Raising $1M in 7 Days and Scaling an Assisted Living Portfolio with Alex Schloe

🎙️ Welcome back to another insightful episode of the Physicians and Properties Podcast with your host, Dr. Alex Schloe!

💡 What if the most overlooked real estate asset class today could provide not only high cash flow and tax benefits but also help solve one of America’s biggest healthcare crises?

In this episode, Dr. Schloe shares a powerful conversation from his appearance on The Hunt for Incredible podcast with Gideon Spencer. Together, they unpack why Residential Assisted Living (RAL) is the biggest real estate opportunity of the next two decades and how Alex raised over $1M in just 7 days for a 485-unit independent living deal in The Villages, Florida.

🏠 From the looming “Silver Tsunami” of aging baby boomers to the massive bed shortage already facing senior care, Alex and Gideon go deep on the numbers, the mission, and how investors especially physicians can create legacy and freedom by stepping into this vital space.

💡 What You’ll Learn in This Episode:

✔️ Why RAL offers unmatched returns and purpose-driven impact
 ✔️ The difference between independent living, assisted living, memory care, and skilled nursing
 ✔️ How Alex raised $1M+ in one week and how you can raise capital through podcasting and community
 ✔️ The 4 ways to invest in assisted living (including passive options)
 ✔️ What makes residential homes better than big-box facilities
 ✔️ The licensing, zoning, and operator considerations every investor must know
 ✔️ How to build a brand, serve your audience, and attract aligned partners

🔥 Key Takeaways:

✔️ The “Silver Tsunami” is real and we’re already 1 million beds short
 ✔️ Residential homes offer better care, stronger returns, and deeper purpose
 ✔️ Physicians are uniquely positioned to lead in this space and fill the growing demand
 ✔️ Community, consistency, and authenticity are your best tools for raising capital
 ✔️ Your first home could lead to financial freedom and transform how seniors are cared for

If you’re a physician or impact-driven investor looking to combine purpose with profit, this episode will open your eyes to the opportunity ahead.

Connect with Dr. Alex Schloe:

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If you want to learn how investing in real estate can give you the freedom to practice medicine and live life how you want then check out the links below:

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Join The RAL Room Assisted Living Mastermind

Transcript

Dr. Alex Schloe:  And that's the cool thing about  residential assisted living is these are typically homes that are.  10 to 16 residents, depending on what state and what area you're investing in.

 And the caregiver ratios are typically like one to five or one to eight. So you're going from a big box facility where caregiver ratios may be one to 20 or one to 25,  perhaps even more  to a home  where it's gonna be. So  the ability to provide way better care  and it really improves someone's quality of life is awesome.

 Welcome to the Physicians and Properties Podcast, the show where we teach you how investing in real estate can give you the freedom to practice medicine and live life how you want. Doctor, doctor, doctor, doctor, doctor. Now here's your host, Dr. Alex Slo. 

 Dr. Alex Schloe here with another episode of the Physicians and Properties podcast. Today's episode is gonna be a little bit different.  It's actually recording from my time as a guest on the podcast, the Hunt for Incredible  with Gideon.  Gideon. Spencer is a good buddy of mine and he is doing boutique hotel investing,  and we had a really great episode where he talked about my journey.

We talked about assisted living and we dove.  Deep  into the numbers of residential assisted living and just why  assisted living is the best opportunity investing in real estate now and for decades to come.  We also talked about some investment opportunities that are coming up here in the future.  Like right now, we are currently raising capital for accredited investors for a 320 unit independent living deal  in Florida.

This is a ground up development projected to triple.  That's right. Triple your money  in approximately four years. So  if this interests you and you want to get on our investors list, go ahead and click the link below in the show notes  and join our investor list, and we'll send out these deal opportunities  to you  now and in the future.

So  without any further ado, let's get started  with this episode of The Hunt for Incredible  being replayed here on the Physicians and Properties Podcast.  Thank you so much for listening.

 Assisted living. The silver tsunami, if you will, I think is the best opportunity in real estate investing now and for decades to come.  You mentioned it, man, that baby boomer generation. And the crazy thing is that makes up 77 million people. There's 77 million baby boomers,  seven out of 10 of them are gonna require long-term care.

 That's 59 million  boomers who are gonna need long-term care.  And the even crazier thing to think about is right now we're a million beds short. When it comes to assisted living,  and 82% of those folks that are in the assisted living homes right now are part of the silent generation.  Okay? So we're not even seeing baby boomers really trickle into these homes just yet.

 It's coming, but the opportunity is absolutely incredible.  Nobody's born incredible people who do incredible things simply took the right steps.  This is our journey.  This is the hunt for incredible.  All right. Welcome back to another show,  another episode of The Hunt for Incredible. On this episode,  we have my man, Dr.

Alex  Schloe. Alex and I  we actually met through Brian Lubin, so we became friends on his 30th ski trip in Whistler, Canada, which is a lot of fun.  And  we hit it off because.  Alex is actually an investor in a space that I think is gonna be a massive wave coming in,  and it's, it's far enough out that not a lot of people see it, but it's gonna be absolutely huge,  and that is assisted living homes.

We have  more baby boomers retiring than any other generation right now. They make up such a massive. Percentage of the population they need to be taken care of.  So we'll be diving into all of that. And I think  with my  background in boutique hotels, I see the assisted living space. And I think  dude,  a boutique  assisted living home  like  experience, I think is, is just on the cusp of being a massive, massive wave  that's not getting enough attention right now.

But the people who are riding that wave are gonna.  Make a lot of money and make do a lot of good. So I'm super stoked to dive into that with Alex.  Alex is also a physician, he is a family medicine physician.  He's an investor in multiple type,  multiple asset classes. So he's been in long-term rentals, short-term rentals.

 He's partners on a hotel deal with Blake Daley, who we've also had on the show who is out at  brown Lube and 30th,  and he is an investor in an RV park and he's also, I dunno if we're gonna have time to dive into,  we can. He is delivered a baby in front of a pickup truck,  which is like a random  fact that came up right before we hopped on the call.

And maybe we'll touch on something else that's really interesting that I'm excited to dive into is  Alex raised over a million dollars in just seven days for one of his most recent and biggest deals that he did. So we're definitely gonna dissect that.  He also has a community that coaches others on how to acquire  and operate assisted living homes.

 He has a podcast called Physicians and Properties with a Facebook community that I'm. Excited to be a guest on some time within the next couple weeks. And what I like about  Alex is that he has a strong emphasis on purpose.  So not just going for the thing, which is what people get hung up talking about.

Like what goal are you going for? What are you,  how are you getting there? But also.  Are you  being thoughtful about your purpose behind it? Are you just following the crowd and trying to get rich and party and have financial and geographic freedom? 'cause everyone else says too?  Or are you actually gonna do something with that that fulfills a purpose inside of you?

 Which is, which is vital. So  Alex, thanks for being on the show, man. I'm soaked to dive in. Me too, man. That was a great intro. You're too kind and those words were, were too nice, man, so  I appreciate that. Yeah. Just to dive in right from the beginning, man, the  assisted living, the silver tsunami, if you will, I think is the best opportunity in real estate investing now and for decades to come.

 You mentioned it, man, that baby a boomer generation, and the crazy thing is. That makes up 77 million people. There's 77 million baby boomers.  Seven out of 10 of them are gonna require long-term care.  That's 59 million boomers who are gonna need long-term care.  And the even crazier thing to think about is right now we're a million bed short when it comes to assisted living, and 82% of those folks that are in the assisted living homes right now are part of the silent generation.

 Okay. So we're not even seeing baby boomers really trickle into these homes just yet.  It's coming, but the opportunity is absolutely incredible. Wow. Yeah. I, I talk a lot on this podcast about the massive transition in wealth that's coming up. A lot of people are talking about it these days, right? 10,000 baby boomers are trying every day.

They own  roughly 25% of small businesses.  But what seldom gets talked about is what happens after that transition?  Like, how are those people taking care of?  So  with that, let's dive right in. So  tell us about this assisted living deal that you just raised. A million dollars over seven days for Thanks, man.

Yeah, so this was an independent living deal. So if you're looking at the continuum of assisted living, you typically have like  a. Independent living, which is 55 plus, they can still do their activities of daily living.  They don't really need a whole lot of assistance with those activities of daily living.

 Then you have assisted living and they need help with, with those activities of daily living. That's like bathing, toileting, cleaning, cooking, et cetera. And then you have memory care and some of the more kind of higher medically intensive  assisted living homes, memory care, of course, being with patients with dementia.

