3-Day Fast Track — Residential Assisted Living Academy Training Event

There is a growing demand for quality caregiving and assisted living facilities in America. Thankfully, because of technology and modern medicine, people are living longer and spending more time in their twilight years. The only downside is that the current health care system in America is not prepared for this and population projections indicate that the demand for assisted living will increase drastically over the next 25 years.

The United States, like many other industrialized countries, is on the verge of a major shift in age demographics, which will manifest in a widening gap between the supply of assisted care and the need for it.

Some have seen this as a major challenge for our society to deal with, while more optimistic individuals have seen the potential for change. There is an opportunity to get ahead of this impending tsunami, to help create a system of safeguards in this country that will provide care for our aging population, while also creating a rewarding and financially sound investment portfolio to support your family for decades to come.

As founder of the Residential Assisted Living Academy, Gene Guarino recognized the potential in this demographic trend and set about to create a system by which entrepreneurs could be educated and equipped to start their own assisted living facilities, but within a residential home environment, as opposed to the large, cold, institution-like structures.

Baby Boomers are retiring at a rate of about 10,000 per day.

According to figures compiled by AARP, by the year 2020 there will be an estimated 117 million Americans who require assistance of some kind. This is in stark contrast to the minimal growth in the number of caregivers and assisted living facilities. The balance between need and supply is about to make a dramatic shift and is likely to overwhelm current health care and support systems.

Many factors are contributing to this increasing deficit; families scattered across greater distances, declining birth rates, the increase of mental conditions like Alzheimer’s and dementia, and many others. Today, the job of caring for aging loved ones is a responsibility that is shared by fewer and fewer family members and this deficiency will need to be compensated for by a greater network of caregivers and assisted living homes.

Don’t worry, all is not lost. It may sound like a huge problem, and it is, but fortunately there is a solution. This is where you come in. You may be thinking, “But I don’t want to spend my days caring for the elderly. That is just not one of my strengths.” That’s ok, you don’t have to. You can still make a difference in the lives of others, while also creating financial stability for your family.

Gene created the RAL Academy to teach you how to meet this growing demand by hiring the right team around you to take care of the day-to-day, while you oversee the business and handle the financial aspects.

Gene has also put decades of experience and countless hours of research into designing an immersive 3-day Fast Track training course that will set you on your way to success in the Residential Assisted Living industry.

Click here to register for our 3-Day Fast Track Event

Come hear from industry professionals and learn how Residential Assisted Living is the answer to financial freedom and security for you and your family. Our experienced trainers will teach you how to find the right home, in the right area, how to attract investors and get funding, how to hire caregivers and support staff, and all the systems and procedures to help you on your way toward success in this vital and rewarding industry.

For anyone who wants to get started, expand, invest in or help support the mission of providing high quality care for our seniors, this is your moment. This is your opportunity.

The truth is, during your lifetime you are going to get “good” at doing something.The question is what?

Some people get really good at making excuses and never taking action.  Others will get great at seeing opportunities and taking action in order to make the most of them.  The choice is yours, so choose wisely.

Check out our website for all the ways you can take advantage of this amazing opportunity and learn more about the Residential Assisted Living Industry.  What it is, who is getting involved, how you make a lot of money, and more importantly, how you can help others.

“Do Good and Do Well” is our motto. And we want to invite you to be part of the change that will ensure that our elderly, the most vulnerable in our society, have the care that they need for decades to come.

The Silver Tsunami of seniors is hitting the shores now, and they need people like you. Be among the first to respond to this incredible opportunity today.

For more information, or if you have questions about how you can get involved,


Phone: (480) 704-3065

Email: [email protected]

What Does A Residential Assisted Living Home Look and Feel Like?

So you are interested in starting your journey in the Residential Assisted Living industry, but you don’t have a clear picture of what it should look like?

The RAL Academy is here to help.

