5 Smart Ways to Partner in Assisted Living

Transcript

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From pocket change to six figures in assisted living. My camera has some dust on it. Sorry. Trying to figure out how to start this. Hey friend, have you been looking at getting into assisted living because you see that huge those huge numbers, you know, $10,000 per month, uh, or, you know, just like just incredible numbers and you're like, are those even possible? And you've been doing single family real estate or you've been doing something else and you're like, you know, this is working for me. I figured

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out a process, you know, I'm pretty excited about it. I think it might work, but you're just like, this is a lot of work for just a few hundred extra dollars a month. Uh, then you're at the right video because today I'm going to be talking to you a little bit more about the difference between traditional single family rentals and assisted living using some simple numbers so you can kind of see exactly what that's going to look like for you and how to move forward. Um, this is where you're

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going to stop thinking like a landlord. This is this is the difference between traditional assisted living and and assisted living. This is the difference between traditional real estate investing and assisted living is you're going to stop thinking like a landlord and start thinking like a business owner. Start thinking like like somebody who has a plan for how you're going to get there. We're going to talk about that in today's video. Hey friend, my name is Brandon Gustafson. I help first-time

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assisted living entrepreneurs launch profitable, purpose-driven businesses, creating prosperity, purpose, and peace in their lives. I'm so grateful to have you here with me today. If you need some help and some guidance as you're going through this, type in roadmap down below. I'll send you a link to a special program to work directly with me. Um, just and and help you out as you're trying a special program to work directly with me and help you out as you're trying to figure out is assisted living even going

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to work for me? Is it is it the right fit for me? Okay, so just type in roadmap down below. We'll send you the link and would love to see you inside that program. Now, let's get into today's video. And with that, let's get into today's video. I'm trying to think, Pat, if I want you to continue doing our little, you know, music intro thingy or not. feel like it's going away and it's not as popular anymore. I don't know. What do you think? Okay, I'm fine if we take it out.

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All right, so let's get into our topic for today's video. We are again we're talking about traditional real estate investing, uh, you know, single family rentals and we're going to compare that to assisted living and the earning potential and kind of how these numbers work, how they break down, and what you can expect as you're trying to figure out if this is going to be right for you or not. So, in traditional now, in traditional real estate investing, for those of you that are

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doing this, type in re down below because I love my real estate investors. I want to make sure that you uh have a good solid understanding of this. And and I just want to make sure that you you can kind of grasp what this is looking like. And if you can share a little bit in the comments about your experience, what what type of uh investments you do, what type of real estate investments you do, what you like about it, what you don't like about it, and we can have a conversation in the comments down below about how assisted

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living might be a good fit for you. And if it's not, I'm not going to tell I'm not going to try to pigeon hole you into it. Uh but I I want to have a real conversation. So, type in those things down below so we can kind of help you out and give you some extra guidance to see if this is a good fit for you or not. Um, but in traditional assisted living, I'm talking single family here, you're going to have one tenant, one monthly payment. Like, it's it's that simple. So, if you want to scale, you've

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got to add multiple homes, right? So, if you want to have, I don't know, $10,000 in income, that means you might have to have 20 or 30 homes depending on how much you're cash flowing per uh per home. And that's a lot, right? If you have done real estate, then you know that managing one home is hard. Managing two or three is hard. The more that you get, the the easier it is because you're starting to build and scale. But to go from single family home investor or even a duplex up to 20, 30, 40, 50 homes, it

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it takes a lot of planning and that that can be really hard. Your rent is also going to be very much tied to those local rates and they can fluctuate depending on what's going on. You know, if you're in a boomer town, if you're in an oil town, then maybe you have periods of time where, hey, it's really great. Um, and there may be times where it's not so great, right? So, you need to pay attention to to those things as you are looking at the different areas. And I'm sure those of you that are investing,

