The beauty of the assisted living, transition home, care home and group home business (whatever you want to call it) is that it takes a “MINIMAL AMOUNT” of capital to get started. As a matter of fact, we have been doing this for years. In particular, teaching, training and consulting others on this business model as well. Moreover, as you should know by now you can simply go out and rent or lease a home and turn it into a care home. YOU DO NOT NEED TO OWN THE REAL ESTATE.
However, the real beauty of this business is the backstop that real estate provides, should you decide to move into the investor class and begin acquiring the real estate for your group home business. Last weekend, we had some high-end coaching clients come into town. In this case, we charge $20,000 for site visits and personal meetings with us for a 2 day period. As a matter of fact, one gentleman flew in from Chicago where he works for a bank that actually finances properties like those we run. The other gentleman (his partner) is a former HEDGE FUND guru that wants to get into the group home and care home business because the economics of it are so strong. Hence, these types of people see the true value in the group home business for what it offers:
- HUGE CASH FLOW EACH AND EVERY MONTH
- A STABLE AND PREDICTABLE REVENUE STREAM
- STRONG CLIENT DEMAND
- REAL ESTATE THAT WILL APPRECIATE OVER TIME AND SIMULTANEOUSLY ALLOW FOR DEBT PAYDOWN
The two gentleman kept talking about their favorite aspect of the business – THE REAL ESTATE!
We have actually posted a video on facebook talking about what you need to do in order to begin looking at your group home business not just as a CASH COW, but also as an investor. Furthermore, from an investment standpoint, you have the ability to own millions and millions of dollars of real estate with this business. However, if you are going to do that, you need to learn a few secrets that will allow you to raise the capital you need in order to purchase the real estate!
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Secret #1: Look the part! As you will notice from the group home video on facebook, I had a meeting with the banker for lunch, for this reason, I did not drive up to the meeting in a beat up chevy truck with Wrangler jeans on. Similarly, I made sure to drive the S550 Mercedes, put on nice Ferragamo shoes, high-quality jeans and a nice shirt! I also made sure I was clean-shaven as well!
Secret #2: Make sure you have a goal and a rough idea of what you are going to talk about! Fortunately, I have known this gentleman for probably 10 years….but it all started somewhere. Do you want me to tell you how this relationship began? First of all, I read an article about his bank in the local business journal, afterwards I simply cold-called him and set up an appointment. When I showed up, I had nice slacks on, a quality shirt and made sure my car was nice and clean! Back then, I drove to the appointment in my CL55 AMG Mercedes….that car was awesome! As a result, I can assure you that he was impressed. But even if you drive a normal car, it doesn’t matter. Therefore, make sure it is clean and looks nice.
Secret #3. Have business cards and a follow-up plan! If you want financing for your business, you need to act like a business person! So make sure you have cards and a business plan to present.
Secret #4. Have a loan package to submit to your banker or investor after the meeting. Do you know how to put one together? If not, you need to sign up for our coaching program! We have literally perfected a 15-part course / 15-part loan package that took 10+ years to put together and has resulted in the financing of tens of millions of real estate. The head commercial lender at Wells Fargo told me after 40+ yrs in business it is the single best loan package they had ever seen!……FYI – I learned a lot of these loan package tips from a Billionaire Real Estate Owner I personally studied under.
For more information, call us directly or reach out to us via email!
Finally, If you are looking for additional information on how to start a 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 course on starting your very own income-generating group home by clicking here or going to www.grouphomeriches.com and clicking on the free wealth building course.
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