After weighing the dreaded decision of placing his mother in a senior home, Gene Guarino realized there had to be a better solution than the big box retirement centers. What he found was a lucrative and underserved niche for senior assisted living homes. Gene shares how this strategy nets $10k per month, per house and why the demand should only grow in the future.
Key Market Insights
Started at 18, was a professional musician and ended up buying the place they were renting with no money down and made 90k profit five years later
Property was $28,500 and they borrowed $10,000 and took an assumable loan
15 years ago heard about senior housing, but when his mom needed help he realized options were limited
When looking to put mom into a home, solutions were big box buildings, but mom didn’t want a hotel or country club
Senior Assisted Living: $3,750 per month per person – can have 10 people in one house, some states can have up to 16 residents
A single house should net $10,000+ monthly in profit
Average consumer cost is $4,000-8,000 a month per senior
Legally you can do 10 residents in a 1500 sq ft house
Focuses on private pay, not government funding
Senior demographic is in their 80s, their kids are 50s, 60s
Mom is not making the decision on where she lives, it’s the kids
Senior House Key Factors: Upper income neighborhood, single level preferred
Students all over the country, strategy works everywhere
77 million baby boomers, 10,000 people turn 65 every day
Only 1.4 million assisted living beds currently
The Golden Girls model: mature women in one house, rented by the room
Could have one caregiver and one manager that rotate; manager hires and finds the caregiver
Bull’s Eye Tips:
Winning Your Market: The seniors are easy to work with, but be careful with the family members and their expectations
Tracking Market Changes: Networking
Daily Habit: Make a list at the end of the day for the next day
Best Business Books:
The One Thing by Gary Keller and Jay Papasan
Traction by Gino Wickman
"A single house should net $10,000+ monthly"
"Gene’s motto: Do good and do well"
"Mom is not making the decision on where she lives, it’s the kids"
"You don't want 100 houses, you want the cashflow that comes from it"
Places to Grab a Bite in Phoenix:
Los Dos Molinos
Connect with Gene:
Midwest Real Estate Networking Summit:
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