Join us on this episode of Raising Private Money as we sit down with Isabelle Guarino-Smith, a renowned entrepreneur and investor trainer at the Residential Assisted Living Academy. With her wealth of knowledge and experience, Isabelle has empowered countless entrepreneurs and investors through her teachings.
Isabelle’s expertise extends beyond training, as she has played a pivotal role in establishing and elevating numerous companies to national recognition. From spearheading brand development to overseeing day-to-day operations, she has been instrumental in the success of enterprises such as the RAL National Convention, RAL National Association, Recovery Housing Academy, Pitch Masters Academy, and several other ventures within the Impact Housing Group.
With her focus on this unique niche, Isabelle is dedicated to teaching others to “do good and do well.” Tune in for an insightful conversation about investing in real estate assisted living and the niche!
Key Takeaways:
- What is residential assisted living?
- Nursing homes vs. residential assisted living
- The different levels of services in residential assisted living
- The shortage of supply in the face of the growing demand for residential assisted living
- The return on investment in residential assisted living
- Should you get the money lined up first before the deal?
- Successful people make decisions quickly.
- Why invest in real estate assisted living now?
- How to find properties to convert into homes for assisted living
- Doing well for yourself is important, but doing good for your community is more so.
Connect with Isabelle:
Website:https://residentialassistedlivingacademy.com/training/
Download Isabelle’s Free Book: https://www.RAL101.com
Check out my book: 7 Reasons Why Private Money Will Skyrocket Your Real Estate Business and Help You Build Incredible Wealth!
Get it here for FREE: www.jayconner.com/moneyguide
Sign up for the Private Money Academy and get 4-weeks free: https://jay-conner.mykajabi.com/offers/AMM4hCPW/checkout
Sign up for the Private Money Academy Conference: https://www.JaysLiveEvent.com
Timestamps:
0:01 – Get Ready To Be Plugged Into The Money
0:40 – Today’s guest: Isabelle Guarino-Smith
2:35 – The Journey Towards Residential Assisted Living
4:40 – From Single-Family Home Into Residential Assisted Living
7:13 – What Is Residential Assisted Living?
8:47 – Nursing Home vs. Residential Assisted Living
9:16 – Different Levels of Services In Residential Assisted Living
12:23 – Finding Gold In Residential Assisted Living
17:33 – ROI in Investing In Residential Assisted Living
20:04 – Jay’s Free Private Money Guide: https://www.JayConner.com/MoneyGuide
23:00 – Which One Should Come First, The Deal Or the Money?
25:07 – Connect With Isabelle Guarino-Smith: www.ResidentialAssistedLivingAcademy.com
25:35 – Download Isabelle’s Free Book: https://www.RAL101.com
25:58 – Why Start Investing In Residential Assisted Living Now?
30:57 – How To Find Houses To Convert Into Residential Assisted Living
Finding Gold In Residential Assisted Living With Isabelle Guarino-Smith & Jay Conner
Jay Conner
00:00:01
Well, welcome to another episode. I’m Jay Conner, your host also known as the private money authority coming to you from Morehead City, North Carolina. I’m so excited to have you here for another show. Wow. We are launching into our fifth year of the show and I really appreciate the subscribers, the likes, the ratings, and all that kind of good stuff. And I’m gonna ask you, when you find this show beneficial to you, I’m gonna ask you to just share it with one person. So if you’ve been tuning in you, for sure know, I have an amazing guest joining me here on the show. And today is another amazing show. My guest, she trains and she teaches entrepreneurs and investors at what is called the residential assisted living academy. Now she’s responsible for the creation and the success of the residential living academies, the national convention and the national association, and the recovery housing academy.
Jay Conner
00:01:06
I mean, my guess as a creator, and if there’s anything that you would want to know and learn about investing in and knowing about residential assisted living, then you are tuned into the right show today. Well, she’s got a background in business marketing and communication. She was an intern as well at Walt Disney World, and she’s worked for two Fortune 500 companies. And so without a doubt, you’re gonna learn here in just a minute, how much of a true leader she actually is in business development and in operations, she is named and has been named the future leader in the senior housing industry in the top senior housing influencer all under the age of 30 years old. Now her goal is to carry on her father’s legacy by training investors and entrepreneurs on how to quote-unquote, do good and do well. And with that, it’s my pleasure to introduce you to the show, Isabel Barrino Smith. Isabel, welcome to the show.
Isabelle Guarino-Smith
00:02:08
Thanks so much for having me. That was a beautiful introduction. I appreciate it.
Jay Conner
00:02:13
Well, it’s easy to do a beautiful introduction when you’ve got good material to work with.
Isabelle Guarino-Smith
00:02:18
There
Jay Conner
00:02:19
You go. And you’ve got quite the story, Isabelle. So I know, I know you and I are, are connected by fellow mastermind members. And so it’s great to have you here on the show for the very first time we wanna hear all about real estate assisted living and all that, but first tell us your background story, how it is you got into real estate and how did all this, how did this journey start for you?
Isabelle Guarino-Smith
00:02:44
Yeah, so UN you know, like many families in America or all across the world, you know, we all have an elderly loved one in our life, right? At some point some way somehow. So for us, it was my grandmother and my dad’s mom. She fell broke, and her hip needed care, needed home care, and assisted living. So we searched and searched for a place for her to live. We thought this was just part of life. You do this. We kind of stumbled into residential assisted living, which is not big box style, Brookdale, sunrise, atrium. Instead, it’s a residential home, a single-family home that houses anywhere from six to 16 seniors, they’re still getting the same quality of care, medication management, you know, food, everything that they need, but it’s run a little bit differently, cuz it’s a single-family home. And my father was a real estate investor, his whole life. So he kind of jumped in with two feet, purchased the home, purchased the business. Since we got started in this industry since then we have purchased three of these homes and invested in thousands across the country. And we started teaching other entrepreneurs and investors how to own and operate their very own assisted living homes maybe for the needs of their own loved ones or just to cash flow really well.
Jay Conner
00:04:04
Interesting. Well, and that makes a lot of sense because you’ve got your own personal experience with your own family member that got involved in this. In fact, I’ve got two other friends that they started out in single-family houses like I’m still in and they migrated to residential living because of that very same thing. It was a personal family member that had like a bad experience in a traditional assisted living, you know, facility and, you know, migrated over to this type of, you know, business model. So take us down the journey and tell us the story of the very first house that you got and how you got it converted into residential living. And I wanna hear that story about that first home. That was what I, I assume that you used for your family member, right?
Isabelle Guarino-Smith
00:04:55
Yes. Well, she passed before we could move her in, but she was the reason why and how we got started in this journey, but that was an existing RL business. So it was up and running. And when I used that acronym, RL it’s residential assisted living for those of you who are listening. So that business was already running. So we purchased the real estate and the business, right? And it was, it already had seniors in it. It was already licensed. There was already staff working in the home. We just took it over, made some improvements to it, and got it to cash flow even more the way we run them is very hands-off. So that way, of getting into the industry purchasing and existing is kind of one of the fastest. And you could call it one of the easiest because they’ve already done the hard work for you, right?
Isabelle Guarino-Smith
00:05:42
You’re paying for the work that someone else has done getting it up and running. So you can kind of jump in right away and just get started with it. Another way we got involved was by buying a single-family home and converting it to become so just a regular single-family home. It’s about 5,000 little over 5,000, maybe 5,200 square feet. It was a five-bedroom, six-bath home. We converted it to become a 10-bedroom nine bath home because in Arizona we’re allowed to have 10 residents in a home so most people want private bedrooms and private bathrooms. So we converted, it, did that renovations to it, got our licensing, hired our staff, and then filled it with residents. So those are kind of two different ways you can get involved. The other one that our students do is build custom homes from the ground up.
Isabelle Guarino-Smith
00:06:31
Especially if you live somewhere like our student, Brad, who’s out in Kansas, right? Where there’s still land to purchase. This might be a good option that you do where you buy land, build a custom home ground up, and go about that process as well as the fourth way to get involved is by leasing a home. So if someone has already retrofitted the home and got it licensed and ready to go, and you’re gonna lease the property from them to operate the business. So those are kind of the four ways you could get involved. We’ve personally done three of the four. We haven’t built one from the ground up, but only cuz land isn’t that accessible here where we are, but in certain states, our students love that option.
Jay Conner
00:07:13
So just to make sure I understand, tell me, what is your definition of assisted living? Obviously, it means someone needs assistance to live. I get that, but specifically what is assisted living? What kind of services I’ll let you answer that the way you want to, and then I’ll dig a little deeper.