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you're doing this in areas that you feel comfortable with, but you're still very much tied to those local market rates. And so, you got to pay attention to them, right? The appreciation, sorry, somebody's emailing a bunch of stuff apparently. and the appreciation on the home when you're doing that. It takes years to actually like realize that that's happening. It is happening over time. And that's a great thing about real estate is your your property is always appreciating. And you know, 20 years

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from now, 30 years from now, you have this incredible asset that has a bunch of equity in it that you can tap into. Uh sometimes it doesn't even take that long and you can start tapping into that equity and and doing a burr strategy, right? and and moving forward, uh, refinancing those homes and and taking it back out and and doing another one, which is an incredible way to do real estate investing. Um, it can really help you move things in there. But the expenses that you have inside of that

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building that you already have very slim margins and your expenses, you already have very thin margins. And if you have any other expenses or repairs, they're really going to eat into any profits that you have. And it takes that $200 or $300 per month that you're getting from that single family home and reduces it even more. So those are things that like I mean you you've been doing real estate for a while, right? And and you're just like, I get it. There are some risks to doing this,

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but I'm I'm very much on board with it. I'm going to move forward with it anyways. And I'm here to teach you there's a better way to do um and that way is assisted living. And the reason why is it's going to really multiply your revenue per door. So if you have been doing real estate, um you probably thought about, hey, maybe I could do uh like apartment uh apartment buildings or something along those lines. Um you know, obviously that's going to give me more revenue per door. But then you're

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looking at it, you're like, man, that's it's kind of expensive to buy a multif family property. It's going to be expensive to buy that apartment building. Um, I don't think I can do a 100 unit apartment building. I'm going to have to start small. I'm going to have to find something that that has 20 beds or something like that, 20 drawers. And um, those can be hard to find. I have looked at this. I've talked with mentors of mine in the past and they specialize in those kind of small to

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midsize apartment buildings. And I know having talked to them, there's not a lot of them that are on the market. And and so it can be a really kind of a cutthroat thing. And while people, yes, we have a housing crisis in the United States. Um, uh, it's something that people are going to need that housing and it's in in more and more demand as time goes on, those smaller types of properties are often times not going to have the higherend finishes. They're they're oftent times in uh, locations

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that are a lower class uh, and and people don't necessarily want to live there. And because of those things, you're going to have reduced amounts of money per door, right? Maybe you're still making two to $500 per door in a 10 to to 20 room um apartment, but um those are are still kind of small numbers. So, let me tell you a little bit about assisted living because it multiplies your revenue per door, and I I think it does it exponentially. So, you're going to have multiple residents

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in one single property. My property in Idaho, it's a single family home. It's in an HOA. It looks like a home that was built in the early 2000s. It looks like a home that was built in the early 2000s. Brick, stucco, just looks like a normal ranchstyle home. You wouldn't know it from the outside. If you didn't know it was assisted living, you would just drive past it and not think twice about it. Um, you would just be like, "Oh, cool. That's a nice house in the in the neighborhood." That's what

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you would think. But on the inside, we have 16 residents in one single family home, and it's, you know, 3500 square ft. Like, this is not just this huge mansion. It's just a kind of a normalsized home and a normal neighborhood and it allows us to have 16 residents in there because we are following all of the rules and the regulations that come with that. Our res our our revenue here is also not going to be based off of the door. It's based off of the care needs of those residents. So when they come in, if they

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need more care, then we're able to charge them more. So oftent times you're charging between $4 and $6,000 plus per month for these residents. that that's not like a a random number. This is in one house. I've got 16 residents in there and we're charging each of them $5,000 a month. Okay? So, those numbers are really high. Now, we're going to talk about here expenses uh in a little bit because you do need to understand that this is not pure profit. You are running a business. You are uh providing

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care. You have expenses. You've got to pay staff. You've got to pay your groceries. You got to pay all the utilities and stuff like that. There's there's a lot that goes into this. And so we'll talk a little bit more about that here in just a second, but the that income earning potential is is significantly increased, right? I mean, you're probably not unless you have like some high-end luxury apartment building, you're not charging people four, five, $6,000 per month for that home. You're

