0:00 I've been busy more recently with I'm in assisted living of course, as you guys know, really doing a lot of things there with bigger size facilities we're doing like 16 beds and up is what we're looking at. So not the smaller like residential home base assisted living stuff, I'm not doing that stuff anymore. 0:22 This show is sponsored by hive mind CRM, it is more than just a CRM. It is a real estate and business mastermind that comes with an all in one CRM, you can have unlimited websites and users, you can call text, RVM, and email all in one user interface and you can set up custom automations for any type and multiple businesses. 65% of companies start using a CRM system within the first five years of business. Once implemented, the hive mind will save you on marketing give you more time and make more money. One of our users had his first $100,000 month using our system in June, we want to see you automate and accelerate your business text us at 2109728 t 42. For future meetings. And of course, to get our $1 course on how to make more than six figures on one land deal. You can schedule your free demo today at hive mind CR m.io. 1:20 Well, as far as the assisted living goes, Are you still looking for those types of facilities right now? Are you are you pressing pause on buying? Are you looking for creative opportunities? And what can we do to help you find something that that you're interested in? 1:31 Yeah, I am. I am not pushing pause. In fact, I'm hoping to push fast forward. I'm I am in acquisition mode, I am looking at facilities on a daily basis I'm putting in offers on a daily basis creative would be awesome. I put in a creative offer actually last week on a on a 42 bed facility here in San Antonio. We'll wait and see what happens with that one. But our business model is focused around mid sized facilities. So typically between 50 and 50 beds is what we're looking at, we believe we can provide a more hands on person centered, higher quality of care in that setting, as opposed to you know, a more institutionalized and bigger facility feel we're not about that we prefer that home feeling for our residents and their families. Honestly, we're also doing it's like a holistic type of care where we're providing organic food, we're we're helping people live more functional type of medicine. It's a whole thing we're we're trying to grow right now. And we're trying to build a fund around it. And there's lots of opportunities there. The senior care business has a lot of ancillary businesses that can also be tied to it, which we're exploring options to grow those businesses too. So we I grew up my partners and I we grew up doing assisted living. We've, you know, when I was 10 years old, my parents bought their first assisted living, and I grew up around seniors, and we grew up in the home. And this is like normal for us. So this is us. This is what we do. We do assisted living, it's a family business, we're going to always do assisted living. But we are definitely not pushing pause. We're looking all over San Antonio, all over looking to acquire and add to our portfolio. 3:20 Did you say 15? To 5015? To 3:22 50? Yeah, 3:24 I just wanna clarify that because I heard 50 to 50. And I'm like you met 15? Let me double check the 15 3:27 Yeah, 15 beds between 15 and 50. And we prefer all of our facilities to have private bedrooms. We're not double occupancy. We're not doing any of that stuff. It's all private bedrooms. 3:40 Have you done any conversions? And it seems like it's not your model anymore. Cuz you're looking at it looks like there's like, like a medium range. I'm not looking for like institutional stuff. You're not looking for like little conversion house conversions for that middle ground. 3:50 Yeah. We're looking for that because we're when you're talking about that particular bed count. There are certain restrictions in terms of zoning, that have to be in place. So we're typically talking about multifamily or commercial zoning, we're talking about access to public water generally, because we're needing high capacity for fire suppression. You know, there's lots of lots of little things that go in there. Assisted Living is a great business to be in beside the fact that we're helping people and we're supporting people and providing assistance to a lot of people, we are also able to do great returns for investors. Right? So it's got a high barrier of entry. Yeah, you know, I'll be honest, it's not it's not an easy business to get into. It's very operational intensive. But because of that, we feel like that high barrier of entry does two things. It makes it hard for people to get into and it makes it so that there's less competition, right? There is lots of competition, just like every business has lots of competition. But that higher barrier of entry makes it good for us because having been in this Business for such a long time we're able to leverage some of our experience. 5:04 One of the things I really love about this is it's a generational. That's so crazy, because like a lot of people, I mean, I'm coming, this is my first I'm coming into this myself new. So it's kind of cool that your generational to what's your expectation as far as the fund? I know, you're very preliminary on it. Is your fund trying to launch in the next 12 months? 