The 5 Biggest Mistakes New Assisted Living Entrepreneurs Make

Transcript

00:00:00
Hey friend, it is Brandon Gustafson with Assisted Living Investing. Have you been thinking about getting into assisted living, but you're just like, "Yeah, I don't know if this is the right thing for me." Uh and it feels overwhelming. Um and you're just not sure what you should be focusing on. You uh keep trying to focus on something, but then it feels like it's the wrong thing. Or you watch a YouTube video and and just it's overwhelming, it's confusing, and you

00:00:25
don't know how to get started. Well, in today's video, I'm going to go through the five biggest mis takes that new assisted living entrepreneurs make as they are trying to get started. So, if you want to know what those mistakes are and avoid them so that you can take the right steps at the right time and actually make real progress towards launching your assisted living business, this video is going to be exactly what you need to help you get started. Hey friend, my name is Brandon Gustafson.

00:00:51
I help I help healthcare workers learn how to launch their own assisted living business, to start their own assisted living business, so they're not stuck trying to figure it out and they know exactly what they should do next. So, if that's you and you need some help, you're in the right space. So, [laughter] let's hop into today's video. Uh again, we are talking about how beginners are overwhelmed. Like you you are probably feeling overwhelmed and you're probably the reason why is it's

00:01:15
because you're focusing on the wrong thing. One of the one of the things I see most frequently uh in my YouTube comments, uh over on my Facebook group, uh for why people are are stuck and they don't know how to get started is they just you feel overloaded. Like it it it's like this mental overload. And so, if that's you, just type in me down below because I I feel you. When I was getting started on my journey to starting an assisted living business 20 back in 2020, I felt the same way. I I

00:01:44
was overwhelmed, I didn't know how to get started. I had just spent a bunch of money on real estate education cuz I knew I wanted to get into real estate investing. I just wasn't sure which avenue to go down. And when I found assisted living with my background in healthcare, I was like, "This is it. This is what I want to do." And but as I was trying to figure those things out, it was it was really overwhelming. And I just kept like uh hitting my head against the wall. I was very stubborn. Uh I was able to figure

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out how to to move forward, but I also learned that there is a pretty clear process to getting started. And if you are interested in learning more about that process, type in focus down below and uh we'll we'll point you to what I call the focus framework. It's going to help you out in helping you get started. But uh what I want to talk to you about today are the the five things the five mistakes that people like you are making as you're trying to get started. So, the first one here that I've got for you is

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you are chasing your funding way too early in the process. Okay? And the reason why this happens is for a lot of people um there there's there's two big things that that people feel like they they need to to figure out first before they get started. One is funding and one is licensing. We're going to talk about both of them today. But funding is the one that it sticks out in so many people's minds. I can't get started on assisted living cuz I don't have the funds. Right? You have

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probably thought that. If if you're watching this channel and you want to do assisted living, that thought has probably crossed your mind that I I want to get into this and I I just don't know how to do it. If that's you, type in funding down below because I know there are a lot of people like you out there that you need help with figuring out the funding piece of this and understanding how it works and and uh being able to get past that big hurdle because it's the thing that that really

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makes you feel stuck. You feel like you're never going to make progress. I get it. And the reason why is you think it is the first hurdle. You think it's the the first thing that you have to tackle you have to figure out because when we go and we buy a house, right? We go through a process of getting pre-qualified. We uh we go to the bank and we say, "I've got uh I don't know, 10, 15, $100,000 for a down payment on a home. Um how much how much can I buy with that? Here's my credit, here's my work

00:04:04
history, here's how much money I have in the bank. What do I qualify for to buy a home?" And then they give you a letter that says, "You qualify for a mortgage that's 500,000 or a million dollars." or whatever number it is, right? That's the the traditional way that we uh have dealt with real estate. If you've ever bought a home, that that's what it looks like. In the world of assisted living, it's pretty different. Uh especially if you're going to buy an existing