A Residential Assisted Living home, first and foremost, should look like, well, a home. There are so many options available to people who find themselves needing to locate a residence for their aging parents. Unfortunately, many of those options at the moment are the big box facilities, which feel cold and unaccommodating. These facilities are very common and often what comes to mind when most people think of assisted living.

We want to encourage you to offer another way. Our aging parents or grandparents grew up in a house that they made into a home. That is what is comfortable to them and what they are used to. So whether you are starting with a single-family house or a commercial building that is being converted into a residential facility, the look and feel to aim for is one of a home.

Consider the image to the right. With the open floor plan and comfortable furniture, doesn’t it feel more like a regular home full of warmth, rather than an assisted living facility?

There should also be a sense of convenience and accessibility to every area of the home, including the outside. Driveways, paths and walkways should all be easy to navigate for people of any mobility. Inside, consider adopting an open floor plan with less clutter and strategically placed furniture to allow freedom of movement for all residents. Consider space not only for residents, but also those who will be visiting them.

Remember, while accessibility for the residents is paramount, it is also necessary to consider accommodating for families of the residents. Do you have a large dining area or living room to entertain family members comfortably all in one area? Is there ample room for parking near the residence for visiting family members?

Consider offering amenities that create a comfortable and cozy environment. Like any business, you want your brand to stand out from the rest, and one of the often chosen options in the U.S. is the big-box facility, most of which feel sterile and cold. So, to set yourself apart and establish an identity that is attractive to prospective residents and their families, try to create a sense of warmth and care in your RAL home. Chose furniture that looks and feels comfortable. Most homes don’t have bare walls, so think about adding personal touches like art on the walls.

Think About All Five Senses

Consider what a home looks like, feels like, and even smells like. The home should look and smell clean. If you were looking for a place for your aging parents, would you even consider one where the staff didn’t appear to keep the residence clean? Of course not. If we can’t keep the home clean, that will communicate to prospective residents and their families that we are unable to sufficiently care for their loved ones.

Aside from keeping the home clean, another way to create a great smelling home is to use an air purifier, which can also be a benefit to the health of the residents. Delicious home cooked meals create a wonderful aroma, so think about when you will be hosting visitors at the home and plan on being aromatically prepared. Try something as simple as fresh baked cookies, or have freshly cut flowers in a vase. When your guests walk through the door they will be immediately greeted with the feel of warmth and comfort.

There are so many elements that need to be considered when starting your Residential Assisted Living Home and so many ways that you can create a space that will attract residents and keep your home full.

If you are interested in finding out more, check out our YouTube channel, filled with tons of content to answer all your questions and help you navigate this exciting opportunity with confidence.

Obbie Gohar Think Realty Radio

The baby boomer generation is hitting an all-time high. By providing them a place to live you are filling a great need in our country. There are 77 million baby boomers and Gene Guarino with Residential Assisted Living Academy breaks down the real estate and the business side of owning residential assisted living.

To learn more about how you can begin owning and investing in Residential Assisted Living, visit RAL101.com.

The Power Play: A favorite segment is back: Smart people saying dumb things about real estate and we are discussing housing affordability.

Residential Assisted Living Technology

As the pace of technological advancement quickens and its products become ubiquitous in our everyday lives, it can be easy to dismiss new developments as simply a fad. But every once in a while something comes along that has the potential to change the way we live for the better. Here at the Residential Assisted Living Academy, we are continually searching for opportunities to help you improve your Residential Assisted Living Homes and we wanted to pass along information on this new technology that might be of use to you and your residents.

Recently, Apple has come out with their new range of Apple watches and some of the features available in this model are quite impressive and especially applicable to aging populations.

*Full disclosure, this is not an advertisement for Apple. There are numerous versions of this technology on the market, but for the sake of simplicity and to shed light on the potential benefits for seniors, we are discussing the Apple version.

One of the interesting features of this watch is the Breathe app, designed to assist with mindfulness, meditation and stress reduction and can be used to help lower the heart rate. The app then coaches you through a session, as you practice breathing and it monitors your heart rate and provides a summary of the breathing sessions. Mindfulness and breathing are increasingly seen as an essential component of mental well-being. Health professionals recommend mindfulness as a way of dealing with stress, anxiety and depression.