 And then you have nursing homes, skilled nursing facilities. So that's kind of the continuum of assisted living that exists. And so, yeah, I just had the opportunity recently to raise capital for this amazing deal in the villages of Florida, which is like  Disney World for retirement folks. And the, the reason I had this opportunity was I had  a doctor, Dr.

Francesca Byrne and her husband Ryan Byrne on the podcast about a year ago.  And I just kept reaching out to them and touching base with them. And they  are in the value add multifamily space in high growth areas. Houston, Charleston, Savannah,  and I interviewed them and after I told my wife, I was like, Hey, if I have the opportunity to invest with them, I would love to do it.

'cause they were just top-notch, excellent, incredible people.  And so long story short, I just kept trying to provide them value. And if folks were. You know, I felt like would be interested in one of their deals. I would send it their way or I would just reach out to 'em, be like, Hey, congrats on this opportunity.

 And so then Ryan emailed me one day. I was like, Hey man, gimme a call. And we hopped on a call and he is like, Hey, let's let's raise capital for this deal. I wanna bring you in as a gp.  And a few things that stand out was one, how incredible of a deal. It was  485 independent living. Units in the villages of Florida, which is, like I said, just an amazing place.

 And it was actually approved for 600 and Graystone, who's gonna be the property manager of  that independent living facility.  They were like, Hey, you could, you could build all 600 right now, and we'd be able to fill it up. Like that's how much demand there is.  And so a really cool deal, Ryan was like, Hey man, we're gonna, we need to raise $2 million.

We'll just both kind of get after it. And out of the 2 million we'll just split. You know, the,  the acquisition fee and the distributions and so forth based off that, which was awesome.  I was terrified initially  because I'd never raised more than 650,000 and the minimum investment was 250,000. And I was like, man, like that's crazy.

That's a huge minimum investment. Everything else I've done has been 50 to 25,000.  It was kind of this big, you know, hurdle to get over.  Ryan was like, trust me man,  it's gonna be easy. Like you're gonna see that the minimum investment of 250 is easier than 25,000 minimum investment.  And he was right, man, through Physicians and Properties.

The podcast I host in the community that I've built,  we were able to raise over a million dollars in seven days. And that was through sending a couple emails and hosting a really awesome webinar and then sharing the  investment materials that we created and we ended up oversubscribing like.

Significantly. So we had to have a wait list. And so it was an amazing opportunity and it was definitely, you know, a mindset shift for me that like, really,  if you have an incredible deal,  you're partnered with incredible people, like you can raise any amount of capital. So don't limit yourself on what that may be.

What type of access do you have to have to people to have a minimum 200?

It's pretty wild. So, so a lot of these investors are physicians and so they have  higher incomes  and, and the cool thing is there's some good tax benefits in this deal,  and so they're really interested from that perspective. The other thing that's helpful for assisted living, independent living, raising capital for that asset class is healthcare workers.

You know, specifically physicians, but also nurses or you know, nurse practitioners, physicians assistants, like we understand  the situation that we're in from a healthcare perspective for seniors.  We also understand that the big box facilities, like those huge buildings that  you go into and smell like urine and caregivers are taking care of 20 residents.

We also realize that that's not the best way to take care of folks, and so healthcare.  Workers are really in tune with that and really interested in investing in that. 'cause we see the huge need that is there from an assisted living and independent living perspective.  Dude, I need to connect you with my friend Riley Brennan.

So  I had him on the show  last week and he worked with medical professionals that were investing in real estate out of, in Ohio.  Where the Mayo Clinic is,  and he was saying that they raised like a $200 million fund  from physicians that were at the, at that hospital and started buying up multifamily all over the place.

 And so  RI was in part of deploying that capital.  So in terms of thinking about what structuring like with having access to capital like that and structuring a fund to do something really big at scale and what does it look like to raise $200 million, just buy up all the assisted living. And then also in the medical space, they understand assisted living better than.

 Any other commoner, right? Because they understand like, oh, there actually is  like a medical need here to make sure that people are taken care of for,  you know, reasons that, that they understand deeply. So  yeah, it'd be very interesting to, to get creative on what scaling really, really big with something like that would look like.

Yeah, man. I'm hoping in a year I can come back on the podcast and tell you that we've done that. But it's crazy to think about man raising 200 million for Mayo. Yeah. In Minnesota. I wonder if Riley, does he work for Black Swan by chance? There's a  doc out there, Dr. Stoger and Nick, and they have a big real estate company out there in Rochester where Mayo is.

I wonder if he's affiliated with them in some way. Possibly. Possibly. Yeah. Yeah. I don't, I don't, I don't recall those names, but possibly. Yeah, we'll, we'll definitely get you connected. That'd be fun. Yeah, it'd be awesome, man. 200 million. Just a number, bro.  It's just a number. Yeah,  bro. So with, with that, let, let's dive into this.

You said  the silver tsunami and you mentioned like the, the  basically the supply and demand that's coming in.  Where do you see the most opportunity right now overall, like regardless of  people's access to capital and size of deals, where do you see the biggest opportunity? Is it in  smaller boutique  assisted living homes that are being.

Deployed. Is it in converting multifamily into assisted living? Is it going for like really big stuff right now? Like what are, what are your sights set on  knowing that you are this far ahead of that tsunami?  Yeah, man, I think there's a ton of opportunity all across the board.  If I had to pick.  A few to like really lean in on.

I think residential assisted living  is, is a great opportunity. Emory Care Homes great opportunity.  The big box facilities really got hit hard with COVID O and so a lot of the trust with that was lost and so  we've kind of stayed away from that. But I do think there's a sweet spot of probably like 30 to 50 residents, kind of the boutique  facility like we talked about, Gideon.

I think that is a really awesome opportunity as well 'cause you can still have that personalized care  and if it's a really nice a class. As boutique environment, then you're, you're gonna be able to attract that private pay resident who can pay more.  The beautiful thing of residential assisted living, and if you're  sitting here thinking, what the heck is that picture of?

Really nice single family, single story home, ranch level home  that's large with a large number of bedrooms and bathrooms.  That's been renovated. So typically you have wheelchair ramps, you have widened doorframes, you have grab bars in the shower, the toilets. You have  fire suppression systems, sprinklers, fire alarm monitoring.

Those are some of the big renovations that are needed.  And it's just a house man. It's just a really nice house that's been renovated to provide personalized care for folks. And that's the cool thing about  residential assisted living is these are typically homes that are.  10 to 16 residents, depending on what state and what area you're investing in.

 And the caregiver ratios are typically like one to five or one to eight. So you're going from a big box facility where caregiver ratios may be one to 20 or one to 25,  perhaps even more  to a home  where it's gonna be. Much more personalized,  a smaller knit community where the caregiver ratios are one to five or one to eight.

So  the ability to provide way better care  and it really improves someone's quality of life is awesome. And the other thing that's that's important is these are embedded in neighborhoods, right? So these are in neighborhoods. They're already in a community.  A lot of times folks are able  to move from their house, which they really don't wanna leave.

Right.  And 'cause they wanna be independent as long as they can, but they can move from their house perhaps into  one of these residential assisted living homes just right down the street. So they're able to stay plugged in with folks that they already know.  Be close to family, et cetera. So it's, it's a really awesome opportunity and we hit on the demand earlier, Gideon man, we're already a million beds short right now, so everyone listening to this podcast would go open 10 homes and we wouldn't even put a dent in the number  of homes that are the number of beds that are gonna be needed.

 That's why we're like, Hey, is more and more people just need to know that this is an option. This is incredible opportunity  and a great way to provide way better care for seniors. What does a return profile look like? So let, let's, before we dive into that, break it up and say, okay, so you have like the asset itself,  itself.

Then you have management. You can outsource management. If you outsource management.  What does the return profile look like on  buying an asset?  Look like.  Yeah, absolutely.  I'll break it down a little further too. There's, there's multiple different ways that you can invest in assisted living.  There's four ways that you can do that.

One would be lease to operator, which we call L two O 'cause we try to be cool.  But that's basically where you buy the real estate. You lease that out to an operator on a commercial lease.  The operator does all the day-to-day care. They're responsible for care of the residents. They're responsible for liability insurance, food  maintenance, et cetera.

 So leased operator B,  you could also buy the real estate and own the operation. So you own the real estate and you're responsible for all the day-to-day care. You could lease a business,  lease your business to someone's house. So essentially  you could be the business who's doing the operations, and you come to a landlord like me and you lease out my home.

