How Much Can I Make With Group Homes? Hint: Try $70 Million

How Much Can You Make With Your Group Home Empire? Here is one that just sold for $70,000,000  

Good Morning! I wanted to add some inspiration to get your TUESDAY started on the right track.

Many of you ask me, “Andy, How Much Is My Business Worth? Other ask, “How Much Can I make With Group Homes?”

The quick and short answer is however much someone is willing to pay. That said, just like we discussed interest rates the other day, I want you to understand that all businesses and real estate are priced based on how much income they will bring in over time. That is why the second part of the above question is so important. “How Much Can I make With Group Homes?” To reiterate…..it is all about the INCOME that the asset will produce over time

CAN I SELL MY GROUP HOME AND SERVICE BUSINESS FOR $70 MILLION?

Absolutely. That is why I included the data from PitchBook above. On the left side, you will see the Company Name – D&S Residential – and you will notice that it was acquired by Comvest for $70,000,000. Yes, This GROUP HOME OPERATING BUSINESS was sold for $70 MILLION.

Look, I am not telling you this is Warren Buffett or Carlos Slim money. Its a drop in the bucket for them. But for the average UBER WEALTHY person, this is a lot of SCRATCH.

D&S Residential started off just like many of you are starting off right now. With 1 home.

In fact, I actually personally know the first banker that financed them. A small little bank about 80 miles North of San Antonio TX and 25 miles southeast of Austin. Yes, the owner started with 1 Home.

WHY AM I TELLING YOU THIS STORY?

1. Group Homes Produce Income. Businesses are sold based on the income they will produce over time. How much can I make with Group Homes truly is the question. And the answer equates to the price

2. 98% of people start small. The owner of D&S started with 1 home!

3. The owner of D&S invested in himself and obtained knowledge. Just like compound interest, he added to his knowledge base each and every day by reading and studying. Whether it was a course like the GOLD COURSE, or going to industry conferences, he INVESTED IN HIMSELF everyday

4. You need to understand the potential and have a vision. As the Old Book says, “without vision, the people will perish”

5. Anything is possible! Look, D&S didn’t turn into a $70,000,000 company overnight. It took effort and focus.

6. HE STARTED! HE TOOK MASSIVE ACTION! The owner of D&S did not waste time. He knew the opportunity was HUGE and he wasted no time. He too asked himself the question, “How much can I make with group homes?” and he obviously found the answer 🙂

I encourage you to WASTE NO TIME……

If you want to get started in the GROUP HOME
 business, assisted living, care home, transitional home ICF MR Home or other…….

Get Started Now

THIS IS MY FREE, 10-PART COURSE.

Whether you do this by signing up for my free, 10-PART COURSE

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or get out today and rent or buy a property you MUST GET STARTED!

 

 

Why A $200,000,000 REAL ESTATE PORTFOLIO SOUNDS BETTER THAN IT ACTUALLY IS – Low Cap Rates Are Killers

Learn why a $200,000,000 (Two Hundred Million) Real Estate Portfolio MAY (MAY) sound better than it actually is. HINT: CAP RATES ARE EXTREMELY IMPORTANT. IF YOU ARE BUYING 4 CAP RATES YOU MAY WANT TO READ THIS!

Everyone loves to brag. The guys in the local business journals. The guys in the Wall Street Journal. The guys on YOUTUBE. What do they say?

“I have a 200 Million real estate portfolio”

To the average neophyte, this sounds impressive. And it very well maybe. Especially if it was purchased during the previous recession – or possibly you are an OLD SCHOOL Billionaire like Donald Sterling with tens of thousands of units. Someone in either of those positions is DEFINITELY in a position to brag.

BUT WHAT ABOUT THE GUY THAT STARTED BUYING IN 2014 and brags about his 200 MILLION PORTFOLIO?

Lets consider the facts:

Cap Rates in most tier 1 and even popular tier 2 markets around high 4 cap rates or maybe low 5’s. Of course, everyone thinks that they are buying an 8…..until the numbers actually present themselves in the lack of distributions.

So here is some quick math:

  • $200,000,000 Million of real estate that was purchased on CAP RATES of 5% will yield a net operating income of $10,000,000 per year. 
  • Assuming an all debt transaction (No Equity) the annual (P&I) payments assuming a 4% Interest Rate over 30 years are $11.457,967.09
  • At the end of 12 months, you have lost $1,457,967.09

YOU READ THAT CORRECTLY

THE GUY BRAGGING ABOUT HIS $200,000,000 REAL ESTATE PORTFOLIO IS LOSING MONEY because he is buying stuff like this (and these advertised cap rates are way higher than actual)

http://www.loopnet.com/Listing/533-Evergreen-St-Inglewood-CA/11386063/

Can he make this up by selling if the property value goes to $250,000,000? Yes! But from a pure cashflow standpoint, it is risky.

Interested In Learning How To Make 100% Returns On Your Money? Get My Free, 10-Part Course

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LETS TAKE THE RISK OUT OF THE CAP RATES AND INCREASE THEM A BIT. LETS ALSO PUT SOME EQUITY INTO THE TRANSACTION. 

OK, now lets assume that the 200M of real estate was bought on an average of 5.5 – basically cap rates that avg out to 5.5%. Lets also assume that the owner (owners) injected 20% equity into the project:

TOTAL DEBT: $160,000,000

Interest Rate: 4%

Cap Rates: 5.5%

NET OPERATING INCOME: $11,000,000

Monthly P&I payments: $763,864.47

Annual P&I Payment: $9,166,373.67

NET INCOME BEFORE DEPRECIATION ETC = $1,833,626

Look, this is BIG MONEY. And the guy pulled off about a 9.1% CASH ON CASH RETURN on his money when he bought the portfolio with a blended avg. of 5.5% CAP RATES…..

