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Senior Housing – Big Box vs A Real “Home”

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By Gene Guarino

What would you rather live in… a “home” or a warehouse? When it comes to senior housing facilities, there are generally two types: Big Box facilities and Residential Assisted Living Homes.

In general they offer the same type of service, but how they deliver the housing or a “home” experience is very different. The first difference you’ll probably notice is the feel of the facilities. A Big box facility feels like a hotel or an apartment complex. They try really hard to make it “feel” like a home, but it is difficult to get that homey feel in a facility designed for hundreds of people to live there.

Residential assisted living is done in an actual single family home. It is achieved by converting single-family homes into a cozy place for a a group of seniors to live and receive care.

Another obvious difference is size. Big box facilities are big while residential assisted living homes are small. This difference in size plays a big part in the caregiver to resident ratio. That is the number of direct care staff compared to residents. In a RAL home, an average ratio is 10 residents to 2 caregivers. This is very reasonable, as caregivers can give ample time and attention to the residents. In a big box facility, the ration easily reach 20 or more residents to 1 caregiver. Ratios like this make it difficult for caregivers in bigger facilities to give each resident the full time that they need.

Big box facilities aren’t all bad. One of their advantages is that there are more residents to interact with. These facilities also tend to be able to offer a wider array of activities for the residents. With a facility of 200 seniors, it is easy to find a group of people that want to knit together, watch a movie together, or maybe play bridge together. Big box homes don’t offer all the advantages though. Smaller homes offer more freedom to residents and their families. It is easier to arrange for a day out with your loved one at a small home. It is also much easier to stop by, with no need to sign in or show I.D. before you see mom or dad like in a big box facility.

A major difference is the cost of staying at these facilities. Smaller facilities generally charge a flat rate for residents care and housing. That cost will be determined up front based on the resident’s level of care and the actual room they stay in. Big box facilities charge a monthly rate and bill additional services a la carte style. The room rates will vary, depending on size and privacy and then they charge more based on what the resident’s level of care is.

The location of these facilities are quite different as well. Small homes are generally in residential neighborhoods. In fact, there might be one in your neighborhood and you didn’t even realize it! Big box facilities are large commercial buildings surrounded by a parking lot. These can be located near a neighborhood, but they are generally located in the busier areas or even the business districts of cities. The differences are clear when it comes to big box facilities and residential assisted living homes. One feels institutional, one is a home.

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Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

WANNA KNOW WHAT MAKES A HOUSE UNSELLABLE?

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By Glenn Mananeng

So, you’ve finally decided to sell your house. You prep up the property, do all of the paperwork, get it listed and think that you’re good to go, only to find nobody’s buying your house. Bummer right? Well, you have to back up a bit and think why; is there something wrong with your home? If you’re still clueless as to why your home is not selling, worry not. SellUsHomes has got you covered, and we’re here to help you identify some common reasons why houses just don’t seem to sell.

Undesirable location

You’ve probably heard that location is everything when it comes to real estate. This can be the biggest obstacle in selling your property. The problem is, you cannot just conveniently move your house. If you are close to an airport, busy road, or highway, this might make it harder to sell your home. Even if your potential buyers are attracted to the house itself, they might not want to deal with these issues.

A bad location is basically up to preference. It depends on your target audience whether they’re families with kids or maybe the elderly. So the question is, can this be corrected? Absolutely!

Remember, you’re selling your property, not the neighborhood surrounding it. Focus on things that you have control over. Focus on the positive, and unique features. Intensify your curb appeal and make it stand out from others. Try to be more open to your buyers and offer concessions such as paying a part of the closing costs or credit towards repairs and improvements. Most investors find that reducing the sales price of the house even by just a bit increases the chances of closing the deal.

Outdated and too personal decor

This doesn’t just apply to the decor, this covers the fixtures as well. Think of the most likely buyer. If you’re planning to target a much younger audience, you won’t have any luck with your Tiffany lamps and your avocado green shag carpets. You’re offering a home, not a trip back to the 80’s.

We won’t question you with your interior design choices, but consider what your buyers want. If you do some research on how properties that sell fast look like, you’d find that the majority of them have interiors that are catered towards the current trend. A little touch-up can bump the value of your property much higher than you’d expect. Updating your light fixtures, installing a nice clean kitchen top, or even doing a brand new paint job can benefit you a lot. Keeping the decor neutral, reducing clutter and reducing personal items are very helpful.

Maintenance issues

Obvious neglected maintenance and repairs will ward off potential buyers. Buyers want a stress-free purchase. Not a lot of people will be willing to deal with the hassle of repairing a leaky ceiling or addressing plumbing issues. Address needed repairs before you list your home for sale.