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facility. But even if you're going the route of like buying a home and looking to convert it, you're you're going about this in a different way. It's it's an investment property. And uh when you do that, lenders uh and partners, investors are going to want to go through this a different way. Funding is actually not the first thing you should be working on. Yes, it's something you're going to have to concern yourself with at some point. But um not immediately. I'm going to tell you a

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little bit about the thing that you should be working on first uh here in just a second. So, stick around. Um the other thing that I that I see from people when it comes to funding is you're worried about getting told no. Right? You're worried, "Well, if I if I try to do it now, then a lender's going to tell me no, and then you know, that's going to make me feel bad. I'm going to feel horrible, like I've never I I'm a very successful person. I don't get told

00:05:18
no very often. I don't want to get told no." Right? That maybe you resonate with that. And uh what I'm here to tell you is you're probably going to get told no anyways, even if you put in all the work and have the perfect opportunity, 90% of the time, you will get told no by a lender. I have been funded three times for assisted living and other businesses um along the way. I've secured over 1 and 1/2 million dollars in SBA funding. I have talked to probably four or five dozen lenders.

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Like between 50 and 60 lenders is what I've talked to. I've only been funded three times. Okay. That means I've been told no by like the I don't know, 50 to 55 different lenders. Okay? It happens to everybody. And my real estate investors that are watching this, you know that. Like you know that lenders are just going to tell you no. It's it happens. And guess what? It's fine. You're going to find one that says yes. You just have to It's like law of averages. I was I

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was watching a video one of my coaches. His name is Myron Golden. I He teaches people how to do better when they're coaching people. And he was talking about um it's it's really just a numbers game, right? If you want If you want to have a certain amount of people say yes to you, to your coaching programs, to In this case, to your assisted living business and the thing that you're working towards, then you have to cast this really broad net. There's like the law of large numbers. If you know that

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um you're only going to get told yes or yeah, let's look at it a little bit deeper by 10% of the lenders, that means in order to get one yes, let's go a little bit deeper, you have to reach out to 10 different lenders. Okay? So you have to You're going to get told no anyways. So like get over the fear. I don't want to be harsh or anything like that, but you do have to like uh get to the point where you just get desensitized to being told no when it comes to lending cuz it's going to

00:07:08
happen. And that's okay. All right? So stop worrying about getting told no cuz it's going to happen anyways. And the other thing that I see uh and this is why most people actually get told no. This is This is why you get told no. You are not prepared mentally and verbally to talk to a lender or an investor or a partner because you haven't gone through the exact thing that you're going to do. It's It's just in your mind, oh I want to do assisted living. I really want to do this. I think it's a good idea. I

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know I can make money off of it. I can help a lot of people. I really want to do assisted living. And so, you you start talking to people about it. And they're like, "Yeah, that's a really cool idea." And they're like, "Well, do you want to Do you want to work with me? Like, I'm looking for a partner. I want I need an investor. I'm You're talking to to a bank. I I We need money to get started." And they're like, "Well, I I think it's a cool idea for

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you, but we're not interested in doing that." And the reason why is you haven't you don't have like the the the organized thoughts around this. You don't have the business plan. You haven't proved the numbers. You haven't done that foundational work, which is so important. Actually, if you are interested in learning about how to build that, type in workshop down below. I I've got a free live workshop. I would love to to have you join that. We'll have a link down below in YouTube as

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well for that. But, uh you can go and uh just type in workshop. We'll get you the link. We'd love to have you over there and help you understand how to build that foundation. But, that is the thing that is like really holding you back. You haven't thought through it. You haven't You can't articulate the thing. And that's That is what is getting you a no. And it's also why you're probably scared to go talk to somebody because you you know that it's a good idea, and

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you know you want to do it, but you also know that you cannot articulate it in a way that's going to get somebody excited to actually work with you. Like, for real. Like, to to to really be interested in it and not just like, "Oh, that's a cool idea. Yeah, I think And and like, they have this kind, you know, Oh, that's a You're cute. That's That's nice. It's a good idea." Uh you you want more than that. You need to be prepared to move to the next phase. Okay?

