wondering why there is such a significant need or demand for foster homes. The answer is simple. Many people have children without taking the time to consider what needs they will have and if they can sufficiently caring for the children. If the children are not able to remain safely at their house with mom and dad, the state department will provide the child with an alternative family that will take care of them. This could be your family and home!

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Group Home Insurance? HOW, WHERE AND WHY!

Do I need group home insurance for my group home or special needs care home?

One of the first things a business thinks about after starting are their insurance requirements. Insurance can be a tricky subject. Some businesses need it, others don’t need it. Some are required to have it while others are not required to have it.

Running a group home, sober home, special needs disability home, transitional living home or other type of care home is a business that can be extremely profitable – both for your bank account as well as your mental and emotional bank account. You can create a true “community asset” that helps out those in need throughout the community, while also providing an amazing lifestyle for you and your family. However, while you are enjoying all of your newfound passive income that you have created by providing housing and related services for those in need, remember that things can happen. Perhaps you decided to purchase the property where your group home operates. If that is the case, you may want to look into obtaining property and casualty insurance. Unless you acquired your property all-cash, chances are that your bank will require that you have insurance.

In other cases, you may obtain a government contract for foster homes, group homes, or a specific niche of transitional living homes in your area. If this is the case, and you have started a group home which has now taken you to the “big leagues” of government contracts, you can be rest-assured that these entities will require you to have insurance. What type of insurance? Typically, these government contracts require the following:

General Liability Group Home Insurance

Liability:                                                                             $1,000,000 limit

General Aggregate                                                             $2,000,000 limit

Products and Completed Operations                            $2,000,000 limit

Personal Advertising Injury                                            $1,000,000 limit

Damages to Premises Rented To You                            $100,000 limit

Medical Expense                                                                $5,000

Abuse and Molestation

Each Occurrence                                                                $1,000,000

General Aggregate                                                             $2,000,000

Professional Liability                                                      

Each Occurrence                                                                $1,000,000

General Aggregate                                                             $2,000,000

Workers Comp

Each Occurrence                                                                $1,000,000

General Aggregate                                                             $2,000,000

If you are not going after government contracts, or at least they aren’t currently on your radar, you may potentially skip this step and simply get general insurance. Possibly a less rich policy, such as a simple General Liability policy for your group home or care home business. If you are simply operating sober homes or transitional living homes for people that have lower incomes than most, you can obtain these policies at minimal expense.

Of course, you need to know where to look! That is what www.grouphomeriches.com is here for. No where else can you find this much information at your fingertips! In fact, many of our thousands of subscribers didn’t even realize that could make an amazing passive income with just a few simple group homes before finding our website. Just the information above is worth tens of thousands of dollars. Why? Because how else would you ever know how much insurance is required to procure a government contract?

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What is Next?

In future articles, we will talk specifically about how else to locate and procure government contracts that can literally set you up for life. One simple contract and technique could put a guaranteed $3,000 – $6,000 or more (PER GROUP HOME) in your pocket each and every month. Think about it……You would need to have over $1,000,000 (one million dollars!) just to generate $3,000 per month in passive income —IF YOU ARE LUCKY! Yet, one group home can literally set you up for life. And the reason why insurance is important?

This income stream is protected! What if the building where your group home is burns down? That is what insurance is for. What about the rents you will miss out on? That is what “Loss of rents” protection insurance is for. We hope today’s article was insightful and beneficial for you. Remember, the more you learn, the more you earn. Sign up today for our FREE 10-PART COURSE today and learn much more than just group home insurance.

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: