The $50K/Month Secret in Senior Care Homes | Boris & Amanda Palomino DSH #1295

Summary

Digital Social Hour: Episode Summary Title: The $50K/Month Secret in Senior Care Homes | Boris & Amanda Palomino DSH #1295
Release Date: April 4, 2025
Host: Sean Kelly
Guests: Boris & Amanda Palomino

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1. Introduction to Senior Care Homes

In this episode of Digital Social Hour, host Sean Kelly welcomes Boris and Amanda Palomino, seasoned entrepreneurs in the senior care home industry. The Palominos delve into the challenges and opportunities within the sector, emphasizing the inadequacies of traditional Social Security-funded homes and presenting their innovative business model that generates significant monthly revenue.

2. Journey into the Senior Care Industry

Transition from Previous Careers: Boris and Amanda share their backstory of transitioning from unrelated fields into senior care. Boris recounts his past in the automotive industry and Amanda’s corporate background before their sister inspired them to explore senior homes.

Boris Palomino [01:22]: “We started learning the business by helping my sister, and that's how we decided to dive in.”

Initial Sacrifices: They discuss the financial and personal sacrifices made to establish their business, including selling their primary residence to live in a 300 square foot Accessory Dwelling Unit (ADU).

Unnamed Guest [01:34]: “We gave up our primary residence, moved into the 300 square foot ADU on the property. Huge sacrifice.”

3. Building a Successful Portfolio

Growth and Expansion: Their dedication paid off as they expanded from one to three locations in Los Angeles, with another property under construction. Despite considering relocating to Texas due to California’s stringent regulations, they remained rooted in LA for familial and sentimental reasons.

Boris Palomino [03:09]: “It's the family environment. It's home.”

Real Estate Investment Strategy: Owning their properties allows their business to cover mortgages, turning real estate into true assets and ensuring a steady income stream.

Unnamed Guest [04:08]: “Our business pays the mortgage, and we still get the equity, the appreciation, all of that.”

4. Analyzing the Senior Care Industry

Critique of Traditional Nursing Homes: The Palominos highlight the poor quality and high costs associated with conventional nursing homes, emphasizing the impracticality of living on Social Security or SSI benefits.

Boris Palomino [00:00]: “Social Security homes out there, they're terrible. I bet they're awful.”

Comparison with Residential Settings: They advocate for residential senior care facilities, which offer personalized care with lower resident-to-caregiver ratios (2:1 compared to the industry’s 20:1), fostering a better environment for seniors.

Boris Palomino [05:33]: “Nursing homes have a 20 to 1 ratio, whereas we have a 2 to 1 ratio.”

5. Innovative Business Model and Financial Insights

Revenue Generation: Operating residential care facilities allows them to net approximately $10,000 per home monthly after covering overhead and mortgages—a model they liken to McDonald's focus on real estate rather than just selling hamburgers.

Boris Palomino [20:13]: “After your overhead, after your mortgage is covered, you're netting about $10,000 per home.”

Coaching Program: Recognizing a gap in the market, the Palominos launched a coaching program to train aspiring entrepreneurs in establishing and managing senior care homes. This initiative not only expands their business but also addresses the growing demand for quality senior care.

Unnamed Guest [11:19]: “We have a coaching program teaching people how to open and run these homes.”

6. Addressing Challenges and Regulations

Navigating California’s Regulations: California’s senior care industry is highly regulated, necessitating comprehensive training and adherence to strict standards. Despite the paperwork burden, the Palominos view these regulations as beneficial for ensuring quality care.

Boris Palomino [32:55]: “California is definitely the highest regulated for senior care. But running a good clean home helps avoid issues like abuse and neglect.”

Expansion to Other States: With a solid foundation in California, expanding to states with more favorable regulations, such as Texas and Florida, becomes a feasible next step for their business.

Boris Palomino [35:05]: “Arizona allows 10 seniors per home, Texas is even more lenient, which helps in expanding our business.”

7. Community Involvement and Personal Stories

Giving Back: The Palominos emphasize the importance of community involvement, sponsoring local events like golf tournaments for police and fire departments, and maintaining strong relationships with local emergency services.

Boris Palomino [13:30]: “We sponsor local police and fire departments because they give so much to us.”

Heartwarming Resident Stories: They share touching stories of their residents, including a 98-year-old Japanese woman who survived the atomic bomb and a 104-year-old client with dementia, highlighting the profound impact of personalized care.

Boris Palomino [24:00]: “She survived the atomic bomb. Isn't that incredible?”

8. The Future of Senior Care and Social Security Concerns

Long-Term Care Planning: The discussion underscores the escalating costs of long-term care and the precarious future of Social Security, urging listeners to consider long-term care insurance and proactive planning.

Boris Palomino [06:28]: “The average person retires with barely any money these days. Long-term care insurance is crucial.”

Systemic Issues: They critique the corruption and fraud within Social Security, advocating for more robust and transparent systems to support the aging population.

Amanda Palomino [31:17]: “Social Security isn't enough. You'll be eating the poorest quality food in bad areas.”

9. Conclusion and Call to Action

Encouraging Entrepreneurship: Boris and Amanda urge listeners to pursue their entrepreneurial dreams with passion and purpose rather than focusing solely on financial gain, emphasizing that genuine care leads to sustainable success.

Amanda Palomino [11:20]: “It can't only be money. Money is just a tool.”

Engagement and Learning Opportunities: They invite interested individuals to connect with them via Instagram for more information on their coaching programs, promoting the expansion of quality senior care facilities.

Boris Palomino [39:15]: “Send us a message on Instagram. We're on Instagram, Boris V. Palomino.”

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Notable Quotes

• Boris Palomino [00:00]: “Social Security homes out there, they're terrible. I bet they're awful.”
• Unnamed Guest [01:34]: “We gave up our primary residence, moved into the 300 square foot ADU on the property. Huge sacrifice.”
• Boris Palomino [20:13]: “After your overhead, after your mortgage is covered, you're netting about $10,000 per home.”
• Boris Palomino [06:28]: “The average person retires with barely any money these days. Long-term care insurance is crucial.”
• Amanda Palomino [11:20]: “It can't only be money. Money is just a tool.”