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That's one of the big reasons why you're you're stuck there because you're not doing the foundational work. Another reason, this is mistake number two that people go through, is you're buying the wrong property. Okay? I see this comment often times in my Facebook group um and in comments on YouTube as well. Where people say, I have like, I have the perfect home for assisted living. And I'm like, cool, tell me a little bit about it. And they say, well, it's got three bedrooms in it. And I'm like,

00:09:50
pump the brakes. I don't think it's perfect for assisted living with three bedrooms. It could be. I'm I'm not going to tell you, um, that it can't be. And in fact, somebody recently, um, as of the posting of this video, somebody in my Facebook group said, uh, was posting an opportunity, they're selling a home. It's a it's a three-bedroom home. It's it's licensed, actually, for three beds. Or maybe it's an unlicensed facility, but it's ready. It has it has residents in there. And

00:10:13
they're like, it has $8,000 income earning potential. And I was like, yeah, that that word the that that little phrase there, income earning potential is is very key. Because my thought, if you're going to cash flow potentially $8,000 in a three-bedroom home, yes, technically possible, that means you're probably charging around $4,000 per month for each resident that's in the home, right? So, that's great. Uh, so if you're fully occupied, then yeah, you could you could definitely do that. Um, but what happens

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if you have a resident pass away, or you can't fill the beds, or um, you decide that you're cash flowing that much because you are doing all of the work, and all of a sudden you you get sick, or you decide you don't want to do it. So, you have to hire people. That $8,000 in profit that was there is going to go away quickly. So, you have to understand the numbers. You need to understand and I'm not telling you you can't do this in a three-bedroom home. I'm just telling you,

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there's there's a lot more than just like this basic math that goes into it. You need to understand everything. If you're if you want to understand a little bit more about that, by the way, type in calculator, I'll get you access to my free underwriting calculator, um, and and we'll we'll send that over to you. Links are below on YouTube, as well, so you can go grab that. But, um, when somebody tells me, I've got this perfect home, and it's three, four, five bedrooms, I'm like, uh,

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I don't I don't know if that's what I would call perfect. For me, I will I I don't want to look at anything less than 10 beds. We were actually talking about this in my foundation builder program uh earlier today. We had a a call a Q&A call. And this was something that we were talking about and and people were asking me, "Well, how many would you do?" And last week we uh last week, 2 weeks ago, whenever it was that we went through a uh what I call high-level underwriting exercise and um

00:11:58
it helps you really see what these numbers could potentially look like based off of how many residents you have and how many um how many people um how much you're charging on a monthly basis. So, if you're interested in in joining the foundation builder program, uh type in foundation. We'll get you access to the the quiz that you can take to see if you are a good fit for the foundation builder. Okay? Now, in there, we're we're talking through all a lot of this, but you have to

00:12:24
understand the numbers. You really have to know if you are going to be profitable or not. That means you need to understand how much can you realistically charge, how many residents can you have in your home, understand those expenses, and um see if that's going to work for you. And if it's not, then don't try to fit a square peg into a round hole with your three-to-five bedroom home. If the numbers work, then great. Yeah, let's move. You want to go an unlicensed route and you're okay putting in all of the work

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and you and you you've done this cuz you're a nurse, you're a caregiver, you understand the how hard it is to to play in that role and you're okay with it, you're comfortable with it, then yeah, you might be able to be successful. But if you're a a real estate uh investor and you're like, "Oh, yeah, I've got this four four-bedroom, two, three-bathroom home that seems like it would be great for assisted living." What you have to realize is you're going

00:13:18
to have to either change all of the things that you do and you're going to have to work quite a bit in this home to to have it be functional or you're going to have to hire people, which is going to cut into your profits. So, it may not get the returns that you actually are thinking they would. So, you have to understand exactly what that looks like. And the other thing that you have to do when you think you have the perfect property, whether it's something you already own or something that you're

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like, "That one that my neighbor down the street, they're moving. That house looks perfect for assisted living. We're going to buy it and convert it into assisted living." You know, whatever scenario you're in, you have to check with zoning, with the local municipality. Could be the city or the county. Just kind of depends on the municipality and how they set it up. You have to check on zoning. Is it already zoned for assisted living? Is there a different classification? Do