16 months? Like, what's the parameters if somebody is listening to this in the future and like, wants to eventually dive into a fund with you in the future? 5:27 Yeah. So we're, we're, q2, and 2023. And we're hoping to be operational by the end of the year. So 5:35 how much opportunity is there as far as like, this is live in anyway? Because I know there's a lot of apartments, I guess I really don't see it. So I don't know how much it is how much opportunity is because I know me and Anthony are talking about this earlier is that some funds have not enough deal opportunities, this like a really prevalent space that needs a lot of growth. 5:53 Yeah, I mean, I've got a I'm in San Antonio, I've got three deals on my radar right now. And that's not to mention a, you know, a short drive to Austin or a drive to Houston, I looked at a deal. A couple of months ago in Houston, that was a portfolio of three facilities in one in one deal. These are great deals, it just depends on you know, how we structured the negotiations. And all of that, is there a lot of opportunity, there's a lot of opportunity in the 15 to 50 bed space, because when you're to get into that, if you're coming from the smaller side of the market, it's hard to do that jump into that size of facility, right? You're typically operating a home type assisted living a residential type assisted living. And so to jump into that bigger facility, it's it's a, it's a pretty big commitment, right, both both financially, but also operationally in terms of manpower, and hiring staff and all that. If you're looking at the higher end of the market, in terms of size and bed count above 50 beds, you're dealing with much bigger players, right, the Brookdale is the cigar is like the bigger facilities that are doing 100 150 200 250 beds, it's hard for us to compete against those bigger facilities, right? We feel like the 15 to 50 bed is a great range to be in, because you're getting a lot of tired landlords, right? The same thing still applies into in this real estate transaction. There's a lot of tired landlords, maybe there's operational issues, maybe there needs to be some sort of capital investment back into the facility, and you're not dealing you're not competing with those big players in that in that size market. 7:34 Okay, man, you're really onto something. So I know we talked about this before, but I would like to find a way to hold big giant houses. Are you looking? Are these going to be like apartment type buildings? Or what type of building structures would we be looking for? 7:46 So first, let's start with the zoning. It needs to be multifamily or commercial, 7:51 okay, the structure, whatever it is, needs to be multifamily or structure. Yeah, 7:55 the actual, the actual City's zoning on the property needs to be either multifamily or commercial, we are typically looking at single level, right, we're not doing multi level two floors with elevators, we're not doing that sort of thing. It's all single level. So think about if you need to put 16 beds, let's say, at a minimum of 120 square feet per bet per bedroom. I mean, you're talking about a fairly large size building, you know, so we're typically looking at an acre, roughly plus or minus minimum to do this side of the size of a of a structure on it. 8:32 That's amazing, right? So you're doing ground up, you're doing the existing and taking them over. 8:36 Yeah, we're not doing any developments. We were considering it, it's definitely on the radar. But our strategy probably for the next, you know, 24 to 36 months is going to be acquiring these tired landlord type of situations doing any capital infusion in terms of bringing the facility up to modern, we're trying to shoot for that modern luxury type of experience, right, that we're playing in the higher end of the market. So if the facility needs to be updated and brought to that level, then we'll do that. And then our plan is to operate for several years for the lifespan of the fund until we exited. 9:14 So what and this is a great question, I think leads into this one. What type of determines like that high end luxury type field is based on people's budgets? And then what key expect as far as income per bed? As far as a facility? 9:26 Yeah, so now we're talking about like, target market stuff, right? Yeah. So the way that I think about it pretty simple, like I create an avatar in my mind, right? I want to you have to remember we have two different clients, the resident, the actual person living in our facility, but we also have their family, right, because that's a big part of it. Right? And so we're typically trying to target people who are ultra luxury, but definitely above middle class and we're typically charging a pretty high number and so because We're doing that we have to really target a specific kind of person, right? So we're typically targeting targeting, you know, mom or dad, who who has a son or daughter who is a professional, right? This is the Avatar we're building. So imagine Mr. Doctor is driving to the hospital, he's driving home, hey, he wants to stop by and see mom who's in assisted