Another useful health feature that is especially beneficial for seniors is that it can now detect when the wearer falls by analyzing wrist trajectory and impact acceleration. It will then initiate an emergency call. If it senses the wearer is immobile for one minute, it will automatically call and send a message to emergency contacts using the SOS feature.

Many heart monitor watches and older models of the Apple Watch include an optical heart rate sensor to track resting heart rate, calories burned, and more. But this latest Apple watch will be able to screen the wearer’s heart rhythm in the background. And it will send a notification to the watch if it detects irregular rhythm, which could point to atrial fibrillation or other heart malfunction. The watch also sends the wearer notifications if their heart rate appears to be too low, possibly signifying that the heart isn’t pumping enough blood to the body. Although the device is obviously not able to diagnose an issue, it can potentially help detect it for you so you can then consult a medical professional.

Could this simple technology help save lives?

One of the most impressive features on this latest version of the Apple watch is the built-in electrical heart sensor allowing users to take an electrocardiogram (ECG). The first of its kind in a smartwatch, this feature will measure electrical activity of the heart in order to help detect abnormal heart function. The user is able to take an ECG anytime, anywhere, straight from their wrist by opening the app and placing a finger on the digital crown.

The reading is ready in just 30 seconds, allowing the wearer to determine whether their heart is beating in a regular pattern or if there are signs of atrial fibrillation, which can be an indication of serious health problems. Atrial fibrillation is a health condition that often goes undiagnosed, so the ECG feature in the watch will be very useful for detecting early signs of disease.

And since all of the information is stored in the health app, the wearer will be able to share the ECG with a doctor, who will be able to see a more detailed picture of how the heart is functioning. It should also be noted that Apple has received clearance from the Food and Drug Administration to promote these health claims.

Bottom line…Is this technology for everyone?

Maybe not. The price tag is a bit steep at $399 and there are other brands at a more reasonable price with fewer features. However, if the ECG feature can inform the wearer of heart malfunctions that lead to a doctor catching a problem before it’s too late, I would say that is definitely worth the cost of the watch and much more.

At the Residential Assisted Living Academy, we are not interested in promoting random products, but our goal is to inform you about opportunities and solutions that can help your assisted living business and to help improve the lives of the seniors in your care.

Whether this is a technology for today, or possibly one that will proliferate in the near future, it is nonetheless an interesting opportunity to consider.

A Day In the Life of An Assisted Living Caregiver

Have you ever wondered what a day in the life of a caregiver entails? Whether you are already involved in Residential Assisted Living or just curious about this rewarding and fulfilling industry, surely it is something that most of us have thought about. These wonderful professionals who take care of the most vulnerable in our society are a vital part of any RAL business. And while it is difficult to truly depict a caregiver’s day as each varies based on the resident’s needs, the following is an example of a typical day for these busy and caring saints.

The Average Morning of A Residential Assisted Living Caregiver

7:00 am: Time to rise and shine. The caregiver wakes up, getting ready for the day, and if necessary wakes up any residents who many need assistance getting up. The caregiver gives special attention to any personal care or help with hygiene that residents might require after waking.

8:30 am: The caregiver and residents usually enjoy breakfast together, which is often prepared by the caregiver. This is also usually the time that many residents take their medication.

10:00 am: Fitness time. The caregiver may lead or assist a paid fitness trainer in leading exercises for any residents who are capable of exercise. Moderate daily physical activity is so important for the health of all residents. This may involve light aerobics, senior yoga, calisthenics or the caregiver might go on a walk with residents to get their blood flowing and keep their bodies moving.

11:00 am: The caregiver may organize or personally help their residents get to and from any appointments to doctors, dentists or other obligations scheduled for the day. They might also run errands for the RAL home and may be accompanied by a resident or two.