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Final Thoughts

In this episode, Boris and Amanda Palomino provide an insightful look into the senior care industry, highlighting the shortcomings of traditional nursing homes and presenting a lucrative, compassionate alternative through residential care facilities. Their commitment to quality care, community involvement, and entrepreneurial mentorship offers valuable lessons for aspiring business owners and underscores the urgent need for better senior care solutions.

For those interested in learning more or joining their coaching program, follow Boris and Amanda on Instagram at Boris V. Palomino and Amanda Palomino.

Transcript

[Boris Palomino]

Because there are Social Security homes out there, they're terrible. I bet they're awful. Because they don't. I mean, they. They What? Social Security SSI is paying what, 1300, 1200amonth?

[Amanda Palomino]

Oh, that's nothing.

[Unnamed Guest]

It's about 1400 now.

[Boris Palomino]

It just raised.

[Unnamed Guest]

It just raised.

[Amanda Palomino]

Yeah. You can't live off that.

[Boris Palomino]

No.

[Amanda Palomino]

You'll be eating the poorest quality food.

[Boris Palomino]

Exactly.

[Amanda Palomino]

You'll be in a bad. All right, guys, Boris and Amanda here. Today we're going to talk senior homes. Thanks for joining us, guys.

[Unnamed Guest]

Thanks for having us.

[Boris Palomino]

Yeah, thank you for having us. Thanks for the opportunity.

[Amanda Palomino]

Absolutely. When did you guys get involved with this industry?

[Boris Palomino]

10 years ago.

[Amanda Palomino]

10 years?

[Boris Palomino]

Yeah, we've been doing this for 10 years now. Real, you know, quick shot of it. We were not in medical, we were not anywhere near this field. When we started, I was in automotive. I moved up the food chain and the automotive industry. She was in corporate America. And my sister, she opened up two homes in west la. And she's the one that told us like, hey, you should. You should open one of these homes. I was like, dude, you're out your mind. I would never do that. It's not for me. I was like, that's not. No way. We wanted to start our own business. We didn't know what. And so then we would just go and help my sister out. And that's how we started learning the business. We're like, you know what? We're gonna do this, do this. So I'll let you.

[Unnamed Guest]

Yeah. So when we first started our business, we didn't have money to start. So we gave up our primary residence, moved into the 300 square foot ADU on the property.

[Amanda Palomino]

Wow.

[Unnamed Guest]

Yeah. Huge sacrifice. Right? And I also had a one year old at the time.

[Amanda Palomino]

Geez.

[Unnamed Guest]

And we just wanted a way to stay day home with our daughter, to raise our family. Not have to hire anybody, not have to send her to daycare. So we found the perfect opportunity in a residential setting to also care for seniors while I was raising my family. So fast forward two years, our business did so well, we were able to afford a second property in la. So that tells you a lot.

[Amanda Palomino]

Yeah, it ain't cheap in la.

[Unnamed Guest]

It's not cheap.

[Boris Palomino]

It's gotten worse.

[Unnamed Guest]

Yeah, exactly. So we were able to afford a second property. Day after we close escrow on that property, I find out I'm pregnant with my son. So Here we are, four of us with two dogs, two labs, 300 square foot ADU.

[Amanda Palomino]

That's insane.

[Unnamed Guest]

Yes. But I think people don't realize how much sacrifice it takes to become an entrepreneur. And all the hours and late nights you put in making this dream of yours become a reality. So we just kept steamrolling. We were extremely successful and we just wanted to see our business growing. And we now have three locations in la. Middle of construction on another property right now.

[Boris Palomino]

Just got another property.

[Unnamed Guest]

Yeah.

[Amanda Palomino]

You guys love la, huh?

[Unnamed Guest]

You know. No.

[Boris Palomino]

Anyways, I love my Cowboys. I love Texas. We love Texas. So it's funny you bring that up, because we were gonna move to Texas this year, and last year we were just going to sell our company, just be done with California. It's just California's overregulated.

[Amanda Palomino]

Yeah.

[Boris Palomino]

It's just. It's not a good family environment. It's not. They don't hold the values I do. It's different. But anyhow, we hired a business coach, and he was the one that was like, dude, what, what are you doing? You'd be so stupid to sell your business. Like, do you. Do you realize what you're doing? Like, do you realize the opportunity in front of you? And you should be coaching. You should be coaching people to open these homes.

[Amanda Palomino]

Right?

[Boris Palomino]

And I think, you know, you look, you miss so many opportunities when you just dive your head in and you're doing the work in day in and day out, and you miss all these other things. Right. And so that's when we started looking for mentorship and working and expanding and so here we are. But to, you know, is la, it's okay, it's home. It's where I grew up, and we grew up, and that's where family is.

[Amanda Palomino]

But it's good for business. I'll go there for a day, a month, but I can't stand it for more than a few days personally.

[Unnamed Guest]

Yeah, you know, I mean, it's interesting you say it's good for business because for our business, it actually really is great for business. So we own residential senior care facilities in California. You're allowed to have six seniors in a residential home. Your neighbors don't even know you exist. And that's a California loophole. You don't have to deal with zoning laws or conditional use permits. Still considered residential.

[Amanda Palomino]

Oh, wow.

[Unnamed Guest]

So we get to become real estate investors. We own the properties we run our business out of, so our business pays the mortgage.

[Amanda Palomino]

Smart.

[Unnamed Guest]

Very. So all of our properties that we own are true assets. Because you already know, you know, real estate, too. Properties are not assets.

[Amanda Palomino]

No.

[Boris Palomino]

Grant Cardone said that to you?

[Amanda Palomino]

Yeah, yeah, he said it's the Worst investment you can make.

[Unnamed Guest]

Exactly. So for us, my business pays the mortgage and we still get the equity, the appreciation, all of that. Right. So now in LA specifically, there's a lot of programs that have been rolled out to help low income seniors afford housing in the residential settings because we're considered boutique and custom care. Oftentimes you like, I think you mentioned this on a podcast recently and you're like nursing homes? Like, oh God no. Like, I never want to live in a nursing home. They're terrible.