Any health hazards that your house might bring to your buyers is not good as well. Dampness and humidity of the interiors can invite molds to form on your furniture and create condensation on your windows. Buyers who have very minimal immunity to these can cause allergies and even serious health problems. Keep a balanced humidity level by providing good ventilation and check the electrical and plumbing systems.

Checking your utilities, and having them serviced, can add assurance that they are working well, and add confidence to a buyer.

Lack of natural light

Most architectural designs promote the use of natural light. This is a major turn-on for a lot of buyers. Nobody wants to live in a house that resembles a cave. Lighting up the interior can give the illusion that the living space looks larger than it normally does. Plus, people feel better when there is more light and brightness.

If you have the extra cash to install skylights then go for it. However, there are ways to achieve this without little to no expense at all. If you move any furniture that blocks any source of natural light, that would greatly help. You can change the curtains (or remove them) into something with a lighter or transparent material. The introduction or use of glass panels allow light to pass through. Also, opt for a much lighter color scheme for the interiors to compliment any natural light.

Weak broadband service (or lack thereof)

In today’s world, most buyers expect to have a good, stable and strong internet connection. People dedicate most of their time online. Without this amenity in your house, you might be in for longer waiting time.

You don’t necessarily need to have it installed before you place your property for sale. Most telecommunication companies can inform you all about the signal strength and speed of the broadband service. Once your buyers know that it’s possible for the property to have internet connection, you just increased your chances of closing the deal.

Sprucing up your house and making a little effort can be more than enough to increase your chances of a successful sale. However, most sellers find a really hard time in prepping their property before placing it on the market. Don’t be discouraged, because that’s what our team at SellUsHomes is here for.

We realize the difficulties of selling a house can discourage a lot of first-time sellers. That’s why we strive to make the sale as seamless as possible. To learn more, contact us at (734) 224-5947 or email us at [email protected]

4 Real Estate Investing Strategies for New Investors

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By Corey Tyner

Getting into the business of buying and selling homes can be daunting — especially for new investors.

However, just like any other investment, everything revolves around the fundamentals. We’ve created this infographic to guide new real estate investors and help them get started on achieving those long-term financial goals.

There are many ways to buy land and invest in real estate, but we will be going over four of our most commonly used strategies that are favored by seasoned real estate investors because they are tried-and-true. These real estate investment strategies cover most of the properties that you will want to purchase as a beginner, from a quick flip where you buy and sell your house fast, to the regular passive income you receive from a buy and hold.

When you are investing in real estate, you may hear some terms you are unfamiliar with:

  • Lipstick Flip – A “Lipstick Flip” refers to flipping a home with minimal cosmetic updates, to quickly see a return on your investment. Lipstick Flips are a fast way to get into real estate investment, but you need to be more selective when you choose a home; if the market sees homes in the area selling quickly this may be viable, however, if homes are selling slowly, you may want to consider a different type of investment, since it may be difficult to sell your house.
  • Wholesale – Wholesale real estate investments are usually done quickly. You buy low, and often sell low. Wholesale real estate often focuses on distressed properties you would otherwise overlook.
  • Buy and Hold – Buy and hold usually means when you buy a property for the purposes of renting or leasing it out, but you can also buy land you think will appreciate in value. We will be going over how to buy and rent properties.
  • BRRR&R – Buy, Renovate, Rent, Refinance & Repeat. This is the way many people build a huge real estate portfolio because it offers both short term and long term gains. This strategy is best used in areas that are still low but have property values rising quickly due to gentrification or an otherwise fast-improving neighborhood.

Corey Tyner

Corey Tyner is a writer and business owner who helps sell houses fast. He is the founder of Austin Fast Sell Home Buyers and is one of the top real estate investors in Arizona. With over a decade of experience, his work has been featured on Bigger Pockets, Real Estate Agent Magazine, and several other mainstream real estate investor publications.

8TH ANNUAL INCOME PROPERTY MANAGEMENT EXPO RETURNS TO PASADENA ON TUESDAY, MARCH 24TH

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Income Property Management Expo offers property owners, managers and real estate professionals a full day of speakers, education, an exhibit hall and the nationally acclaimed Maintenance Mania® competition. Held at Pasadena Convention Center on Tuesday, March 24th from 9:00 am-4:00 pm, admission is free.