living, wants to be able to pop in right we're doing there's a few things that we need to unpack number one is we're trying to target people who have the means to pay for our services. And it's not like we're just charging high costs for no reason, like we provide, we believe we provide the best care in the city, like if you want, if you're worried about budget, fantastic. But if you want the very best care, this is the place for you. We're typically targeting people who have the means where does that come from? It typically comes from a retirement plan, they may have a second house or a Ferhat first house that they can sell, they typically have pensions, so they have a little bit of means in order to pay for the services. So that also means that we're not going to be way out in the boonies, like, we need to be somewhere like right off the freeway, you know, like on the way between the hospital or the law practice. And they're super nice areas, because most doctors and lawyers live in typically really nice neighborhoods. So we want to be somewhere in that corridor between work that 11:18 makes sense that makes a lot of sense. And as far as what price point per bed, because I've know I've had my wife's has a great aunt in her 70s. And we've been, we were looking into elderly elder care, different areas, different pricing, and it's just it's become a not necessarily a large topic, but it's really making you like realize what it costs to have those amenities, because they are the least if you want somebody nearby and just somebody there, because you're still working, you're a professional and you said you want to have a close BOC, you want to have your loved ones close by 11:48 exactly, it within the senior care assisted living space, there's typically two different pricing structures, there's what's called the ala carte option where you have a base fee, and then you add on depending on the amount of care and services that they need. That's one model. The second model is a flat rate. And you know, that can be broken down into little various ways of doing it. But it could be one flat rate from being from when you enter the facility until you leave. Or it could be one flat rate depending on a level of care type of system. And we can we can unpack all that. But we typically prefer the flat rate. Because with the ala carte, it could seem sometimes to me it felt sometimes like I was nickel and diming people like hey, I need this, Hey, we need this. And I don't like that I don't want money to be the thing that we're always talking about. Right? I want to I want to talk about care. And I want to talk about how well your mom is doing or how well your father is doing. Right. And so we we have exact Yeah, so we went to we went to the flat rate model pretty black and white, here's the amount of care they need. Here's the flat rate for that. And it made it so that the whole pricing thing was much more clear, everyone was way happier. And as providers, we have to remember that if we're going to charge a flat rate for everyone that comes in, obviously, there's people at different levels of care within that facility. So sometimes we're going to be charged what feels like we're overcharging some people like if someone's pretty independent, it might feel like we're overcharging them, but perhaps they they grow in their chronic condition or acuity and they get sicker or whatever it is. And now they're needing a lot more hands on care and maybe one on one or two caregivers to one person kind of care. And all of a sudden it feels like we're not charging enough, right? Because now I have to pay extra staff and there's extra costs. So we feel like it evens out at the beginning. It's a bit higher. 13:45 That's a powerful distinction. And you mentioned earlier too about you wanted to have like very high quality nutrition. Some people don't even care about that, that bowl of cereal and you're good to go like, so I like where you're heading with this. I've always been of the mind that if I'm paying more than I think I'm getting something better no matter what, right? Whether whether that's from ordering a meal at a restaurant to like fitness equipment, a vehicle, I'm like, they cost more, it must be better. And I just I've always thought that in my mind. Daniel, myself have learned recently that low dollar customers like that, that pay the minimum, they're your heaviest burden. And then the people that are very happy to pay a premium for excellent service. They don't even think twice about the cash. So I like where you're headed. I love the business model. I think it's very, very smart. 