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just not, right? You're maybe doing a couple thousand in in the world of real estate that we live in today, but you're not you're not charging 4 to $6,000 per month. That's just not happening. And you're able to do that in assisted living. The business income is there from doing that. So, it's not just so you're not just getting paid rent um from from from this, you're also getting money for the business. And uh that also creates kind of this weird uh and cool dichotomy from a financial standpoint

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because when you go and do your taxes, you have business income, you have real estate income, and you can really kind of tap into both of those things as you are going through tax season and getting ready to to file your taxes and just the different expenses that you have. And that can help you out quite a bit from a from an investment standpoint and from a tax perspective. So, these are all things that you need to be paying attention to when you get into assisted living. The model here that you're

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creating is going to shift. Let's see. Do I get into expenses? My goodness. You control revenue through system. So, when you start looking at doing assisted living, the cool thing about it is it's going to shift you. It's going to shift your mind from I've got to have these single family homes, you know, I've got to have this this home right here. Maybe I got a duplex. I'm living in one side. You're house hacking, you know, um, and I'm making an extra $200 or $300 a month to you're going to shift

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this over to assisted living. It's going to cost you a little bit more to get started, but it's not going to be that much more. Like our home in in Idaho was I want to say $650,000 when we purchased it. Yeah, it's it's a nice big home, but it it wasn't $5 million either um for us to get into it. And so you want to be paying attention to that. When you're doing that, you're going to control revenue through systems that you're creating. So you're when you start this

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business. Sorry, I'm going to stop while our printer's going. I'm not sure if you can pick it up on the microphone or not. So hopefully she's not printing a bunch of stuff. Okay. Now, when you get started, you're going to be able to control your revenue through systems. And I mentioned this at the beginning. There there's a lot that goes into running an assisted living business. it is a business. There are regulations. If you want some help in understanding what those regulations

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might look like, just type in regulations down below and we'll make sure we get you a video that kind of talk through that so you know what what you're getting into. But those regulations are going to help enforce and create systems and processes that are going to help you run a successful and profitable business, which is actually something that's really cool. kind of a cool side effect of having all of the regulations that come from working inside of the world of assisted living. And your demand is not going to

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be based off of uh just like silly real estate trends and and the way that things are going. They're based off of a population that is aging. If you haven't paid attention, the baby boomer generation is aging. By 2030, all of them will be over 65. By the time we get to 2050, there will be 58 to 83 million people that are over the age of 65. And that doesn't mean that every single one of them are going to need assisted living services, but I use what I call the the 5% rule. I talk about it in my book, the

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profitable assisted living facility. There's a that's what it looks like. Um, you can get it at the alibook.com. We'll have a link for you down below. But inside of that, I talk about the 5% rule, which basically says of a population in a specific area, 5% of them are going to need assisted living services. And um so if there's in the in the United States, if there's 58 million, let's just use quick easy math, there's 58 million people that will need assisted living services at some point

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in 2050, that's going to be about 2.5 million people, slightly more than that, that will need assisted living services. Do you know how many beds there are for assisted living in the United States today? There's just over a million of them. We need to double the amount of beds in the next 25 years to get to that point. And frankly, there's a housing shortage across the board. There's going to be so much demand for this type of service that u you're like you're going to be in

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an incredible situation. Now is an incredible time to do it. the way that you are bringing people in, it's it's just like it's going to be incredible. The demand that you have far surpasses the supply. And if you know anything about economics, that means your supply and demand um when there's not enough supply, your demand goes up and you're able to charge premium prices for for those types of things. And so this is another reason why assisted living is great. You today 4 to $6,000 per month.