Isabelle Guarino-Smith
00:07:38
Yeah. So residential assisted living is just a group home for seniors that need help with activities of daily living. So by the time you need to move into one of these homes, it’s, you’re not moving in there for fun, right? You’re moving in there because a doctor usually ordered it. Or you literally have to, you cannot live alone anymore because you need help with bathing, getting up out of bed, and going to bed, right? Brushing your hair, brushing your teeth, taking medications, eating, moving in general. Usually, most seniors need help with three to five activities of daily living. By the time they move into an assisted living home in the home, right? You’ve got your licensed administrator. Who’s running all of the day-to-day operations? Your licensed caregivers who are caring for your residents, 24 7 care medication management, three meals a day. You might have a private chef in the home. We’ve got activities going on. So it’s a, it’s a full, robust home, but instead of a family with two kids and a dog living in the house, right, it’s maybe six to 16 seniors living in this home, getting help with their daily care needs.
Jay Conner
00:08:48
How’s it different from a nursing home?
Isabelle Guarino-Smith
00:08:52
A nursing home is medical, right? So that’s doctors’ gurneys, and IVs, right? So we’re not medical. So there are really only two ways you’re leaving an assisted living home. One you’re passing on to the next life or two, you need medical care, which would be you’re going to a nursing home or a nursing facility.
Jay Conner
00:09:16
Gotcha. So are there different levels of care in a residential assisted living home or, I mean, does someone pay, does a family pay the same price regardless of the different levels of service or do they pay more or less depending on the services that they do receive?
Isabelle Guarino-Smith
00:09:36
Great question. There are not necessarily levels within the residential assisted living home, but in the grand scheme of assisted living, there are levels, right? So independent living or golden girl style would be kind of the lowest level. You need help with landscaping, changing a light bulb, and very minor things, right? But you can pretty much move and groove on your own. So that’s independent living or golden girl style then assisted living, which is what we’re focused on, where you need help with three to five activities of daily living. You really shouldn’t be living alone. You know, you need that 24-7 care and then nursing home facilities, the only caveat with assisted living is that we’re kind of missing and it’s not necessarily another level. It’s just another opportunity in a memory care home. So, you know, most seniors, well, even me, I deal with memory care issues all the time, right?
Isabelle Guarino-Smith
01:10:28
We all do. But most seniors are dealing with some level of memory care issue. So you can have an assisted living facility and or home that’s focused on dementia care needs Alzheimer’s or memory care. Usually, the residents have to pay more for those types of homes because your caregivers have to have a higher licensure level as well as the home or facility has to have different physical requirements on it, special locks and things of that nature to make sure it’s super safe for those seniors. So that’s kind of the levels. But the second part of the question you asked was are people paying, you know, different ranges based on their level of care and absolutely is the answer. So when you come to move into an assisted living home, they do an assessment with you. So it’s based on your level of care needs, right?
Isabelle Guarino-Smith
01:11:20
Are you up at night? are you a two-person assistant, right? Or are you moving and grooving really on your own? You just have you, you forget things every once in a while, like what is the level of care needed for you that will determine your base rate if it’s going up or down. And then also the base rate will be affected by which bedroom or room in the physical house you have. Is it the master with the master bath or is it a shared room with a shared bath? So those different factors will determine how much you’re paying for your care needs.
Jay Conner
01:11:52
Gotcha. So if someone needs help, making sure they take the right medicine at the right time, that’s one level of care versus, you know, I just need help with my mobility and getting around. And I really started hearing about residential assisted living within just the past few years. I’m sure it’s been around a long time, but I really started hearing about it more often. Within the last 5, 6, and 7 years prior to it becoming a popular option for seniors, what did seniors do prior to residential assisted living?
Isabelle Guarino-Smith
01:12:35
Yeah, it’s really crazy because definitely, I agree with you over the last couple of years. We’re even seeing being in this industry for 10 years, you know, we’re seeing more and more things popping up and it becoming really being brought to the forefront. Tyler Perry just launched a TV show called assisted living, right? Jimmy Buffet’s opening Margaritaville-themed retirement communities like celebrities are getting involved in this industry because they see the silver tsunami. They see what is about to come. The supply is going to completely outweigh or be sorry. The demand is gonna completely outweigh the supply, right? We do not have enough beds. We’re about 1.3 million beds short for assisted living needs. And it’s only going to get worse over the next 20 years as the influx of baby boomers come into the market and they need this home care and assistance. So, you know, these, these homes have existed for a long time.