Presented by National Apartment Association (NAA) and HD Supply, Maintenance Mania will feature leading area maintenance professionals competing in skill-based games for nationwide recognition and cash prizes. A host of seminars will be presented throughout the day on topics including:

* Surviving Statewide Rent Control
* Soft-Story Retrofit Mistakes to Avoid
* Strategic Property Management to Avoid Lawsuits
* New Laws & The Regulatory Environment Impacting Housing Providers
* Tapping Into a $27 Trillion Pool of Funds for Your Projects
* Unraveling the Mystery of 1031 Exchanges

Scheduled speakers include Dan Yukelson, AAGLA; Dennis Block, Dennis P. Block & Associates; Rusty Tweed, TFS Properties; Michael Brennan, Brennan Law Firm; Alexander Rodriguez, Soft Story Retrofit Pros; Brian Gordon & Vince M. Medina, Lotus Property Services; Tony Watson, Robert Hall Taxes & Associates; Mark C. Turok, Exeter 1031 Exchange Services; Patti “Widget” & Chris Verzosa, Widget’s Way and Skyguard Surveillance; Kaaren Hall, uDirect IRA; and Bob Wess & Elizabeth Reynolds, KW Commercial.

An exhibit hall with 100+ vendors will showcase the latest in property management software, analysis tools, energy systems, lighting, roofing, safety equipment, tenant screening, tax planning, financing, insurance, and legal services to improve performance and reduce maintenance costs. Attendees will also have opportunities to foster new relationships, share ideas, get free advice from legal and financial experts, and learn new strategies to increase their return on investment.

Industry partners are Apartment Association of Greater Los Angeles (AAGLA), Greater Los Angeles Realtors Association (GLAR), California Association of Housing Authorities (CAHA), Apartment News Publications, Apartment Age Magazine and Apartment Management Magazine. The Expo will be held March 24th at Pasadena Convention Center, 300 E. Green Street, Pasadena, CA 91101. Hours are 9:00 am-4:00 pm. Admission is free. Parking is additional. For exhibitor inquiries please contact (800) 931-6666 or email [email protected]. For pre-registration and agenda updates, visit www.incomepropertyexpo.com.

OFFICER AND HANDS-ON REAL ESTATE INVESTMENT TRAINER PUTS STUDENT SUCCESS FIRST

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By Karen A. Walker

For Los Angeles Police Department (LAPD) Officer and master real estate investment teacher and trainer Alton Jones and his wife, Rocio, it’s all about relationships, helping others succeed and being your best self. Every day. Every minute.

But while Jones has helped people succeed in real estate investing beyond their wildest imagination, he doesn’t promise, and never himself expected, overnight success. His experience as a police officer prepared him for that.

He knows first-hand that success takes learning, listening, focus, persistence, a good sense of humor, a healthy dose of humility (did I mention persistence?!) and, most importantly, taking action.

That last step—action—can be the most difficult, but simply doing the right things and repeating until it become second nature marks the difference between success and none.

“It’s one thing to talk about it,” says Jones, “but a totally other thing to actually DO it!”

Did you say police officer?

Jones has been an LAPD policeman for more than 34 years. For the first 16 of those years, he served as a full-time, active duty officer. After that—to this day—he serves as reserve officer.

In the last 10 years, Officer Jones has been honored as a Reserve Officer of the Year. Twice!

“Officer of the Year is a big deal,” explains Jones. “A few officers are selected each year and honored for exceptional service during the year. About 600 people attend the honoree dinner, and it’s really a big deal, with any funds raised going to help the families of fallen officers or others in our police family who need it.”

At his more recent honoree event, the main cast and the creator of the TV series THE ROOKIE attended, which made it extra fun.

People skills

Just as in police work, real estate investing involves good training and good people skills. Relationships matter.

Knowing how to talk with a myriad of different types of people can mean the difference between life and death in police work.

“As an officer, especially on patrol, you have to talk with so many different kinds of people—victims, drug dealers, the mentally unstable, drug users on a high, the traumatized, witnesses, violent or less violent criminals,” says Jones. “Good officer safety skills are critical. You also have to be able to get accurate, useful information from witnesses. Those statements have to be able to hold up in court or identify a perpetrator, so you have to know how to ask a question and which information to pursue.

“In addition, sometimes you have just seconds to assess a situation or persons involved. Knowing how to quickly assess and talk with different people can determine if you come home that day.”

In real estate investing, regardless whether you are fixing and flipping houses, negotiating fair win-win deals, managing contractors, or teaching others your proven system for success, it’s critical to develop good people skills and to build strong relationships.

And to build any kind of relationship, you have to be a person of integrity in words and actions.

Knowledge alone isn’t enough

“It’s one thing to talk about it, but it’s a totally other thing to actually DO it!!” says Jones, who gets his students quickly to action.

Again, the comparison to police work is clear.

