Ep. 36: How to Profit $10K a Month on a Single House with Gene Guarino

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
• Average 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, 4 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

Resources:

Genworth.com/costofcare

Best Business Books:

The One Thing by Jay Papason and Gary Keller – https://www.amazon.com/ONE-Thing-Surprisingly-Extraordinary-Results/dp/1885167776

Traction by Gino Wickman – https://www.amazon.com/Traction-Get-Grip-Your-Business/dp/1936661837

Digital Resources

Google

Tweet This:

• 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:

Los Dos Molinos – http://losdosmolinosphoenix.com/

St. Francis – http://stfrancisaz.com/

Connect with Gene:

RALAcademy.com

Midwest Real Estate Networking Summit:

http://www.midwestresummit.com/

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