new draft: 2025-07-18T14:14:46.518Z

Summary

The Science of Flipping - Episode Summary: Exploring the Business of Residential Assisted Living

Release Date: July 18, 2025
Host: Justin Colby, Bleav
Guest: Isabel Guarino, Residential Assisted Living Expert

---

Introduction to Residential Assisted Living

Justin Colby kicks off the episode by introducing Isabel Guarino, a renowned expert in the senior living space. Isabel has educated thousands about Residential Assisted Living Facilities (ALFs) and owns multiple senior living homes herself. Justin expresses his excitement about delving into a lucrative and impactful real estate investment sector that he has yet to explore personally.

Understanding Assisted Living vs. Traditional ALFs

[04:15] Isabel Guarino explains the common misconceptions surrounding traditional large-scale assisted living facilities, likening them to "prison-like" environments with impersonal care due to high caregiver-to-resident ratios. She contrasts this with the Residential Assisted Living model, which offers a home-like setting with a much lower caregiver-to-resident ratio (4:1 or 5:1), enhancing the quality of care and overall living experience for seniors.

Notable Quote:
Isabel Guarino [04:36]: "For the seniors and the families, it makes a ton of sense for the real estate investor... you're getting a check for six grand wrapped in a love letter."

Financial Advantages of Residential Assisted Living

The discussion shifts to the financial benefits of converting single-family homes into ALFs. Isabel highlights that while a traditional long-term rental might bring in around $500 per month, an ALF can generate approximately $6,000 per month for a 10-resident home. This significant increase stems from higher per-resident fees, which average around $5,900 to $10,000, depending on the market and services provided.

Notable Quote:
Isabel Guarino [08:10]: "The average cost in our country right now today is $5,900 per month per resident."

Selecting the Right Location and Property

[06:34] Isabel emphasizes the importance of demographics in selecting locations for ALFs. Ideal areas are those with a high population of adults aged 50 and older, typically earning twice the median income, as they are the primary payers for their relatives' care. She advises choosing homes with larger footprints (3,000 to 5,000+ square feet) to comfortably accommodate private bedrooms and sufficient living space.

Notable Quote:
Isabel Guarino [07:05]: "You want to target them because they don't want to drive 45 minutes away where it's cheaper. They want to drive five minutes on their way home."

Renovation Guidelines and Property Layout

Justin and Isabel discuss the necessary renovations to transform a standard home into an ALF. Key modifications include ensuring accessibility (ramps, guardrails, handrails) and creating private spaces for each resident to maintain a homely atmosphere. Isabel advises against cramped living conditions, advocating for spacious rooms that adhere to or exceed state-mandated minimums for resident comfort and safety.

Notable Quote:
Isabel Guarino [22:16]: "You want it to feel just like a home... it's so much more. It really should just feel like a home."

Operational Considerations and Hiring Caregivers

A crucial component of running an ALF is hiring reliable caregivers. Isabel outlines her stringent hiring process, which includes using the Predictive Index (PI) to assess candidates' patience and suitability for caring for seniors. She also emphasizes the importance of background checks, references, and continuous monitoring to ensure high-quality care.

Notable Quote:
Isabel Guarino [30:13]: "Interview process is really serious. Have you ever done the predictive index? I actually make all of my staff do PI."

Scaling the Business and Exit Strategies

The conversation explores how investors can scale their ALF businesses efficiently. Isabel shares strategies for systematizing operations, allowing for hands-off management as the business grows. She also discusses potential exit strategies, including selling to hedge funds once a significant number of units (e.g., 50 doors) are acquired, ensuring a profitable exit for investors.

Notable Quote:
Isabel Guarino [36:18]: "They built themselves a job... to scale and grow like that."

Success Stories and Student Experiences

Isabel highlights success stories from her students, such as a 30-year-old who owns two care homes generating over $40,000 monthly in cash flow. These testimonials underscore the potential for substantial financial freedom and the diverse backgrounds from which successful ALF investors emerge, ranging from Wall Street professionals to truckers and teachers.

Notable Quote:
Isabel Guarino [40:43]: "Our students are getting way more than that. Six... making 20, 30, and $40,000 a month on one door."

Ethical Considerations and Impact Investing

A significant theme is the ethical responsibility of providing quality care. Isabel stresses that entering the ALF business should be driven by a genuine desire to improve senior living conditions, not just financial gain. She advocates for impact investing, where profitability and positive societal impact go hand in hand.

Notable Quote:
Isabel Guarino [25:43]: "If it's all about the money... it has to be that equal balance. And this is impact investing because you are doing something big."

Legal Protections and Overcoming Local Opposition

Isabel discusses the legal protections under the Federal Fair Housing Act, which safeguards ALF operations against local zoning or HOA restrictions. Despite potential opposition from neighborhoods, these federal protections ensure that investors can operate ALFs without undue hindrance.

Notable Quote:
Isabel Guarino [44:07]: "They can't stop you. Because a neighborhood can't fight a federal law."

Conclusion and Next Steps

In closing, Justin reflects on how he plans to apply the insights from Isabel to his real estate ventures, considering the significant cash flow and long-term asset appreciation ALFs offer. He encourages listeners interested in this investment opportunity to connect with Isabel via her website and social media to learn more.

Notable Quote:
Justin Colby [48:43]: "This is amazing... I'm basically using this in my own little coaching session right now."

---

Learn More:
For more information on Residential Assisted Living and how to get started, visit RAL Academy and follow them on Instagram @RALAcademy.

Transcript

[Isabel Guarino]

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[Justin]

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[Isabel Guarino]

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[Isabel Guarino]

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[Unknown]

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[Justin]

What is up Science flipping family? I'm very excited for those of you that like cash flow, for those of you that like investments that can create wealth and a whole lot of money along the way, this is going to be your episode. I have with me Boss lady herself. She has taught thousands and thousands, maybe tens of thousands of individuals about the senior living space. She herself owns a lot of senior living. She they're also known as ALFs. And if you are interested in trying to find a business model to grow wealth and grow massive amount of income and do good by people. Isabel Guarino is here.

[Isabel Guarino]

Yes, thanks for having me.

[Justin]

Let's do this.

[Isabel Guarino]

Yes. Excited to be here.

[Justin]

I'm very excited I think it's under taught, under spoken about sector of our space. I've done however many thousands of deals in my life into this very moment as I'm sitting in front of you, I've not done an ALF or a senior living.

[Isabel Guarino]

What are you waiting for?

[Justin]

What am I waiting for? Off camera? We were just talking about I Friday. I got text, hey, we have an available one here in Miami. Common in Miami.

[Isabel Guarino]

Y.

[Justin]

You're in Phoenix. Probably pretty common there.

[Isabel Guarino]

I would say Florida and Arizona are the most popular places.

[Justin]

Okay.

[Isabel Guarino]

Yeah.

[Justin]

And so I think people that are in real estate are silly and includes me.

[Isabel Guarino]

Yeah.

[Justin]

I'm calling myself out that you don't look at this. I mean, the reality is, I have looked at it very surface level. The returns are insane, the income is insane, and it's real estate.

[Isabel Guarino]

Yep.

[Justin]

The other sector of that is also a business.

[Isabel Guarino]

Yes. And that's why I think people don't look at it, because they say, I'm not a medical professional. I don't know what I'm doing. I don't want to work in a home or be a caregiver. So they get turned away by the myths and misconceptions of what it is. It really is a business in real estate at the end of the day. But you can make the business very passive. It's not a passive business, but you can make it passive. You can become a passive owner. And that's what we show real estate investors how to do.

[Justin]

Talk to me like a student. Tell me, like, exactly what you just said and then let's elongate on that. Because the reality is I even me.

[Isabel Guarino]

Right.

[Justin]

After 20 years of doing this business, I would be like, man, is I just said this to you. Oh, it's another business. I would be creating another business for myself, and I don't need another. Right.

[Isabel Guarino]

Y.

[Justin]

And that's me trying to keep in my visionary self, like, corralled in, because I'll be like, yeah, let's go buy one. Let's go do that.

[Isabel Guarino]

Yeah.

[Justin]

Right. But talk to us about what it is and how you separate it and how. How should people be looking at this asset?

[Isabel Guarino]

So when people think of assisted living, they think of that big stuffy box. Right?

[Justin]

Right.

[Isabel Guarino]

Long hallways, impersonal staff, where you're literally called by your room number. And that is equivalent to prison, if you ask me. Right. Like, that's terrible. They're getting horrible care. It's 30 seniors to one caregiver ratio. And none of us want to go there at the end.

[Justin]

We're talking about those big, almost apartment looking, massive 250 door things.

[Isabel Guarino]

Exactly. That's what we all think of when we think of assisted living. So this is like what Airbnbs did to hotels. This is a residential home that can house anywhere from 6 to 16 seniors in the home. It's still giving you that 247 care, but at a 4 to 1 or 5 to 1 ratio. So significantly better care. Right. And it's in a home, so you don't have to go to this institutional feel. You get to stay in maybe the same neighborhood you always grew up in. And it's the same cost. So you're getting better care, better food, better location. You're getting, you're paying the same. So for the seniors and the families, it makes a ton of sense for the real estate investor who says, well, maybe I'm not ready for multifamily or ready for commercial yet. I wouldn't even go that direction. Anyways, I don't care that it makes more money. I don't feel good about myself. At the end of the day, if I was to own a big, big box. Right. In a smaller care home, the seniors are actually getting the quality care they paid for. So now your real estate investment, you're getting a check for six grand wrapped in a love letter.

[Justin]

Yeah.

[Isabel Guarino]

Ten times a month. That feels real good. Like you're like, okay, I could do this.

[Justin]

Thank you for taking care of my mom or my grandma or whoever. My wife has. Her grandmother is in one right now.

[Isabel Guarino]

Yeah.

[Justin]

And so I'm very knowledgeable. While you're talking, it's a normal single family home.

[Isabel Guarino]

Yeah.

[Justin]

In a normal neighborhood.

[Isabel Guarino]

Yes.

[Justin]

I think there's three bedrooms, there's six women.

[Isabel Guarino]

Okay.

[Justin]

There's three nurses.

[Isabel Guarino]

Okay.

[Justin]

And every time we go there, there's like, I mean, literally all three nurses are there on staff.

[Isabel Guarino]

Yeah.

[Justin]

All the women are sitting and watching and playing cards and doing.

[Isabel Guarino]

Yeah.

[Justin]

And I'm like, God, that's great. Because listen, at the end of the day, the end of people's lives can be tough.

[Isabel Guarino]

It's very.

[Justin]

It's almost like the Benjamin Button story is like you turn into it like a child. Right?

[Isabel Guarino]

Yep. You're playing games, hanging out.

[Justin]

That's right.

[Isabel Guarino]

Yes. It's really tough.

[Justin]

So talk to us about, you know, the, the idea of separating church and state and what I say is like the real estate side from the business side.

[Isabel Guarino]

Yes.

[Justin]

Because if you're going to run one, there is the business component. You can't hide from that.

[Isabel Guarino]

No.

[Justin]

Talk to us about that.

[Isabel Guarino]

Okay. So on the real estate side, a lot of people, what they're doing right now is buying real estate and turning it into an ALF or an RAL as we call it. Residential assisted living.

[Justin]

That hard to turn it. Like if I just bought a home in Miami, is it hard to turn one into.

[Isabel Guarino]

Not necessarily, but the like the keys are. Right. This is what really what you're looking for is the demographics of the area. You want to be where the majority population is 50, 50 years old and older, making two times the median income.

[Justin]

Okay.

[Isabel Guarino]

That's not the senior, that's the adult child.

[Justin]

That's right.

[Isabel Guarino]

Because they're the ones usually paying. It's almost seal. Right. They're the ones paying for mom or dad to go into the home.

[Justin]

Right.

[Isabel Guarino]

So you want to target them because they don't want to drive 45 minutes away where it's cheaper. They want to drive five minutes on their way home.

[Justin]

Yeah.

[Isabel Guarino]

So where the affluent 50 plus community is, that's where we want the home.

[Justin]

Okay.

[Isabel Guarino]

And then the larger the footprint, the better. So I really prefer private bedrooms, private bathrooms, and depending on where you are in the country, you're allowed to have between 6 and 16. So here in Florida, your state says 12, but most of your counties say 6 or 8.

[Justin]

We're talking about people, people, residents in the home.

[Isabel Guarino]

Yeah. In Arizona I'm limited to 10, Texas is 16, New York is 16. So it just depends where you are. So like my homes in Phoenix, they started as a 6, 5 and now they're 10. 10.

[Justin]

Okay.

[Isabel Guarino]

So I renovated them to become that way, you know, didn't even have to do any addition because. Because think like 300 to 500 square feet per resident. So for 10 minimum, 3,000 square feet, upwards of 5,000 is pretty comfortable.

[Justin]

Yeah.

[Isabel Guarino]

And we're just taking a home and chopping it up differently so that it can serve these seniors needs. It doesn't.

[Justin]

So you almost make it a. The new kiddos these days. The house pad splits. Pad splits.

[Isabel Guarino]

It's similar but different in the sense that they're getting rid of living spaces, office, everything. We still keep all of that like similar, but we're like the luxury version of them.

[Justin]

So I'm only familiar with the one, my wife's grand. Right. Which is just a normal. Like they didn't do anything. It's just three bedrooms. Two. Two women per bedroom. Yeah. And add bedrooms.

[Isabel Guarino]

Yep. Which people do all the time.

[Justin]

You could do either.

[Isabel Guarino]

You could do either. It's just for maximum profitability. They want private bedrooms.

[Justin]

Yeah, yeah. So let's talk about numbers. Like what can you get? I mean compared to just a single family long term rental, the numbers are staggering.

[Isabel Guarino]

Oh, it's crazy. So average cost in our country right now today is $5900 per month per resident. I don't know how much she's paying cuz she's in a shared room. So it might be more, might be less even.

[Justin]

Just think that would be like just the month of, of a tenant.

[Isabel Guarino]

Oh yeah, okay, that would be.

[Justin]

But now you have six or 10.

[Isabel Guarino]

Yep. So in, in my case. Right. 5,900.

[Justin]

Now we're going to get me to go squirrel on this.

[Isabel Guarino]

Let's call it 6000 just for easy math. Okay. So 6000. Because also remember, average includes our friends on government funding as well as our private pay friends. And we only focus on private pay.

[Justin]

Okay.

[Isabel Guarino]

So for the most part that 5,900 is kind of low for, for me and most of our students, they're getting 7, 8, 9, $10,000 per resident per.

[Justin]

Month because of the government funded.

[Isabel Guarino]

No, we don't do any government funded. Government funding is about eighteen hundred dollars a month.

[Justin]

Oh, so you go the other way.

[Isabel Guarino]

Other way.

[Justin]

That's why you want to be in the mid-50s. So the kids that can afford them to have. Yep.

[Isabel Guarino]

Making two times the median income, they can afford it. Right.

[Justin]

Like it.

[Isabel Guarino]

So let's call it 6,000amonth. 6,000 times 10 residents. 60,000 coming in your mortgage these days. To get a nice home like that, it's going to cost you ten grand. Right. Easily.

[Justin]

Okay.

[Isabel Guarino]

Okay. Because if you're getting a large home and you're renovating it and whatever the case is, it's going to cost you like 40,000amonth to run a 10 bed home. A very average 10 bed home.

[Justin]

And I'm saying that people, because all the business operational costs y.

[Isabel Guarino]

So your, your caregivers. Right. Insanely expensive. Okay. Food, activities, cable, utilities, Internet, just everything. Throw it all in their liability insurance, whatever. That one home still bringing you in $10,000 a month. So it's a, it's a really interesting way to take a home that maybe wasn't Airbnb before. And Airbnb is being kicked out of your city or they're making it impossible for the owners.

[Justin]

Or they're just too crowded. There's too many of them.

[Isabel Guarino]

Or they're crowded.

[Justin]

Like you don't get a top dollar anymore.

[Isabel Guarino]

Yeah. Or you just have a nicer, larger home in a good part of town and you're like you. Hey, I put one family in here and I make 500 bucks a month. I want to leverage this. I want to utilize this real estate for something that actually does good and does well. And now I can do senior housing with it. And so that's what we show people how to do.

[Justin]

That is amazing.

[Isabel Guarino]

Yeah.

[Justin]

Right now I need people to go find you.

[Isabel Guarino]

Yeah.

[Justin]

Where's the best place for people to go find you?

[Isabel Guarino]

On social media? We're at Ral Academy pretty much everywhere. TikTok, Facebook, Instagram, you name it.

[Justin]

Ral Academy.

[Isabel Guarino]

Yep. Residential assisted living. Yeah.

[Justin]

So again, let's talk to me because. Because I'm so interested, but almost like I don't know much.

[Isabel Guarino]

Okay.

[Justin]

Because I think a lot of people are going to be like the same way I am right now.

[Isabel Guarino]

Yep.

[Justin]

Can you just go by, I mean, in a general sense.

[Isabel Guarino]

Yes.

[Justin]

If you're looking for a single family, long term rental.

[Isabel Guarino]

Yeah.

[Justin]

To some extent you could just turn that into Aria or residential living.

[Isabel Guarino]

Yeah. Residential assisted living.

[Justin]

Yeah, yeah, yeah, you could. It doesn't really matter. You don't have to overthink it. You don't have to be like, I need to be within this mile of so and so. Like there's no like complicated algorithm of location and distance of things or pricing or like.

[Isabel Guarino]

No.

[Justin]

Do we need to.

[Isabel Guarino]

So the demographics is just a number one. So we really want to be in that area. Because if it's in the wrong area, you're not going to get those rates.

[Justin]

You won't get the numbers. Right.

[Isabel Guarino]

You won't get the numbers. If you're. If you're in too high of an area now, you're going to be getting really high numbers. But your real estate might cost more. Basically the cost of the real estate is going to kind of go the same with the cost of care.

[Justin]

Yeah.

[Isabel Guarino]

So if you're saying, let me use a low end house in a crappy part of town, well, you're going to get low end. You know, cost of care. That's what people can afford out there.

[Justin]

Right.

[Isabel Guarino]

So you want them kind of to.

[Justin]

Be able to zone.

[Isabel Guarino]

Well, it depends in our nation because obviously like 1.4 in San Jose is a piece of trash.

[Justin]

That's right. Right. I was going to say a million here in Miami is not anything.

[Isabel Guarino]

Is not anything special.

[Justin]

That's just.

[Isabel Guarino]

So here's, here's the thing. There's four ways to do this. Okay. One by land, custom built from the ground up. A lot of our Midwest students do this. A lot of our Texas students do this. That's a great way. Especially if you can have more than 10 residents, it's really hard to find a home that you could renovate to really have 16. 16, like that's you're doing. You're doing a massive rental anyways.

[Justin]

Yeah.

[Isabel Guarino]

So custom building is amazing for that. Buying a single family home and converting, that's another option. What we've been talking about.

[Justin]

Yeah.

[Isabel Guarino]

Third is buying an existing care home. So we're very lucky in both of our markets. You know, there's over 4, 000 group homes here in the state of Florida. There's over 3, 000 in Maricopa county alone.

[Justin]

Wow.

[Isabel Guarino]

Yes. One zip code where my care home is is the most in the whole.

[Justin]

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[Isabel Guarino]

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[Isabel Guarino]

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696891 on WhatsApp, your personal messages stay private between you and whoever you send them to. So things like the passport numbers for your honeymoon stay between you and your fiance. And that video call for your gran's 80th stays in the family. Even your streaming password stays between you and your college roommates who still ask for it every week in your group chat. Because on WhatsApp, your personal messages are yours. No one else can see or hear them, not even us. WhatsApp message privately.

[Justin]

I literally my team just brought to attention two single family homes in Maricopa.

[Isabel Guarino]

Yeah.

[Justin]

Like at 450 price range. Both of them have four. Four bedrooms.

[Isabel Guarino]

Yeah.

[Justin]

Would that potentially be.

[Isabel Guarino]

Potentially.

[Justin]

Could I look at that and say I'm willing to pay retail on that because the numbers on we pay full.

[Isabel Guarino]

Price all the time.