[Amanda Palomino]

Sounds miserable to me.

[Unnamed Guest]

Yeah. And it really does. 90% of our clients come from the large nursing home settings because they just don't have the proper ratios. I'll let you get into.

[Amanda Palomino]

Yeah, because it's like a 20 to 1 ratio for them, right?

[Boris Palomino]

Yeah, it is. And then also the levels of care are different. Right. When you're in the big box, facilities that have, you know, 100 beds, up 200 beds, whatever. It's more like an independent living. So these people, they're just doing their own thing. It's almost like a, like a resort. Right. But then as you, as they age and place, they need more care. And so then at that point, what are the options in home care where they go to their home, they have somebody. Right now to have somebody come into your home to care for you 24 hours a day, you're looking at minimum 20,000 per month.

[Amanda Palomino]

Damn, that's a lot.

[Boris Palomino]

Here's the funny thing that I always talk to people about. You think retirement, right? What do you think? Flip flops, Bahamas travel. Right now your, your retirement, you're saving for somebody to care for you when you get older. Because that's a, you know, we're living longer. Technology, medicine, it's allowing us to live longer.

[Amanda Palomino]

Right. And the average person retires with like barely any money these days too.

[Unnamed Guest]

Yeah, wrecked.

[Boris Palomino]

Correct. Because the generations we're caring for right now, they were very good with their money. I don't know what's going to happen with the generations coming in because we're not doing a good job with the money. Right. There's, there's long term care insurance, which is, it's a big thing. Anybody 50 and up should really look into long term care insurance. There's a lot of good companies out there. But what we do is we, you know, we're in a residential setting. As we mentioned, we can only have six seniors. And so we customize a career. Now, we're not a medical facility. A lot of people say, are you medical? No, we are a social model. Of care, not a medical facility. And so what we do is we partner with the residents, primary health, if they have home health with them, hospice, because we do all the way to end of life care.

[Amanda Palomino]

Got it.

[Boris Palomino]

And so we're partnered with them to work with them. So our. We are considered, well, we're administrators, but we're also caregivers. We don't hire nurses, doctors, anybody. We're a caregiver.

[Amanda Palomino]

Wow.

[Boris Palomino]

Yeah. And so as administrators, certified administrators by the Department of Social Services, we are allowed to train our caregivers. There's certain things our caregivers and us, we're not allowed to do because we don't have a medical license. But for anybody out there who is a nurse or has a medical license, injection, suppository, some. Some of those sorts of things that we're not allowed to do, they are allowed to do it.

[Unnamed Guest]

And then you can also. And what we do in our homes, you partner with home health agencies, hospice agencies, you work with the primary doctor where they send the medical team into your care facility so our seniors, they don't have to leave the home. There's so many services that are brought in. So there's telehealth visits now there's phlebotomists that draw blood at the facility and there's mobile X rays, there's mobile dentists. There's so many in home services available now that our seniors, when they come to us, they can come to us from independent. Like if they're independent all the way through end of life and they don't have to move if they decline in their condition. Yeah. Or I think you had mentioned, you know, retirement people are retiring young age. Well, we've had seniors in our care facilities. 65 years old with full dementia. Can't even recognize their family members anymore.

[Amanda Palomino]

Damn.

[Unnamed Guest]

Can't have full conversations, can't even speak. We've seen a full spectrum. So talk about perspective on life. Enjoy your life now. Live your life, enjoy it. But also come up with a plan so that your family doesn't have to worry about what to do. When you get to that age of needing care, you're set up also. It's an amazing industry to get into and it's provided us such an amazing lifestyle. We get to travel, we've got kids, we're at all of the sporting events with them. Our kids are super active in everything. My son is 8, my daughter's 10. There's golf, there's jiu jitsu, there's football. We're at it all because We've created that balance where we get to actually actively participate in their life as well without having to, you know, be sitting behind a desk all day long.

[Amanda Palomino]

Beautiful.

[Boris Palomino]

We're also very involved with our kids school.

[Amanda Palomino]

Yeah, that's important.

[Boris Palomino]

Very important. Because a lot of, a lot of people like to complain about the school and what's going on, but they don't take the time.

[Amanda Palomino]

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[Boris Palomino]

That's great. Except that was Aries. They don't have the time, they don't have the, you know, the means of being able, time wise to get involved. So she's head of one committee, I'm head of another committee.

[Amanda Palomino]

Nice.

[Boris Palomino]

So we've been very involved and that, you know, and that's really the reality of why we started a business to be involved with the family. And it really, if you, you do something for reasons other than money, you will be successful. You know, your heart's in the right place. I really believe you're going to be successful.

[Amanda Palomino]

Can't only be money.

[Boris Palomino]

It can't.

[Amanda Palomino]

No, it's not long term.

[Boris Palomino]

Money is just a tool to do other things. Whether it's good or bad. Money is just a tool. And if your objective is money, then you know, that's not a very good.

[Amanda Palomino]

No, that's when you see burnout, that's when you see mental health issues.

[Boris Palomino]

Right?

[Amanda Palomino]

Yeah.

[Unnamed Guest]

You have to truly enjoy what you're doing. So as true entrepreneurs, last year, you know, because we were bored like most entrepreneur entrepreneurs, you're bored, you got nothing else to do. Let's start another business. Right. So we, we started a coaching business by accident. Actually we were on another podcast and somebody found us on YouTube and they're like, that is amazing. What you do we're not far from you. We want to learn how to get into this industry. We're extremely interested. Let's set up a meeting. We're like, sure, we'll talk to you guys. And so they came over, we sat down, had a conversation about what the industry is, went through, you know, the full steps to get started. They're like, perfect. We want to sign on how much like Boris and I started each other.

[Boris Palomino]

Like, hm, I just threw a number out.

[Unnamed Guest]

I don't know.

[Boris Palomino]

Yeah, I was like, this number. And they're like, where do I send it?

