Think-Realty-Magazine-November-2018

STRATEGY

The nation’s only daily (M-F) talk show giving listeners all the resources, tools, and tips to help them succeed as real estate investors. Think Realty Radio helps investors like you make the most of your opportunities. Get in a real estate of mind, with Think Realty Radio and your Host, Abhi Golhar! Listen to full shows once they broadcast at ThinkRealtyRadio.com. Tune in and turn up the ROI... Think Realty Radio is on the air! REAL ESTATE REAL TALK ABOUT

ASSISTED LIVING

An Outside-the-Box Option for Nontraditional Flips CASE STUDY: TAKING DISTRESSED SINGLE-FAMILY TO PRODUCTIVE SENIOR LIVING.

Featured Investor: Gene Guarino

hen Gene Guarino, founder and CEO of Residential Assisted Living (RAL) Academy, first saw the five-bedroom, four-bathroom Arizona home with an enormous “bonus” room and a mostly empty pool out back, he did not envision the “flip” most inves- tors probably would have. “Most home- owners don’t need that many bedrooms, and most flippers would have passed on this deal too,” he said. Guarino, howev- er, immediately had visions of removing the pool entirely and adding not one or two but four bedrooms and allowing for a total of 10 beds. Why are we talking about beds, not bedrooms? Because Guarino converted that distressed single-family property to a highly productive senior-assisted living residence serving a total of 10 individu- als in private and shared living quarters. “I knew when I saw this house that with a few changes – including remov- ing an entryway that looked like a horse corral – it would be perfect for residen- W

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Purchase Price: $ 490,000 Renovation & Carrying Costs: $ 160,000 Total Investment for Residential Assisted Living Conversion: $ 650,000 Single-Family Comparison: • potential profit as a single-family flip: $ 30,000- $ 50,000 • potential rental income as a single-family rental: $ 2,000- $ 3,000 a month (Not Viable) RAL monthly business income: $ 10,000 net profit/month RAL business value: 2-3 times net annual profit = $ 240,000- $ 360,000* *Before real estate value Notes from the Investor: Investing in a residential assisted living facility is a business investment as well as a real estate investment. This means you must do some work in advance to understand exactly how you will leverage the investment in terms of real estate and your residential assisted living business.

Dallas, TX - KEXB 620 AM Denver, CO - KDMT 1690 AM Florence, AL - WBCF 1240 AM Fresno, CA - KVHF 1690 AM Minneapolis, MN - KYCR 1440 AM Orlando, FL - WBZW 1520 AM

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San Antonio, TX - KAML 990 AM San Francisco, CA - KDOW 1220 AM

Seattle, WA - KKOL 1300 AM St. Louis, MO - WGNU 920 AM Tampa, FL - WWMI 1380 AM

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