[Justin]

Right. That's what I'm really think in my own real estate business. Right this second as I'm talking to you, there is potential to say, okay, I'll pay 450. Because based around what we're talking about here today. Yeah. The math works like this.

[Isabel Guarino]

Yeah.

[Justin]

And you'll say, Justin, if you look at it like this, that would be a good deal.

[Isabel Guarino]

We're not like hunting for the best deal. We're actually just hunting for the best location. So.

[Justin]

Or no pool.

[Isabel Guarino]

You know what it if the pool's off the house, it can be a feature and amenity. But if it's like dangerously close where they're just going to go in the wheelchair and plump. Nope, not ideal. Yeah, not ideal. So our three homes in Phoenix, we filled one in, turned it into an outdoor grotto. Another one, we drained it and it's an eyesore gate around it. It's ugly. But that's our lower income house. And so it just didn't make sense to upkeep it and we couldn't fill it in. Cranes couldn't get back there. And then the third one, it's further off the house and we kept it in eye candy. It's been used once in 15 years. But daughter Judy as We call the adult child. Right. She walks into the backyard and she goes, wow, there's a pool. Mom's going to love this, you know, so.

[Justin]

And never used.

[Isabel Guarino]

No.

[Justin]

All right. So we went through three land conversion conversion. One that's already built and used as an alf.

[Isabel Guarino]

Yep. And then the last way to do it is you could be on either side of this, leasing a home to use for this. So if you just want to be on the real estate side, you buy and renovate a home, and then you lease it to someone who's going to operate this business in your home.

[Justin]

Interesting.

[Isabel Guarino]

On the opposite side, you're saying, maybe I don't have that real estate experience. I don't have that capital. I want a lease from someone, and I'm just going to operate the business in their home. They know what I'm doing, and we're kind of in partnership together. But that's a way that you can just be on the real estate side. Or if you're like, I don't have any money, but I need to start cash flowing, you could just be on the business side.

[Justin]

How hard is it to find the operators? Because I'm. Now I'm like, okay, well, maybe I don't want to run the business. Maybe I just want to go do what I know. Buy the asset, find the asset. But then I would also need the operator. How is it a hard market to find operators?

[Isabel Guarino]

It is harder. There's way more people who are comfortable on the real estate side than there are people who are comfortable on the operations side. And I'm going to say it's harder to find a good operator. And because 80, like anything, 80% of this industry is currently run mom and pop. So they live in the home. They work in the home. They do everything themselves. It's almost all immigrants from other countries who run this industry. I'm like, the minority that I'm like a white girl in this doing this. There is not a lot of people who look like me doing this.

[Justin]

Yeah.

[Isabel Guarino]

So that's. That's unique. Are you bilingual, Poquito? Tiny. Tiny.

[Justin]

Me too. Yo tempien.

[Isabel Guarino]

You see, my. My nanny speaks Spanish to my son, so I need to learn. So he know I know what he knows.

[Justin]

Yeah, that's right. I Funny sidebar. But, yeah, same thing. Nanny speaks to my son. So he actually knows Spanish. More in English right now because he's only 15 months.

[Isabel Guarino]

Yeah.

[Justin]

My daughter, nothing. We just raised her talking English. I'm like, but she's only four.

[Isabel Guarino]

Okay.

[Justin]

She's got time so, man, this is so interesting. And who are the type of people that should be looking at something like this? Like, should everyone. Is it. You know, you got to kind of understand what you're looking to do. Is there a sector, like your students? Who's your perfect student avatar? Because if you're here.

[Isabel Guarino]

Yeah.

[Justin]

You need to find Isabelle immediately. But who is your perfect student avatar?

[Isabel Guarino]

You know, it's interesting. We get a lot of people who. Someone in the partnership or relationship has real estate background and someone has medical background. Like you and your wife.

[Justin]

Yep.

[Isabel Guarino]

And that to me, I always, when. When they come to class, I'm always like, you guys are perfect.

[Justin]

Yeah.

[Isabel Guarino]

Because one of you understands one side and the other understands the other. And it's the. You're not going to step on each other's toes.

[Justin]

Yeah.

[Isabel Guarino]

Because you're involved in very different pieces to it.

[Justin]

That's right.

[Isabel Guarino]

So I love that partnership. But we've had people as young as 17, as old as 72. We have people in all 50 states who are doing this. Zero real estate background. We've had kindergarten teachers, truckers, NYPD, I mean, you name it, doing this. And now fully, you know, cash flowing and going crazy. And they've got like one or two homes and they're like, I'm good. Like, I don't. I'm financially free now.

[Justin]

Even the economics you just gave me where essentially, after all costs, you have 60 green gross. Between the mortgage, the people, the. The caretakers, the food, that. And you net 10 grand a year.

[Isabel Guarino]

Yeah, 10 grand a month, bro.

[Justin]

I mean, I'm sorry, A month.

[Isabel Guarino]

Yeah.

[Justin]

You have three and you have 30 grand a month coming in.

[Isabel Guarino]

Yes. And. And that's a very, like.

[Justin]

That's not a big business. That's like.

[Isabel Guarino]

No.

[Justin]

Probably could sleep most of the day.

[Isabel Guarino]

Yes. And I really share that 10 example because it's very like average and normal.

[Justin]

Yeah.

[Isabel Guarino]

But most of our students, like I said, are getting way more than that. Six.

[Justin]

Yeah.

[Isabel Guarino]

So their numbers are crazy different. I have students making 20, 30, and $40,000 a month on one door.

[Justin]

Like, price point. Like at 40 grand a month, what price point of real estate are we talking about?

[Isabel Guarino]

40 grand a month. So they're paying about 20 in debt service in their mortgage. 20,000.

[Justin]

So there's somewhere in the mid. Like between 1 to 2 million depending upon their loan.

[Isabel Guarino]

Yeah, yeah. So most of these homes are like, in that. I would say less than 2, but right in that.

[Justin]

That's the right frame if you're one.

[Isabel Guarino]

To two, pretty much.

[Justin]

So if you're just talking to me, which, that's what I'm saying. I need to go buy, find a home somewhere between one to two million dollars, give or take. Give or take with the right unit mix. Unless I wanted to go and remodel it.

[Isabel Guarino]

Yeah, you're gonna have to remodel it.

[Justin]

A little bit anyways, just for accessibility and stuff of that nature.

[Isabel Guarino]

Yeah, it doesn't need to be ADA compliant, but you want it as close to that as possible. So ramps, guardrails, handrails, but just no home is become a 10 10. So like you're gonna have to do a little bit of Renault anyways.

[Justin]

Okay. Describe what the house should look like after Renault. Like it should be a certain look.

[Isabel Guarino]

Or so you actually, you want it to feel as much just like a home as you can. Obviously the excess of bedrooms and bathrooms is a little bit like something weird's going on here. Right. But it's, it's so much more. It really should just feel like a home.