[Unnamed Guest]

And I was like, that's a good sign. Like, I'll send you a link in 30 minutes. And so here I was on standstar and I'm like creating it on the spot and sent it over and they signed up. I'm like, there you have it. We have a coaching program. So now, you know, it's been a few months, so it's all built out now. We've got several students and it's so amazing to see people take action and not just sign up for something because it's like the new fad out there. Like. No, they're legitimately purchasing properties that will become investments and converting them into senior care facilities so that they can help people in their community.

[Amanda Palomino]

Right.

[Unnamed Guest]

They're. There's so many seniors that need help right now and it's such a feel good business knowing that you're making an impact. When you hear the stories and you see meet face to face with families looking for mom or dad who fell at home or who need assistance or they're just burnt out, children are just burnt out and they're getting injured themselves. So being able to help them feels so amazing. And then, you know, just in the city and the involvement that we have in our own community.

[Boris Palomino]

Yeah, we make sure to give back to our community. Our city that, you know, where we're based out of, we've always, you know, we sponsored the golf tournament for the police department.

[Amanda Palomino]

Nice.

[Boris Palomino]

Our fire department because our paramedics, it's a small city.

[Amanda Palomino]

Yeah.

[Boris Palomino]

You know, 15 minutes outside of L. A. So it's small. And so the, you know, the fire department, we know the chief, we know a lot of the paramedics, you know, we call them 911 for our facilities that come out. So they know us. So it's very important to give back. You know, that's one thing that we've always kept in mind, giving back to the community. Because if they're, they're giving so much to Us that it's the least you could do.

[Amanda Palomino]

Yeah. Community is super important.

[Boris Palomino]

It's very important. It's, it's something we've always talked about. And everything that we're doing, we're teaching our kids. Right. Give back, be grateful for what you're doing and whatnot. But touching back a little bit about the coaching program that you talked about, there's a lot of people that have called us and they're like Airbnb, you know, a lot. We're getting a lot of people from Airbnbs.

[Amanda Palomino]

Yeah, they, that market crashed. Right.

[Boris Palomino]

It's going bad. It's bad because it's over oversaturated and now they're being over regulated. We're the opposite. Who would really want to lobby against us? You know, you think about it, what big industries out there, Insurances and pharma or really helping them? Because if we can keep seniors out of nursing homes, a nursing home stay per month, it's about 50,000.

[Amanda Palomino]

Geez.

[Boris Palomino]

We had this one resident that moved in a few months ago and in his discharge paper, there was a bill for his one month stay. He had a stroke. 50,000.

[Amanda Palomino]

Oh my gosh.

[Unnamed Guest]

One month that was billed to insurance.

[Amanda Palomino]

That's insane.

[Boris Palomino]

Yeah. And so you imagine if you don't have the proper insurance, you know, and your insurance only covers you for so long, what do you do now?

[Amanda Palomino]

Right.

[Boris Palomino]

So once again, we, we offer an affordable option for people to place their, their loved ones. And as Amanda said earlier, I call this one. You know, there's, there's industries that are called the. Oh, industries. Like, oh shit, what do I do? Funerals. We're one of them. You know, it's like something happens. You're like, oh shit, what do I do?

[Amanda Palomino]

Yeah.

[Boris Palomino]

And so that's us. And these families, they, they don't understand out of, they think that out of nowhere this happened. Well, one thing we're seeing a lot is dementia. Alzheimer's being a type of dementia. And people don't realize you really start dementia at your early 30s.

[Amanda Palomino]

That early?

[Boris Palomino]

Yeah.

[Amanda Palomino]

Wow.

[Unnamed Guest]

You know how you always say, like, oh, where did I put my keys? Or oh, what did I just tell. We just had this conversation yesterday. What was it about? Or who did I just meet?

[Amanda Palomino]

Yeah, I could see that. Early onset Alzheimer's they call it. Right?

[Boris Palomino]

Yeah. And so then when it's like noticeable and full blown, as Amanda said earlier, like, they don't recognize the families are hitting the family. They're, you know, the daughter. Hey, you're, you know, you're this, you're that calling them all kinds of names. And so for the families, it's emotionally taxing, it's physically taxing, financially taxing. And so when they come to us, they're just, they don't know where to turn.

[Amanda Palomino]

Right, right.

[Boris Palomino]

And so we work with placement agencies. Placement agencies will, you know, they have contracts with like, the hospitals and nursing homes, and then they refer them to us along with, you know, us now being in the industry for 10 years, we, you know, we have a good reputation. We've been very blessed to never have a deficiency because DSS always checks our homes every year, which is good. Right. So we've never had a deficiency. We've always ran a clean home.

[Amanda Palomino]

Nice.

[Boris Palomino]

And so they were one of the preferred homes in L. A. And the families don't know where to turn. So for any, anybody out there who needs help with their senior, their loved one, look for placement agencies. They help you for free. So they're the ones that contact us.

[Amanda Palomino]

Really? So they'll give you clients for free?

[Boris Palomino]

Not to us. We pay.

[Amanda Palomino]

Oh, got it.

[Boris Palomino]

We pay the referral agencies, but the families don't pay.

[Amanda Palomino]

Oh, wow. So it's a win. Win, I guess because you're getting a long term client and they're not paying too much.

[Boris Palomino]

Correct.

[Amanda Palomino]

Yeah.

[Boris Palomino]

And so. And they will assess the situation too. They will see if you know what, you know, what place fits them or whatnot. But talk going back a little bit about the, our coaching program. I was mentioning Airbnb. They're tanking. Right. So we help the insurance companies and pharma, like, we're not tapping into their pockets, we're helping them. And so there really isn't nobody that's going to try to shut this industry down like Uber or Airbnb. Right. And so a lot of these people with Airbnb are calling us and saying, hey, what do I do with my investments? And we've turned people down from our coaching program because if your heart is not in senior care and wanting to help seniors, we're not gonna, we're not gonna accept them.

[Amanda Palomino]

Wow.

[Boris Palomino]

Because there's a lot of bad homes out there. I mean, we talked about that earlier. Yeah, you mentioned that. And we don't, we don't want to contribute to that. You want to contribute to the lives of these seniors and help the families.

[Amanda Palomino]

I love that.

[Unnamed Guest]

Yeah. So we talk about that. Like, what's. You mentioned nursing home. Never want. Okay, what's so miserable? Like, what's the first thing you think of when you hear nursing home just.