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Yes, in the future it's probably going to be more than that. And because this is something that um I don't want to get too political here, but because this is something that is just on the horizon, there will be I almost guarantee you there will be government programs that are specifically designed to this to incentivize people to create assisted living homes or to improve assisted living homes, uh to add more beds, to increase rates. These things are coming. Like I I almost guarantee it. And so if

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you're able to get in now, it's going to create an atmosphere where you can really jump on that and and ride that wave through the end where you're going to be very successful, very profitable, while also creating this incredible impact in a community that you live in and creating a legacy for your family. Like this is just such a an incredible business model to be in. Um and I like I absolutely love it. I really do. It's so cool. there are um higher margins as well when you are operating things

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correctly. Now, I talked a little bit about expenses and if you want to learn more specifically about all of the expenses, type in waif wedd down below. I talk about my wife expenses when it comes to assisted living. They're the top five expenses. They're going to make up 80 to 90% of your expenses. So, if you can get a hold on them, you're going to know what you should be expecting when you're doing your underwriting. So, two things. Type in calculator down below. we'll get you a link to my

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underwriting calculator. So, go and do that. And if you want to learn more about the expenses, type in waif w down below and we'll make sure we point you to a video that talks about those expenses. But they are wages, insurance, food, your energy, which is like your utilities and your debt service. If you can get a handle on those five, you're going to be in a much better situation as you're trying to figure out, hey, is this actually going to work and be profitable for me? Make sure you spend

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time doing your underwriting. I do not want you to just jump in this and be like, "Oh man, he told me I could make, you know, $10,000 per month and I'm only making $500 per month with my single family rentals right now. I've got to do this. I got to figure it out." You have to take into consideration there are expenses. Uh it's going to be it's going to be expensive to run this business. Uh and you need to understand how those numbers work and the levers that you can pull so you can get to a point where you

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are earning $10,000 per month. Totally possible, but you need to understand those numbers. So, make sure you are taking the right steps and following the path so that you know how to get there and how to to launch your assisted living business. And if you need some help with that, just type in roadmap down below. We'll make sure we get you a link to a special program that I'll tell you a little bit here at the end of the video about um to work directly with me, get your questions answered, and make

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sure you have a specific road map to help you out along your path to launching your assisted living business. The other cool thing about assisted living, it is far more in my mind far more scalable to add more facilities than it is in traditional assisted living or in traditional real estate because you once you create those systems and processes and you show that you can become profitable and you can stabilize your income, investors are going to want to work with you because you have a model in a very

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high demand uh sector of the real estate world. And you're going to be able to charge premiums for for th those services, which means more income, which means good returns for investors. And that's going to allow you to um to further expand or you could use even a burr method inside of assisted living and uh really allow you to to move forward. And for those of you who are my nurses, my healthcare people, and you're like, why does he keep saying burr? Like, is he cold? Um he's he's not

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shivering, right? Burr is a method uh that is taught uh through Bigger Pockets. I think it was David Green who came up with it if I'm if I'm remembering remembering correctly, but it's buy, rent, rehab, refinance, repeat. I think I I think there's four Rs. I probably got them out of out of out of line there. Um but it's basically taking money um that you have, putting it into something, renovating it, getting it to a better spot, refinancing it, pulling that money back out, and then doing another one, right?

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Um so that's the method there. Uh, if you're interested in learning more about it and how you could do that inside of assisted living, type BUR with four Rs down below and we'll do a specific video that's talking about the Burr method inside of assisted living. Now, if you do this correctly and you take the time and you build your road map and you do your underwriting and you build the foundation, you have a solid business plan, you have your policies, your procedures, you have these processes in

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place and you do this correctly, it accelerates your freedom. That's really going to help you move forward and reach your time and financial freedom goals. It's going to help you create this incredible impact in your community. It's going to allow you to create a legacy for your family and it's going to be totally awesome. You're going to have faster cash flow than you would with rentals. When I was starting, I bought an existing facility. I didn't start one from the ground up. I bought an existing

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facility and within a few months, we were cash flow positive. I I don't know how many of you have done that with traditional real estate, but I would venture to guess that there's there's a lot of bumps along the way and and you didn't get there within the first few months and you're seeing that happen now that you've been doing it for a bit. Um but you you realize, hey, there's there's a few bumps and there's a few bumps as you get into assisted living, too. Yeah. Um

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absolutely. But you will you have potential to get faster cash flow and more cash flow when you do this the world of assisted living. And you can then reinvest those profits into new properties or you can just keep them yourself. You know, do whatever you want with them. Uh I'm not going to be mad at you. Um do what's going to work best for you, but you can take those and you can expand and you can reinvest and you can grow your portfolio. And it's it's pretty cool what you can do with that.