The Average Afternoon of A Residential Assisted Living Caregiver

12:00 pm: After completing various chores, the caregiver will prepare lunch. Lunch is a great time for friends and family to stop by for a visit. Lunch can also be a good time for any prospective residents and their families to come tour, so the caregiver will be busy assisting residents while helping on the tour and answering any questions that the families may have.

1:30 pm: Nap time! Depending on the health and energy levels of the residents, they may like to take a rest while the caregiver finishes up tasks around the house. This time is often productive for the caregiver, and can be used for tasks like scheduling doctor’s appointments, washing dishes or preparing for dinner.

3:00 pm: Often after a rest it is a good time to re-engage and exercise the mind. We know how crucial it is for seniors to get mental exercise and keep their minds active, so caregivers will usually lead or assist in activities that engage the resident’s mentally. Some activities may include playing cards, puzzles, board games, crosswords or other interactive elements rather than simply turning on a T.V. and vegging out.

5:00 pm: Depending on the weather or surrounding environment, the caregiver and residents may take a walk or spend some time outside doing a bit of light gardening or other light outdoor activities that stimulate their bodies and minds. Getting sunlight, fresh air and change of scenery is a welcome activity and a pleasant conclusion to the day.

The Average Evening of A Residential Assisted Living Caregiver

6:00 pm: Dinnertime! In many RAL homes, the caregiver is often the one who prepares dinner and they usually share the evening meal together with the residents. Engaging them in conversation and reviewing the day’s activities or challenges is a great way to exercise the mind and memory of the seniors. This is also another key time that may require the caregiver to dispense medications or tend to the other health needs of their seniors.

7:00 pm: Time to unwind and relax. The twilight period of the day might consist of reading books, watching a television show or participating in a hobby together. The evening is often a challenging time for those suffering from dementia and Alzheimer’s, so caregivers are often focused during this time on helping residents manage fleeting memories, confusion and anxiety.

9:00 pm: Bedtime. The caregiver assists with additional personal care needs before helping their residents get into bed. Depending on the needs of the seniors and the house schedule, the caregiver may stay overtime to hand off responsibilities to the caregiver who works from evening till morning, making sure there is someone on hand should assistance be needed throughout the night.

This is just a small, abbreviated glimpse into the regular life of a caregiver. While there are many similar elements, caregivers rarely have the exact same day, and are often faced with numerous unexpected challenges. All of these depend on the needs of their residents and the level of care and options that each individual RAL home offers.  For example, some many hire independent contractors who specialize in memory care or fitness, while some RAL homes may offer a personal chef, allowing the caregivers to focus more on the constant needs of those in their care. Every caregiver will probably tell you that there is no “typical day,” but they continue to invest their time and their lives into helping our dear and beautiful parents and grandparents, and for this we love and appreciate them.

If you have the pleasure of knowing any caregivers, we encourage you to thank them for their hard work and if you are able, offer to give them a hand. And if you, yourself are a caregiver, we here at the RAL Academy want to thank you for your service and for the amazing work you do from morning to night.

If you want to know more about the life of a caregiver, listen to Gene describe how his caregivers operate.  Also, check out many more informative videos at our YouTube channel, and don’t forget to subscribe.

Residential Assisted Living — The Investment Number

There is undeniable mounting evidence that points to Residential Assisted Living as the next big investment opportunity in America. Assisted living and senior housing are hottest topics in real estate, business and investing and will only be getting hotter for the next 20 years. Many of today’s baby boomers are facing the reality that their parents need assistance in their current and future care. These are people who are not ready for a nursing home and yet they can’t stay at home alone.

Residential Assisted living is the best alternative for millions of these seniors and this isn’t going unnoticed by investors and health care providers.  As the Boomers continue to get older and live longer, the need for senior housing and assisted living is growing by the day.  The opportunity this provides for entrepreneurs, lenders, investors, equipment suppliers and support service providers is increasing at an accelerated rate.