00:14:08
you need a special use permit? How are you going to navigate all of that? How are you going to have that conversation with people because that can be actually really hard and you lose people along the along the way as you're talking to them. And so, you have to know how you're going to And that's where building out your business plan and and thinking through these things up front, like we just talked about. That's why doing those things are so important because it lets you have this really

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good leg up as you have those conversations. And you're going to need to talk to the local fire authority, the fire department, or whoever the fire authority is to to make sure that it's going to be good for assisted living. You're going to have to get what's called a certificate of occupancy, or it could be something different in in your area. That's The areas I've worked in is called the certificate of occupancy, but it basically says for the intended use of assisted living,

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it's okay and you can have X amount of people in there and and it's going to be totally fine. And then you have to get that certificate and that's part of your licensing application, okay? But you're going to have to do those things. And those those can be difficult conversations because sometimes you have to fumble your way through it until you learn how to talk to people. It can take a little bit of practice. But I don't want you to buy the wrong property or think you have the right

00:15:20
property and then realize too late that it's that's not right property or put a bunch of renovations into it and find out that zoning didn't work or something along those lines. You you have to make sure that you are going about it in the right steps to help you get there. Okay, third mistake. Skipping the business plan. Okay. We've talked about this in the first two mistakes that one of the things that you have to do is have a solid you have to put in that foundational work and a big

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piece of that is your business plan. So, if you do not have a business plan, if you're like I don't need it. It'll be fine or you just like throw something together really quick and it's not it's not good quality, you will get told no from a funding partner, from a lender, an investor, a partner. It's just not going to work. You will get told no if you have a crappy business plan. I know this from experience. So, when I was Let me Let me tell you a little bit about when I was getting started. We We

00:16:15
found this this home in Colorado. I had been looking for months. We had I found a few different opportunities. No nothing was shaking out for us. Then we found one in Colorado Springs. I live in Utah, by the way. So, this is out of state. We found this this great opportunity, existing facility, 16 beds, working with a mental health population. We're like, yep, we want to do this. We ran some basic numbers. Looks good. Okay, we're going to go under contract. We make an offer, gets accepted. Now I've got to find a

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lender. >> [laughter] >> So, I went under contract without having a lender. Just to go back to what we're talking about with the first mistake that people make, you do not need to be pre-qualified. In fact, you're probably not going to get pre-qualified because these are more based off of every opportunity. Okay. So, I go and I start trying to find lenders and I cast the widest net I could possibly have. Right, initially it was like, oh yeah, we'll just reach out to two or three and

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we'll find somebody. Not the case. I finally found a lender that's like, yeah, this looks like a really interesting opportunity. Let's Let's have a conversation with them. And they say, here's here's the packet. Here's the things that we need you to do that we need you to to provide to us. Uh there's some stuff that we need to get from from the seller. You know, we need their their tax returns, we need their P&Ls, their balance sheet, we need uh senses. We need a bunch of stuff from

00:17:27
them, right? This is stuff that if you're selling if if a person's selling a facility, they know they're going to need. So, they'll and the bank's going to give you a needs list. They'll tell you, "We need these 10 documents, okay?" You go and grab them. And then they tell you, "We need you to fill out this form. We need your underwriting. We need a 24- to 36-month pro forma." We'll talk more about that here in just a second, too, by the way. Um we need that and we need

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your business plan. And I my thought when I got that list was, "Oh, man, this is a lot of stuff. How am I going to do that?" And I want to get it to them quickly to show that like, "Oh, I already Yeah, I did this. I was I was on top of it. Don't worry about it." Uh so, I put together a business plan. It was not great. I'll tell you that. It was not a good business plan. And so, I submitted to the lender, and I'm like, "Hey, here here's the stuff." And they came back

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like a day or two later, and they're like, "I'm sorry. Like, this um we're not going to move forward with you." And I was like I'm always curious. I always want to do better. So, I asked them, "What what could I have done better?" And they told me, "Your business plan was not very good." They were very blunt with me. And so, I luckily I developed a decent relationship with this lender. I can't remember who it was uh right now. But um cuz this was I