[Amanda Palomino]

Bad emotions, 20 to 1 ratio, not a good way to go out, in my opinion.

[Unnamed Guest]

Yeah, I agree. So in a residential setting, we get to customize everything we do for the seniors. We have family inputs, we sit down, have a full on meeting. But because it's so small, with only six seniors, you know, think about it. You've already lived this long independent life and now you're living in a home where, or even a nursing home where you're being told what to do all day long.

[Amanda Palomino]

Right.

[Unnamed Guest]

You know, when in terms of dementia, that's actually a good thing. Having a routine, but also having the ability to say, I really don't want to do that activity, I don't want to play bingo again today. We did that yesterday. I want to read a book today or I want to do something else today. So they, they have the freedom to make those decisions and to kind of customize what their day to day looks like.

[Amanda Palomino]

Yeah.

[Unnamed Guest]

In comparing nursing homes to residential settings, on average, in a residential setting, your monthly cost is anywhere from 5 to $10,000. Shared room, private room, depending on, you know, what the preference is for the family. The area, of course, makes a difference too. The, as an owner of these facilities, after your overhead, after your mortgage is covered, you're actually netting about 10,000 per home.

[Amanda Palomino]

Wow.

[Unnamed Guest]

So talk about an investment. Yeah, absolutely.

[Amanda Palomino]

Is that for a month or is 10,000 per month. Wow.

[Boris Palomino]

And that's after the home is being paid.

[Amanda Palomino]

Yeah. That's phenomenal.

[Boris Palomino]

So we call this the McDonald's model. Yeah, McDonald's is not in the business of hamburgers.

[Amanda Palomino]

Real estate.

[Boris Palomino]

Right, real estate. And so this is what you're doing. You're, you're able to grow your portfolio on a residential home and have a business that is recession proof. During COVID we were very blessed. I mean, we've been blessed for 10 years. But during COVID people preferred our homes than the big nursing homes because there's not a lot of people coming in and out. I mean, caregiver ratio is 2 to 1 for us, you know, so the quality of care is there.

[Amanda Palomino]

Right.

[Boris Palomino]

And so you're able to grow your portfolio at the same time. Now there's people like one of our properties, it's a lease. So you can lease a property also.

[Amanda Palomino]

If you don't have enough.

[Boris Palomino]

If you don't have enough. California obviously is really expensive.

[Amanda Palomino]

Right.

[Boris Palomino]

So that is another possibility. And that's. We have one of our students, we were on a call with them right before we came out here and we helped him negotiate his lease.

[Amanda Palomino]

Wow.

[Boris Palomino]

It was kind of based off of our lease that we have. And so there, you know, there's a lot of people that are hesitant to lease their home to an RCF as they're known in California. There's a lot of positives, a lot of pros to doing that versus renting it to a single family, especially in California, because of the tenant landlord loss. So you're leasing it to a corporation, you're doing a long term lease. And as I mentioned earlier, another thing, you can ask for a higher rate than your average single family home because you're leasing it to a business. And most importantly, because as I mentioned before, DSS comes out every year to inspect your property. You're forced to keep it in good condition, otherwise they're going to get cited and eventually shut down. And so those are a lot of positives for landlords that now what's a drawback, People are going to die in them. Right. But, but you're also building, you know, a business model there where if, let's say I don't renew my lease in 10 years, you can lease it to another, but somebody else is going to do an rcf. This business isn't going anywhere.

[Amanda Palomino]

Yeah. Like you said earlier, 57 million seniors right now. There might not even be enough senior homes. Right.

[Boris Palomino]

There are not, There's.

[Unnamed Guest]

Yeah, there's not. There's a shortage right now. So government has actually rolled out programs and they're called waiver programs. In California we have Medi Cal. Nationwide it's called Medicaid. Medi Cal waiver programs are now available to low income seniors if they qualify for it and they pay equivalent rates to private pay. So I mentioned the 5 to $10,000 per bed in a care facility. Medi Cal is actually covering equivalent rates to that.

[Amanda Palomino]

Wow.

[Unnamed Guest]

Yeah. Yes. So it's a great option not only for the low income seniors, but seniors who have had pensions or savings or properties that they're selling or even the long term care insurance that we mentioned earlier. These are all great options for seniors to pay for their care. So there's endless possibilities. We see it often. Yeah, yeah.

[Amanda Palomino]

I need to look into the long term care insurance. I never heard of that. So that's good to know. For my mother in the future.

[Unnamed Guest]

Oh, absolutely. I recommend it.

[Amanda Palomino]

She's just turned 60, man. It's getting scary in the 60s now. Yeah.

[Boris Palomino]

So she's so young.

[Unnamed Guest]

That's young.

[Amanda Palomino]

You think so? It's all relative, I guess.

[Unnamed Guest]

You know, I just admitted a new client this week, 98 years old.

[Amanda Palomino]

Damn.

[Unnamed Guest]

And we've cared for 64 all the way to 104.

[Amanda Palomino]

Wow.

[Unnamed Guest]

Yes.

[Boris Palomino]

Oh, I got a story about the 104 after this.

[Amanda Palomino]

Yeah, I gotta hear that.

[Unnamed Guest]

Yeah. We have so many stories we can share.

[Amanda Palomino]

104, what a run.

[Unnamed Guest]

Oh, yeah. And she was only taking supplements. Like no major medications. You even have memory issues.

[Amanda Palomino]

That's even more shocking because by the time they're that age, they're on like five supplements usually right now. Really?

[Boris Palomino]

I'm just kidding.

[Amanda Palomino]

No, not supplements. Medication.

[Boris Palomino]

But supplements. Yeah, I'm like on a bunch.

[Amanda Palomino]

Yeah, supplements are different. I'm talking about like the medication from pharma. Like.

[Unnamed Guest]

Oh, yeah, she didn't take any medication, just supplements.

[Amanda Palomino]

Where'd she grow up? Because that's.

[Unnamed Guest]

She was Japanese.

[Amanda Palomino]

That makes sense.

[Unnamed Guest]

Yeah, Those Japanese, they have amazing genes.