 Or you could passively invest. So those are the four big ways.  I think it's helpful to distinguish that. 'cause that's gonna determine what the returns look like.  But for example, a lease to operator, so you're buying the real estate, you're leasing that out to an operator, that is the more passive approach.

Cashflow is gonna be a little bit less,  but it's more passive.  We have five of those in Arizona.  They're on commercial leases three to five years with a 3% annual increase. And each one of those homes, cash flow is in between three and thousand dollars per month.  Pretty passively.  The linchpin is you have to have a really good operator, right?

So if you don't have a good operator and they break the lease, like that's, that's the biggest risk.  So you really would need to vet an operator  very well, understand where their heart is, make sure they're not in it, just to try and make some money.  And and then if you partner with them, you can grow pretty significantly.

But that home.  For example, our memory care home that we have, that cash flow is about four grand per month. And we're paying investors 10%. We raised 200,000 for that.  And that's passive. Like we don't, we don't do anything  other than collect the money. So that's an option. If you own the real estate, own the operations, of course that's gonna take a lot more work, right?

You're involved in the day-to-day care, you're  involved in the day-to-day ops, and we always say you should budget to hire a manager who's gonna run those operations for you. If you have a manager in place  and you have a full house and you're doing attracting private pay,  we have friends that are, you know, in some homes that we own that are cash flowing 10 to 15 to $20,000 per month on one home.

 So it's the only opportunity that I know of in real estate where you can have a single family home and you can reach financial freedom from one home.  Perhaps you could do that on really nice short term rental,  but then you're dealing with like.  All the headaches of short-term rental management. Yeah.

And of course the dishwasher breaks and the oven breaks on Thanksgiving. And so  of course you're dealing with a different set of headaches, but you just gotta choose your heart. Right? And the cool thing about this is  assisted living. You're also providing such a fulfilling  need and really getting that purpose out of the investment.

So  there's a wide spectrum there, but the returns are great.  The  cost to the resident is typically about $54,000 per year. For residential assisted living, for them to go be a resident there.  If you're looking at some of these big box facilities, it'd be closer to about 70,000. So it's still a cheaper option for better care  and a better community.

 And then if you're looking at like, Hey, maybe I'll just stay home and I'll have a one-on-one nurse or a caregiver is there  24 70, you're looking at about 78,000. The residential assisted living is still a cheaper option  for better care.  Gotcha. And so you mentioned the risk of the operator defaulting.

 What does that risk look like? Are these facilities really difficult to manage? So it's high risk like a restaurant, the risk of them defaulting is incredibly high.  Where does  that risk profile sit with outsourcing?  To another operator?  Yeah, it's a good question. Definitely less than a restaurant, but the, the risk is still there.

 I think the importance is you need to really network with operators and try and get someone with a really good track record who's done this before and, and who has the systems in place to scale, and they, they're really looking to scale.  There is a good bit of money to be made in assisted living, and so that's something you always have to weed out.

Hey, is this person in  assisted living for the right reason?  It's a little bit harder to default because you're taking care of those residents. Like you can't just leave seniors high and dry. So that does offer some protection, but it's tough. You know, we,  we have an operator who's kind of struggling a little bit with charging the rate that they  thought that they were gonna be able to get, and they've been kind of going back and forth with us of like, Hey.

 What are some options that we can have to lower the lease payments? And we're like, well, you know, the,  a lease is a lease. And they're like, okay we're gonna figure it out. And they're, they're working with partnering with someone else to help out with the marketing and kind of upside and make it more efficient.

So  you just need to have that communication. But  understand that, like the, the risk is certainly there, but if you do the time upfront to vet the operators and really understand where they're coming from and what their experience is, that'll help mitigate that risk. The really good operators. They're looking to grow 'cause they see the benefit of this.

 And  a question we get commonly is, well, why don't they just go buy a home?  The reason behind that is if you're talking about 25 to 30% down on a million dollar house in Arizona,  like that's a huge chunk of capital that they need to put down.  And so a lot of times they don't even wanna bother with buying more homes 'cause they can scale by just leasing out the business a lot faster.

Right. And then just paying the lease fee instead of having to deal with owning the real estate.  So just finding them,  reaching out to 'em, it's a great way to do it.  Healthcare workers, like retired,  retired nurses or burnt out nurses and healthcare workers make really good managers. So that's another thing to keep in mind is like, hey, if you're gonna put a manager in,  reaching out to  a nurse, healthcare worker, social worker, you know, someone with some experience can be helpful and, and you can be like, Hey.

 We'll pay you six figures to come manage  this home or come manage these two homes.  They're gonna jump at that opportunity over, you know, working the night shift at the hospital.  Are there any zoning or permitting requirements for something like that?  Yeah, absolutely man. So  that's the first thing you need to look into  where you're thinking about investing is what are the licensing requirements?

 There's gonna be licensing and zoning requirements, both for the state and also the the locality that you're potentially gonna invest in. So you're using Arizona again, for an example, like the state of Arizona has their requirements.  For example, the max number of residents you can have licensed is 10.

Then as you get further into the specific locality requirements, they, they may have  specific regulations on, okay, you can only have an assisted living home,  you know, in these locations, and it cannot be within 1200 feet of another. And  maybe the zoning has to be a certain way.  You have to have the safety, you know, there's safety regulations of course, that are important.

And then sometimes there'll be square footage requirements. So a bedroom. Would need to be a certain square footage to have two residents in, or a certain square footage to just have one resident.  And that's gonna vary too. So there are definitely some significant  zoning and licensing requirements that you need to look into.

 Always start with the state first and then just work your way down.  Another tip for folks who are listening who are interested in this,  go in  person  and talk to your zoning office  because a lot of times they don't understand what residential assisted living is  and they hear assisted living and they immediately think like this big box facility like, Hey, they want to build this big box facility in a residential zone.

That makes no  no sense.  So go explain to 'em what you're doing  and that can be really helpful as well.  That makes a lot of sense.  What is your process for raising capital? So you mentioned earlier, sent out a few emails. I'd like to hear like a,  the,  let's call it like a two phase approach, raising capital without a brand I.

Versus raising capital with the brand in your podcast and things like that. What, what was your process and experience for both?  For sure, man, I, I never tried to raise capital without the brand,  so I cannot really weigh in on that that much. And I hope that is a lesson for everyone listening, that you need to have a brand.

It's just, it's gonna make it a lot easier. And your brand doesn't necessarily have to be something  fancy or crazy, but I think that  everyone here that's listening to this, that's thinking, I wanna raise capital at some point.  You just gotta post your story. You just gotta post what you're doing. You have to be willing.

 To be uncomfortable, being uncomfortable and get out there and share what you're doing. Otherwise, people are never gonna know.  And that could be as simple as like sending a text message to a friend from high school and being like, Hey man, I'm  hope you're doing well. You know, was thinking about our days playing on the football team.

I'm working on residential assisted living, if that's something that's ever of interest to you, or most importantly.  If you know of someone else who may be interested in investing in one of these deals, reach out to me. And that's a great question 'cause it doesn't feel like you're selling anyone. You're just, you're just offering an opportunity or just connecting and reaching out to people.

 And maybe your buddy comes back and they're like, Hey, I wanna invest. And also I have five friends who are really interested in this as well.  So that email or that text message  of, Hey, do you know someone else who may be interested in this?  Or interested in this deal  is gonna be really helpful from a brand perspective.

Same way, man, like I just,  I do weekly podcasts and I host like  free discovery calls with folks, like 15 minute discovery calls they can sign up for,  and I just try to provide as much value as I possibly can. I mean, we're, we're both friends with Brian Lubin.  Perfect example of someone who just gives, gives, gives as much as he can,  builds those relationships, builds that network up.

 And then when you get to the point where you ask,  where you have the ask to raise capital, people already know, like, and trust you. And they, they wanna do that. So it's been really awesome, man. I think the podcast was the best decision I ever made from a networking perspective,  from a deal flow perspective and from a raising capital perspective.

Because  folks just listen to that every week and they know what I'm doing and they know, like, and trust me. And and I've been really fortunate to raise capital. Put in that regard. I love that dude. Yeah. I am obsessive about telling people to build in public whatever you're doing. There's this  idea that you have to achieve a certain level of success or be a certain level of, have a certain level of experience before you can share your story and teach people, but you don't have to always teach people as the expert.