A Few Sobering Facts About the Population

According to data from Centers for Medicare & Medicaid Services (CMS) as well as data from the Census Bureau, by 2029 the senior age demographic will experience accelerated growth and will account for more than 20 percent of the total population. It is also held that by 2050, seniors aged 85 years and older are estimated to grow faster than the entire working age population. And with the elderly population growing faster than their younger counterparts, healthcare costs are projected to escalate significantly.

Between 2016 and 2026, healthcare expenditures in America are expected to reach nearly 20 percent of the entire national Gross Domestic Product, with the spending growth of Medicare increasing from 3.6 to 5.5 percent. While on face of it, those margins don’t sound sizable, but when the GDP is currently 18.57 trillion dollars, 20 percent of that is a significant sum.

Ok. Those are remarkable numbers, but what does it all mean?

Healthcare providers and organizations are beginning to turn their focus toward elder care as costs are slated to rise significantly with elderly individuals requiring additional services compared to their younger, healthier patient population. With this rise in healthcare costs, experts project a slow planned shift of elder care from hospitals and skilled nursing facilities to the home.

In a survey by the New England Journal of Medicine and the BDO Center for Healthcare Excellence and Innovation nearly half of all healthcare executives, clinical leaders, and clinicians recently surveyed indicated that their organizations plan to prepare for this senior population growth by investing considerably in home health services by 2020.

Only 12 percent of healthcare leaders surveyed anticipate investing in skilled nursing facilities to respond to the aging population, while even fewer plan to invest in long-term acute care hospitals (7%) and inpatient rehabilitation facilities (6%). These survey results show that providers are aiming to control their costs by caring for elderly patients outside of the practice or hospital system.

What Do the Numbers on Seniors, Healthcare, and Care Mean?

We can’t emphasize enough just how significant these numbers are, and generally, when investors see a trend this compelling and inevitable, it elicits only one response…How can I capitalize on this?

And unlike most investment trends, this one IS inevitable.  People aren’t going to stop growing older. And as Americans continually live longer than ever before, those extended life spans come with longer periods of needed assistance during the twilight years.

The fact remains that just about every single one of us will end up encountering assisted living, whether for ourselves or those we love. Nursing homes around the nation are not prepared for this growth, and as plenty of evidence has shown, these big box facilities aren’t places that you would want to depend on to care for your loved ones.

At the Residential Assisted Living Academy, we are providing a better way. A better way to care for our seniors, with respect and dignity. A better way for you to invest… To get out of the rat race… To secure your family’s financial

Gene founded the RAL Academy to help people like you, and so you could go out and help others. We don’t want you to miss this opportunity and it is crucial to get in on the ground floor.

Would you like to know how Residential Assisted Living holds the key to your future? Come out to our 3-day training and see why this is an unmissable investment opportunity.

Also, join us October 4-7 at the Residential Assisted Living National Convention, where more than 500 RAL owners, investors, suppliers and service providers will meet to equip each other with tools and networks to meet the needs of the Silver Tsunami of Seniors that is hitting the shores of America. This convention is your opportunity to be at the forefront of the incredible opportunity in residential assisted living right now.


If you have any questions about these important events or how you can get involved, let us know. We would love to hear from you.


Isabelle Guarino

[email protected]


Success Interview with Matt Sullivan

Gene had the opportunity to visit with Matt Sullivan at his RAL home Southern Grace Assisted Living. Located in Kentucky where the state meets Illinois and Tennessee. Southern Grace is in a Frank Lloyd Wright design inspired home built in 1975. Gene returned to the office very impressed with the exceptionally peaceful feeling that the home and caregivers emanated. Recently, Gene interviewed Matt for our Success Interview Series where Matt talked about some of the challenges of updating a large unique home to a residential assisted living home.