[Justin]

How many? Bed, bath, unit, mix. Like so let's just say would a four bedroom home be okay or would you want more? Like what would. If you were gonna buy one today in Phoenix.

[Isabel Guarino]

Yeah.

[Justin]

What would you be looking for?

[Isabel Guarino]

Well, because my max is 10, I would look for something that is about 4,000 to 6,000 square feet is what I'd be looking for. Because the floor print and the location is really what I want because I'm going to rent a anyways.

[Justin]

Okay.

[Isabel Guarino]

So it doesn't matter if there's already seven bedrooms or three bedrooms. I'm looking for the square footage, you know, so it's that, it's that rule of thumb with the square foot. And here's the thing, the state will tell you 100 square feet per resident. That's sick.

[Justin]

That's. They live in a coffin.

[Isabel Guarino]

Exactly, exactly. That's terrible. So some of these homes you walk into and they're itty bitty bitty tiny. Tiny. So when daughter Judy again comes to their home and then comes to your home and you're abiding by our rule of thumb, which is that 300 to 500, she's like, oh, this is nice. Like I could see her living here. It's like, yes, that's what I want to hear.

[Justin]

That's right.

[Isabel Guarino]

Y.

[Justin]

Okay, so in an ideal world, for best profitability, is there a number of bedrooms that gives you kind of the ideal profit?

[Isabel Guarino]

Yeah, I would say six is the lowest. I would go.

[Justin]

Bedrooms.

[Isabel Guarino]

Yeah. Residence.

[Justin]

Residence.

[Isabel Guarino]

Okay. Yeah, I wouldn't, I don't like anything less than 6 and most of your states allow 6 or more so you really should. The only reason people do less than 6 is cuz they say I want to do this unlicensed. Which to me is like shame on.

[Justin]

You because why Like a contractor doing it unlicensed.

[Isabel Guarino]

Correct. It's like you just don't want to follow rules and the rules are about the senior safety. So I'm, this is a real estate play but I'm like very heavy on like the seniors need love and care and respect and safety and if you're not going to do that, you should not be in this.

[Justin]

It gives me shivers because the reality is you're taking care of someone's family member at the highest level at the end of the life where they probably need the most help in their life. And if you are going to shortcome or take a shortcut to doing that and serving the people. Don't do this business.

[Isabel Guarino]

Correct.

[Justin]

Just go get a long term rental. Who cares? Let them lease it, it doesn't matter.

[Isabel Guarino]

Yep.

[Justin]

But don't do the business when you have someone else's family. It like literally in your hand. Yes. To take care of them.

[Isabel Guarino]

Yes, 100%. A lot of people hear this and they get excited. Oh, it's money. And, and oh yay. I could cash flow really well. The reality is you guys, you could cash flow well on a lot of types of real estate. Of course there's a million other ways. This is not one you should get into. If it's all about the money. Right. It has to be that equal balance. And this is impact investing because you are doing something big. When you asked who's the right person for this, most of the people who come to our training, they have a loved one who's in assisted living who had a bad experience and they're coming because they either want to get out and put them in a better home or they're like, I will never allow that to happen to anyone else in my life. And so they have like a drug.

[Justin]

For the right reasons. Right. It's not just. Don't get me wrong, we're all in business, but it's not just about the money. To your point, you can go get storage facilities. That literally doesn't have a human involved.

[Isabel Guarino]

Correct.

[Justin]

And you can make a God a load of money.

[Isabel Guarino]

Oh yeah. Oh yeah.

[Justin]

So okay, so 10 people.

[Isabel Guarino]

Yep.

[Justin]

10 occupants.

[Isabel Guarino]

Yep.

[Justin]

Do you ever. Do you always focus on one person, one bedroom or will you do two in one bedroom?

[Isabel Guarino]

So here's the thing. Shared is actually harder to fill.

[Justin]

There's less people who want their mom to share it with. Yeah.

[Isabel Guarino]

So shared is harder to fill. We had a resident or a, we had a student who was licensed for 16, and they custom built a home out in Georgia, 13 bedroom, 13 bath, with the intent that some people will want to share and will have that option. They've only ever had 13 residents from like the last five years, from day opening to now. And it's like, like. Yeah, because people don't really love it when you're in a low income area. Everyone wants to share. Everyone needs to share because they can't afford that.

[Justin]

That's right.

[Isabel Guarino]

But as the business owner, you're now bringing in less income, but you still have the same expenses. Your mortgage doesn't change. Those caregivers, you still have to pay them.

[Justin]

Yeah.

[Isabel Guarino]

So now you're just making less money and you know, because you fact that.

[Justin]

You fill more people. Yeah, okay, I understand. So one bedroom, one bath. They all need their own.

[Isabel Guarino]

So bathrooms can be shared.

[Justin]

Okay.

[Isabel Guarino]

You know, again, it's ideal if they have their own. Just gives them the sense of privacy and it's mine. And you know, you have to think if you are a senior and you're moving from your whole own physical home to now a shared space.

[Justin]

Right.

[Isabel Guarino]

And a shared bathroom and a shared bed, it's like, it's a lot.

[Justin]

Right.

[Isabel Guarino]

So being able to be like, okay, you have a semblance of independence and this is yours and no one can touch it. And it really is helpful to them. So you can have shared bathrooms. The state will say you can have six people sharing one bathroom. Again, like, terrible. Don't do that.

[Justin]

Is that only Arizona or is that just.

[Isabel Guarino]

No, we teach nationally. So I review all the state's rules. Okay. Some states will say you can have four in a bedroom, two in a bedroom, three in a bedroom. Like, it just depends on bedrooms. It ranges. But bathrooms. Almost all states say six or eight can share a bathroom. And I'm like, that is terrible. Terrible. You.

[Justin]

What's your website again? Ral Academy.com if you want more info. Ral Academy.com and then Instagram.

[Isabel Guarino]

Instagram. Ral Academy.

[Justin]

Let's go.

[Isabel Guarino]

Nice.

[Justin]

So, all right. Now the uniqueness of this is inside the walls.

[Isabel Guarino]

Yeah.

[Justin]

Right. Let's talk about the business a little bit.

[Isabel Guarino]

Okay.

[Justin]

Right. Where do you find the caregivers? Is. Is there like organizations that you can call and say, hey, I just opened up an ALF caregiver. How do we do that?

[Unknown]

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[Justin]

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[Isabel Guarino]

NMLS 696891 so you're hiring them just like you would hire most any other job. Indeed. Craigslist, Facebook Marketplace. Like you're just putting kind of the word out there. You can go to caregiver training schools and kind of get on the list for fresh graduates so that you could be a preferred place that people go. But it's also a very tight knit industry and it's a lot of word of mouth. Most caregivers work at two or three locations of smaller homes or even bigger ones like a Brookdale or a Sunrise. So a lot of times when you open, you put the ad out there, you get a couple people coming in and then those people tell their friends and it just kind of like is very word of mouth but indeed is great.