You can also share your story as the person who's on a journey learning and, and buying these deals. That's something that I wish I had done earlier.  Is share my journey of, Hey, I have no idea what I'm doing, getting into real estate. This is my story, and documenting it as I went. I'm, I'm glad that I did start and, and  it's been one of the  greatest force multipliers for everything that I'm doing.

Like I said, I don't remember if it was on this podcast or the one.  Before, I've had back to back podcast today,  so I might be repeating myself. I don't think I am though.  Which is like I, when I was raising capital, there was a somebody that I reached out to who I hadn't spoken to in a decade and we hopped on a call 'cause they said that they were interested in investing in the deal.

 And a few minutes in. Mentioned,  like they literally stopped me and said, oh no, dude, I, I know what you're doing. I've been following you along. I'm down to invest.  And literally a few minutes in, they invested 50 grand and it was the best return on my five minutes I've ever had in my entire life. Yeah. And it was literally just from building in public and sharing the story and.

 Building that trust. 'cause like I said, I hadn't talked to him in a year and,  or in, in a decade.  In a decade prior. Like we, we knew each other. We were, we were friends, but we weren't like super close.  So it's literally just like building rapport with people by sharing your journey and your story over anything else.

It's  one of the greatest force multipliers that I have ever come across.  Yeah, for sure. And  you know, I think people are, are.  Scared or, you know, have that imposter syndrome of sharing content or starting their own podcast 'cause oh, maybe there's a lot of podcasts.  But dude, it, it doesn't matter how many people listen to your podcast or who watches your content, as long as it's the right people  and it only takes a few people to raise a pretty significant amount of capital anyways.

And so it's just being willing to get out there and just keep providing tons and tons of value and it's gonna come back to you.  I love that, man. I completely agree. It's wild. For me when I  hop on a call with somebody and they're like, Hey, how's,  how's Jack doing? How's Owen? Oh, how was your camping trip?

And I'm like,  I've never talked to this person before in my life. Like how do they know that?  And then I realize it's 'cause  I share my journey and I share my life on the podcast. And and the other cool thing too, Gideon, is we're gonna be able to go back and listen to this and like. 15, 20 years, our kids are gonna be able to listen to this podcast and they're gonna be able to learn from us and from our journey and from our struggles and from our failures, and also those big wins.

And so it's really cool to be able to document that for the future as well.  Yeah,  a hundred percent, man.  So you have a community. Let, let's, let's break down a bit. What diving into and, and scaling that community and, and how you deliver value there looks like. So  what did, what did that  kickoff and launch into?

 I guess  growing it looked like.  Yeah, so we have a community called the Row Room Assisted Living Mastermind, and that really started because we were looking for more and more operators for at least to operator homes.  So we started a Facebook group that's like residential assisted living investors, operators, caregivers, or something like that.

 If you type in residential assisted living and Facebook, it'll come right up and, we started that just looking for more operators just to build our Rolodex. And then it quickly grew to, I think we have 13,500 people in that group now, man, which is crazy. And I guess a year and a couple months. And in that community, we were just trying to provide a bunch of value, share what we were learning, kind of share our journey along the way.

 And we had a lot of folks reaching out to us and like, Hey, I wanna do coaching with you. Can you coach me? Can you help me? And, and I'm a full-time family medicine physician in the Air Force and obviously I'm doing a lot of other things. And most importantly  to me is my time with my family and my wife and my two boys.

 And I was like, I can't, I don't have the time to do one-on-one coaching. And so there was that avenue and then we had other people who were coming to us and they were saying like, Hey, I've.  Participated in some other assisted living courses and it didn't really provide the value that I was looking for.

 And at the end, they tried to upsell me on  consulting  for 35 to $45,000.  And so really there was only a couple different avenues for education in the assisted living space. It was these outdated courses that then upsell you  or one-on-one, you know, guru mentorship. That's $50,000 a show, so pretty expensive.

 My partners, Charlie, Luke, and I are part of the War Room Mastermind, which is for military  active duty retirees, veterans,  and we've been in that Mastermind for about five years and it's completely changed our life. Shout out to Dave Pere if he's listening to this and we realize like, this is, that's the perfect  opportunity for assisted living.

Like there's no mastermind that exists.  Let's just take everything we love about the war room. Let's take everything that I love about Action Academy and let's make a mastermind for assisted living and do that. So it took, it took a while. It took some convincing of my partners 'cause we also had imposter syndrome in regards to that as well.

And then we realized  if we start this mastermind and we start having folks.  Open and operate these incredible assisted living homes. Each one that opens is taking care of 10 to 16 seniors and they're getting high quality care  and we need more and more of that. So we,  we launched the Row Room Mastermind.

 I think we had about 30 ish members who joined immediately, which was amazing. We're. Super fortunate to do six figures in, in less than six months on that mastermind program. And we have about 65 members right now paying members right now, and it's been really cool.  And then we partnered with a bunch of experts, so every Monday.

 And every other Saturday we have experts come in and talk on a specific topic. Last night I was, I was the quote unquote expert, but we talked about raising capital. And then on Saturday we're having a call with a guy who managed a bunch of big box facilities and now has seen the  benefit of residential assisted living.

And he owns and operates some assisted living homes and he's looking to scale. And so  we just try and provide as much value as possible and. We use the school community, S-K-O-O-L that Alex  Oroz is a big fan of.  So we've been able to build out a bunch of courses and modules throughout that. So we're able to provide  really good education to lay the foundation and then the community and accountability of a mastermind, which is so important.

 And then bringing in the experts as well. So it's been. It's been awesome, man. It has been so cool and we've learned so much through that. And now we're at a really sweet spot if,  you know, members are buying land and starting to develop their own assisted living or they're  opening their own assisted living homes, and it's just been awesome to see kind of that ripple effect of of the mastermind.

 Yeah. That's awesome.  So were the majority of those initial members from that Facebook community?  Yep. Yeah, the majority are from that Facebook community. And, and interestingly, or maybe not, interestingly, the majority are healthcare workers, are physicians. And I think that's probably, 'cause I  obviously talk to a lot of them and, and through the podcast and stuff they've learned about it.

But I also think also they see that need. And so it's pretty cool too, 'cause obviously.  Full-time physicians don't have a whole lot of time to own and operate an assisted living home. So we're seeing a lot of people start to form partnerships where, hey, I'll be the capital, I'll kind of help run the real estate side of things as the physician  and then the  they're partnering with someone who wants to run the op side of things.

And so it's been really cool to see those partnerships build out and start blossoming as well. '  cause I think that's a really cool way to do it. '  cause  it is a lot of work. I mean, I don't wanna undercut the amount of work it is to own and operate one of these homes.  Yeah. Yeah, no, I, I can imagine it's quite a bit, pretty, pretty full and intensive.

So me coming from the boutique hotel space, like traditionally boutique hotels are the very hands-on that people think about when they think about real estate. But I can imagine assisted living is. Quite a few notches above that. So  yeah, hat hats off to you guys. That, that's amazing. That's amazing.  Dude,  there, I mean, this is, this is really exciting and, and really inspiring for a handful of reasons.

I'd love to dive into the, the purpose,  because I know that that's  meaningful to you. What, what purpose do you  have underlining behind all of this and, and how do you think people should be thinking about going into something like this?  Yeah, so my first job actually, my first like. True paying job. I was  16, maybe 15, and had to get my like worker's license or whatever, but I worked as a handyman slash maintenance man slash cook at a assisted living facility, and it was probably about a 45 bed assisted living facility and made some really great connections there with some of the residents.

And  there's just little things that stick out, man, throughout that time that I was like, I cannot believe someone's paying five or $6,000 a month or whatever it may have been to stay in this place and they're not getting high quality care and.  I remember one guy named Dick, he was an executive at IBM and he asked me to come in his room one day to take a look at his tv 'cause he is like, Hey, this TV doesn't work.

It's broken. And I've been trying to watch it and I've been trying to get help for the last three days from the caregivers and they're just ignoring me. Do you mind taking a look?  All it was was the batteries on his remote were dead  and it took three days and it's something as simple as that where it's like, man, this guy's paying five, six grand a month to be here  and no one's even willing to change the batteries of his remote.

 Now obviously that's a small thing, but also rotating as a physician through a lot. Of these nursing homes.  You know, I was seeing residents with pressure ulcers that should have never happened, that are like laying in their urine for way too long because caregivers can't get there in time 'cause they're taking care of 20 other residents.

