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Why Is Senior Housing Such a Hot Topic? (Simple Passive Cash Flow Podcast Interview) (RALA)

Why Is Senior Housing Such a Hot Topic? (Simple Passive Cash Flow Podcast Interview)

During a recent podcast, founder of Residential Assisted Living Academy, Gene Guarino, explained why senior housing is such a hot topic. The aging baby boomer demographic entering their senior years has created an explosive environment.

Currently, there are not enough assisted living beds to accommodate the rising need, making senior housing a hot topic.

However, Guarino remains optimistic.

He says this current crisis can shift into an opportunity for individuals positioning themselves to go good and do well. Guarino quickly answered a series of commonly asked questions, and we’ve chosen to highlight the following content:


  1. Is the start-up process easy?
  2. How big of a crisis or opportunity is assisted living today?
  3. What does the, “Do good and do well” motto really mean?
  4. How effective is the RAL model compared to the big box senior living facilities?
  5. Can people just invest and be hand-off?
  6. How many people need assisted living services and how much does it cost?
  7. How can people learn more about RAL Academy?


Is The Start-up Process Easy?

I first heard about assisted living about 15 years ago. Back then, there were no academies, schools or individuals providing RAL training. Soon after, my 86-year-old mother, Marie, needed someone to care for her – and she deserved it.

You see, my mom spent her entire life caring for others. She raised 7 children, taught nursing school, and provided assisted living care for my dad and grandmother until they both passed. During the last few years of mom’s life, she started forgetting to take her meds, skipping dinner, and suffering from memory loss.

As a result of this difficult experience, my model of senior housing quickly transformed from a business plan into a passionate reality. This was my first exposure to elderly community living – I guess you can say I walked across the hot coals barefoot – and I learned a lot in the process. My mom’s transition sparked the flames of my life’s legacy.

Even with the best training, the start-up process is simple, but not easy. There will be challenges. Difficulties can include licensing, location, zoning and more, but we have the support and resources in place to help individuals succeed. Newcomers can glean from the mistakes we made and learn from our successes.


How Big of a Crisis or Opportunity is Assisted Living Today?

We are all aging, and so are our parents. I always tell people that everyone will get involved in assisted living in one way or another. Either we will own the real estate, operate an assisted living home, or occupy the bed. Residential assisted living is the combined business component of real estate and assisted living.

As a whole, the elder-care market is worth an estimated $350 billion. Business owners can take advantage of this opportunity anywhere in the country. The United States isn’t the first country to experience an accelerated rate of growth in senior living.

Japan and Scandinavia are currently undergoing a senior living crisis. Japan is the world’s oldest country, as it relates to the age of its’ citizens, with more than 25 percent of the population over age 65.

According to Bloomberg, Japanese seniors increased by 600% between 1985 and 2015.
In records numbers, elderly people in Japan are committing petty crimes, to spend their remaining days in prison for beds, healthcare, and meals. Prison faculty are forced to function as caregivers.

Sweden’s senior population is about 20 percent, in comparison to America’s 15 percent.
However, America’s rapidly approaching silver tsunami will swiftly shift causing an unprecedented wave in the senior population.

Guarino says opening new RAL homes across the country is the ideal way to accommodate baby boomers. RAL homes can avert the crisis and create business opportunities.


What Does the “Do Good and Do Well” Motto Really Mean?

Our motto is simple. We are leaving a legacy of doing good deeds by helping the rapidly growing senior community.

Our model offers a higher standard of living and cares for the elderly with upscale housing and better ratios between caregivers to residents.

This model also allows owners to do well financially by earning an additional $5000, $10,000 or even $15,000 net cash flow per month for the rest of their lives.

Hence, owners are able to do good and do well at the same time.


How Effective is the RAL Model Compared to the Big Box Senior Living Facilities?

Residential assisted living is a neighborhood-based senior housing model that offers an intimate family-like setting. These homes are located in the heart of traditional neighborhoods. Guarino’s model has grown in popularity.

These smaller homes have fewer caregivers with familiar faces that are frequently seen by the residents daily. They provide an actual home-like environment that is caring and nurturing. RAL homes are community-based.

They are located in residential neighborhoods, where seniors can feel included in society, as opposed to isolated in large facilities.

Our model provides close proximity and access to community services, stores and parks – location is critical for RAL homes. This is the hottest topic in assisted living because the concept continues to gain more momentum nationwide.

Unlike the big-box model, our homes have a pre-set fee, which includes everything needed in the assisted living setting. Single-family houses converted into assisted living homes are typically based on month to month payment plans with a small security deposit.

The age-restricted 55 and above big-box model, is called Continuing Care Retirement Communities (CCRC). RAL homes and CCRC are completely different concepts. CCRCs are large multi-unit campuses with independent living, skilled nursing and assisted living facilities.

Seniors pay large move-in expenses and extra fees for meal plans, activities and added services.

Big box facilities have a higher fall risk due to a lower staff to resident ratio. They also lack the intimate setting of our upscale single-family RAL homes in normal neighborhoods.


Can People Just Invest and Be Hands-off?

Yes, investing in residential assisted living with a hands-off approach is what some people are already doing. This is an event-driven business.

For example, when dad or mom falls, the doctors will often suggest that someone look after him or her to prevent it from happening again.

When they need help, their children will often seek out an assisted living home. As a result, RAL homes are great low-risk investments. Residential assisted living is combining the business components of real estate and assisted living.

One person can own the real estate while another operates the assisted living component. There are a variety of ways to invest in RAL, and we teach people how to jump in feet first or how to invest hands-off.


How Many People Need Assisted Living Services and How Much Does It Cost?

There’s a silver tsunami on the horizon. About 77 million baby boomers, with 10,000 people turning 65 every day, and 4,000 turning age 85. There are currently about 30,000 assisted living homes in America.

Middle-income seniors will nearly double to 14.4 million by 2029. The average cost to stay in a residential assisted living home is $3,650.

With over half the baby boomer lacking financial resources to afford big box private pay facilities, RAL homes will undeniably be in higher demand. Guarino says this season is the prime time to engage in the assisted living market.


How Can People Learn More About the RAL Academy?

We have an academy that teaches students how to earn an additional $5000, $10,000 or even $15,000 net cash flow per month for the rest of their lives.
Individuals can increase their income by transforming a single-family home into a senior living residence.

We offer a free introductory video course to provide people with an overview of the RAL business. Our introductory courses, podcasts, and 3-day training classes help people avoid risks and losses. This free 7-part course explains exactly how and why RAL works.

7-Part Course Description

VIDEO 1 Discovery

Discover the 3 ways to get involved with residential assisted living and the 5 keys to RAL success.

VIDEO 2 Definitions

Learn the definitions of RAL terminology, see the real estate opportunity, and discover why you’re in the right place at the right time.

VIDEO 3 Secrets

Learn the secrets to getting two times the rent by filling your home with long-term, low-impact tenants.

VIDEO 4 Income and Expenses

Get into the nitty-gritty of RAL income/expenses and breaking down the numbers to discover how much you can really make.

VIDEO 5 Location

Gain insight into mastering the most critical element of RAL success: identifying the right location.

VIDEO 6 Business

How to conduct renovations, building your team, filling your home with residents, and getting paid.

VIDEO 7 Getting Started

Learn exactly what systems you’ll need for long-term success and the next steps to get started.

CLICK HERE to get immediate access to the free 7-part course.

So, why is senior housing such a hot topic?

Across the country, people have done enough research to realize that right now is the best time to engage in the residential assisted living business. Are you ready to increase your monthly net cash flow?

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