[Justin]

Yeah.

[Isabel Guarino]

Yeah.

[Justin]

How do you verify, you know, are they good or bad? Like because you hear those awful, awful that are just gut wrenching gross.

[Isabel Guarino]

Yes.

[Justin]

How do you verify?

[Isabel Guarino]

You know, in any business you should be slow to hire and quick to fire. Right. That's like rule of thumb as a business owner. But it's really true in assisted living because these are people's lives at stake as we've said.

[Justin]

And some of them are literally like they're, they've lost their mind. Right. Dementia and all the different things. Like. Yeah, it's just un. Like you need to make sure these people are on it.

[Isabel Guarino]

Yeah.

[Justin]

It's not just someone that's a little bit older.

[Isabel Guarino]

Yes.

[Justin]

They need help.

[Isabel Guarino]

Yep. 100. You know, I think that there is a big like this is not a job where you, you're not going to call the references. You're gonna call the references.

[Justin]

There's no doubt like that's what I was like, dude, how many people do you call and sit down with? Because even I just think of like our families. And if you think about your mom, like, you are gonna go above and beyond to make sure.

[Isabel Guarino]

Oh, yeah.

[Justin]

They are taken care of by the right person that actually cares.

[Isabel Guarino]

Yeah.

[Justin]

And I understand to some extent, like if there's 10 people and three caregivers, like, it's not like they're getting. But they gotta care.

[Isabel Guarino]

Oh, yeah, totally. So interview process is really serious. Have you ever done the predictive index?

[Justin]

I have.

[Isabel Guarino]

Okay. So I actually make all of my staff do PI.

[Justin]

Yeah.

[Isabel Guarino]

And I have like certain profiles that I'm looking for. Yeah. Especially the patients meter. I'm looking for patients, like off the chart. Because if you are not. I am like way driving, like not patient at all.

[Justin]

Yeah.

[Isabel Guarino]

I'd be a terrible caregiver. Right. Because to, to react with these senior, you have to be okay. That you ask a question and the response might come a minute and a half later. And you can't keep asking and asking like, no. You have to just sit with it. That is hard for me.

[Justin]

That's hard. It's hard for me with my daughter.

[Isabel Guarino]

Yeah. Oh, yes. Just like kids. Right. So I know it's, it's a lot. So I think that we use PI. We do a lot of other things. We do a working interview, so I can see them on the floor, see them with other staff. We are call all references. We. I don't do background checks on my residents. I do them on my caregivers because I want to know what's going on. And also we will kind of like ask around because many of them have worked with each other in other homes. Like, this community is kind of small.

[Justin]

Yeah.

[Isabel Guarino]

So everybody does kind of know each other. And if there's any, any, any like even the tiniest speck of gray, it's like, it's a no. I'm really strict about that. We've got cameras everywhere, in, inside and outside of the house. So I'm watching like everything, you know, and nothing. If, if again, if anything's in question. No, you're out.

[Justin]

Yeah. Yeah, man. It's just such an interesting model. So what's the, the, the burr model to me is very familiar.

[Isabel Guarino]

Yeah.

[Justin]

Right. I go into a burr model, I say, okay, I want to buy the asset. I want to do the whole burr, Renovate it, rent it, refinance, but probably have around a five year exit.

[Isabel Guarino]

Yeah.

[Justin]

When you look at a business model like this.

[Isabel Guarino]

Yeah.

[Justin]

You really go into it with an exit because.

[Isabel Guarino]

Good question.

[Justin]

You're running a business, like, unless you buy the real estate to lease it to the business.

[Isabel Guarino]

Yeah.

[Justin]

But if you're running both sides of it, do you really kind of go into it and exit? I feel like this would be a, like kind of a forever type of investment.

[Isabel Guarino]

Kind of a forever. So my dad started this industry with me. Right. Like we, like back when my grandmother fell and needed care, we got into it for her with the intent to move her in. She passed before we can move her in, but we kind of fell in love with the concept. So he stopped everything he was doing in real estate investing and went all in on this. And that was about 15 years ago. And I joined alongside him maybe 10 years ago when we started training people how to do it. Because I was like, oh, I want to help with this. I helped a little in the care homes, but I was like, I'm not cut out to care for seniors. This isn't for me. So I'd help with other things like activities and decorating and whatever. But, you know, when we got started in this, it was his play that, hey, this is so that it's for my mom. It's for any of my siblings. It's for, you know, my mom's parents if they needed it. And he's like, and it's for me and your mom if we ever need it. Now, my dad passed in 20, 21, and so he never needed that. Right. But my mom might, you know, she's like doing red light therapy every day. She's gonna live forever.

[Justin]

I love it. I love it. I think we all are. I mean, the way the, the world's going with health.

[Isabel Guarino]

Yes.

[Justin]

You do it right.

[Isabel Guarino]

People are living longer and longer. So she her, our plan is that whenever she does need that, 20 years, 25 years, okay, move right in, live for free. We're still cash flowing. And then one day I can pass it to my son and I can do the same thing. So it can be a generational business. That's how it ended up being for us. When he passed. It's like I got left three cash flowing businesses. That's pretty cool.

[Justin]

Yeah.

[Isabel Guarino]

So it can pass. We have other students who their plan is they're on home number 28 out in Colorado, their homes to package a hundred up, sell it to the hedge funds.

[Justin]

So are hedge funds buying it?

[Isabel Guarino]

They will if you have that volume.

[Justin]

No kidding. So now let's talk about that. That's really interesting. So there is an exit.

[Isabel Guarino]

There's an exit.

[Justin]

So the reason why I don't love pad split isn't because I don't like the concept or the economic. Like I just believe is new enough that I can't see where's the exit. Yeah, like who, who buys a home that has like a sink in 12 bedrooms? Yeah, like who buys that besides someone else that would want a pad split.

[Isabel Guarino]

Yeah. Yep.

[Justin]

Which I believe potentially down the road. But also I want to know are hedge funds buying hep pad splits and is too early of a concept now Alfs and and this is not assist living's not. So let's dive into that. Who is like are they buying? How do they buy? What are they looking for?

[Isabel Guarino]

Yes, so they would buy but it would probably be 50 doors or more. The more you have, the better. Right. And having them all under a brand like that is brand of it. They want the brand of it. So that's also important. So that's exactly what our students are doing. They're like hey, we're going to like this and that. They're doing an incredible job.

[Justin]

28.

[Isabel Guarino]

28.

[Justin]

And they want to get to 50 and see if the hedge funds will buy 50.

[Isabel Guarino]

But really their goal is a hundred.

[Justin]

Yeah. Cause why slow down? I mean.

[Isabel Guarino]

Yeah, their goals are hunch.

