“Another California Success Story” – Interview with JT Kahal

Interviewed by Gene Guarino


Gene took the opportunity to sit down to talk with JT Kahal, another RAL student who is finding real success in the Residential Assisted Living business in California. JT is the owner of Crest Pointe Assisted Living in Clovis, California and started his journey by attending one of our RAL Academy 3-Day Fast Track training events.

After the training he received at the 3-day he was excited to get started right away.  However, because he was intent on continuing his primary business in high-end agriculture, he had a critical time restraint related to harvest seasons.  So rather than starting an assisted living business from scratch…buying the property, building or retro-fitting an existing structure, obtaining all the licensing, and starting a marketing campaign for new residents, JT did what we often encourage our students to do, when the right opportunity comes along, he bought an existing RAL business.


After doing his research and running the numbers he purchased a RAL business for $100,000 that was currently operating in 2 homes. He began leasing the homes from the property owner, and after renovations totaling $20,000, which included new furniture and minor repairs, JT quickly got the word out about his Residential Assisted Living homes and was able to fill the empty spots in no time. All in he had about $120,000 invested.

With a total of 12 beds and each home full and running smoothly JT now has a net cash flow of $10,000 per month.  And because he chose to rent the homes rather than buying the real estate, his monthly $10,000 net will pay for the purchase price of the businesses as well as the renovations in a mere 12 months! Then from there every month following is pure profit. Wow!

If you could buy any business in the world that paid for itself within one year and provided $10,000 per month net cash flow after that for years to come, I don’t know of any entrepreneur who wouldn’t immediately jump at that opportunity.

Once the business is completely paid for after the first year, JT could also plan on using the equity in the business to leverage the financing to buy the homes as well. Or if he prefers, he could buy more existing RAL businesses and lease the properties, or even build a property from the ground up. The flexibility JT has because he jumped in and started going right away provides him with significant monthly cash flow while growing a business that has equity and continually growing value.

For those who are tentative when it comes to new business opportunities, this might be a good option for you. Find the right existing RAL business in the right location, then buy the business and just jump into the process. You can decide later about buying the real estate for the business.

Like many of our students, and entrepreneurs in general, JT relates to the fact that self doubt in a new business or unknown field is always the main hurdle to get over.  “The biggest thing is just going in. You’re always going to doubt yourself. Every deal that’s going to come your way, you’re always going to question it.” “I don’t think there’s ever been a deal that came my way in agriculture, or commercial, or here looking for Residential homes that I did not doubt, but they always work out once you put your mind in it.”

JT is right. We are often our own biggest obstacle when it comes to making new investment decisions. We here at RAL Academy hope that with our unique and vital training, along with continuous support can help you overcome any obstacle in this business, especially your own doubt.

Gene often reminds us, “If you’re going to do something in life, do it with passion.  Figure out your ‘Why’ and then the ‘How’ will naturally follow.” The ‘Why’ in Residential Assisted Living is an easy one. How many other industries allow you to help others while creating significant cash flow to provide for yourself and your family?

Not only is JT Doing Well with his Residential Assisted Living homes, but he is Doing Good also and he feels it every time he visits his residents, affirming “Every day I go in my houses I get a nice warm feeling.”

When you are contemplating whether or not to start your RAL business, remember that it’s not just about the business, but you are providing a much needed service that people are desperate for. It should come as no surprise that when you talk with seniors they say they would rather live in a comfortable home with caregivers who genuinely want to assist them, rather than being just a number in one of the big box facilities.

With Residential Assisted Living you are not just entering a new business, but you are entering a new opportunity to care for an often-marginalized group in our society. There are people who need you. They need you to be bold and take the next step in starting your RAL business because they or their family member needs a place that they can call home.

Come to one of our 3-Day Fast Track training events held in Phoenix! We would love to help you get started in Residential Assisted Living and see you become a success story like Jeff!

Contact support@ralacademy.com or call us at 480.704.3065 to sign up today.