In the training process you learn how to talk to different people, what you need to ask and what to do in different situations, what information you need, and so forth. But learning it in a classroom doesn’t make you successful.

It’s a different story when you get out on the streets and you’re talking with real people, or in the chaos of an incident and trying to sort it out.

Same for the investor.

Practice (i.e. taking action) sharpens people skills until the right thing to do in negotiating an opportunity or managing contractors becomes second nature.

Never stop learning: Mentors matter

Alton always says, “It’s OK to copycat, as long as you copy the right cat.”

Jones got into the rehab, fix and flip business in 2009. But he didn’t do it alone. He chose his mentors well. He invested in himself and in his success, and he hasn’t stopped to this day.

Even with the success he and his wife have achieved and continue to achieve… even with his rapid rise to being asked and encouraged by his mentors to become a teacher for others, beginning in 2013… even with his popular books and with the success he and his wife continue to nurture and grow in themselves and others… even with all that, Jones continues to listen and learn from others.

Two of his stand-out mentors are Ron LeGrand and Dan Kennedy.

From his mentors, Jones learned early on that to be successful you must be purposeful in all you do. You must run your business as a business, not as a hobby.

He learned what to do and how to do it.

He also learned to expect uphill battles and set-backs, even after you’ve achieved remarkable success.

It is what it is.

Be prepared. Go forward. Keep your eyes on the prize, on doing the right thing, and on serving others.

Knowledge alone isn’t enough

“The majority of people will tell you ‘no,’” says Jones. “So what? You have to rise above. There’s EGO, but you gotta drop the “e” and just GO!

“In the police department you have to have the will to live. You learn and you have to face the reality every day that there are people who want you dead, but you have to — you MUST — have the will to LIVE. That keeps you doing the right things, following the good skills and training you received.

“In developing a real estate business, you have to have the will to WIN. That keeps you focused on the end goal. It keeps you going forward.”

Good mentors tell you the truth. They also practice what they preach.

The best mentors don’t just deliver knowledge. They don’t teach swimming lessons while standing on the edge of the pool. No. The best mentors lead by example. They get in the pool with you and show you how it’s done. They insist you get into the water and learn how to swim for yourself. And they’ll be with you every step of the way, IF you allow it.

When Jones holds training sessions and boot camps, he tells it like it is. With a smile, he calls himself a minister of truth. He doesn’t deliver what attendees might want to hear. He delivers the reality, the truth.

Rehab 2 Riches

It was an unexpected honor when Ron LeGrand, in 2016, not only praised the system for success Alton and his wife had developed, but when he also strongly encouraged Jones to launch his own training courses on that very system.

Alton’s Rehab 2 Riches courses, bootcamps and more soon followed, to popular acclaim by attendees.

“I believe what we do changes lives,” says Jones. “People who come to one of our events, they’ll make a life-changing decision at that event. Those relationships made at our events can take you from $0 to self-sufficient.”

Jones smiles when he talks in his bootcamps about the importance of building a Million Dollar Rolodex of exceptional resources for your business. “These days there are a lot of people who don’t know what a rolodex is,” he says. But it hasn’t held any of his students back. They still understand the point.

Jones practices in three markets—southern California, Dallas and Memphis. Of all these, however, his preference is his beloved southern California.

For more information, go to Rehab2Riches.com.

Alton Jones says that in this business there are five things you have to do to succeed:
1. Locate prospects
2. Pre-screen prospects
3. Construct and present offers
4. Follow-up
5. Close quickly

Books by Alton Jones include:
• Ask Me How I Know? Four biggest house-flipping mistakes that made me millions, by Alton Jones

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Karen Walker is the founder and executive producer of The Mentors Radio Show (TheMentorsRadio.com)

Real Estate Investing: A Market Correction is Coming

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By Tim Houghten

It’s inevitable. A market correction is coming. The market has been on a high for years now. In 2018 alone, the Dow Jones Industrial Average broke a record high 15 times. If history has taught us anything, it’s that the market cannot sustain those highs for that long without a correction. Real estate markets across the country are still very hot. Even with the “cooling” that some markets are seeing, real estate prices are still well above records and competition is hot. “A cool-down has been predicted for over in a year in our local market. However, I’ve yet to see it. Sure there are some longer list times for sellers but properties are still selling in record time over asking price. It’s still a hot market,” says Eric Jones, Director of Sales and Marketing for Freedom Real Estate Group.

With all that being said, the question on every wise investor’s mind: how can I prepare myself for the next recession? The short answer, diversify. The long answer, diversify into buy and hold, long-term strategies.