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don't know, 6 years ago. Um and I ended up not working with them. But, they I had developed a good enough relationship with them, and they gave me some good feedback about specifically the business plan. And I was like, "Okay, um do you have like some can you share a good business plan with me?" And they're like, "No, we can't do that. But, here's a good template that you can use." Um so, what I did and and you can get my my free business plan checklist. Just type in BP down

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below. Um we'll get you a link to it or it's it's down below for you inside of uh the the YouTube links. What I did is I took the template that they gave me. It kind of had the the things that they wanted. I found one online with like the It's like the SBA. They have a template that you can get business plans that that that are high quality. You can get those for free. And then I actually talked to another lender or two who gave me other templates that they had for business plans.

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And then through trial and error, I have actually created a business plan template that follows that that works specifically for assisted living cuz I was talking to lenders that work with assisted living facilities. And have created a business plan template that works exactly like that. You can see the the sections in the business plan checklist. And if you want some help in building out your actual business plan, type in workshop down below and I'll I'll get you a link to an upcoming workshop that I do where I kind

00:20:06
of teach you a little bit about the pieces that are going to go into that business plan and why it's so important for you to have and how you can take the next step and and level up with that. Including the the program where I give you access to that template and help you create your business plan. Okay. So I took all of that and I spent some time like really writing a business plan and refining it and getting it to a really good spot. And then I submitted it and ultimately got like three or

00:20:34
four, yeah, like let's actually look at this. And I attribute a lot of that to spending more time on my business plan. Because when you don't work on a business plan or you put together something really quick, you're going to get told no very quick as well. Okay. So you need to have that. The other thing that a business plan does is it it takes things out of your head where nobody can see your vision and the thing that you want to build. It takes it out of your head and puts it on paper. It makes it a lot easier for you

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to hand off to somebody and give to them so they can see, ah, I see what's going on here." And then they can resonate and they it gets them excited and and then you're working together um towards getting the funding that you need. So, you have to have a business plan. You will make mistakes as you get started. Your business plan will not be perfect. And it will be better than mine was, I promise you that, especially if you use uh tools like AI to help you uh move forward. You're going to be a lot

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more successful. But, um you will make mistakes and you just have to learn from it and and move forward with it. You have to be clear on the thing that you're asking for. So, when you this this is the this is a huge mistake that I see people making. You skip the business plan or you do it half-heartedly. And um that leads to no's and leads to you feeling even more discouraged and then you think that assisted living's not going to work and then you move on from it. And I don't want you to do that

00:21:56
because uh number one, I think assisted living is an incredible investment. I think you can be very successful with it. But, another reason why is there is such a huge need for assisted living in the world today. It is growing exponentially as our population ages, as the baby boomers get older, um there's this huge tidal wave, the silver tsunami, uh if you will, is is is started. And um we need to be providing more beds and more opportunities for people to live in those homes in good experiences. Cuz we need people like you

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that are watching this, that are invested in in trying to to get this get this started to to actually do this the right way. Okay? The fourth mistake that I see people make is misunderstanding licensing. I mentioned earlier in the video, there are two things that I hear from people most frequently on YouTube and Facebook about why you're you're not getting started, apart from like I don't know how to do it and I feel overwhelmed. Um but like the two two like specific reasons are funding, which we talked

00:22:59
about earlier, and licensing. Okay? Licensing and misunderstanding the licensing process is is another mistake that people make as they're trying to get started. The first thing you need to do when it comes to licensing, and I was just talking with some people in my Foundation Builder Program about this earlier today, is you have to determine the model that you're going to go after and the type of license that goes with that model. So, if you're watching this in Texas, there's like a type A and a type B

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facility, right? If I'm doing this in in Idaho, I I just have like a traditional assisted living and I have a memory care. If I'm doing this in in like Colorado where I I previously operated and I want to do a mental health facility, it's actually a different type of license. It's an alternative care facility, not an assisted living facility. So, you need to understand the model that I want to do and you're going to refine this when you build your business plan. Who do I want to serve? Who how how how do I want

