Closter, NJ · Member since 2014 · 3 posts · 2 votes
I've heard Gene Guarino from Residential Assisted Living Academy on the Joe Fairless podcast as well as J Masseys Cash Flow Diary and Ken Corsinis Deal Farm. I'm really excited about the opportunity it presents. Has anyone completed the courses he offers, or better yet, does anyone own or know someone who owns a Residential Assisted Living Facility?
Real Estate Agent · Redlands, CA · Member since 2016 · 253 posts · 115 votes
10y
Hi Anthony,
I am in the process of opening a Residential Care Facility for the Elderly in California. I would recommend taking a course for administrators in your state first. This gives you a great overview of the regulations and requirements by the state to run a compliant and successful RCFE. I don't know how much Gene charges but I would take one of those classes first and get licensed and then see if you are still interested in running the business. It is definitely not an easy, sit back and relax, type of income. It is much more involved for the owner operator and you have to enjoy caring for the elderly. If you like it, then maybe think about taking his course.
Investor / Builder · Lake Mary, FL · Member since 2016 · 15 posts · 14 votes
10y
Hi Anthony, I attended Gene's weekend training on ALF's in Orlando a couple of months ago and I learned more than I expected. The training was excellent and I don't know of anyone else who is willing to share the info that Gene shares with you in his course.
I am currently putting much of what I have learned into practice and have learned even more.
ALF's are fantastic income producing vehicles, but they have to be right for you. There's a lot of regulation and responsibility when caring for the elderly, especially someone else's family.
His course is a great starting point to learn more about the industry and business. The rest comes with practice and experience. You won't learn EVERYTHING, but will learn more than most.
#1 question to ask yourself is what interests you in getting involved with ALF's. My suggestion to you is to reach out to a few in your area and speak with the administrators or owners of smaller residential ALF and find out as much as you can on whether this investment type is right for you.
Real Estate Agent · Redlands, CA · Member since 2016 · 253 posts · 115 votes
10y
Hi Anthony,
I am in the process of opening a Residential Care Facility for the Elderly in California. I would recommend taking a course for administrators in your state first. This gives you a great overview of the regulations and requirements by the state to run a compliant and successful RCFE. I don't know how much Gene charges but I would take one of those classes first and get licensed and then see if you are still interested in running the business. It is definitely not an easy, sit back and relax, type of income. It is much more involved for the owner operator and you have to enjoy caring for the elderly. If you like it, then maybe think about taking his course.
Rental Property Investor · SF Bay Area, CA · Member since 2015 · 206 posts · 156 votes
10y
@Kiersten Vance - Would you happen to have the direct website address for the State administrators classes? I'm also very interested in RCFs. I haven't been on the State website in a while, but when I last visited, it was difficult to figure out which specific course to take. I recall there being several. Thanks in advance!
Real Estate Agent · Redlands, CA · Member since 2016 · 253 posts · 115 votes
10y
Hi Ana Marie,
The state doesn't offer the classes themselves, you would have to take the administrators course from an independent vendor and then apply to take the state test. I don't know many companies up north to take it from but if you google 80-hour RCFE administrator course, you should be able to find some in your area. Most of the hours have to be taken live, I believe a few can be taken online. One you have completed the course, you can sign up to take the exam administered by the state. You have to complete CEU's every two years to maintain your license. If you call any one of the vendors that offer the course, they can help walk you through the process. My aunt took the 80 hour course from Care and Compliance in Sacramento. They should have something in San Francisco as well. Good Luck!
Flipper/Rehabber · Huntington Beach, CA · Member since 2015 · 21 posts · 19 votes
10y
@Kiersten Vance is correct about the 80 hours (increased from 40 hours last year.) I just completed the RCFE (Residential Care Facility for the Elderly) Administrators initial certification course through Care and Compliance in Anaheim today and it was very comprehensive. 20 hours online + 6 ten hour days in a classroom. The state exam consists of 100 open book T/F or Multiple Choice questions and you're given 2 hours to complete.
I'm curious Kiersten, as a Realtor, if you've ever sold an existing licensed RCFE board & care; and if you think there's a market for flipping a distressed home into a turn-key RCFE modified home for those interested in starting or adding to their AL empire.
Real Estate Agent · Redlands, CA · Member since 2016 · 253 posts · 115 votes
10y
Hello Michael. I actually just purchased a property to be converted to an 18 bed assisted living facility. I do believe there is a market for it. It seems to be starting to build. A remodeled nice facility in the IE should sell for at least 100k per bed. It takes so long to get through the licensing process that I believe there is definitely a market for flipping it with the license in place. A little more difficult but possible. Obviously the larger bed facilities are more appealing than the 6 beds. Would love to talk more with you if you want. PM me :)
Specialist · Dallas, TX · Member since 2010 · 511 posts · 252 votes
10y
ALF is complete business model, not just RE investment. If you are planning to scale to have passive income, I recommend simpler the business more easy to scale out. ALF is not simple investment.