Isabelle Guarino-Smith
01:13:30
There are 30,000 of them across the country today. So they’ve been here, they’re just really run mom and pop style. So we kind of came in the industry and said, we’re not gonna be running these like mom and pop. We’re gonna run them like professional owners to give families an alternative option to just a big box facility, a Brookdale, a sunrise, or an atrium. You know, that’s what you think of when it’s like, don’t put me into a home. You’re thinking of that big facility that puts a Barb wire on the top. It looks like a jail, right? It feels like a jail. We didn’t grow up in hospital-like environments. Why would we want to age in them? Why would we want to live in them in the last years of our last golden years of life, right? Most of us grew up in a home and would like to continue to live in a home until we pass.
Isabelle Guarino-Smith
01:14:19
So really the options as you were a loved one ages are a big box facility, right in-home care, which right now the current rates are about, I think it’s $27 an hour. So if you need 24, 7 care, 27 times 24 times 30, it’s about 19 grand a month. Most regular Americans can’t afford that. So that’s not really an option. And then they say, well, don’t worry. I’ll take care of mom or dad while on nights and weekends, I just need someone to come watch them while I’m at work. And that is an option, but it’s still about $4,000 a month. And then you just gave up your nights and weekends say goodbye to book club or church, or go into your kid’s soccer game. Like no more. Right? So home care is expensive and it still is putting a lot of labor on the adult children or the family members to help supplement. The only other option is residential assisted living. And to me, it’s kind of the best of both worlds, especially for your listeners who are already real estate investors. They can just add this to their portfolio as something where they could live or a loved one could live for free and they could be cash-flowing. In the meantime,
Jay Conner
01:15:36
That makes a lot of sense. That’s interesting that there are 30,000 of these homes nationwide. You say at this point in time, and you already answered one of my questions and that is what’s the demand going to be in the next five years, 10 years, 15 years with all these baby boomers coming along. And my guess is there’s going to be a shortage of supply, which means, and this is really a question, but it sounds as though, since there’s going to be a shortage of supply, well, supply and demand have a lot to do with what driving, what prices are. So I would imagine what families are gonna be paying in the near future for a loved one to move into one of these homes. I would anticipate prices are going to be going up, up, up, up, up as far as what will be charged because of supply and demand.
Isabelle Guarino-Smith
01:16:28
I, 100% agree. The national average right now to live in a home is $4,500 a month. And it’s already gone up 79% over the last 10 years. There are 10,000 people a day turning 65 and 4,000 people a day turning 85. But at the peak, there’s gonna be 11,500 people turning 85 every single day. So there is going to be a massive influx of need not to mention, right? A lot of the wealth is held in that generation. So a lot of people are like, oh, this transfer of wealth that’s coming. Let’s all get excited about it. Let’s be honest. The transfer of wealth is not gonna go from one generation to another. It’s gonna go from one generation to the care home. And whatever’s left over is gonna go to the next generation because it’s going to be extremely expensive to afford, be able to afford this. So to me, it’s like get in both of these pots so you can take advantage of that. It’s a crisis or an opportunity. It depends on what role, you know, you choose to play in it.
Jay Conner
01:17:32
Yeah. What does a, and I know this is gonna vary from market to market and state to state. So I know it’s a broader question. So you’re allowed to gimme a broad answer. So, so like what’s the return on investment look like in this, you know, opportunity from the standpoint of a real estate investor?
Isabelle Guarino-Smith
01:17:53
Okay. So let’s just go with basic numbers. Well, wait, I wanna explain something. Cause now too many things are coming to my mind. There are a couple of ways you could get involved as a real estate investor. One, you could own the real estate and lease it to someone who’s going to do this business. Right? If you do that, you could be getting twice the fair market rent, a long-term, low-impact tenant with little or no maintenance. So if you just wanna own the real estate, that’s a great option. And lease it to someone who’s gonna do this, that one, you, you know, it’s twice the fair market rent. So that will range by your area, right? The second way is owning and operating the home. That’s what we do and what we teach most of our students to do. So in that example, right, you’re gonna own the real estate, right?
