055: The Market Switch: Turning Residential Properties to Assisted Living

On today’s episode, I’m talking with Gene Guarino from The Collective Genius Mastermind group. He’s a new member to the group but not new to the real estate market. He’s an expert and a specialist in converting residential properties to assisted living. Today we’re talking about the assisted living market and what makes it tick: the in’s and out’s of the market, the success rates, the break-even points, and all of the nuances. 

Minute Markers:

00:23 – Introduction 

01:30 – Who is Gene?

02:48 – An example of assisted living real estate

04:53 – The typical monthly cost

07:08 – The operating cost for an average facility

08:21 – A break-even point

11:13 – Three-pack 

12:14 – Gene’s educational program

14:36 – The average time a given customer stays in a home

16:39 – Comparison to bigger senior living facilities

17:48 – Home environments versus larger Class A facilities

20:03 – What kind of time investment is required?

23:25 – Passive investment options for folks who want a return

25:00 – Success rates

27:56 – Gene’s BHAG’s

29:30 – Reaching out to Gene

31:19 – Thank you for listening to the Big Mike Fund Podcast

Quotes

“Yes, the economy of scale is a very different environment. Certainly, the home feels cozier as long as they like it. Also, it depends on the type of market.” – Mike Zlotnik

“That is the miracle of technology. It accelerates and continues to accelerate. I don’t think it will ever stop.” – Mike Zlotnik

“The lower your activity or involved in, the lower your rate of return. If you just want to own the real estate and lease it to the operator, you can get twice the market rent and have a nice cash flow in the real estate they couldn’t cash flow otherwise.” – Gene Guarino

“The key to this whole thing is location, location, location. The people that live in the house in the assisted living is all about the demographics of those people..” – Gene Guarino

Resources:

RAL101.com