Like  there's just such a need for these homes and this more personalized care and a much more hands-on approach that that's a big driving factor for me. The other thing too is my. My grandmother passed away of a LS when I was in med school and, and she never made it to one of these assisted living homes, but she did go on hospice and, and have some really good end of life care and that was a huge game changer for, for her and for the family.

And gave us a lot of closure as well. 'cause she was able to really  die peacefully and die with dignity. And, and a LS is a. Absolutely terrible condition, but she was able to do that with Grace and and die with grace. And so that's always been a motivating factor for me is  like, can we, can we do the same thing for our residents going forward  and can we do the same thing for every senior in America?

 That's impactful, man.  That's, that's very powerful. At the hunt for incredible. We believe that.  Questions are the answers. So what questions do you feel people need to ask themselves or others to be successful in the space?  Absolutely. I think one really easy question is just ask yourself what type of environment do you want your mom, dad, grandma, grandpa?

What type of environment do you want them spending out their last days? And what type of care do you want them  to receive?  And if there's nothing in your area that provides that, maybe you're the one that needs to open it.  Maybe you're the one that needs to start it.  That  Alex, where can people find you?

 Absolutely, man.  You can find me all over the place. I'm the only Alex Schloe, I think that exists, so just Google me. That's fine. But I'm on Instagram. ALO three is my personal physicians and properties is my physician account  there. And then I'm on LinkedIn. Just Google, Alex Sch low. And then if you  want to know more about assisted living, we have a free 10 step guide on our website.

So if you type in the ra room.com  or the RAL room.com,  that'll come right up for you. You can sign up and get a free 10 step guide. And  if you wanna know more beyond that, just reach out to me. I'll always happy to connect and chat with awesome folks.  Awesome, Alex, thanks for being on the show. And let's start a $200 million fund, man.

 Hey, let's go Gideon. Looking forward to it, man. We'll start the boutique hotel,  if you will, for seniors. Man. Let's go.  Hell yeah, let's do it.

 Hey, real quick, if you're still listening to this, I'm assuming you got value from it, so I need your help. Specifically, my two year vision with this podcast is to help 100,000 physicians learn how investing in real estate can give you the freedom to practice medicine and live life how you want. There are two main ways that a podcast grows.

One is the ratings and reviews, and the other is word of mouth. If you can please leave me a five star rating and review on Apple Podcast and Spotify as well as send this to one to two friends that you think would get value from it. We can reach the position that we want reach. Thanks in advance and talk to you on the next episode.

Please know, podcast Financial Press on this podcast host. Guest do not necessarily reflect use of Department of Defense or the United States Air Force. And that's the cool thing about  residential assisted living is these are typically homes that are.  10 to 16 residents, depending on what state and what area you're investing in.

 And the caregiver ratios are typically like one to five or one to eight. So you're going from a big box facility where caregiver ratios may be one to 20 or one to 25,  perhaps even more  to a home  where it's gonna be. So  the ability to provide way better care  and it really improves someone's quality of life is awesome.

 Welcome to the Physicians and Properties Podcast, the show where we teach you how investing in real estate can give you the freedom to practice medicine and live life how you want. Doctor, doctor, doctor, doctor, doctor. Now here's your host, Dr. Alex Slo. 

 Dr. Alex Schloe here with another episode of the Physicians and Properties podcast. Today's episode is gonna be a little bit different.  It's actually recording from my time as a guest on the podcast, the Hunt for Incredible  with Gideon.  Gideon. Spencer is a good buddy of mine and he is doing boutique hotel investing,  and we had a really great episode where he talked about my journey.

We talked about assisted living and we dove.  Deep  into the numbers of residential assisted living and just why  assisted living is the best opportunity investing in real estate now and for decades to come.  We also talked about some investment opportunities that are coming up here in the future.  Like right now, we are currently raising capital for accredited investors for a 320 unit independent living deal  in Florida.

This is a ground up development projected to triple.  That's right. Triple your money  in approximately four years. So  if this interests you and you want to get on our investors list, go ahead and click the link below in the show notes  and join our investor list, and we'll send out these deal opportunities  to you  now and in the future.

So  without any further ado, let's get started  with this episode of The Hunt for Incredible  being replayed here on the Physicians and Properties Podcast.  Thank you so much for listening.

 Assisted living. The silver tsunami, if you will, I think is the best opportunity in real estate investing now and for decades to come.  You mentioned it, man, that baby boomer generation. And the crazy thing is that makes up 77 million people. There's 77 million baby boomers,  seven out of 10 of them are gonna require long-term care.

 That's 59 million  boomers who are gonna need long-term care.  And the even crazier thing to think about is right now we're a million beds short. When it comes to assisted living,  and 82% of those folks that are in the assisted living homes right now are part of the silent generation.  Okay? So we're not even seeing baby boomers really trickle into these homes just yet.

 It's coming, but the opportunity is absolutely incredible.  Nobody's born incredible people who do incredible things simply took the right steps.  This is our journey.  This is the hunt for incredible.  All right. Welcome back to another show,  another episode of The Hunt for Incredible. On this episode,  we have my man, Dr.

Alex  Schloe. Alex and I  we actually met through Brian Lubin, so we became friends on his 30th ski trip in Whistler, Canada, which is a lot of fun.  And  we hit it off because.  Alex is actually an investor in a space that I think is gonna be a massive wave coming in,  and it's, it's far enough out that not a lot of people see it, but it's gonna be absolutely huge,  and that is assisted living homes.

We have  more baby boomers retiring than any other generation right now. They make up such a massive. Percentage of the population they need to be taken care of.  So we'll be diving into all of that. And I think  with my  background in boutique hotels, I see the assisted living space. And I think  dude,  a boutique  assisted living home  like  experience, I think is, is just on the cusp of being a massive, massive wave  that's not getting enough attention right now.

But the people who are riding that wave are gonna.  Make a lot of money and make do a lot of good. So I'm super stoked to dive into that with Alex.  Alex is also a physician, he is a family medicine physician.  He's an investor in multiple type,  multiple asset classes. So he's been in long-term rentals, short-term rentals.

 He's partners on a hotel deal with Blake Daley, who we've also had on the show who is out at  brown Lube and 30th,  and he is an investor in an RV park and he's also, I dunno if we're gonna have time to dive into,  we can. He is delivered a baby in front of a pickup truck,  which is like a random  fact that came up right before we hopped on the call.

And maybe we'll touch on something else that's really interesting that I'm excited to dive into is  Alex raised over a million dollars in just seven days for one of his most recent and biggest deals that he did. So we're definitely gonna dissect that.  He also has a community that coaches others on how to acquire  and operate assisted living homes.

 He has a podcast called Physicians and Properties with a Facebook community that I'm. Excited to be a guest on some time within the next couple weeks. And what I like about  Alex is that he has a strong emphasis on purpose.  So not just going for the thing, which is what people get hung up talking about.

Like what goal are you going for? What are you,  how are you getting there? But also.  Are you  being thoughtful about your purpose behind it? Are you just following the crowd and trying to get rich and party and have financial and geographic freedom? 'cause everyone else says too?  Or are you actually gonna do something with that that fulfills a purpose inside of you?

 Which is, which is vital. So  Alex, thanks for being on the show, man. I'm soaked to dive in. Me too, man. That was a great intro. You're too kind and those words were, were too nice, man, so  I appreciate that. Yeah. Just to dive in right from the beginning, man, the  assisted living, the silver tsunami, if you will, I think is the best opportunity in real estate investing now and for decades to come.

 You mentioned it, man, that baby a boomer generation, and the crazy thing is. That makes up 77 million people. There's 77 million baby boomers.  Seven out of 10 of them are gonna require long-term care.  That's 59 million boomers who are gonna need long-term care.  And the even crazier thing to think about is right now we're a million bed short when it comes to assisted living, and 82% of those folks that are in the assisted living homes right now are part of the silent generation.

 Okay. So we're not even seeing baby boomers really trickle into these homes just yet.  It's coming, but the opportunity is absolutely incredible. Wow. Yeah. I, I talk a lot on this podcast about the massive transition in wealth that's coming up. A lot of people are talking about it these days, right? 10,000 baby boomers are trying every day.

They own  roughly 25% of small businesses.  But what seldom gets talked about is what happens after that transition?  Like, how are those people taking care of?  So  with that, let's dive right in. So  tell us about this assisted living deal that you just raised. A million dollars over seven days for Thanks, man.