Kentucky uses a social model so there is no licensing, just state certification once you meet all the rules and regs, but the state does require larger rooms (minimum 10×20 feet) with an attached bathroom for every resident’s room, although bathrooms can be shared between rooms (i.e. a Jack and Jill bathroom). Like most SFH to RAL conversions Matt had to do some rehab and the state requirements did pose some challenges because even-though the home was 5000 square feet, it only had three bedrooms. He was able to take the master bedroom suite and turn it into three bedrooms, and a den turned into two more bedrooms. There was also a sunken living room that needed to be raised, Matt was a bit sad to lose the beautiful hardwood floors, but he said that it was worth it. As Gene says, “Sometimes you gotta do what you gotta do,” and this rehab was no exception. After touring the home, Gene said you couldn’t even tell that it had been raised and a new floor installed.

Gene Guarino and Matt Sullivan from Southern Grace Living Assisted Living

The home had been purchased for $360,000 and sat on 3 acres of land. The rehab was $700,000 completely gutting the home side-to-side. Matt said he could stand on one side of the house and see all the way through to the outside on the far side. At this point, Gene will tell you, “Don’t think that all renovations cost that much!” This was a unique case of renovations, additions, a lot of bathrooms, and some high-ticket items required by the state including a water line out to the street, grease trap, triple sink in the kitchen along with double washers, and everything in the remodel done was with high end materials.

Southern Grace is a mixed 12-bed home of singles and doubles and could net around $12,000 to $15,000 per month when full, but Matt realistically calculates some vacancy and budgets a net of $10,000 to $12,000 per month consistently. In addition, he plans to raise the rates as the word gets around and a waiting list develops.

One of Matt’s challenges is educating the surrounding population about residential assisted living. Many people are just not aware of what it is. One way he has increased awareness is with his ‘Photo Stop.’ If you are in the RALA Inner Circle Facebook Group you may have seen Matt’s great idea for creating a buzz around Southern Grace Assisted Living. He is well known for creating holiday ‘sets’ where the public can take pictures of themselves on the front lawn that corresponds with the current season or holiday. Matt says that it has caused people to slow down and SEE the home, basically become aware of the home, and even stop to take pictures at his ‘Photo Stop.’ In each ‘set’ he makes sure that the Southern Grace sign can be seen or the actual home is in the background. The kids really love it and it creates brand awareness.

Matt is a Worship Pastor at one of the larger churches in the area and along with his wife and son, consider Southern Grace a form of ministry. Running your own RAL gives you the ability to create the culture that you are passionate about without worry of offending a customer or your boss, since you are the boss. The right people will come to your home because you offer unique services that meets their needs. Quite often this is a critical time in the resident’s and the resident’s families lives so Matt and his staff take prayer requests from residents, resident families, and the care giver staff, prayer is said before meals, and many of the residents and staff will join together in bible study and help with prayer groups. The residents love it.

One of the greatest things about owning an RAL for Matt is the moment when a family member comes to him and expresses how having a home like this has changed the resident’s and the resident’s family for the better. Matt tells a story of one moment where the daughter of one of the residents came to him and told him about one of their newest residents – the mother had lived with the daughter for 15 years and was never happy, then went to the other daughter and lived with her, but still wasn’t happy. The daughters had never seen her really happy. One week after moving into Southern Grace, the daughter asked her mother how she liked it (fully expected complaints about food or not it being home). Instead the mother said, “It’s great. All the people are friendly, and the food is so good. It’s normal, good, food!” The daughter who lived 3 hours away said, “Matt you don’t know what that means to me, that my mother is happy in a place like this, it means the world.” Matt says that to hear things like that from the relatives that express that they can go home and not constantly worry about their parents and that we are making a difference in their parent’s quality of life has been unexpected and makes it really worth doing – even more than the money.

This was Matt’s first home and he made sure to use RALA support and watch every YouTube video that Gene ever made, “over and over again,” he jokes. He has worked in a corporate environment in the past, but never as the boss and he said that he had a lot to learn. His biggest piece of advice is to ‘keep on keeping on’ because there will be some challenges. Matt says that when doing something the first time there will be challenges and looking back he wouldn’t consider starting without the consulting that Gene and RALA provided. He learned at the 3-Day Live Assisted Living Business Accelerator course that in this business if there is a problem, identify the problem, and find a way around the problem, and then take action.