14:26 Yeah. And you know, there's statistics that are always thrown around like, you know, 10,000 people, it comes out to something like 10,000 people a day are hitting retirement in America. So there is a lot of opportunity. Is there a lot of players in on the field? Yes. But there's even with all the players if they were all running at full capacity wouldn't even begin to dent the amount of need that's coming up from the baby boomers. Yeah, 14:50 I agree. Man. I think it's a beautiful business model. I spend a lot of time with my parents and you know, maybe going to appointments picking them up, dropping them off, taking them to the casino, taking them to lunch. Okay, so it is important for me to to get that time in with them. So yeah, like you said, busy professionals, if they don't have the time to spend with that, that elderly parent, then I would want a place where it's like, top notch. Everything isn't my parents were talking about here. So if I can't physically do, yeah, give me the best of what you got, as opposed to like, hey, let's bargain shop, like sometimes. Whenever my dad and my mom, they'll be saying something, you know, having these little mini arguments, I'd be like you better not, I'm gonna put you into the Shady Acres nursing home when you get older. I'm gonna tell them if you get too loud to hit you on the head with a ruler or something? Yeah, 15:33 no, we we believe in our service. I mean, we believe or, you know, we like to call it white glove service, like, we're going to do our best to provide the best. 15:42 Yeah, I would like I said, I'd rather pay more man. So I think what you're offering is amazing. And it's smart that you're like you said, even if it's a little bit easier, or kind of a lot in the beginning, it ends up being lopsided in your favor towards the end. And that's another thing some people don't think about. It shouldn't be long term care. They already made friends with your staff. They're friends with you. They love it. They're they like the environment. They like the facilities. So maybe they shouldn't be there for the next four, eight years. Right instead of moving them from place to place to place because the premiums went up a little bit, you know? 16:09 Yeah. Our our longest resident has been with us for 12 years. That's 16:13 amazing. And yes, yeah, I think I told you, my mom does home health care. And yeah, she sees people for she'll have them for years until it's time for them to go on to the next place. And people love her. Like, as soon as somebody passes, like, the next day, the phone's ringing like hey, do you think you can take care of my mom? And I mean, she's never been without work. And she they just pair whatever she wants? Like, how much are you going to charge and she can say any number 3438 Whatever, they just pay it and pay your time and a half on weekends or holidays or whatever. She's just like an assassin. She can just charge whatever she wants. Because she's that high in demand. She's only the CNA so it's not like she has some kind of crazy degree. She just really does care. She cooks amazing food for them peeps, she really does care. I think that's the probably the thing that makes my mom separates her from everybody else is that like, she treats them like family. Like she literally cooks for them, take them to the store, whatever she can do is that was there her mom? She literally does. She has just the biggest heart ever. And I think people they know that. And they sense that. 17:03 Yeah, I mean, that's, that's something I tell all of our residents when they move in. And I tell their families to like, Hey, you're not just coming to live for your, like, you're becoming part of our family. And we're becoming part of your family now. And you guys are going to be here for holidays. And we're going to be with you at some of your most difficult times in your life. And let's just build that relationship, realize that we're here for each other, we're gonna do our best to support you as much as possible, you know, because that's what it's about. We're here to help people, you know, we're, you know, I'm a Christian. And that plays a lot into what I'm doing to like, Hey, I have a much higher power that I'm answering to like, I want to have a clear conscience. I love that you said that man. 17:45 And maybe it's a Texas thing or a southern thing. I don't know. But that's something that people avoid in business. And I know there's this, like this cliche thing, like, Oh, if somebody talks about their religion in their business, like they're probably trying to sell you something, or they're lying. And in my mind, I thought if somebody is a Christian or Catholic, and that's the only thing I know about them, I already trust them. And then we'll see what happens afterwards. You know, because of the people that I do know, who claimed to be, you know, religious, they're awesome people. I don't see the dogmatic weird thing where you see people saying like, Oh, all the people from that church are all backstabbers. Like, not the ones I know. 18:19 A lot. Let's be honest, like humans are going to be humans like Yeah. Right. And let's have let's have grace and patience with each other and be quick to forgive and be happy. 18:33 I have a question about this because he said the The cook is that include food 18:38 so includes all room and board includes food includes laundry services, includes housekeeping includes Yeah, help help with ADL, activities of daily living. So if you need help in the dressing, helping the shower help toileting help with personal grooming, that sort of thing. It's all hands on carry out. 18:57 Okay. On that for excellent service, and all of those different aspects, all those different areas. That's super important. Yeah, you know, 19:04 no brainer. That's crazy. 