09 Jul “Swing for the Fences” – Success Interview with Jeff Rodriguez
Interviewed by Gene Guarino
Recently, Jeff Rodriguez, one of our star students, sat down with Gene to discuss how he got into Residential Assisted Living and the amazing success that followed. Jeff had worked in the construction business for many years doing speculative investing in real estate, but found that he wanted more. He wanted something more permanent with a higher yield on investment. Jeff met Gene at a real estate seminar and was convinced that Residential Assisted Living was an opportunity that he just couldn’t pass up. So he came out to the RAL Academy 3-day training in Phoenix and was equipped with information, tools, contacts, and an excitement that led him to start pursuing a RAL business back home in San Jose, California.
Like many people who first hear about residential assisted living and the opportunity available, Jeff expressed his reservations, thinking, “I can’t do this. Living check to check, I can barely afford my life right now. How am I going to afford another payment here? How am I going to get all this done?”
I’m sure many of us are familiar with these concerns, as they are common in all new business ventures. But just like any endeavor worth doing, it takes the sacrificing of one’s comfort to step out into an experience for which you don’t already see the outcome. A simple leap of faith into unfamiliar territory. But unlike in most industries, with the help of the Residential Assisted Living Academy you aren’t entering the unknown unequipped.
Jeff cites the RAL Academy’s 3-day training in Phoenix as the key to empowering him and unlocking the potential of this lucrative investment opportunity, commenting, “I didn’t have any money in my pocket either, but I wanted to do this business. So I wasn’t going to let anybody tell me that I couldn’t do it.”
And with that, Jeff began networking, attending a few senior events in his area and started telling people what he was looking to do. Although he was looking for a single-family home, through a placement agent, he found a commercial building with a 26 bed capacity on a 10,000 sq. ft. lot in a perfect location in Silicon Valley. A property like that would intimidate most first-time assisted living investors, because how on earth could an individual get financing for something like that.
Admittedly, he ran into a few roadblocks and he got shut down a few times, but he remained vigilant and faced them as they came. Jeff recounts that whenever an obstacle arose, he simply asked himself how he could adapt to the changing circumstances, stating, “every time you hit a roadblock you just have to be water and you have to go around it, or you have to go in a different direction.”
After numerous difficulties, it was the continual support from the RAL team and the opportunity of having one-on-one phone conversations with Gene that helped him to find the solution for financing the cost of the building. Gene challenged Jeff to be bold and ask for the property owner to agree to a “seller carryback” to cover a portion of the initial cost with no interest for 6 months.
The seller carryback option is not a common tactic used in general real estate acquisition, as the seller usually wants to be free of the property and financial liability. “If I didn’t have Gene to call, I would never have imagined to ask another person to loan me $1.8 million on a carry back.” Having the confidence to ask the seller to agree to “a $450,000 risk with us” was a spectacular benefit. And according to Jeff, “It was all about relationship.” “There was no magic there.” “You literally just have to build trust and confidence.” So with that ambitious step taken he was able to purchase the commercial property with no money down. “I literally bought a 3 million dollar building with no money.”
If it wasn’t for his willingness to swing for the fences or his ability to adjust to difficult obstacles, then he wouldn’t have been able to start such an amazing and ambitious RAL business. Jeff is now the owner of Bellerose Senior Living in San Jose, California, which is a 26-bed assisted living facility in the heart of Silicon Valley.
Not only did Jeff swing for the fences in financing his impressive RAL home, but he hit the ground running when it came time to fill the residence as well. We normally suggest that our students plan conservatively and shoot for finding two new residents per month, and at the RAL Academy we give you marketing and networking strategies to help you find those residents. But Jeff took advantage of our training and was able to find 22 residents in 5 months, with a goal of filling the total 26 beds in 6 months. Wow! That is fantastic!
Jeff is a great example of being persistent, setting a goal and pushing toward it regardless of the difficulties that arise. Initially, Jeff was skeptical of the opportunity, recounting his first impressions, “sitting in your seminar, I got a good idea of what this business is all about.” “I started doing some top level math and I was like, wow, this really can’t be real. It can’t be real.” Just as in every area of life there will always be obstacles. We want to equip you to overcome them and we don’t want you to let your doubt be one of those obstacles.
Currently Jeff’s RAL facility is generating $60,000 per month! That is profit after all expenses. Now that is significant cash flow! Imagine what you could do with that kind of passive income every month. The commercial property cost him no money down and now that he’s up and running he’s planning on refinancing the property and lowering his borrowed interest rate while also building significant equity in the business.
We couldn’t be more proud of Jeff and we are so excited about the success of his RAL business. We would love to help you do the same. “If I can do it in California and if I can do it with commercial real estate, you can really do it anywhere.” Jeff is right. If he can start a successful assisted living facility in one of the most regulated markets in America, then what excuse do the rest of us have?
Why should you choose to get trained by our talented experts at the RAL Academy? According to Jeff, “It really took being there with you to give me the confidence that I could get this done.” I spent quality time with you guys. “I got a lot of one-on-one time, which you can’t really get any other place.”
Take control of your future! Come to the Live 3-Day Training held in Phoenix. We’d love to help you get started in Residential Assisted Living Homes and become a success story like Jeff!
Contact email@example.com or call us at 480.704.3065 to sign up today.