BUT HOW MANY PEOPLE ACTUALLY HAVE $20,000,000 to put down?

If they raised $20,000,000 what guaranteed return would they need to offer their investors? And what % of the deal would they get for themselves?

Obviously, people have gotten tremendously wealth with this formula. But for the avg individual, this is very HARD to pull off. Assuming no appreciation and assuming an 8% pref, there is roughly $18,336 left for the GP’s to divvy up with their LP’s…..hardly a feast for anyone – unless you live in Venezuela!

I show people a very simple formula that I have used to create monthly passive income. You won’t become a millionaire overnight. And quite frankly, this is not a formula for someone that already has 7 figures saved up. This is the exact formula that I used to retire by first creating a $3,000 passive income stream and then repeating the process 10X over. Just 2 little properties can get you to $6,000 per month which is enough for most people to live comfortably on…..ESPECIALLY IF THEY DONT HAVE TO WORK FOR IT!

Sign up today for my free 10-part wealth building course. You Will Be Glad You Did

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Want $3000? Check this out!

Give me only one month of your time and I will change your life! I made the Gold Course to guide all of you looking for financial freedom outside of your workplace. Here is why you should let me help you:

– No experience needed

– Results in one month

– At least $3000 monthly passive income

You’ve waited for too long. Now is the time to take an action and open your own business that can make at least $3000 a month. Group homes don’t require a big investment in advance. You could either rent or transform your property into a group home.

You can turn a house into a group home in just days. Go to few garage sales, get basic furniture and there you have it. Let’s say you start with only six people. Now let’s say you charge the minimum of $500 per month. You could make a monthly passive income of $3000.

My Gold course makes you skip the trial and error and jump right into making money.
You should never rely on one source of income. If you already do, this is your chance to change that ASAP.

How to Stop Worrying About Money?

Just get rich! Seriously, there is no better way!

First of all, I eat, sleep and live significantly better since I got rich. I also worry less, especially about small things that most people worry about every day.

About 11 years ago I stayed in an average hotel in Santa Barbara. During my checkout, the gentleman at the front desk informed me that I made a huge stain on the wall in my room and they will have to charge me for the damage.

I barely stayed in the room and I was pretty sure that I had nothing to do with the stain. Maybe the housekeeping lady accidentally stained the wall. Anyway, the guy insisted that I have to cover the damage.

This literally ruined my vacation. I was saving for so long to afford a decent family vacation and any unexpected expense was a reason to worry about.

On the other hand, If this happened today I wouldn’t bother at all. If I end up being charged I can easily afford it.

Now I earn money even while I am sleeping. I earn monthly passive income from my group home business and the money keeps rolling in no matter where I am or what I am doing.

Not to mention that something like this would never have happened at the expensive resorts I spend my vacations now.

That’s why I enjoy being rich. I don’t have to worry about irrelevant things such as where to dine in, where to park or when the flight tickets are the cheapest. Being rich saves a lot of time and effort.

Back in the days, I would spend hours reading reviews and thinking if a certain online course, program or book is worth the money. I just don’t care now. I will buy it and determine myself.

I transferred the formula that made me rich into an online course. I don’t want every single little problem to ruin your day. I want you to have more awesome days like I do!

I am so grateful for the amazing life I have now and I feel that is my obligation to make your days better.

I’ll do my best to make this happen, are you in?

Diversify or Die

There is this amazing book “Diversify or Die” by Eric Guthrie that inspired me to write this post.

The dynamics of the nowadays market requires everybody to diversify. Diversification is not only for entrepreneurs or companies but for people who work full-time jobs also.

Continue reading “Diversify or Die”

I’ll Teach You How To Make Money And Have Fun!

I just came back from my 3rd vacation this year. In 5 months I was on 3 ten-day vacations. I know for sure that most of you wish to have more time to do fun things in your life. So, I’ll teach you how to have fun while making money.

I didn’t realize how good life can be until I left corporate America. I can have fun and make money at the same time now!

Continue reading “I’ll Teach You How To Make Money And Have Fun!”

The Blueprint For Success

One of the first things that you need to do if you want to succeed is to set clear goals. Next, you need a specific plan how you are going to achieve these goals.

Of course having dreams is important, but every single person on the planet has dreams. Only those who have clear goals and a plan can succeed.

Continue reading “The Blueprint For Success”

What’s your choice?

I know the struggle with having a full-time job and depending on it. I know that you have bills to pay. But would you at least work part-time on your dreams?

If you are helping somebody else build the life they’ve always desired 8-10 hours a day, then why it feels so hard to do it for yourself?

Continue reading “What’s your choice?”

How Fear is Costing You $200,000 a Year

We have helped countless people from many different backgrounds, places, and socioeconomic classes, build successful group homes. Once anyone builds their business, they always come back to us and tell us that they can’t believe they waited so long to start. Most people get the idea to start their group home and take MULTIPLE years to take action on that idea. Every year that you wait is $200,000 in additional income that you are potentially giving up. Fear can be an amazing driving factor but you have to use it correctly. Fear can be the slingshot to send you forward or the wall to block your success.

Continue reading “How Fear is Costing You $200,000 a Year”