As we say around here, ‘the first home is the hardest’ but after that it gets easy. By just taking it one step at a time you will get there. As for Matt, he is already looking for his second home and considering creating a memory care home near Southern Grace. He loves that RALA has shown him a way to make a difference in the world while also creating a strong financial legacy for his family.

Matt is a great example of Doing Good and Doing Well and we couldn’t be prouder of his success!

Doing Good and Doing Well After 50

Recently I was reading an AARP Bulletin article titled “Great Second Careers, GOOD NEWS: You CAN Find Success, Security, and Happiness After 50 With a New Job,” (Jan-Feb 2018 AARP Bulletin) it reminded me of how great Residential Assisted Living Homes have been and can be as a second career.

The article stated that 40 percent of people working at age 62 had changed careers since they turned 55. Many of our RALA students are over the age of 50 and looking for that second career to transition into or as additional income. Often, they are tired of trading their time for dollars and looking for something that will provide them with real income, but without having to work 40+ hours a week.

Many times they were laid-off and found difficulty getting hired in their same field. Like the rest of us, some were thrown back so hard in 2008 they need to make up for the financial hit fast so they don’t have to work for the rest of their lives just to keep a roof over their head and food on the table in retirement. As Linda Chidester was quoted in Cleveland.com Living On section “I am in my late 50s and work three jobs to make ends meet. It is not for lack of trying or lack of education… organizations want younger workers …. I have money put away for retirement, which will not be available until I am in my late 70s”.

The beauty of Residential Assisted Living homes is that it doesn’t matter how old you are to be successful in the business. In addition, with RAL Academy you don’t need to spend years going back to school to try to be hirable again. You can easily forge your path to a new lucrative career that is purposeful and helpful while creating a legacy to benefit you and your loved ones.

I know I might be preaching to the choir, but what a great business and investment at any age! Many businesses and investments are economic driven. RAL’s are EVENT driven. What that means is that we are riding the Silver Tsunami wave of the Baby Boomer population that is driving the need for care. It won’t matter what the economy is doing, the need will still be there for quality elderly care. Now is a great time to establish your new career in owning Residential Assisted Living homes because you are just in front of the wave. Creating your own lifeboat from career or economic downturns is one of the smartest things you can do and RAL Academy has helped people get the education they need to be successful in their goal of creating a new career. We love to see the success of our students as they go on to create wealth and security in their lives and making a difference in the lives of seniors.

We are committed to helping make a difference in the Senior Assisted Living space. If you know of someone who might be looking for the right kind of business to start or transition into – share your thoughts on RAL and send them to RALAcademy.com where they can find out more.

We’d love to help them on their path to creating a new career while Doing Good and Doing Well.

Chris Martenson and AdamTaggart Peak Prosperity Featured Voices

Gene appeared on Peak Prosperity’s Podcast with Chris Martenson.

About This Podcast

Gene Guarino, founder of Residential Assisted Living Academy, joins the podcast this week to explain the model to Chris, as well as the ways that investors can get involved in this growing movement. Those with capital interested in “doing well by doing good” can participate in syndicates that own the residences, creating more inventory to expand this model to. The investment returns are attractive, as is being a part of a movement to offer more housing options to the fast-growing ranks of seniors looking to live with dignity.

The Valuation of a Residential Assisted Living – The Real Estate and the Business.

This valuation has two parts. Think real estate on one side and the business on the other. You have a home which is the real estate with value. Let’s talk about that first. The home is a residential property. It’s a residential home in a residential neighborhood. Notice I keep stressing “residential” because as much as you think it’s commercial because it’s a business, it’s not. It’s residential.

The home is valued based on the comparable market analysis, based on the other homes in the area. If the garage was converted to a living space, that’s a plus and a minus because now you have extra living space, extra square footage which is good, but you no longer have a garage which is bad. If the home is twice the size of every other home in that neighborhood, it’s not worth twice as much.

