All Forum Posts by: Brandon M.

That is absolutely NOT what Group Home Riches is about. On their's and their members videos, you will see that there is typically one or 2 beds per room. Exactly what you would see in an Oxford home. 

Jerica, I suggest you check out the podcast and/or youtube channel where there are a ton of reviews from actual clients who have had success with the GHR programs. 

You do not need NARR, state affiliates, or any other bureaucratic organization (like the local government) to tell you how to start. 

Instead, I suggest marketing NOW, no matter what demographic you want to serve. Get in touch with local nonprofits that serve those in need of affordable housing. They will send you clients, make you money, and they will tell you what they look for in housing. 

They would not send their clients to slumlords who are "about cramming as many people as you can legally cram in a house"

Agree with Shane, you will want 4+ bedrooms for it to cashflow nicely. 

Then as the landlord you can typically charge more for rent or work out a split of the profit. 

Couple nightmare stories above, but you can find the same thing in hospitals, VA hospitals, and licensed facilities.

The home mentioned above got shut down FOR ELDERLY ABUSE.

Elderly abuse is illegal. 

It was not shut down because this type of shared, cooperative living is outlawed. 

In fact, if an HOA or local jurisdiction does discriminate against this type of housing, they are in violation of a number of different Federal Laws and face massive fines.

There is no requirement for these types of homes to be licensed. 

For example, if you had a rental property, licensed each room to a senior for $1,000 - $1,500 paid via SSI/SSDI, nonprofit, or self pay and they did need licensed health care, those services can be outsourced to a local Home Health agency. 

Those health care costs are paid via medicare, medicaid, or insurance. The agency deals with all health care related activities. 

You as a landlord (or the operator you lease to or partner with) gross anywhere from $5,000 - $7,500 using the numbers above. Work out the rent or profit split as you see fit. 

There's a lot of nightmare stories and scenarios out there. I'm not going to post any links, but If you are clever I'm sure you could find a lot of success stories backing up what I'm saying. 

There's a lot of misconceptions and confusion out there regarding this topic. 

I work with an organization that's been operating for over 20 years providing affordable housing to a number of different demographics like the ones mentioned - special needs, seniors, sober living, and veterans are some of the most well known. 

The owner has no license. No certifications. And no special zoning. This is throughout central Texas. We have students across the country replicating this model. 

There are 2 ways to go, the licensed route where you become certified and licensed to actually perform the care. This requires a lot of paperwork usually, dealing with zoning etc. 

What our organization does, as well as most of our students do on the consulting side of things, is simply license space to these individuals (the "tenants"), collecting around $1000 - $1500 per room on average, paid by nonprofits or SSI, then anything requiring a license is simply outsourced. 

These types of living situations are protected by a number of Federal laws on this. 

So yes, if you want to become a registered, Assisted living facility, there's zoning issues, licensing etc. 

But this is not necessary. A good starting read on the legal issues and debate on the Federal vs. local laws is The Oxford House. 

Regarding $$ - a typical unlicensed, 5 BR home is going to net around 2-3K/month. 

A licensed facility will be off the charts $$ wise, but that's factoring in the medical care and all the hassle that comes with it. But we're talking 10K plus per month net. 

Plenty of meat on the bone with both strategies for both the homeowner/investor and the Group Home or ALF operator to eat. Typically, in a leasing situation, the investor charges the operator a couple hundred bucks over market rent, or they work out a split of the profit. 

This is not just possible, but probable (higher cost of living, stagnant wages) 

AND PROFITABLE

We rent by the room or bed (2 to a room) and our average bed price is $600, room is $1,000. 

Get a 4 or 5 bed, convert the garage, do the math. 

If anyone needs services they can be outsourced. 

For example, if someone can't cook for themselves and take care of themselves with day to day activities, they need a CNA on hand. This can be outsourced to a home health company. Their pay is taken care of by medicaid or medicare. 

You as the landlord would get paid via SSI/SSDI, or even better, a nonprofit that takes care of it. 

That's the basic formula not just for this niche, but any other demographic that needs this type of housing. 

There is no licensing needed under this business model. I can go into detail if needed, but if you're curious check out all of our reviews, interviews, content etc.