Rental Property Investor · Dallas, TX · Member since 2015 · 283 posts · 179 votes
10y
California questions: RCFE's (Residential Care Facilities for the Elderly) can care for six and few residents, but assisted living facilities can care for more than six. I read this on the state site
"It is important to note that both Residential Care and Assisted Living facilities operate under the same regulations regarding care services and the differences if any are due to a particular facilities program and not differences in Community Care Licensing regulations"
Why are there so many 6 bed facilities when the licensing and regulations are the same to have 10-16 bed places? Am i missing something here? Why not buy a larger house, convert it to a 10-16 bed unit vs a smaller house as a 6 bed?
Rental Property Investor · Dallas, TX · Member since 2015 · 283 posts · 179 votes
10y
Found the answer after doing some digging, if anyone else is interested.. zoning laws
“No conditional use permit, zoning variance or other zoning clearance shall be required of a residential care facility for the elderly which serves six or fewer persons which is not required of a family dwelling of the same type in the same zone,” Health and Safety Code section 1569.85. In other words, the City Planning Division cannot require special permits for RCFEs with six or fewer residents.
I guess the question is, how hard is it to get zoning for a 10-16 bed unit? Looks like 90% of these facilities are 6 beds and fewer.
Flipper/Rehabber · Huntington Beach, CA · Member since 2015 · 21 posts · 19 votes
10y
@Logan Turner - There are also some additional programming & staffing requirements to operate larger than 6 beds in CA. Many operators (licensed administrators) have a caregiving background and don't necessarily have (or want) the experience or managing staff. Therefore the 6 bed "board & care" concept is very popular.
@Logan Turner - There are also some additional programming & staffing requirements to operate larger than 6 beds in CA. Many operators (licensed administrators) have a caregiving background and don't necessarily have (or want) the experience or managing staff. Therefore the 6 bed "board & care" concept is very popular.
So are they able to run the "board & care" model by themselves? I can't find any laws that require a ratio, other than having an operator available during daytime and on call at night. I was running some numbers and it seems a 6 bed board and care would not be feasible as a investment, without creating a full time job for oneself.
Flipper/Rehabber · Huntington Beach, CA · Member since 2015 · 21 posts · 19 votes
10y
@Logan Turner - The administrator of a single 6 bed RCFE is generally going to be the full time operator/caregiver with minimal staff. You can be the "licensee" of a 6-bed, and hire an administrator, but you've already figured out that your profit margin is pretty thin. To run a profitable 6 bed concept w/out making it your full time job, you'd need to open several of them as the "licensee" and hire one certified "administrator" to run them all for you. There are pros & cons to owning several 6-beds vs. one larger facility. Feel free to PM me to chat further.
Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
9y
@Gene Guarino - I think that when I saw a short presentation from Gene he did mention you could purchase the property and run the facility yourself, meaning you get the licensing. But also there are larger companies that run the facilities for you and need the buildings to work with, that you could partner with these larger companies and perhaps they maintain all the training needed for the licensing of the facility?
Hi guys. It's been a while since you posted about the ALF. How has your progress been with setting up an ALF? Has it been worthwhile? Thanks in advance.
Found the answer after doing some digging, if anyone else is interested.. zoning laws
“No conditional use permit, zoning variance or other zoning clearance shall be required of a residential care facility for the elderly which serves six or fewer persons which is not required of a family dwelling of the same type in the same zone,” Health and Safety Code section 1569.85. In other words, the City Planning Division cannot require special permits for RCFEs with six or fewer residents.
I guess the question is, how hard is it to get zoning for a 10-16 bed unit? Looks like 90% of these facilities are 6 beds and fewer.
Hendersonville, TN · Member since 2015 · 21 posts · 10 votes
9y
I recently attended a seminar at our local REIN this month. It was put on by Gene Guarino. He has training for this type of investment. His web site is ralacademy.com. I did not attend the 1 day additional training, but I am interested in this type of investment. He has 3 day seminars in Phoenix, where he lives. I am currently researching at this time and looking into other companies in my area that are doing this. It is a hybrid business model + real estate model.
San Marcos, CA · Member since 2017 · 5 posts · 0 votes
9y
@Sandra Hale
"I am currently researching at this time and looking into other companies in my area that are doing this. It is a hybrid business model + real estate model."
Real Estate Agent · Heber, UT · Member since 2016 · 56 posts · 46 votes
8y
I have a couple of questions: is the RCFE cert required for an investor who would want to own an ALF but not run the business (i.e., someone who would want to hire a licensed administrator to handle the business side of things?) I live in Utah, if that makes a difference.
Also, it looks like Gene Guarino is giving a 5-hour workshop in my city this weekend. I've been intrigued to learn more about ALFs, but I wonder if the workshop will go beyond the basics, or if it'll only be an introduction to ALFs. Would love to hear experiences if anyone here has attended his 5-hour workshop!
Investor · Parrish, FL · Member since 2014 · 120 posts · 115 votes
8y
Hi, I just wanted to check in with people on this thread and see if anyone has gone forward with ALF's, or Gene Guarino's seminar?
I'm interested in learning more but I want to learn more before taking the class and spending 3k. Is it really as easy as Gene makes it out to be? 10 hours a week to make 10k a month, seems too good to be true.
Does anyone have any experience with actually opening an ALF or attending Gene's class in Phoenix?