Yeah, so this was an independent living deal. So if you're looking at the continuum of assisted living, you typically have like  a. Independent living, which is 55 plus, they can still do their activities of daily living.  They don't really need a whole lot of assistance with those activities of daily living.

 Then you have assisted living and they need help with, with those activities of daily living. That's like bathing, toileting, cleaning, cooking, et cetera. And then you have memory care and some of the more kind of higher medically intensive  assisted living homes, memory care, of course, being with patients with dementia.

 And then you have nursing homes, skilled nursing facilities. So that's kind of the continuum of assisted living that exists. And so, yeah, I just had the opportunity recently to raise capital for this amazing deal in the villages of Florida, which is like  Disney World for retirement folks. And the, the reason I had this opportunity was I had  a doctor, Dr.

Francesca Byrne and her husband Ryan Byrne on the podcast about a year ago.  And I just kept reaching out to them and touching base with them. And they  are in the value add multifamily space in high growth areas. Houston, Charleston, Savannah,  and I interviewed them and after I told my wife, I was like, Hey, if I have the opportunity to invest with them, I would love to do it.

'cause they were just top-notch, excellent, incredible people.  And so long story short, I just kept trying to provide them value. And if folks were. You know, I felt like would be interested in one of their deals. I would send it their way or I would just reach out to 'em, be like, Hey, congrats on this opportunity.

 And so then Ryan emailed me one day. I was like, Hey man, gimme a call. And we hopped on a call and he is like, Hey, let's let's raise capital for this deal. I wanna bring you in as a gp.  And a few things that stand out was one, how incredible of a deal. It was  485 independent living. Units in the villages of Florida, which is, like I said, just an amazing place.

 And it was actually approved for 600 and Graystone, who's gonna be the property manager of  that independent living facility.  They were like, Hey, you could, you could build all 600 right now, and we'd be able to fill it up. Like that's how much demand there is.  And so a really cool deal, Ryan was like, Hey man, we're gonna, we need to raise $2 million.

We'll just both kind of get after it. And out of the 2 million we'll just split. You know, the,  the acquisition fee and the distributions and so forth based off that, which was awesome.  I was terrified initially  because I'd never raised more than 650,000 and the minimum investment was 250,000. And I was like, man, like that's crazy.

That's a huge minimum investment. Everything else I've done has been 50 to 25,000.  It was kind of this big, you know, hurdle to get over.  Ryan was like, trust me man,  it's gonna be easy. Like you're gonna see that the minimum investment of 250 is easier than 25,000 minimum investment.  And he was right, man, through Physicians and Properties.

The podcast I host in the community that I've built,  we were able to raise over a million dollars in seven days. And that was through sending a couple emails and hosting a really awesome webinar and then sharing the  investment materials that we created and we ended up oversubscribing like.

Significantly. So we had to have a wait list. And so it was an amazing opportunity and it was definitely, you know, a mindset shift for me that like, really,  if you have an incredible deal,  you're partnered with incredible people, like you can raise any amount of capital. So don't limit yourself on what that may be.

What type of access do you have to have to people to have a minimum 200?

It's pretty wild. So, so a lot of these investors are physicians and so they have  higher incomes  and, and the cool thing is there's some good tax benefits in this deal,  and so they're really interested from that perspective. The other thing that's helpful for assisted living, independent living, raising capital for that asset class is healthcare workers.

You know, specifically physicians, but also nurses or you know, nurse practitioners, physicians assistants, like we understand  the situation that we're in from a healthcare perspective for seniors.  We also understand that the big box facilities, like those huge buildings that  you go into and smell like urine and caregivers are taking care of 20 residents.

We also realize that that's not the best way to take care of folks, and so healthcare.  Workers are really in tune with that and really interested in investing in that. 'cause we see the huge need that is there from an assisted living and independent living perspective.  Dude, I need to connect you with my friend Riley Brennan.

So  I had him on the show  last week and he worked with medical professionals that were investing in real estate out of, in Ohio.  Where the Mayo Clinic is,  and he was saying that they raised like a $200 million fund  from physicians that were at the, at that hospital and started buying up multifamily all over the place.

 And so  RI was in part of deploying that capital.  So in terms of thinking about what structuring like with having access to capital like that and structuring a fund to do something really big at scale and what does it look like to raise $200 million, just buy up all the assisted living. And then also in the medical space, they understand assisted living better than.

 Any other commoner, right? Because they understand like, oh, there actually is  like a medical need here to make sure that people are taken care of for,  you know, reasons that, that they understand deeply. So  yeah, it'd be very interesting to, to get creative on what scaling really, really big with something like that would look like.

Yeah, man. I'm hoping in a year I can come back on the podcast and tell you that we've done that. But it's crazy to think about man raising 200 million for Mayo. Yeah. In Minnesota. I wonder if Riley, does he work for Black Swan by chance? There's a  doc out there, Dr. Stoger and Nick, and they have a big real estate company out there in Rochester where Mayo is.

I wonder if he's affiliated with them in some way. Possibly. Possibly. Yeah. Yeah. I don't, I don't, I don't recall those names, but possibly. Yeah, we'll, we'll definitely get you connected. That'd be fun. Yeah, it'd be awesome, man. 200 million. Just a number, bro.  It's just a number. Yeah,  bro. So with, with that, let, let's dive into this.

You said  the silver tsunami and you mentioned like the, the  basically the supply and demand that's coming in.  Where do you see the most opportunity right now overall, like regardless of  people's access to capital and size of deals, where do you see the biggest opportunity? Is it in  smaller boutique  assisted living homes that are being.

Deployed. Is it in converting multifamily into assisted living? Is it going for like really big stuff right now? Like what are, what are your sights set on  knowing that you are this far ahead of that tsunami?  Yeah, man, I think there's a ton of opportunity all across the board.  If I had to pick.  A few to like really lean in on.

I think residential assisted living  is, is a great opportunity. Emory Care Homes great opportunity.  The big box facilities really got hit hard with COVID O and so a lot of the trust with that was lost and so  we've kind of stayed away from that. But I do think there's a sweet spot of probably like 30 to 50 residents, kind of the boutique  facility like we talked about, Gideon.

I think that is a really awesome opportunity as well 'cause you can still have that personalized care  and if it's a really nice a class. As boutique environment, then you're, you're gonna be able to attract that private pay resident who can pay more.  The beautiful thing of residential assisted living, and if you're  sitting here thinking, what the heck is that picture of?

Really nice single family, single story home, ranch level home  that's large with a large number of bedrooms and bathrooms.  That's been renovated. So typically you have wheelchair ramps, you have widened doorframes, you have grab bars in the shower, the toilets. You have  fire suppression systems, sprinklers, fire alarm monitoring.

Those are some of the big renovations that are needed.  And it's just a house man. It's just a really nice house that's been renovated to provide personalized care for folks. And that's the cool thing about  residential assisted living is these are typically homes that are.  10 to 16 residents, depending on what state and what area you're investing in.

 And the caregiver ratios are typically like one to five or one to eight. So you're going from a big box facility where caregiver ratios may be one to 20 or one to 25,  perhaps even more  to a home  where it's gonna be. Much more personalized,  a smaller knit community where the caregiver ratios are one to five or one to eight.

So  the ability to provide way better care  and it really improves someone's quality of life is awesome. And the other thing that's that's important is these are embedded in neighborhoods, right? So these are in neighborhoods. They're already in a community.  A lot of times folks are able  to move from their house, which they really don't wanna leave.

Right.  And 'cause they wanna be independent as long as they can, but they can move from their house perhaps into  one of these residential assisted living homes just right down the street. So they're able to stay plugged in with folks that they already know.  Be close to family, et cetera. So it's, it's a really awesome opportunity and we hit on the demand earlier, Gideon man, we're already a million beds short right now, so everyone listening to this podcast would go open 10 homes and we wouldn't even put a dent in the number  of homes that are the number of beds that are gonna be needed.

 That's why we're like, Hey, is more and more people just need to know that this is an option. This is incredible opportunity  and a great way to provide way better care for seniors. What does a return profile look like? So let, let's, before we dive into that, break it up and say, okay, so you have like the asset itself,  itself.

Then you have management. You can outsource management. If you outsource management.  What does the return profile look like on  buying an asset?  Look like.  Yeah, absolutely.  I'll break it down a little further too. There's, there's multiple different ways that you can invest in assisted living.  There's four ways that you can do that.