[Boris Palomino]

I'm Mexican, I'm in trouble. Yeah, yeah.

[Amanda Palomino]

Mexicans don't. Don't age as long, right?

[Boris Palomino]

No, we eat a lot of crap.

[Amanda Palomino]

A lot of tequila, I think a lot of grain.

[Unnamed Guest]

Yes.

[Amanda Palomino]

The tortilla and the chips and.

[Boris Palomino]

Yeah, I mean, but the meats too. The carnitas.

[Amanda Palomino]

Yeah. Pork's a controversial.

[Boris Palomino]

Tequila is the healthiest alcohol you can have. So don't knock. Don't knock her.

[Unnamed Guest]

I won't knock tequila.

[Amanda Palomino]

I have heard that. Actually.

[Unnamed Guest]

I like a margarita.

[Amanda Palomino]

Good margarita hits.

[Boris Palomino]

But.

[Unnamed Guest]

Oh. Our Senior, though, the 98 year old, I just admitted she survived the atomic bomb.

[Amanda Palomino]

What? She was in Japan.

[Unnamed Guest]

She was in Japan. She survived the atomic bomb.

[Amanda Palomino]

Holy crap.

[Unnamed Guest]

Isn't that incredible?

[Amanda Palomino]

That's insane.

[Unnamed Guest]

We hear these stories often. So many. I mean, we have one resident.

[Boris Palomino]

Yeah. We have this gentleman and I love sitting just talking to him. Yeah, he was a. He was a contractor. But we're sitting there, I'm talking to him and he's like. I remember when I was 9 years old and I was in school and the teacher came in and said that Pearl harbor had just been bombed. And I was like, what was, what was going through your mind at 9 years old? And he's like, I just knew we were gonna go to war.

[Amanda Palomino]

Wow.

[Boris Palomino]

I just wasn't sure if the war was gonna be here and we're gonna have war in America or what was happening. I mean, it's a nine year old child. And so I said, that was. That was your nine. Eleven.

[Amanda Palomino]

Wow.

[Boris Palomino]

For us, think about it, like, I mean, how many years down the line we're gonna talk about 911 people were not around that time. So, I mean, I remember that day clear as day. And so. And Then the. The lady who was 104, she refused the COVID vaccine. And this was late 2022, because we were fortunate enough to not have any covet breakouts.

[Amanda Palomino]

Oh, really?

[Boris Palomino]

Yeah.

[Amanda Palomino]

Well done. Well done.

[Boris Palomino]

Yeah, we were very thankful.

[Amanda Palomino]

They were pressuring all the elderly to get it too, which.

[Unnamed Guest]

Yeah, they were.

[Amanda Palomino]

That was messed up.

[Unnamed Guest]

They. Yeah, we were the first.

[Boris Palomino]

Yeah, we were actually. Because they kind of grouped us in with nursing homes. So first was law enforcement, first responders. And then we were the second tier.

[Amanda Palomino]

Got it.

[Boris Palomino]

And so we had to get the shot.

[Amanda Palomino]

Damn.

[Boris Palomino]

Because it was either that or we could lose our business.

[Amanda Palomino]

Wow. They made.

[Boris Palomino]

Yeah, that's crazy. But I did say, my kids will never get that shot. Never.

[Amanda Palomino]

Hell no.

[Unnamed Guest]

No, never.

[Amanda Palomino]

You know, that's nuts.

[Unnamed Guest]

That's what you do as a parent, though. Like, you do what you have to do to protect your children.

[Boris Palomino]

Yeah, we have to do what we have to do to protect our business. And so we were very fortunate because we have really good staff. I love our staff. They're amazing. I love every single one of them. And they took it all seriously. I mean, we had precautions. We already had really good cleaning. You know, precautions and procedures prior to Covid, which was. It just made it easier. Like, people are like, oh, wash your hands or you weren't washed.

[Unnamed Guest]

I'm like, don't you do that?

[Amanda Palomino]

Some people go to the bathroom and do not wash.

[Unnamed Guest]

I can tell you that for sure now. You're so, like, so much more aware of people's habits now. I feel like.

[Amanda Palomino]

I mean, when I'm at the airport, you'd be surprised. Who doesn't wash their hands?

[Boris Palomino]

Oh, I'm at the gym. We go to. To the gym every day. And, like, we were just walking.

[Unnamed Guest]

Yeah, it's gross anyhow.

[Boris Palomino]

So, like, disinfecting, cleaning, you know, that's something we would always do. And so our staff really took it seriously and we took it to the next level where we never had a Covid outbreak. When it was like, it was.

[Unnamed Guest]

When everybody was.

[Boris Palomino]

Yeah, when it was like the beginning of. It was, like, really bad. We. We did have a few clients down the line who had Covid and she was one of them, the 104 year old one. She had no vaccine. She survived it.

[Amanda Palomino]

Wow.

[Boris Palomino]

She survived Covet. And her daughter said she survived the Spanish flu.

[Amanda Palomino]

The Spanish flu.

[Unnamed Guest]

That's why she.

[Amanda Palomino]

I learned about that in the history books. And someone actually had that in your facility?

[Unnamed Guest]

Yeah, well, she said, I don't need the COVID vaccine because I already survived The Spanish flu. So if I can survive that, why do I need.

[Amanda Palomino]

Yeah. Wasn't that like 1912 or something? Some crazy.

[Boris Palomino]

Yeah. I mean, you think about some of these stories that are going to the grave.

[Unnamed Guest]

Yeah.

[Boris Palomino]

And they're now being documented, so that's one thing I do want to start working on, is documenting the stories of these seniors.

[Amanda Palomino]

You should do a pod with some of them.

[Unnamed Guest]

We should. We really should. We had one who lived in the Japanese encampments.

[Amanda Palomino]

Wow. Yeah. These are stories that need to be passed down. There's a group on TikTok called Retirement House, and it's just four. You saw them? Yeah. They've been on the pod. It's like. Well, one of them just passed away, but I think it's five of them.

[Boris Palomino]

Oh, that's. I know them.

[Unnamed Guest]

Yeah.