00:23:54
to help this person? And I help you refine that, by the way, in the workshop. So, just type in workshop if you want to get in there. We We go through the three M's and one of those is your model, okay? I'm going to help you define what that is so you can get started. Um type in workshop, we'll get you the link. But, you need to determine the model that you're going after. And then once you've decided, "Okay, I want to work with adults with developmental disabilities or I want to work with memory care. I

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want to work with a mental health population or whatever traditional assisted living, whatever population you want to look at, then you're going to go to the state. You're going to be like, "Okay, who who This is who I want to serve. What license is the one that I need to to be signing up for and then working towards so that I can get the the license in place and actually do this." And if you're doing an unlicensed facility, you still need to define this because you need to determine if you can do it

00:24:46
unlicensed or if you have to be licensed. So, you have you have you still have to go through this exercise even if you're going to be unlicensed or planning to because you need to know this information to to know if you actually do need a license in your state cuz every every state's different when it comes to assisted living services, okay? So, you need to to figure that out and then and this is probably the hardest part, honestly. You have to find the right agency. You have to figure out which agency is

00:25:14
actually going to help you get the license. And the reason why this is hard is it it just depends on the state. Like it could be the Department of Health, it could be Health and Welfare Services, it could be Welfare Services, it could be the Department of um Economic Development. Like it just it really depends on on the state and where they put it. I really wish they would all, you know, coordinate together and and say that it's always the Department of Health or whatever, um but you're

00:25:43
going to have to figure who that is. Once you have figured out that person and for me when I was trying to do this in in Utah initially, um it took me I I seriously probably two or three hours uh playing phone tag with people, trying to find the right person and just navigating websites like crazy. I finally found the person. Once I found that person it was so easy, okay? The process becomes so easy once you find the right person. It's just finding that person and that department is the hard part.

00:26:13
But once you do, it's just a checklist. They give you a checklist, we need these things, we need your certificate of occupancy, they probably want to see your business plan, they want to see that you own the property or that you're working towards owning it. You're going to need policies and procedures probably want bank statements or at least your bank information. Like there's EIN letter. Like they're going to have this list of things that you need to do, they're going to have a form you fill

00:26:33
out. But it's not hard. None of that stuff is hard. And if you go back in my YouTube, type in license down below, um I have a YouTube video where actually I go through how to like fill out a license. Uh we can help you resurface that that video for you um to help you out with it. But that part is actually really simple. It's It's not hard for you to work through. Okay? But misunderstanding licensing is a huge mistake because when you start thinking about it and you're like, "Oh, there's so many rules

00:27:05
and regulations. I don't know if I want to do it because of like I've heard of fines and I've heard of all of these extra things that happen in in facilities that I just don't want to expose myself to that. It's too much liability for me. I'm not comfortable with it." When you misunderstand the licensing problem and process and what the rules and regulations are, that makes you feel stuck. And I just want you to know it is not that hard. It's It's something you're going to have

00:27:32
to do just like funding. You're going to have to figure out somebody to to help you get the facility, funder, lender, partner, investor, whatever it is. You're going to have to find that person. It's the same with licensing. You're going to have to deal with it. But I promise you it's not as hard as you think it is. It might take a while. That That is true. It may take you a few weeks to a few months to get everything through the process. You may have to wait after you've submitted

00:27:54
everything. That That piece is true. But actually completing it, it is not that hard. Okay? So that's That's the fourth mistake. Now, the fifth mistake that I see is people thinking that this is automatically going to be passive and it's going to happen quickly. Okay? I want to tell you that this business can become passive. It can make you good money. It can. But like any business, this is not a magic pill. This is not This is not get rich overnight. This is put in a lot of work. Figure out how to do it, build your

00:28:29
business plan, get control your finances, understand it, build in the systems and processes to help you actually make money, and then over time you will be profitable. But it will take time. It could take you 12 to 18 months. Doesn't mean that you can't pay yourself during that period of time, especially if you're doing the work. You can. It just means as a business as a whole, you're probably not going to be profitable for a year or two. Okay? I just want to be real with you. But, that is the same with any business.