“The short-game (fix and flip) is good. It’s instant return. But you get hit hard by the tax man. Buy and hold has some of the best tax advantages of any asset class,” Jones stated. “Depreciation, property taxes, mortgage insurance and more are all deductible expenses. Plus, with fix and flips, it’s simply not a long-term strategy. It’s not a way to build true wealth.”

To lessen the risk of any big swing in the market, the answer is to diversify your investment portfolio so all your eggs aren’t in one basket. The problem many individuals faced in 2008 was that most of their 401k or other retirement accounts were tied up in stocks and mutual funds. When the market tanked, so did their accounts. Now imagine if half of those funds were diversified into buy and hold real estate. For many, the outcome could have been vastly different. Here’s why.

The key to cash flowing, rental properties is that even during a down economy, they’re still cash flowing at the same amount. In some cases, even higher. Let’s look at it this way. If you were getting an 8% return on your stock investments, and the market crashes, you’re likely going to be reduced to 2%-4% if you are lucky. With rental properties, the rent amount stays the same. Your mortgage stays the same. Your property management fees, if you have them, stay the same. Essentially, if you were getting 8% returns on your property before, you’re still getting that. In a down economy, rents rarely go down. You may not be able to get rent increases during that time, but you will at least have a steady, consistent amount of cash coming in each month.

Rental properties tend to weather a down market in a consistent or even appreciating way. Not necessarily appreciating in value of the asset but appreciating in terms of cash flow being received. In a bad economy, a few things are happening. People simply aren’t buying homes. Credit is tighter. People are scared. The pocketbook is squeezed. Instead of purchasing, individuals and small families tend to continue renting during a recession. In addition, those that may be losing their homes to a foreclosure turn to single-family or duplex style rentals since it’s more private and familiar than a large apartment complex. Therefore, demand may actually increase in a down market which is a huge win for rental property owners.

With all that being said, a down market is definitely not the time to sell your rental properties. It’s a buy and hold strategy. During a down market, it is always best to hold these properties unless there is some absolute reason you must sell. When the market begins to climb again, then you may want to consider selling to upgrade to another investment property in a better neighborhood or better yet, purchase two and double your cash flow.

The best part of investing in rental properties is investors are wealth building while cash flowing. Very few investments offer this kind of opportunity. With a buy and hold strategy, you are receiving the benefit of monthly cash flow while also building a portfolio of tangible assets that will always – no matter the market – have value. “If you have the right plan, with a decent amount to invest, you can quickly scale up to a very healthy portfolio. We worked with a dentist who had $400k to invest and wanted to receive $10,000 a month in cash flow so he could retire. We built a plan and got him to his goal in three and a half years. He was able to retire early. However, not only did he keep receiving the cash flow each month, now he has tangible assets that he can sell off if he ever needed to and can pass on to his children and grandchildren,” Dani Lynn Robison, Co-Founder of Freedom Real Estate Group stated.

Something else to consider is how you are using the power of inflation to your advantage. Most 401k plans aren’t able to keep up with inflation. With the small returns and high managements fees, unless you are able to invest a lot in those funds, you may not even be able to keep up with the rate of inflation. However, with rental property, you are working with inflation to win in two ways. First, your mortgage payment doesn’t change. Let’s say when you purchased the property it was a $500 per month payment. If the market tanks, it’s still a $500 payment on a fixed rate loan. If the market is great, same payment. When the market is doing well, your asset, if all goes as planned, is increasing in value. You’re actually earning value on the asset while effectively reducing the value of the money you’re paying due to inflation. Second, you will likely be able to increase the rental amount between 1%-5% per year. That’s additional cash flow and value you will be receiving yearly.

Finally, it’s important to note that this is an investment and with any investment, there is inherent risk. No investment is guaranteed. However, real estate is one of the most proven, asset-based investment classes in history. Most millionaires were either made through investing in real estate or find large value in investing in real estate. As you explore this investment opportunity, look for markets that do not have super highs or super lows in market crashes (like 2008). States affected greatly were Florida, California and Arizona. One of the cities most notorious for being hit hard in the crash was Las Vegas. These may be markets to steer clear of. If a market crash occurs again, it may cause migration out of those areas resulting in rent losses. “Consider markets that may seem ‘boring’ like many in the Midwest including our market – Cincinnati and Dayton, Ohio. These have proven to weather a down economy and not have big drops in real estate values or population. These are the markets where you truly win.” Eric said.

Diversification is the key to weathering a down turn in the market. More specifically, investing in buy and hold rental properties not only is a proven strategy to survive and even thrive in a down market, but one that holds many positive attributes such as consistent cash flow, numerous tax benefits, and true wealth building.