[Amanda Palomino]

Yeah, yeah. But they got millions of views because it's just like their stories. They're all like 80 to 100 years old.

[Unnamed Guest]

Yeah.

[Boris Palomino]

You know, and. And I don't think we value our. Our seniors.

[Amanda Palomino]

No.

[Boris Palomino]

Other. Other cultures do.

[Amanda Palomino]

Not like Japan. Not like other cultures. Because these guys are wise. They've seen a lot of stuff.

[Boris Palomino]

Right. Yeah.

[Unnamed Guest]

It's kind of taboo, though, to, you know, you think about it especially, like, as Hispanics putting your mom or dad in a nursing home setting in a care facility. It's kind of taboo because you're supposed to take care of your own, too.

[Amanda Palomino]

Oh, really?

[Unnamed Guest]

But we also live in a generation where you need double income, so how. How do you continue to work and provide for your family? And now you have an aging parent. It's called the sandwich generation. You've got your aging parent plus young children. You're stuck in the middle, still holding a job down, and you're trying to balance both, and you can't.

[Amanda Palomino]

Yeah.

[Unnamed Guest]

So that's why they seek help, and that's why they would prefer, like a home, like environment versus, you know, the large institutionalized.

[Amanda Palomino]

That's a good point because. Yeah. Our grandparents generation just. The father had to work.

[Unnamed Guest]

Yes.

[Amanda Palomino]

Not even the mother. Now it's like both have to work. And some of them need two jobs.

[Unnamed Guest]

Yeah.

[Amanda Palomino]

And they got to take care of their parents and their kids at the same time.

[Boris Palomino]

Look at the expenses that. That you incur in all of this. It's just. It's. It's crazy, you know, and that's not even talking about the medical stuff. The medical part of it.

[Amanda Palomino]

Right.

[Boris Palomino]

Gets up there. It really gets up there.

[Amanda Palomino]

And I've heard they're going to be out of Social Security in, like, Seven, eight years.

[Boris Palomino]

They've been saying that for a while.

[Amanda Palomino]

Oh, really?

[Boris Palomino]

I, I wouldn't, I wouldn't be surprised. And in reality. And you know, it's funny. Not funny, but it's. I'm glad you bring up Social Security, because there are Social Security homes out there. They're terrible. I bet they're awful because they don't, I mean, they, they what? Social Security, what SSI is paying what, 1300, 1200amonth or so?

[Amanda Palomino]

That's nothing.

[Unnamed Guest]

It's about 1400 now.

[Boris Palomino]

It just raised it.

[Unnamed Guest]

It just raised.

[Amanda Palomino]

Yeah, you can't live off that.

[Unnamed Guest]

No, it's about 14.

[Amanda Palomino]

You'll be eating the poorest quality food. You'll be in a bad area.

[Boris Palomino]

Exactly. And I mean, these homes, like, you walk in there and that smell that comes to your mind, that's exactly the smell that you're going to get.

[Unnamed Guest]

You're laughing because you could smell it.

[Amanda Palomino]

That's a shame, man. And they're just seeing Elon exposing that fraud, too. With Social Security, millions of people over the age of 140 collecting money, allegedly. It's nuts.

[Boris Palomino]

I mean, there's just so much fraud and so much corruption that needs to be cleaned up.

[Amanda Palomino]

Yeah.

[Boris Palomino]

And there's so many people that need this. I mean, we live in the greatest country in the world. I always talk about that because I came as an immigrant. I came here when I was seven years old.

[Amanda Palomino]

Mexico, right?

[Boris Palomino]

From Mexico.

[Amanda Palomino]

Yeah.

[Boris Palomino]

I was born in Guadalajara. I came here with nothing. We were dirt poor. Like, absolutely came from nothing. And this is like, I, I, I'm Mexican. But this is home, America's home. Because it has given me my family, my business, this lifestyle that allowed me to work my rear for. And so we live in the greatest country in the world that has so much wealth, so much opportunity. They should not be squandered. And there's so much for everybody in this country if you want it bad enough. But the opportunities are out there. Yeah, you just got to want it. You got to want it.

[Amanda Palomino]

I agree.

[Boris Palomino]

And if you cut away the corruption, there's going to be so much more opportunity for other people.

[Amanda Palomino]

Yeah, I definitely agree with that. With California legislator. Like, is that making it really tough with you guys with all the new laws and everything?

[Unnamed Guest]

I think California is definitely the highest regulated for senior care. Absolutely. But I mean, we've been running our homes for 10 years. Now that we've got it down. Right. They roll out a new policy. We need to update something. Not a big deal. Update it, get it done. I Think it's going to help us really grow and expand to other states because we are the highest regulated. That means whatever state we enter into next would be a lot easier because running the day to day of the home, running the actual home, that applies to any, any state really. It's just the paperwork. So is it a lot of paperwork? Yeah, for sure. A lot of paper shuffling happening. But. But I think it's also a good thing because when you're taking care of seniors, you need to make sure that you actually have or are providing quality care. We hear the stories of abuse and neglect, isolation, and when you run a good clean home, you avoid all of those issues. We get ask this question quite often actually. Is there a lot of liability? There's liability in any business you get into. Right. There's risk anywhere. But if you run a proper business and not just running the actual home of it, but the back end, the, the stuff that, the boring stuff that nobody sees, your paperwork, your documents, making sure it's all in line, then you eliminate, you know, all of that liability because you're documenting everything, you're communicating, you're making sure that you're running clean, a clean business. And that's really what it comes down to.

[Amanda Palomino]

Yeah.

[Unnamed Guest]

So yeah, it's really, I think any industry you get into, there's liability.

[Amanda Palomino]

I agree.

[Boris Palomino]

Yeah. I think California has done a pretty decent job, which is very surprising that they've done a good job.

[Amanda Palomino]

Don't hear that from Cali often, but.

[Boris Palomino]

They'Ve, they have tried to legislate some bonehead stuff and that's been shut down. But I think for the most part they're doing a good job for senior care. Can they do better? Absolutely. I think one of the things that they need to really look into and expand is allowing RCFEs to have a higher capacity. I know. Arizona I believe is 10.