00:28:57
Very, very few businesses are able to be profitable more quickly than that. Now, I have done this twice with assisted living facilities. We were profitable on both of them within the first year. So, it can be done, and we bought existing facilities, so it does accelerate your pathway to profitability. If you're interested in actually learning more about that, I have a free tool for you. Just type in profit down below, and we'll get you the the profit path tool. Uh it's a free tool that I give away uh to people. It

00:29:24
will help you out with it. Okay? And help you decide which of these which of these paths is going to be best for you. But, um any business is going to take time to take to make money. So, you just know that going into That's why you spend time running your numbers. You're going to need to build for a lender a 24-to-36-month pro forma, which is basically it is you projecting out month by month for 24 to 36 months, two to two to three years, what uh what it's going to look like, how much money you're

00:29:51
going to bring in, your income, how much money is going to go out, your expenses, and what that profit's actually going to look like based off of your projections. It's going to be imperfect, and that's fine. It's what you are projecting. You have to be conservative when you do that, because that's going to help you understand how much money could I realistically make in this area. Okay? So, you need to do that research. Again, type in calculator if you want some my my free underwriting calculator.

00:30:15
We'll get that over to you. I will get you the link, or it's linked down below for the calculator uh in in the YouTube description. Okay? But, you're going to have to run those numbers. And that's going to let you actually see at what point uh during that 24 to 36 months am I actually going to start making money? And then, how much am I going to start making money? And the really cool thing about this, when you build this out, is you're going to see up front it's like, "Oh man, we're

00:30:39
losing, you know, three, four, five, ten thousand dollars a month." Uh oh, and then month three comes around. Oh, we're we're only losing, you know, two to to to 8,000. And then month six comes around. Oh, we're we're about breaking even now. Like we're only losing a couple hundred dollars, or maybe we have broken even. And then you get to months 12 and it's like, "Oh, cool. We're making a a few thousand dollars a month. This is great." And then you get to

00:31:02
month 18, 24, and you're like, "Now I'm making 10, 12, 15,000 dollars a month. Now I'm hitting my actual goals to get there." And then over time you can see this this this kind of trending thing that shows you um you know, in the first year you're probably actually losing a little bit of money. Right? And that that feels scary. I get it. I get it. Um but it it's also realistic. So I just want want you to go into this not expecting to make millions on day one. Uh it's going to take some

00:31:28
time. And then um you're going to see over time it shift from, "Oh man, we lost 20,000 dollars in the first year over like a 12-month span." Like this isn't 20,000 dollars per month. This is just overall uh we lost a chunk of money. But then in year two we actually made 100, 150, 200,000 dollars. So overall in that two-year period we've made an extra 100 to 200,000 dollars somewhere in the in in that realm, right? Realistic numbers here. That's why you need to build out that

00:31:56
pro forma because it gives you like helps helps really normalize that this is going to take time and that's okay. And a bank, by the way, they want to see that. They they do not want you to be like, "Yep, day one we were making 10,000 dollars a month. It's going to be great." Cuz they know that's not realistic. They they realize it's going to take you time to get more residents in the facility and and actually build things up. And they're okay with that. They They don't need something that is

00:32:24
profitable from day one. They just need to know that you have a plan in place and that long-term you can be profitable and that you will be able to pay them for the money that they're giving you, okay? That's what they want to see and that's what you show on the 24-month pro forma. So you need to to build that out and get comfortable with it. So, if you want this to be passive quickly, you can have it be passive quickly. I, from day one, have never worked in my facilities. Like I I I I've gone there,

00:32:52
I've visited, I've helped out with things, I've done a lot of planning. Uh we we've done maintenance on the facilities, my dad and I. My dad's my business partner. Uh we've done a lot of those things, but I have never worked the floor in my facilities. So, it has been passive for me from day one. So, it can be passive for you very quickly. But what you have to understand is when when you do that quickly, it means that you've got to pay somebody to do the work. And that can be expensive,