Isabelle Guarino-Smith
01:18:38
And so let’s just use the national average. If we have $4,500 a month times, our 10 residents, that’s $45,000 a month coming in. If our expenses are right around $28,000 a month and the debt service on the house is about, let’s just say $5,000 a month. That’s leaving us with just about $10,000 a month in cash flow or $120,000 a year in cash flow on one AR home. We just used average numbers, 43 for $4,500 a month. So really, you know, if your market, if you’re in a more expensive market, Rhode Island, Connecticut, Washington, California, some rates are crazy. Kansas is super high for some reason, but if you’re in a market where you have higher rates, that 4,500 is not what a lot of our students are charging. They’re charging seven, eight, $9,000 a month per resident. And their bottom line is looking a lot nicer than just 10,000 a month. So that’s another option for owning and operating the home. And then the third is if you just wanna be a private lender or JV partner, you don’t wanna own any of the real estates. You don’t wanna be in the day-to-day and operate the business whatsoever. Then you can lend on these projects and, you know, usually, be getting maybe 12% plus a couple of points, or however you set that up with the, with the person you’re working with, you know,
Jay Conner
02:20:03
Right. Well, you just led me into a perfect segue right there. Isabelle. I was gonna ask you in a lot of cases, how do these projects and homes get funded? Obviously, private money and private lending are, in a big way. So if you’ll indulge, if you’ll indulge me for about 20 seconds, I got a free gift to give away to everyone. And that is, you know, private money is my niche and I’ve been borrowing private money since 2011 funding all my deals with it. And so if you are a real estate investor or you’re a wholesaler, or you’re a seasoned real estate investor, you’re interested in raising money for any of your real estate projects. If you’re interested in getting into real estate assisted living like Isabelle is talking about it doesn’t matter. The real estate. I just finished writing this fantastic money guide, which is called seven reasons why private money will skyrocket your real estate business and help you build incredible wealth.
Jay Conner
02:21:01
You can download it for free at www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide. This will get you plugged into private money, very quickly to where you’ve got the cash ready to be available, to invest in any of your deals whatsoever. Download the guide after the show. And don’t miss out on that. So yeah, that makes a lot of sense. Isabelle of private money really fits into this scenario. And I would imagine you train your students as well on how to get the funding for these projects
Isabelle Guarino-Smith
02:21:41
We do. And I love that you offered that guide, grab that guide everyone who’s listening, because I think that pairs so perfectly with everything we’re talking about here, of course, you can go to the bank or get an SBA loan or do these other options. But to me, private money is always the best money. There are so many people right now who are getting less than 0% of their money, who would love an opportunity to invest in someone like you, you know, so listeners go grab his book. I really I’m gonna grab it because it’s really, really, really important. And that’s the absolute best way that you can work with someone on this, you know?
Jay Conner
02:22:17
Yeah. And to be clear, you know, Isabel, you and I are talking about private money. We’re not talking about hard money. We’re not talking about short-term money. Six months, nine months, 12 months, we’re talking about private money that there’s no rush, you know, to pay it back. In fact, all these private lenders in the money guide, I just mentioned, we teach you, it teaches you, walks you through. Where do you find these people? Where do you find these private lenders? So we go, we go all into that. Who knows Isabelle, perhaps I should have you at one of my events and I should come to one of your events. And I think so you can, you can teach a real estate assisted living and I’ll teach. ’em how to get all the money for their deals. I love that. Anyway, we digress. We digress. So do you advise me to get the money lined up first before you start deciding that I want to, am I gonna buy an existing, you know, RA L am I going to take a house and convert it? I mean, which comes first, the chicken or the egg, the deal or the money?
Isabelle Guarino-Smith
02:23:18
I know that’s such a tough one because I always like to say, be open to opportunities because even with those four options, I mentioned how you could get involved. If you target yourself down and say, I’m only gonna do this one option. Well, what if one of the other options pops up and now you’re not open to it and it passes you by? And so I always say like, be open to opportunities, be putting your feelers out there for how you want to get involved. You should start to have your money lined up. When students come to our training, the first thing we tell them to do is get that business plan ready. So you can get in front of the investors even before you find the property because you’re probably gonna have already narrowed in on an area that you wanna be. So you can create that business plan and you can get started working and researching that area, finding out all the rules and regs there, and kind of determining where you want to be.