[Justin]

So talk to talk about them.

[Isabel Guarino]

Okay. They started in, they came to our training in 2017 and he was a. They were both flippers and that's, that's all they did was just flipping. And they came and they totally jumped in on the concept, went through our mentorship and coaching. So we'd been working with them, open their first home and then just scaled, scaled, scaled. And really what they focused on was systems because currently if people hearing me say this who are in the industry might be like there is no way you could do that. And it's because they built themselves a job.

[Justin]

Right.

[Isabel Guarino]

They did not systemize it. They did not set it out like no, how do you want it? Year five, build it that way. Day one. Even if you take a little bit less money, it is worth it. Like pay for speed. Pay for someone else to do all these day to day jobs. Whether that's VAs or whatever it is. We really help people build systems so that they can become hands off. So it is possible. I mean they wouldn't be able to do 28 if they didn't have that. But the more you have, the more levels that you're getting now it becomes even more systems in place. So in one care home you're the owner in the Owner's box, right? And then you have a licensed administrator, which is kind of like your PM in the real estate world. They're hiring your licensed caregivers. That's it. Three levels, right? Owner, admin caregivers.

[Justin]

Okay.

[Isabel Guarino]

Now when you have more homes, let's say three homes, you might have someone on top of all of them being like the executive director who's overseeing all three. And you have each one with an administrator and then caregivers and so on. Now you've got 10 homes. You might have another level where it's like, hey, we have an activities director who's overseeing all of these and coordinating, you know, all of these systems for it. So it just becomes more and more levels similar to corporate. Right. And that's how you can really help systemize it. And again, keep yourself out of the weeds. Needs is you're hiring someone else to do this job at a mass scale and so you can scale and grow like that.

[Unknown]

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[Justin]

Do you have a podcast?

[Isabel Guarino]

I do.

[Justin]

It's the greatest thing in the world.

[Isabel Guarino]

You learn so much.

[Justin]

I have such amazing guests like yourself. I sitting here and go, every time I just go, should I be doing something? Should I? I'm like, oh, so all right, right. I have so many questions.

[Isabel Guarino]

So I will say this. If you just wanted to sell one, if you just had one and you wanted to sell it, just so you know, numbers wise. Yeah, it's it. The transaction looks like this. It has to be a commercial broker. So it's the real estate is the one sale. The real estate's worth whatever it's worth.

[Justin]

Right.

[Isabel Guarino]

And then the business is two to five times the ebitda.

[Justin]

Okay.

[Isabel Guarino]

So obviously, if I'm selling, I want it five times. If I'm buying, I want it two times. It's worth what someone's willing to pay. We usually see that three to four multiple people. So you can sell these. And we help people buy and sell them. I mean, you, you know, got a deal that we were talking about earlier.

[Justin]

We help people, your students. In my event, I almost, I mean, because I don't even know who it was I got attacked. Hey, I know you're in Miami. They know me. Yeah, they're in my phone or they're. I saved them. But they're like, yeah, I know you're in Miami.

[Isabel Guarino]

Yeah.

[Justin]

Are you interested in alf?

[Isabel Guarino]

You never know. So. So we help people buy and sell them all the time. But I really think that the exit plan, if you're going to scale this correctly, could be that large. Buyout something like that to a hedge fund. Or if you're saying like, hey, I want three of these. I want to hold them until my mom or I need care, and then I want to package them and sell them. Somebody will still buy a three pack, a five pack, a 10 pack. But it'll probably be someone like me or my students who's like a smaller level person, Not a big fund.

[Justin]

So someone like me who, like. All I would have to actually do is the two things that invest that. Find the real estate and raise the capital. I then go find someone to fill the seats of the caregivers and whatever.

[Isabel Guarino]

Yep.

[Justin]

Give up some more money on the front end to pay the people. The right people.

[Isabel Guarino]

Yep.

[Justin]

So then I can go do more real estate and more capital.

[Isabel Guarino]

Exactly. That's what I want to keep you in your box.

[Justin]

Right. And I just rinse and repeat. Find the capital, find the real estate, find the capital fund. And I overpay Suzanne, who has 15 years of doing this to go find the caregivers.

[Isabel Guarino]

Yep.

[Justin]

And I'm happy to do that on the first couple because then I can get to five or 10.

[Isabel Guarino]

Exactly. And then you can have a big salary.

[Justin]

And so I have a real business.

[Isabel Guarino]

Yeah, I mean, it is a full blown business. You know, I was just in New Orleans just like two days ago with one of our students, and he's just turned 30. He's got two care homes in Wisconsin. One's cash flowing him 19,000amonth. The other one 21,000amonth. Month. And he was a travel nurse before he did this. Zero Real estate background. He heard me on bigger pockets, and he was like, okay, I gotta do this, right? And I feel like. Like, I'm like, when are you getting your other one? He's like, why? I'm good.

[Justin]

Like, well, 50 grand a month for most people is.

[Isabel Guarino]

Yeah.

[Justin]

He's like, at this point, you go.

[Isabel Guarino]

He's like, I'm 30. Like, I'm happy. I'm fine. He's like, I'm actually gonna go move to New York City and just salsa dance and have fun and, you know, mess around. I'm like, like, okay, cool. Good for you. So everyone comes in with different game plans. Other people think huge. Some people are like, let me just cash flow, and so I can chill and live my life, you know? And other people, they want something that they can be involved in in a business they can be active in. And that's the cool thing about this industry is it can be whatever you want it to be. It could be a couple of assets that cash flow, you. Well, that you don't have to really attend to very often. I would say I visit my homes once a quarter.

[Justin]

So out of your real work life.

[Isabel Guarino]

Yeah.

[Justin]

How many hours a week or a month you think you actually genuinely are focusing on those assets? Five hours a week or a month?

[Isabel Guarino]

A week. Yeah. It's like a weekly meeting with my manager. So my. My pm and then I like to do, like, look at payroll and stuff like that. And social. Yeah. Yeah. But almost everything else is dedicated to teaching other people how to do this.

[Justin]

The thing I think is so important for most people to hear from what we're talking about, there's no one size fits all. You don't need to build a business like mine or like yours at scale. You don't need to go one or two and stop. Like, there's no one size. You have to understand what you actually want from it.

[Isabel Guarino]

Yes.

[Justin]

So what I always will tell people is figure out what you like. I have the five pillars of success. The first pillars decide what you want and who you need to be to get it. So in the example that you just gave with your student, he's like, I want some financial freedom. I don't need to be Donald Trump. Right. I don't need to have a whole empire. He goes and buys two. He makes 50 grand a month, literally. That is lifelong income. That will pay for probably anything he wants for the rest of his life.

[Isabel Guarino]

Yep.

[Justin]

He may not be extreme about his spending, but 50 grand a month is 50 grand a month. But that may not work for Someone like me, I might go, like, okay, I need two week to buy. Like, I can't. Right. But there's no one size fits.