00:33:17
and that's why also we want to build that 24-month proforma so you can see what that actually looks like as as you're trying to build this. Okay? So, that's the fifth mistake. You assume the income is going to happen quickly. Now, we've we talked through a lot of mistakes here. And I'm sure one of those is resonating with you, where you're like, "Oh, yeah, the funding piece or the licensing or uh just I think it's going to be passive, we're going to make money

00:33:41
immediately." Or "I'll I'll get to the business plan eventually." Right? Uh something along those lines. What I want to to do as your coach, um you're watching this video, um I I count you as a person that that I'm coaching, even if it's you're not in one of my paid programs. Uh I'm here to help you out, right? What I want to tell you is you can work on things today. You do not need to wait until you have 50, 100 million dollars in in the bank. You you do not have to have the funds

00:34:13
right now to start working. What you need to do is start working on building your foundation. Start working on the things that you can do, that you have control over, so that you can validate the idea. So, you can see what the numbers actually look like. So, you can go and start talking to potential partners or investors or lenders even, with confidence that you have a really good solid business opportunity in front of you. And when you put in that foundational work up front, whether that opportunity comes a week

00:34:44
from now, two weeks from now, or two years from now, you will have put in the foundational work and you will be ready to jump on those opportunities. That is the thing that you need to be working on right now. Okay? So, as your coach, that's what I'm telling you to do. Go start working on the foundational stuff. Build your business plan. Do your market research. Make sure it's going to work really well for assisted living. And figure out the finances. Not not not the financing, the the person giving you

00:35:10
the money. Understand the finances. Understand the different levers you can pull to see if this is going to work for you. And if that's something that you are interested in learning about, I have a free training for you. It's a workshop. Just type in workshop down below, or go to assistedlivinginvesting.net/workshop. They're going to actually take the place of these lives. I'm not going to do the lives anymore, at least for for the next little bit, cuz we're going to start doing workshops on a regular basis,

00:35:34
where I can actually get in there and teach you and interact with you a little bit. These are live, and this is, by the way, not a typical webinar. I'm I'm going to make you do some work. So, come to it. I mean, if you if you got to drive around or whatever, while you're doing it, that's fine. But, I'm going to be giving you like active homework in inside of the session. So, I want you to be successful, and I'm not just going to talk to you for an hour in that in that workshop. I'm going to give

00:35:59
you exercises and help you out, and we'll have like a few minutes for some Q&A at the end. So, if that's something you're interested in, go sign up for it. Type in workshop. Link will be down below in in in the YouTube description. Or, if you just go to assistedlivinginvesting.net/workshop, you can go sign up, see when the next one is, and we'd love to have you in there. Even if you're not watching this live, like you can go do that, and I would love to have you inside the

00:36:23
workshop. Because what I want you to understand is you can be successful and you can get started on this today. You really can. You can You can circumvent these mistakes and you can go about this in the right way. And when you go about it the right way, those mistakes become just little speed bumps rather than like mountains that you feel like you're never going to get beyond. And I don't want you to feel stuck. I don't want you to feel overwhelmed. I want you to be successful in assisted

00:36:50
living because we need people like you that are watching this video. So, if you found this video to be helpful, please like the video, subscribe, and ring the bell as well so you get notified every time I put out content like this to help you out on your path to launching your assisted living business. Uh I am still going to be putting out content on a regular basis, by the way. Um so, just because I'm not going live doesn't mean I won't be posting a lot of videos. Uh so, make sure you're subscribed to the

00:37:15
channel so you get notified. But, um at Assisted Living Investing, you know, does Does assisted living sound interesting to you? And if it does, at Assisted Living Investing, I help health care workers start their own assisted living business so they're not stuck trying to figure it out and know exactly what they should do next. And I want to remind you that it does not take a lot. Just a little bit. Just keep going step by step by step. And I promise you, if you do and you are consistent and persistent, you are going

00:37:41
to be successful. Thanks for watching and have a great day.