Why You Should Invest in RAL with Dr. Alex Schloe, Ep. 736

Dr. Alex Schloe is a board-certified family medicine physician, entrepreneur, and real estate investor. After facing burnout while working in the military and hospital systems, Alex turned to real estate to regain freedom and impact. Today, he focuses on residential assisted living and co-hosts The Real Room podcast while helping other physicians build time-leveraged wealth through Open Range Capital.

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Key Takeaways

• Residential assisted living (RAL) combines healthcare, real estate, and operations to serve aging populations with dignity and profitability.

• Dr. Schloe experienced burnout in clinical medicine, which pushed him to create freedom through real estate investing.

• RAL offers multiple entry points: operator, property owner, capital partner, or full integrator.

• Success in RAL depends on location, layout, and—most importantly—the quality of the operator.

• Medical professionals have the mindset and work ethic to thrive in real estate if they shift their time-value perspective.

Topics

From Military Physician to Real Estate Investor

• Alex served in the Air Force and later in hospital systems, where he saw firsthand the limitations of trading time for income.

• Began investing in multifamily, then transitioned into assisted living for greater impact and control.

Why Residential Assisted Living Is a Powerful Asset Class

• Demand is rising due to aging Baby Boomers and a lack of sufficient facilities.

• RAL facilities house 6–16 residents in a home-like setting with 24/7 caregivers.

• Offers stability, strong cash flow, and impact for families and communities.

Ways to Participate in Assisted Living

• Operate the business

• Own the real estate

• Partner with an operator as a capital partner

• Do all three as a vertically integrated investor

Evaluating Operators and Managing Risk

• Operator quality is the #1 driver of success—background checks, turnover, and systems matter.

• Look for state citations and regulatory issues before entering a deal.

• Consider building strong values alignment with any partners before investing.

Advice for Physicians Exploring Real Estate

• Passive income isn’t about replacing medicine—it’s about buying back your time.

• Start with education, then get around a community that understands your lifestyle and goals.

• RAL is one of few asset classes where your background can add value beyond capital.

Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.

Round of Insights

Failure that set Alex up for success: Ignoring his father’s advice to house hack during med school, he later realized the compounding power of starting earlier.

Digital or mobile resource: The RAL Room community platform: a centralized space for education, operator connection, and deal flow in assisted living.

Book recommendation: Wild at Heart by John Eldredge. Offers insight into identity and purpose, especially during career transitions.

Daily habit: Structured morning routine: prayer, journaling, reading, and a walk or workout to center the day.

#1 insight for entering assisted living real estate: Residential assisted living has outperformed every other commercial real estate asset class for the past 12 years.

Favorite restaurant in Colorado Springs, CO: Garden of the Gods Market and Cafe.

Next Steps

• Listen to The RAL Room podcast for insights into the assisted living business model

• Connect with Alex on LinkedIn or Instagram.

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