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And the other thing that I would say, and this is something I'm working very heavily on right now in my business, but you can build a team that runs this for you. And so, not only do you not have to be a landlord anymore and and deal with all of those things, you basically are hiring your team, you're teaching them how you want the culture to to exist inside the building, and then you're handing it off to them, and they're running the business. It reduces your involvement, lets you have that time

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freedom back, and really spend the time that you want to with your family. It will be rocky in the beginning, like I'm not going to sugarcoat it. Um, there's a lot of work that goes into it upfront, but the potential here, the long-term potential and the life-changing aspects of working in assisted living, they're pretty awesome. And I would love to help you out as you're trying to figure out uh how to to move through all of this. So, if you need some help and some guidance, take the quiz. We'll have a QR

00:23:27
code down here in the bottom, aliquiz.com. Uh, it's 30 seconds. We'll let you know which of my programs are the best fit for you. And from there, I'll I'll reach out and and give you more information about those programs. And I would love to see you inside of them. Uh, because I know that the more that you have help and guidance, the faster it's going to accelerate your ability to get where you want to be, creating that time and financial freedom, creating that legacy for your

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family. And I want that for you. And so, I'd love to help you out. take the quiz, aliquiz.com. If you like this video, make sure you like it. You know, click the thumbs up. Um, share it. Uh, you know, click the notification bell so you get notified every time we put out content like this to help you out and and guide you as you're trying to figure out your your path to getting into assisted living because I love doing that and helping you. Today, we talked quite a bit about how traditional real

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estate um how how it's so much better when you're in assisted living and the way that you can get there. Your income earning potential goes up. um you're you're looking at this from a you know revenue is multiplied by the doors based off of a population that is in high demand and is only increasing um an aging population. That's that's who we're working with. You're an aging population. That's who you're working with. Um how this model is going to shift and create more financial

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leverage for you as well. And and then we talked about how if you do this correctly, it's going to accelerate your freedom, which is exactly what I want for you. Now, I talked about this a little bit um throughout the video, but if you need some help and some guidance and you're just like, I want to figure out if this is this is going to be a good fit for me, um type in roadmap down below. We'll make sure you have a link if but you can also go to roadmapchallenge.com. I would love to see you in my next challenge. It

00:25:18
is a live coaching experience. You can come in if you have a VIP ticket. If you have a VIP ticket, you can ask me whatever questions you have and I can help you get unstuck and make sure that this is going to be a good fit for you as you're trying to to move forward because I want to make sure that you are successful. I want to make sure that you know that this is a good fit for you before you just jump in cold feet and and make all the changes because it's not for everybody. But if it is for you

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and it can allow you to reach your your goals, it's life-changing and it's it's so much fun. I would love to see you there. So, type in roadmap down below if you'd like to learn more. We'll get you a link or uh just go to roadmapchallenge.com. Uh go sign up for the challenge. I would love to see you in there and help you out. Are you curious about assisted living, but you're not sure how to get started? At Assisted Living Investing, I help first-time assisted living entrepreneurs

00:26:08
launch profitable, purpose-driven businesses, creating prosperity, purpose, and peace in their lives. I love coaching people. Like, I really do. It is one of my favorite things to do. If you need some help and some guidance, you're not sure which is the best option. Again, quiz, aliquiz.com, scan the QR code will help you out as you're trying to to launch your assisted living business because it doesn't take a lot. Just a little bit. Just keep going step by step by step. And I promise you, if

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you do, and you are consistent and persistent, you are going to be successful. Thanks for watching, and have a great day.