3 Secrets of Investing the “Gurus” Don’t Want You to Know on Starting a Group Home
Chances are you found us online looking up “How to Start a Group Home” or something similar to that on Google.
Most likely, this was either late at night or early in the morning, before or after a stressful shift at the job that you don’t like, thinking that there
“Has to be something better out there…”
You probably stumbled across a lot of the standard “side hustles”, get rich quick courses, and Real Estate investment strategies.
Real Estate investing is a great tool to build wealth, and one that many wealthy people use, however the “dream” is often misrepresented. We’ll give it to you straight!
Here are 3 of the biggest myths that you’ll find out there about traditional Real Estate Investing:
1) You Can Start With No Money
This is one of those that is “technically” kinda true. You do not need your own funds to get a property under contract and then sell the contract. This is called “wholesaling”. Here’s what they don’t tell you though.
You see all those “We Buy Houses Cash” signs? Those cost $$. You also need to send out a ton of mail and make a ton of phone calls. This all adds up. We spend around $5000 PER DEAL for marketing. Some of the larger firms spend around $10,000 per deal.
You can truly start a Group Home with absolutely NO MONEY DOWN. If you understand why it’s a better strategy compared to other Real Estate investments, you will have a much better chance of accomplishing this!
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LISTEN TO THIS to hear how a GROUP HOME ENTREPRENEUR named Tanya started her first home with truly NO MONEY DOWN. You can do the same thing no matter what your financial situation is!
2) You can steadily build your income through rental properties and make enough to quit your day job.
After years of buying properties for pennies on the dollar from stressed out landlords and seeing my own friends, family fall for this…this is the biggest and most infuriating myth out there!
Do you know what the average real estate investor using the buy and hold strategy (AKA Landlord) considers a GOOD deal??
ONE THAT NETS A MEASLY $200 – $300 PER MONTH!!!!
What happens if someone moves out and you need to perform a new paint job? What happens if there’s a major plumbing issue? New roof? EVICTION???
These are all very common occurrences and examples of issues that completely WIPE OUT your whole year’s income!!!
3) Rental properties are passive.
This is not just to knock other Real Estate strategies. If you have a ton of cash sitting around, not earning interest in a bank and just collecting dust…than rental properties are GREAT. You can buy a lot of them, get multifamily properties, have the luxury of being able to hire a property management company to handle all of the day to day activities, and get a GREAT return on your cash compared to a savings account.
How many people out there really have that problem though??
Little to none, right? So with only $200 coming in per month, why would a landlord hire a manager?
THEY CAN’T. So they do all the work themselves. They handle all the clogged toilet calls, all of the incoming calls, all of the maintenance, show the property, etc. etc.
Now what happens when you have 20 of these things??
If EVERYTHING goes 100% perfectly you have now created a $40,000 per year, full time, 24/7 on the clock J-O-B for yourself!! This is the OPPOSITE of “Passive”.
Like I said, this is not just to bash Real Estate Investing. We come from that industry.
The trick is to know the right vehicle to get to your destination.
If that destination is extra income, actual, liveable income, WHILE ALSO helping your community….
Then Group Homes are the PERFECT vehicle!
Here are a few reasons why we LOVE Group Homes compared to your typical rental property:
10x the Cash Flow
More Control Over Your Home
No Evictions
Guaranteed Payments
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