[Isabel Guarino]

There's no one size fits all. And that's what I love too, is when people come, we get to kind of be like, like, what's your vision? What do you want? And some people, it's genuinely. It's one home for my mom. That's all I care about. And it's like, great. Other people, it's financial freedom. It's a couple homes, so I don't have to work anymore. Other people, it's, I want to take over this industry and I want the biggest cash out you've ever seen. And it's like, okay, cool. Like, you can do whatever you want.

[Justin]

Have we seen or we by you? Have you seen an actual exit with a hedge fund yet?

[Isabel Guarino]

I have. I've seen someone in. Who? In Texas. They had 400 doors. I don't know what multiple in this space. Yeah, Sheesh. I don't know what multiple they got, but I know that they're sitting pretty.

[Justin]

Oh, yeah. I don't think they're working very hard right now. Now, your students who do have 28, where. What state are they in?

[Isabel Guarino]

Colorado. Wow.

[Justin]

Okay. Is that a.

[Isabel Guarino]

It's actually kind of a tougher state for this. I would have thought red states are better than blue states when it comes to real estate investing, and especially this because it's business. It's small business.

[Justin]

Yeah.

[Isabel Guarino]

So Colorado's not the most friendly to this. But I will say this. Some people who are watching are probably thinking, well, can't they deny this in a neighborhood? Can't they say, you can't do this? An hoa, a city, a state, an angry neighbor can't say no. Because we are a federally protected class. The seniors are considered disabled by the time they're moving in. And so under the federal Fair Housing act, we're protected. So no one can deny you. Now, that doesn't mean they won't try.

[Justin]

Right.

[Isabel Guarino]

So in Colorado, they are all about trying to deny. Right. So almost every house they've gone after, it has been a battle, but we actually created the first and only national association that represents all 30,000 group homeowners across the country. So we have legal backing and power there. So they've just partnered with them, got their lawyers involved, and basically won every single case.

[Justin]

So it does not matter what neighborhood you live in. I could go do this to my own personal home and move tomorrow back to Scottsdale. They can't Stop me.

[Isabel Guarino]

They can't stop you. They might fight you. Like I said, you might have a fight, but they can't stop you. Because a neighborhood can't fight a federal law.

[Justin]

Well, I. Because so you're obviously in Phoenix and so I just moved here from Phoenix.

[Isabel Guarino]

Yeah.

[Justin]

2021. So me and my wife are literally like, oh, you know, I have some. I'm leaving Phoenix tomorrow. I go to Phoenix all the time. Like, should we probably move back to Phoenix? Our home would rent for about nine grand a month.

[Unknown]

Month.

[Justin]

Just normal here in Miami. Yeah, in Miami. Just normal rent.

[Isabel Guarino]

Yep.

[Justin]

And now I'm hearing your numbers and.

[Isabel Guarino]

I'm like, do we turn this into it 60 grand and you know, maybe. What's the, what's the.

[Justin]

Well, 3, 000 square feet, five bedroom.

[Isabel Guarino]

Okay.

[Justin]

About a 2 million valuation.

[Isabel Guarino]

Okay. And appraisal how the neighborhood area affluent.

[Justin]

Super.

[Isabel Guarino]

Okay, great. This is good. So yeah, you could probably do.

[Justin]

Even if it's licensed, probably change the. Because it's a U shape.

[Isabel Guarino]

Shape.

[Justin]

I don't know.

[Isabel Guarino]

What you don't want is long hallways because that's reminiscent of a big box. Right?

[Justin]

Yeah, sure.

[Isabel Guarino]

You want it to feel like a home. Like, you know, I mean, it's very homey. Yeah.

[Justin]

Anyways, it just makes me think like, wow, okay, I could. I. You know, it's funny because if I even think about what I'm buying right now and raising capital for and the returns and I'm like, God, this would make sense just for the long term exit. Even if I didn't have a big term exit to the hedge funds.

[Isabel Guarino]

Yeah, yeah.

[Justin]

You have all this real estate for 15 years and it's running at such a high income.

[Isabel Guarino]

That's, that's the beautiful thing is so many people are like, well, let me just hold this and make 200 bucks a month on something. And I'm just going to hold it in one day I'll cash out bigger. One day I'll pass it to my kids. Why one day cash flow now and have the big cash out.

[Justin]

Do you like even. Do your students work typically and do this part time or do they typically more full time doing this?

[Isabel Guarino]

It, it, it's, it ranges the gambit. But I mean we've had people who literally work on Wall street who've opened their care homes. Homes.

[Justin]

Well, that's the point is if you didn't like that guy or me, for example, I might not need the income in terms of the cash flow.

[Isabel Guarino]

Right.

[Justin]

But could I just go pay down whatever debt I have on that home. And then when I do want to exit in 10 or 15 years, I have a free and clear 2 million dollar asset. But I have 10 of them. Yep, that's $20 million in the next 10 years. I just. Because I just paid down the asset.

[Isabel Guarino]

Yeah.

[Justin]

I didn't have any loans on them. I exit them all.

[Isabel Guarino]

Yep. That could be a beautiful way.

[Justin]

Right? I mean there's just different. That's what I'm saying. There's no one size fits all. Yes. You can kind of work this.

[Isabel Guarino]

No, Some people like get into it like that. They say, hey, I've got homes I want to pay off or this or that. And so they kind of want to use it to do that. Other people say, you know, we get a lot of people who actually come and they say, oh, I have a heart for seniors. I actually want to open a low income home for seniors. But what I teach is pretty much private pay and more high end. So they're like, it doesn't really fit. And I'm like, no, it does fit. Open the high end home. Use this capital to go open a low end home. Serve those seniors. Don't, don't let them not pay anything to live in the home. Like just, just accept whatever from the government. Okay, great. Now you can serve both. But there's a, there's a method to the madness. So I have to open the high end one first to make those.

[Justin]

The money to go do that always. It's good to be altruistic, but you got to be able to afford though, the altruism.

[Isabel Guarino]

Yes. Right, yes. So there's so many ways.

[Justin]

This is so fun. So guys, again, make sure you're refining Isabelle everywhere.

[Isabel Guarino]

Yes.

[Justin]

Right now. By the way, don't wait week. Find her all over Instagram. Your website. You guys need to learn if you're interested. I'm telling you, I'm sitting here. I'm basically using this in my own little coaching session right now. This is amazing.

[Isabel Guarino]

Yeah, thanks.

[Justin]

So get with Isabelle. It's been a pleasure having you.

[Isabel Guarino]

Thanks for having me.

[Justin]

Thank you for coming all the way out again. What is the website? Ralacademy.com ralacademy.com all over Instagram. Go to the website if you thought this was pretty interesting. And you know some people that need to know Isabelle, not just yourself. Share this with two of your friends.

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