Welcome to Wealth Formula
Real asset investing is not limited to the rich. In fact, if you look at the crowdfunding movement on the internet, you can now invest in just about anything you want. Crowdfunding laws in recent years were intended to rectify the “unfair advantage” that the more affluent had to investments with greater profit potential.
But… don’t forget, the opportunities to invest in real assets were there even before the crowdfunding frenzy. Anyone who could afford it could buy themselves a house and rent it out. As you know, residential real estate is my favorite investing asset class. The problem most people have with this idea is that they do not want to be landlords. Sure that rental house might be a great investment and a good source of cashflow but who wants to worry about tenants, toilets, and termites? Certainly not me…in fact, that’s one of the reasons I chose apartment buildings instead. I felt it was easier to get management for larger assets. In most cases, I still believe that to be true.
However, I’ve been talking to more and more investors who have turned to “turn-key” models for investing in single family homes and have had great success with this model. Most of them claim they are getting double digit returns. The idea is that the company not only provides you with deal flow, but it also helps you through the acquisition process with contracts and due diligence and then hooks you up with a quality property manger.
I have no experience with this model myself but wanted to learn more so I contacted my trusted friend and fellow podcaster, Lane Kawaoka of Simple Passive Cashflow. Lane has sort of become the turn-key guy. Anyway, turns out that Lane liked the model so much he got involved in the business himself with a guy named Jonathan Mednick who he bought a bunch houses from down South.
In this episode of Wealth Formula Podcast, you’re going to hear from both of them and you and I are going to learn together! Hope you enjoy the show.
No one wants to get old but it’s better than the alternative. Imagine getting to that age when you are unable to take care of yourself and you start feeling like a burden on your kids. What do you do?
These days, most people in this situation end up at an assisted living facility. When you think of assisted living facility, what kinds of images come to mind? Personally, I think of a sterile Soviet Union style building built in the 1960s with a faint smell of urine covered up with a flower scented cleaning agent. I imagine anonymous cafeterias and care givers who don’t know your name and who are just there punching the clock.
But maybe it doesn’t have to be that way. In most states, a growing asset class known as group homes are becoming more prevalent. Instead of that institutional vision, now imagine a regular house in a regular old neighborhood. Imagine that you know all the others living in that house and all the caregivers know you by name. Maybe that would cut down on the high rates of depression seen in the elderly right?
Now, imagine owning one or two or three of these and making 30 percent return on investment. Imagine owning something like this where the demographic for your customers is exploding.
The opportunities out there are endless but on this week’s episode of Wealth Formula Podcast, we discuss this lucrative, feel good business with Gene Guarino of Residential Assisted Living Academy.
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