Isabelle Guarino-Smith
02:24:09
And then when that money comes, you are ready to go with that business plan, ready to have that conversation. You’re educated. You’re not, oh, what am I doing? I don’t know what’s going on. You’ve gotta be open to opportunities, but you’ve got to be prepared. So I think it, it kind of all happens in tandem, but I wouldn’t, you don’t wanna get locked in on a deal and you don’t have any money. You know, you need to already be kind of fishing over there and making stuff happen so that when an opportunity comes, you can make moves quickly. Successful people make decisions quickly. And when your head and your heart are in the same state and they want the same things, it’s easy to make decisions quickly when you’re confused and you don’t know what’s going on, things get a little blurry, right? So it’s important to kind of make sure that you have all that laid out and that you’re ready to go and take action because opportunity, it, it comes and it goes, and you’ve gotta be ready to take action.
Jay Conner
02:25:01
Absolutely. Isabelle. I’ve got a couple more questions before we wrap up, but before we get to my final questions, let’s go ahead and share how people can get in contact with you. Learn more about your real estate investing training. I think you’ve got a free gift to give away. So let me turn that over to you.
Isabelle Guarino-Smith
02:25:21
You’ve got it. We host three-day training in Phoenix, Arizona, about eight times a year. When you go to our website, residential assisted living academy slash training. You can learn more about that if you’re already ready to rock and roll and take action. But for those of you who just want to gather some more information, R L 1 0 1 is a great place to go for a free book or a free webinar. You can schedule a call so you can chat with me or anyone on our team. And we’d love to get connected with you in that way. So R L 1 0 1 to download that free book and grab all the free BS that you want.
Jay Conner
02:25:56
That’s awesome. Thank you for offering that Isabelle. So Isabelle, what is the best advice that you could give right now to someone that’s interested in getting started in real estate, assisted living, or investing?
Isabelle Guarino-Smith
02:26:10
Ooh, I love this. You know, to me, I feel like time is of the essence, especially in our industry. If this is something that’s piquing your interest right now, and you’re saying, wow, that sounds cool. Like, I think I could do that. Or man, my family needs that. Don’t wait. You need to start now because more and more people, every single day that passes someone new are getting involved and interested in this industry. And I wanna set you up for the max amount of success, whatever your exit plan might be. It might be like my father, he passed in October and you know, we built all these businesses together. He left me three cash, flowing businesses. That’s incredible what an absolute blessing. And we can show you how to do that for your children. Or you might wanna get a hundred of these homes package ’em up and sell ’em to the hedge funds, whatever your exit plan is, we can help you with that. But if this is at all of interest to you, don’t hesitate this isn’t something to wait on. It’s something to jump on now because the opportunity is coming and more, the more people that get involved, right? I want everyone to get involved, but the more people that get involved, the less opportunity you have to kind of grab that market and say, this is my area. We’re the best in this area. Our reputation is stellar. You know, we have the best staff, whatever the case may be. So I would say time is of the essence.
Jay Conner
02:27:35
Be sure and take advantage of Isabelle’s free, free gifts and free training, and free book at www.RAL101.com. That’s www.RAL101.com Isabelle, just a couple more questions. There are all kinds of ways people can get involved in real estate, investing in single-family houses, multi multi-family courses. This is an example of commercial, you know, self-storage land. It just goes on and on and on and on. What would you name as the top benefits or reasons that this asset class has a say over some of the other asset classes that people can get involved with?
Isabelle Guarino-Smith
02:28:21
Ooh, that is a wonderful question. Something I’ve been really shouting out on our social media because I think a lot of people who want to do residential assisted living are also in like single family, home rentals, or Airbnb. So one of the major things that I always like to point out in comparison to single-family rentals is to cash flow, $10,000 a month on one home. That’s not gonna happen with a single-family rental. You’re gonna need maybe 10 doors, maybe 20 doors. So you’re dealing with 20-plus properties and 20-plus tenants, right? Who are all signing one, maybe two-year leases with you? These people are signing five-year leases with you. 10-year leases with you. It’s completely different. So the cash flow is night and day in comparison from one home to one home, right? When it comes to single-family rentals, you’re gonna have to have a lot more doors to compare when it comes to Airbnb.