[Amanda Palomino]

Yeah.

[Boris Palomino]

Texas is actually in Texas. Your local city will let you know how many you can have. You can have up to 12. We're actually have our, our administrator certificate from Texas. We got in within like a day.

[Amanda Palomino]

Wow.

[Boris Palomino]

Super easy. In California you have to take an 80 hour course.

[Amanda Palomino]

Jeez.

[Boris Palomino]

Then you have to take a test.

[Unnamed Guest]

Yeah.

[Boris Palomino]

So just the process alone in California is a little bit more lengthy. But I think Florida is also 10 to 12 seniors per home. And so I really think that would really benefit the seniors. It'll benefit the state, it'll benefit a lot of people. Where if you can expand the capacity and allow us to have more seniors in the homes, that's Going to benefit everybody.

[Amanda Palomino]

Yeah, yeah.

[Boris Palomino]

And that's kind of going back to what she was talking about, the back end part of the business. That's something that for some reason our business is very tight lipped. Owners and operators don't really share what they're doing. They don't really talk about what they're doing. And this is where our coaching program comes into play because we're basically showing people how, start to finish, open up a home. But not just that, how to run the home, how to efficiently run it, the business portion of it. Right. What things to implement in your home are day to day, how you know, how to your caregiver, how to train your caregivers, how to put activities and things that are going to benefit your seniors. Right. We lost, I mean, I always talk about this. We, when we started our business, we probably lost over $100,000 in mistakes. Yeah, we, our second home that we purchased, we had a bad contractor. He probably took about 50 to 60,000.

[Amanda Palomino]

Holy crap.

[Boris Palomino]

Yeah, we, we, I mean that house was a nightmare.

[Amanda Palomino]

What was he doing stealing stuff?

[Boris Palomino]

Like just stealing money and just being shady and dirty. Listen, I, I leave it up to God, I can deal with.

[Amanda Palomino]

Yeah, I'm the same about it.

[Boris Palomino]

But yeah, so we, we learned a lot from that and that's what we're teaching our students.

[Unnamed Guest]

We also learned some tax loopholes too. So our family dog, we got him trained as a therapy dog. He's an employee of our business.

[Amanda Palomino]

No way.

[Unnamed Guest]

So we've got the mobile groomer who comes out the dog toys.

[Amanda Palomino]

I need to do that. I got two dogs.

[Unnamed Guest]

Yeah, well, they have to sit here on the podcast with you.

[Amanda Palomino]

I wouldn't mind bringing them to the studio. Emotional support. Get the guests nice and comfortable.

[Unnamed Guest]

There you go. You know, and now it's a business expense.

[Amanda Palomino]

Yeah, that's a smart one. I haven't heard of that one. Oh yeah, I've heard of the classic ones like the car write offs and the jet and stuff, the meals. But the dog is still.

[Boris Palomino]

But yeah, the dog, he's a trained, certified therapy dog.

[Amanda Palomino]

Wow.

[Boris Palomino]

He's not a service dog. So a lot of people get him confused. He's a therapy dog. So I don't take him to the store and do all that. He wears his vest, which is, it's really funny. When he wears his vest, he knows he's going to work. So he's a, he's a chocolate lab. Yeah, he's, he's all over our, our Instagram pages. So you can, you can look him up. His name is Charlie. And when he, when he's working, he's working, he's like knows what he's doing, blah, blah, blah. You take that vest off. It's just like us on Friday night.

[Amanda Palomino]

I love that we're out of work.

[Boris Palomino]

You know, I'm gonna mess around.

[Amanda Palomino]

That's so cool.

[Unnamed Guest]

Yeah, the neighbors used to call him the meth lab because he was so crazy and wild. Just running Zoom. The Zoomies. Is that what it's called? Yeah, Zoomies. Yeah.

[Amanda Palomino]

I love when my dogs get the zoomies.

[Boris Palomino]

We also have our kids.

[Amanda Palomino]

They're, they're employees.

[Boris Palomino]

Their employees.

[Amanda Palomino]

Yeah.

[Boris Palomino]

And they're legitimate employees. My, my kids go into the facilities. They do age appropriate things for their seniors. You know, they'll color, they'll, you know, plug and go search or whatever. So yeah, there's a lot of advantages and a lot of opportunities and it's also teaching our kids a lot.

[Amanda Palomino]

Yeah, I bet. Yeah.

[Unnamed Guest]

Yeah. During Christmas, my daughter's Girl Scout troop will come over and sing off tune Christmas carols with the single.

[Amanda Palomino]

Oh, that's adorable. That's so cool.

[Unnamed Guest]

Yeah, the Boy Scouts come over and. Yeah, it's fun. It's, it's really nice. Seniors love kids and dogs.

[Amanda Palomino]

Yeah, there's a lot of similar energy there, I think. A lot of innocent energy.

[Unnamed Guest]

Yeah.

[Amanda Palomino]

Yeah.

[Unnamed Guest]

It's an amazing business.

[Amanda Palomino]

Where can people learn from your coaching? Hit you guys up and learn more about this stuff.

[Boris Palomino]

They can send us a message on Instagram. We're on Instagram. Mine is Boris V. Palomino.

[Unnamed Guest]

Yeah, you can find me on Amanda Theamanda Palomino on Instagram as well. We've got links there. All our information is up there as well.

[Amanda Palomino]

Beautiful. If you're interested guys, check them out. Anything else you guys want to close off with?

[Boris Palomino]

I mean, just once again thanking you for giving us a platform because they really there's need to be more awareness for seniors senior care and taking care of our senior community because it affects all of us. You know, I think people think, well, I'm not old yet, it's not going to affect me. Well, it, if you don't have a loved one, it's going to affect you, you know, sooner or later. And if you do have a loved one that is nearing those age, it's gonna, it's gonna hit you before you know it. So these are things to start thinking about, planning and on the business side of it, we need more homes, we need to help more of our seniors. So thank you for giving us this platform to be able to share this.

[Amanda Palomino]

Absolutely.

[Unnamed Guest]

Yeah. Thank you.

[Amanda Palomino]

Yeah, hit them up, guys, and I'll see you next time. Have a good one.