One would be lease to operator, which we call L two O 'cause we try to be cool.  But that's basically where you buy the real estate. You lease that out to an operator on a commercial lease.  The operator does all the day-to-day care. They're responsible for care of the residents. They're responsible for liability insurance, food  maintenance, et cetera.

 So leased operator B,  you could also buy the real estate and own the operation. So you own the real estate and you're responsible for all the day-to-day care. You could lease a business,  lease your business to someone's house. So essentially  you could be the business who's doing the operations, and you come to a landlord like me and you lease out my home.

 Or you could passively invest. So those are the four big ways.  I think it's helpful to distinguish that. 'cause that's gonna determine what the returns look like.  But for example, a lease to operator, so you're buying the real estate, you're leasing that out to an operator, that is the more passive approach.

Cashflow is gonna be a little bit less,  but it's more passive.  We have five of those in Arizona.  They're on commercial leases three to five years with a 3% annual increase. And each one of those homes, cash flow is in between three and thousand dollars per month.  Pretty passively.  The linchpin is you have to have a really good operator, right?

So if you don't have a good operator and they break the lease, like that's, that's the biggest risk.  So you really would need to vet an operator  very well, understand where their heart is, make sure they're not in it, just to try and make some money.  And and then if you partner with them, you can grow pretty significantly.

But that home.  For example, our memory care home that we have, that cash flow is about four grand per month. And we're paying investors 10%. We raised 200,000 for that.  And that's passive. Like we don't, we don't do anything  other than collect the money. So that's an option. If you own the real estate, own the operations, of course that's gonna take a lot more work, right?

You're involved in the day-to-day care, you're  involved in the day-to-day ops, and we always say you should budget to hire a manager who's gonna run those operations for you. If you have a manager in place  and you have a full house and you're doing attracting private pay,  we have friends that are, you know, in some homes that we own that are cash flowing 10 to 15 to $20,000 per month on one home.

 So it's the only opportunity that I know of in real estate where you can have a single family home and you can reach financial freedom from one home.  Perhaps you could do that on really nice short term rental,  but then you're dealing with like.  All the headaches of short-term rental management. Yeah.

And of course the dishwasher breaks and the oven breaks on Thanksgiving. And so  of course you're dealing with a different set of headaches, but you just gotta choose your heart. Right? And the cool thing about this is  assisted living. You're also providing such a fulfilling  need and really getting that purpose out of the investment.

So  there's a wide spectrum there, but the returns are great.  The  cost to the resident is typically about $54,000 per year. For residential assisted living, for them to go be a resident there.  If you're looking at some of these big box facilities, it'd be closer to about 70,000. So it's still a cheaper option for better care  and a better community.

 And then if you're looking at like, Hey, maybe I'll just stay home and I'll have a one-on-one nurse or a caregiver is there  24 70, you're looking at about 78,000. The residential assisted living is still a cheaper option  for better care.  Gotcha. And so you mentioned the risk of the operator defaulting.

 What does that risk look like? Are these facilities really difficult to manage? So it's high risk like a restaurant, the risk of them defaulting is incredibly high.  Where does  that risk profile sit with outsourcing?  To another operator?  Yeah, it's a good question. Definitely less than a restaurant, but the, the risk is still there.

 I think the importance is you need to really network with operators and try and get someone with a really good track record who's done this before and, and who has the systems in place to scale, and they, they're really looking to scale.  There is a good bit of money to be made in assisted living, and so that's something you always have to weed out.

Hey, is this person in  assisted living for the right reason?  It's a little bit harder to default because you're taking care of those residents. Like you can't just leave seniors high and dry. So that does offer some protection, but it's tough. You know, we,  we have an operator who's kind of struggling a little bit with charging the rate that they  thought that they were gonna be able to get, and they've been kind of going back and forth with us of like, Hey.

 What are some options that we can have to lower the lease payments? And we're like, well, you know, the,  a lease is a lease. And they're like, okay we're gonna figure it out. And they're, they're working with partnering with someone else to help out with the marketing and kind of upside and make it more efficient.

So  you just need to have that communication. But  understand that, like the, the risk is certainly there, but if you do the time upfront to vet the operators and really understand where they're coming from and what their experience is, that'll help mitigate that risk. The really good operators. They're looking to grow 'cause they see the benefit of this.

 And  a question we get commonly is, well, why don't they just go buy a home?  The reason behind that is if you're talking about 25 to 30% down on a million dollar house in Arizona,  like that's a huge chunk of capital that they need to put down.  And so a lot of times they don't even wanna bother with buying more homes 'cause they can scale by just leasing out the business a lot faster.

Right. And then just paying the lease fee instead of having to deal with owning the real estate.  So just finding them,  reaching out to 'em, it's a great way to do it.  Healthcare workers, like retired,  retired nurses or burnt out nurses and healthcare workers make really good managers. So that's another thing to keep in mind is like, hey, if you're gonna put a manager in,  reaching out to  a nurse, healthcare worker, social worker, you know, someone with some experience can be helpful and, and you can be like, Hey.

 We'll pay you six figures to come manage  this home or come manage these two homes.  They're gonna jump at that opportunity over, you know, working the night shift at the hospital.  Are there any zoning or permitting requirements for something like that?  Yeah, absolutely man. So  that's the first thing you need to look into  where you're thinking about investing is what are the licensing requirements?

 There's gonna be licensing and zoning requirements, both for the state and also the the locality that you're potentially gonna invest in. So you're using Arizona again, for an example, like the state of Arizona has their requirements.  For example, the max number of residents you can have licensed is 10.

Then as you get further into the specific locality requirements, they, they may have  specific regulations on, okay, you can only have an assisted living home,  you know, in these locations, and it cannot be within 1200 feet of another. And  maybe the zoning has to be a certain way.  You have to have the safety, you know, there's safety regulations of course, that are important.

And then sometimes there'll be square footage requirements. So a bedroom. Would need to be a certain square footage to have two residents in, or a certain square footage to just have one resident.  And that's gonna vary too. So there are definitely some significant  zoning and licensing requirements that you need to look into.

 Always start with the state first and then just work your way down.  Another tip for folks who are listening who are interested in this,  go in  person  and talk to your zoning office  because a lot of times they don't understand what residential assisted living is  and they hear assisted living and they immediately think like this big box facility like, Hey, they want to build this big box facility in a residential zone.

That makes no  no sense.  So go explain to 'em what you're doing  and that can be really helpful as well.  That makes a lot of sense.  What is your process for raising capital? So you mentioned earlier, sent out a few emails. I'd like to hear like a,  the,  let's call it like a two phase approach, raising capital without a brand I.

Versus raising capital with the brand in your podcast and things like that. What, what was your process and experience for both?  For sure, man, I, I never tried to raise capital without the brand,  so I cannot really weigh in on that that much. And I hope that is a lesson for everyone listening, that you need to have a brand.

It's just, it's gonna make it a lot easier. And your brand doesn't necessarily have to be something  fancy or crazy, but I think that  everyone here that's listening to this, that's thinking, I wanna raise capital at some point.  You just gotta post your story. You just gotta post what you're doing. You have to be willing.

 To be uncomfortable, being uncomfortable and get out there and share what you're doing. Otherwise, people are never gonna know.  And that could be as simple as like sending a text message to a friend from high school and being like, Hey man, I'm  hope you're doing well. You know, was thinking about our days playing on the football team.

I'm working on residential assisted living, if that's something that's ever of interest to you, or most importantly.  If you know of someone else who may be interested in investing in one of these deals, reach out to me. And that's a great question 'cause it doesn't feel like you're selling anyone. You're just, you're just offering an opportunity or just connecting and reaching out to people.

 And maybe your buddy comes back and they're like, Hey, I wanna invest. And also I have five friends who are really interested in this as well.  So that email or that text message  of, Hey, do you know someone else who may be interested in this?  Or interested in this deal  is gonna be really helpful from a brand perspective.

Same way, man, like I just,  I do weekly podcasts and I host like  free discovery calls with folks, like 15 minute discovery calls they can sign up for,  and I just try to provide as much value as I possibly can. I mean, we're, we're both friends with Brian Lubin.  Perfect example of someone who just gives, gives, gives as much as he can,  builds those relationships, builds that network up.

 And then when you get to the point where you ask,  where you have the ask to raise capital, people already know, like, and trust you. And they, they wanna do that. So it's been really awesome, man. I think the podcast was the best decision I ever made from a networking perspective,  from a deal flow perspective and from a raising capital perspective.