Isabelle Guarino-Smith
02:29:14
My biggest differentiation between the two and why I always lean on residential assisted living is that with Airbnb right now in our world, money is getting tight, right? People are pulling back. They’re saying inflation recession. I don’t know what’s going on. They’re not taking that vacation. They’re kind of watching their money tighter because everything the cost of everything’s going up. So Airbnb to me is a luxury investment. It’s something that you go and rent this home in LA JOA with your family of 10, to go have a fun time. And you’re willing to spend $20,000 for that week on this Airbnb, right? Or you’re traveling. And that’s why you need it. And you’re using it. Well, the rules and regs on those are going up. The hotel airs are getting involved in them. Marriot just opened a bunch of Airbnb across the country. You’re never gonna be able to, out beat, a big boy in the game like that, right?
Isabelle Guarino-Smith
03:30:06
So that to me is a luxury thing. In residential assisted living, you don’t stop paying for mom or dad’s care and house. If I, if money gets tight unless you’re gonna quit your job and take care of your mom or dad full time, you don’t just stop paying for this. It’s not a luxury item. It’s a necessary item. So when we look at the status of the world and we say, Hmm, things are getting tight. I wanna invest in something. That’s gonna be recession resistant. Nothing’s recession-proof. But as resistant as possible, residential assisted living is a necessity. It’s a need. It’s not something you just give up or say, oh, we can’t afford it. I, I don’t know what we’re gonna do with Mom. We can’t afford it. It’s not a vacation. You can just cancel. Right? So to me, it’s night and day. There’s, there’s a lot of opportunities and reasons why it out beats many other single-family options.
Jay Conner
03:30:56
Well, that makes a lot of sense. I’m sure my next question, you and your team answer and T touch your live training but give us a little hint. How do you find these houses and homes that are big enough to convert into five rooms, six rooms, 10 rooms? I live here in a small area and I don’t see many houses around here that could, that could house that many people, but I’m sure you’ve got the answer.
Isabelle Guarino-Smith
03:31:24
Yes. Three to 500 square feet per person is a good rule of thumb. So if you’re gonna have 10 residents, a minimum of 3000 square foot home, right? Upwards of 5,000 is pretty comfortable. You’re really not gonna find a 10 bedroom, 10 bath house unless you’re in the most luxurious market in your area. Right? Like my neighborhood personally, when I look right across the street, those are multimillion-dollar mansions and they have nine, 10 bedrooms, right? And most of these properties that we own are over a million dollars, right? This isn’t when you think single family, three bedroom, two bath Uhuh, you’re going into the luxury market. You’re going a lot more upscale, right? Because people aren’t gonna pay seven, $9,000 a month to put their mom or dad in a regular home. They’re gonna put them in a mansion for that. Right. They want the bang for their buck.
Isabelle Guarino-Smith
03:32:17
So think definitely bigger, more luxurious in a more high-end market. That’s kind of what you wanna go after. And then also you’re just gonna retrofit the home to make it work, right? So a 3000 square foot home could definitely be in a normal single-family neighborhood, but it’s about how you’re making the bedrooms and bathrooms and chopping it up and doing that renovation to make it flow nicely while still having that living room, that dining room, that kitchen, maybe an office, maybe a hair salon, a movie theater, whatever other features you want to add into the home.
Jay Conner
03:32:49
That certainly makes a lot of sense. Well, Isabelle, we’re at the point of the show where I ask you to share your parting comments.
Isabelle Guarino-Smith
03:32:58
I love it. Well, thank you so much for having me. It’s been a lot of fun and I hope all the listeners learned a lot. Our company’s motto is to do good and do well. So I just wanna share that with you guys, making money is a lot of fun, but impacting people, creating jobs, creating businesses, and making a big impact on your family and your community is a lot more important. So do good and do well.
Jay Conner
03:33:19
That’s awesome. Isabelle Guino Smith. Thank you so much for joining me right here on the show. And I wish you all the best and who knows you might be seeing me at one of your upcoming events.
Isabelle Guarino-Smith
03:33:31
I love it. Let’s make it happen.
Jay Conner
03:33:33
All right. Well, there you have it. Another amazing show. So excited to be a part of it and wow. What a guest we had today. I’m Jay Conner, the private money authority. Again, I’m gonna ask for your help. And that shares this episode with just one person in your market that you think it would make a, make difference, like share, subscribe. If you’re watching us on YouTube right now, be sure and click or ring that bell. So you don’t miss out on any future episodes. I look forward to seeing you right here at the next show.