It’s going to be worth more, but not twice as much. The additional space that is created which is very common in residential assisted living is not worth per square foot the exact same as every other square foot for every other home in the area. Additional space is good for the business, but it’s not worth the same on every single level.

When you take out a bathtub and you put in a shower, that’s a plus and a minus as well. When you add grab bars, a plus and a minus as well. All those different things you add, they add to the valuation. Realistically, a lot of times specifically for a residential property, an appraiser is going to have a hard time getting that appraisal correct.

I’ve had appraisers come to the home and look at it and go, “You know, it looks like a duck and it quacks like a duck, but this duck is a little bit different. It’s in a residential neighborhood, but it’s got business inside. There’s a license on the wall, there are grab bars on the wall; there are different things going on.” They have a bit of a hard time getting the correct appraisal.

What about appraising for an SBA loan? The appraiser understands that there’s a business involved, it is residential real estate and it’s a guaranteed loan by the government, so even though there’s the bank involved, the government guarantees. The appraiser has a different level of experience. I’d have to say that the appraisers that come in when there’s an SBA loan involved tend to have a little higher level of experience.

Let’s talk about the business.

I’m going to give you a couple of ways to value this business. – Tweet this!

First, if it were a big box like a Brookdale, Sunrise, Atrium, it’s all about the cost per bed. They’ll have 100 beds and they’ll say it’s worth $100,000 per bed, $200,000 per bed. Keep in mind, they have an infrastructure that includes parking lots, boiler rooms and commercial kitchens, and everything else relevant to a huge facility.

We can’t look at it the same way for a residential facility. As a business is worth one thing and then per bed is worth something else. Let’s assume the business is worth 50,000 (just giving you a number). Then per bed, depending on the revenue each bed generates, the gross revenue might be worth $10,000 per bed to $25,000 per bed.

If it’s $10,000 per bed (10 beds), $50,000 for the business and $10,000 a bed, 10 beds, that’s an extra $100,000; that business is worth $150,000. Let’s check the cash flow. If you have $50,000 a month coming in, and your expenses are $30,000 a month, you have $20,000/month of net income. Each year, $240,000 in profit. If I have a multiple of two, that would be $480,000.

That would be one way to value that business. I could go 1x that multiple, 2x or 3x. Bear in mind that this is not a technology company. It’s not going to be worth 10x, or 100x that. Unfortunately, a lot of people do not understand this business the way I do. They will value the business on something like 5x, or 10x the cash flow of the business.

If you valuate on the gross and not the net income; the numbers will really skew. – Tweet this

You really need to know this business the way I do.Frankly there’s just not a lot of people out there that do it. At the Residential Assisted Living Academy, this is all I do. It’s what I teach, it’s what I know. I do this business myself, that’s why people call me to ask me what do I think, and how do I do it.

There are two parts on the valuation. One is the real estate. Pretty cut and dry. What is it worth compared to what other properties are worth? What alterations have been done to the property? Just because you made it twice as big, it doesn’t mean it’s worth twice as much.

On the business side, we can go per bed

plus something for the business, but I would rather you do it on a profitable basis. How much is the profit, let’s have a multiple, and is it worth 1x the annual profit, or2x? Maybe 3x?

If I’m buying it, let’s call it 1x. If I’m selling it, let’s call it 3x. – Tweet this!

This is the valuation of residential assisted living. If you’d like to learn more, and I bet you do, This is a great industry where you can learn how to make money and help people do good and do well. Continue to explore our resources and check out the amazing training that we have to offer: residentialassistedlivingacademy.com

Watch this short video: https://flipnerd.com/show/valuation-residential-assisted-living/

Do Good and Do Well!

Gene Guarino

Founder of the Residential Assisted Living Academy.

PS: The right time to do the right thing? It’s always right now. Don’t let another day be lost or wasted not creating the freedom you want in your life. Call us (480)-704-3065 or just click here and let’s get started.