19:05 Yeah. It's one of those things where it's, it's a little bit hard to, to juggle and balance, which is why we have things like care plans, right? Where we all sit around a table with the family, with the nurse with the doctor, if there's one involved with the resident and like, Hey, where are we at? How are you doing? Let's talk about it. You know, hey, we noticed that you're, you're having a hard time getting dressed. Do you feel like we shouldn't be more hands on? So it's not like we're dictating care, necessarily. It's person based care, person centered care. So we're encouraging like, hey, if it takes you two extra minutes to get your shirt on, that's fine. spend an extra two minutes because it's good for us to promote your independence. What if it gets to the point where it's like, hey, I want help. We're here to help. Don't be afraid to ask if you need it. Exactly. And most people you know, they they want to they understand that because they want to be in the And they want to, to extend that independence as long as possible. And we're here to just help whenever you need help and promote your independence, you know, we want you to go on out to the your grandson's birthday, we want you to be able to go to Walmart or whatever it is you want to do. But if you need a little bit of help, we're here for you. Let's talk about that. 20:19 And I have another question too. So the property's looking for? I'm sure they have a commercial kitchen sprinkler system. They got all the works of their commercial, possibly elevators or floors. Not that you're looking for those, but it's got all the works. You got. Yeah, yep. Probably shuttle shuttle people. 20:34 Local. Yeah. Yeah, for sure. 20:37 I come in combine. Exactly. Yes. Take them to the grocery store. So that's amazing. Yes. 20:42 So let's talk about that. Because there's, there's a distinction that most people don't 20:47 eat frozen. And so I was okay, you're back, you're back. 20:50 So there's a distinction that at the federal level and at the state level, and it's it's between 16 and 17. Beds froze up again, 21:01 Anthony? 21:06 I don't know what's going on. 21:08 You were talking about the distinction, the distinction that falls between the 15 or 1617 beds, we can also edit this out, we can crop out the part where it got goofy. 21:16 Let me something's updating. Let me just pause everything. 21:22 This right out like it never happened. 21:23 So at the federal level, and at the state level, typically, there's a distinction between 16 and 17 beds, right 17 beds and above is typically seen with more of a commercial eye. And there's things that play into that. So there's things like, you need to have a triple saying you need to have a much, much more robust fire hood over the cooktop, you need to have janitors closets with like little sinks in them and all that stuff, right 16 beds and below is typically residential exposed to as many rules and regulations as you are on that 17 bed. So we're really trying to hit that 16 Bed Mark helps helps us fall under the residential side of licensing and contracts. But it also is almost an ideal ratio of caregivers to provide awesome care, because we're providing care, right? Where I hope you guys are like hearing my heart, like our goal is care, right? We want to help we want to provide that service. But we also need to operate a business, we have to make sure we're making good margins, we want to make sure everyone's happy investors are happy. And so are like in most businesses, our top line item of expenses. And so we have to make sure that we're balancing that payroll, that resident to caregiver ratio in order to make as good of margins as possible and still provide that good quality care, 22:50 I think you can always provide a better service if you have a better priced product, like I said, So Daniel, myself, we weren't able to reach acceleration until we started charging more for everything and considerably more because now we can afford more assistance. We can afford more personnel, we can afford to put more time into things that we didn't have to do you got to kind of touch and go if the if the dollars are too slim. So I still respect the business model. Yeah, I don't think that's a negative at all that that you're charging that premium. It I think that anybody that is like you said if they're a working class or business class person, they want to make sure that mom and dad have the very best care. And I think that's what you're offering. So yeah, I think I think having a premium pricing is the only way to go in this business because then you don't have to cut any corners. Let's come in. So I think we touched on this we touched on on your fund. Congratulations on that, man. Yeah, maybe we can get some synergy going there. We're putting our own fund together for a land development. So I could see us working together in some regard because I am interested in your space. I have friends in your space. Alright, Ben now. Yeah, we should all go get lunch with them. And then he's just that really sweet cool guy. 23:54 I love that guy. Yeah, absolutely. 23:55 Thanks for watching this video. We hope you found value. Subscribe, and hit the bell. Watch more videos just like this.