#013: Gene Guarino: How Investing in Real Estate and Assisted Living Delivered Sweet Success

Overview:

Gene Guarino – Founder and President of the Residential Assisted Living Academy, talks to Jason A. Duprat, Entrepreneur, Healthcare Practitioner and Host of the Healthcare Entrepreneur Academy Podcast. Gene Guarino shares advice accumulated from his 30+ years of real estate investing and business experience. He also shares his expertise in the senior housing space and his work as a certified financial planner in the United States and Australia.

 Episode Highlights:

  • What was Gene’s upbringing like?

  • Gene talks about his earliest business experiences.

  • Why did Gene become a certified financial planner?

  • Gene discusses his time buying and selling promissory notes and day trading.

  • What led Gene towards assisted living investment?

  • How did Gene find the needed information to transition into residential assisted living?

  • Gene describes what it's like when you’re analyzing to buy versus starting from scratch.

  • What does Gene look for in the location planning phase while estimating renovation costs?

  • Why are the ranges of 10-12 or 15-16 residents per home good numbers for occupancy?

  • What’s the average cost for residents per month?

  • Gene talks about profit and loss statements as it relates to net profit for the owner.

  • What does the demographic demand look like?

  • How does investing in residential assisted living provide value?

  • What are the operation and staffing needs?

  • How is food preparation handled?

  • What are residential facilities required to have?

  • Gene talks about zoning and the HOA.

  • Is there a standard cost per-square-foot?

  • What’s the biggest challenge Gene is facing?

  • What are the best hiring practices when it comes to residential assisted living?

  • Gene discusses the training opportunities he offers.

 3 Key Points:

  1. Paying for speed means buying a business that’s already up and running at a typical premium rate of 1 to 3 times the annual profit of the business.

  2. Independent living is for age 55+ and residents don’t require assistance. Nursing homes are on the high end for costs, as medical care is provided. Assisted living falls between the two and provides caregiver assistance yet not full medical care.

  3. About 20-30% of the gross income should come to the bottom line as profit for a residential assisted living home.

 Tweetable Quotes:

  • “I can look at somebody else’s finances and ask, ‘Where do you want to go and where are you,’ and then lay out the path. But 9 times out of 10, people aren’t willing to do what it takes to get there.” – Gene Guarino

  • “I got in and bought a lot of single-family homes. I bought them to hold and rent, and then when the market increased, I sold them to hedge funds.” – Gene Guarino

  • “If somebody has a business and it’s already up and running, this is what it looks like: there’s real estate, there’s renovation and there’s a start-up period of time. And all of these cost money.” – Gene Guarino

 Resources Mentioned:

Jason Duprat