Because  folks just listen to that every week and they know what I'm doing and they know, like, and trust me. And and I've been really fortunate to raise capital. Put in that regard. I love that dude. Yeah. I am obsessive about telling people to build in public whatever you're doing. There's this  idea that you have to achieve a certain level of success or be a certain level of, have a certain level of experience before you can share your story and teach people, but you don't have to always teach people as the expert.

You can also share your story as the person who's on a journey learning and, and buying these deals. That's something that I wish I had done earlier.  Is share my journey of, Hey, I have no idea what I'm doing, getting into real estate. This is my story, and documenting it as I went. I'm, I'm glad that I did start and, and  it's been one of the  greatest force multipliers for everything that I'm doing.

Like I said, I don't remember if it was on this podcast or the one.  Before, I've had back to back podcast today,  so I might be repeating myself. I don't think I am though.  Which is like I, when I was raising capital, there was a somebody that I reached out to who I hadn't spoken to in a decade and we hopped on a call 'cause they said that they were interested in investing in the deal.

 And a few minutes in. Mentioned,  like they literally stopped me and said, oh no, dude, I, I know what you're doing. I've been following you along. I'm down to invest.  And literally a few minutes in, they invested 50 grand and it was the best return on my five minutes I've ever had in my entire life. Yeah. And it was literally just from building in public and sharing the story and.

 Building that trust. 'cause like I said, I hadn't talked to him in a year and,  or in, in a decade.  In a decade prior. Like we, we knew each other. We were, we were friends, but we weren't like super close.  So it's literally just like building rapport with people by sharing your journey and your story over anything else.

It's  one of the greatest force multipliers that I have ever come across.  Yeah, for sure. And  you know, I think people are, are.  Scared or, you know, have that imposter syndrome of sharing content or starting their own podcast 'cause oh, maybe there's a lot of podcasts.  But dude, it, it doesn't matter how many people listen to your podcast or who watches your content, as long as it's the right people  and it only takes a few people to raise a pretty significant amount of capital anyways.

And so it's just being willing to get out there and just keep providing tons and tons of value and it's gonna come back to you.  I love that, man. I completely agree. It's wild. For me when I  hop on a call with somebody and they're like, Hey, how's,  how's Jack doing? How's Owen? Oh, how was your camping trip?

And I'm like,  I've never talked to this person before in my life. Like how do they know that?  And then I realize it's 'cause  I share my journey and I share my life on the podcast. And and the other cool thing too, Gideon, is we're gonna be able to go back and listen to this and like. 15, 20 years, our kids are gonna be able to listen to this podcast and they're gonna be able to learn from us and from our journey and from our struggles and from our failures, and also those big wins.

And so it's really cool to be able to document that for the future as well.  Yeah,  a hundred percent, man.  So you have a community. Let, let's, let's break down a bit. What diving into and, and scaling that community and, and how you deliver value there looks like. So  what did, what did that  kickoff and launch into?

 I guess  growing it looked like.  Yeah, so we have a community called the Row Room Assisted Living Mastermind, and that really started because we were looking for more and more operators for at least to operator homes.  So we started a Facebook group that's like residential assisted living investors, operators, caregivers, or something like that.

 If you type in residential assisted living and Facebook, it'll come right up and, we started that just looking for more operators just to build our Rolodex. And then it quickly grew to, I think we have 13,500 people in that group now, man, which is crazy. And I guess a year and a couple months. And in that community, we were just trying to provide a bunch of value, share what we were learning, kind of share our journey along the way.

 And we had a lot of folks reaching out to us and like, Hey, I wanna do coaching with you. Can you coach me? Can you help me? And, and I'm a full-time family medicine physician in the Air Force and obviously I'm doing a lot of other things. And most importantly  to me is my time with my family and my wife and my two boys.

 And I was like, I can't, I don't have the time to do one-on-one coaching. And so there was that avenue and then we had other people who were coming to us and they were saying like, Hey, I've.  Participated in some other assisted living courses and it didn't really provide the value that I was looking for.

 And at the end, they tried to upsell me on  consulting  for 35 to $45,000.  And so really there was only a couple different avenues for education in the assisted living space. It was these outdated courses that then upsell you  or one-on-one, you know, guru mentorship. That's $50,000 a show, so pretty expensive.

 My partners, Charlie, Luke, and I are part of the War Room Mastermind, which is for military  active duty retirees, veterans,  and we've been in that Mastermind for about five years and it's completely changed our life. Shout out to Dave Pere if he's listening to this and we realize like, this is, that's the perfect  opportunity for assisted living.

Like there's no mastermind that exists.  Let's just take everything we love about the war room. Let's take everything that I love about Action Academy and let's make a mastermind for assisted living and do that. So it took, it took a while. It took some convincing of my partners 'cause we also had imposter syndrome in regards to that as well.

And then we realized  if we start this mastermind and we start having folks.  Open and operate these incredible assisted living homes. Each one that opens is taking care of 10 to 16 seniors and they're getting high quality care  and we need more and more of that. So we,  we launched the Row Room Mastermind.

 I think we had about 30 ish members who joined immediately, which was amazing. We're. Super fortunate to do six figures in, in less than six months on that mastermind program. And we have about 65 members right now paying members right now, and it's been really cool.  And then we partnered with a bunch of experts, so every Monday.

 And every other Saturday we have experts come in and talk on a specific topic. Last night I was, I was the quote unquote expert, but we talked about raising capital. And then on Saturday we're having a call with a guy who managed a bunch of big box facilities and now has seen the  benefit of residential assisted living.

And he owns and operates some assisted living homes and he's looking to scale. And so  we just try and provide as much value as possible and. We use the school community, S-K-O-O-L that Alex  Oroz is a big fan of.  So we've been able to build out a bunch of courses and modules throughout that. So we're able to provide  really good education to lay the foundation and then the community and accountability of a mastermind, which is so important.

 And then bringing in the experts as well. So it's been. It's been awesome, man. It has been so cool and we've learned so much through that. And now we're at a really sweet spot if,  you know, members are buying land and starting to develop their own assisted living or they're  opening their own assisted living homes, and it's just been awesome to see kind of that ripple effect of of the mastermind.

 Yeah. That's awesome.  So were the majority of those initial members from that Facebook community?  Yep. Yeah, the majority are from that Facebook community. And, and interestingly, or maybe not, interestingly, the majority are healthcare workers, are physicians. And I think that's probably, 'cause I  obviously talk to a lot of them and, and through the podcast and stuff they've learned about it.

But I also think also they see that need. And so it's pretty cool too, 'cause obviously.  Full-time physicians don't have a whole lot of time to own and operate an assisted living home. So we're seeing a lot of people start to form partnerships where, hey, I'll be the capital, I'll kind of help run the real estate side of things as the physician  and then the  they're partnering with someone who wants to run the op side of things.

And so it's been really cool to see those partnerships build out and start blossoming as well. '  cause I think that's a really cool way to do it. '  cause  it is a lot of work. I mean, I don't wanna undercut the amount of work it is to own and operate one of these homes.  Yeah. Yeah, no, I, I can imagine it's quite a bit, pretty, pretty full and intensive.

So me coming from the boutique hotel space, like traditionally boutique hotels are the very hands-on that people think about when they think about real estate. But I can imagine assisted living is. Quite a few notches above that. So  yeah, hat hats off to you guys. That, that's amazing. That's amazing.  Dude,  there, I mean, this is, this is really exciting and, and really inspiring for a handful of reasons.

I'd love to dive into the, the purpose,  because I know that that's  meaningful to you. What, what purpose do you  have underlining behind all of this and, and how do you think people should be thinking about going into something like this?  Yeah, so my first job actually, my first like. True paying job. I was  16, maybe 15, and had to get my like worker's license or whatever, but I worked as a handyman slash maintenance man slash cook at a assisted living facility, and it was probably about a 45 bed assisted living facility and made some really great connections there with some of the residents.

And  there's just little things that stick out, man, throughout that time that I was like, I cannot believe someone's paying five or $6,000 a month or whatever it may have been to stay in this place and they're not getting high quality care and.  I remember one guy named Dick, he was an executive at IBM and he asked me to come in his room one day to take a look at his tv 'cause he is like, Hey, this TV doesn't work.

It's broken. And I've been trying to watch it and I've been trying to get help for the last three days from the caregivers and they're just ignoring me. Do you mind taking a look?  All it was was the batteries on his remote were dead  and it took three days and it's something as simple as that where it's like, man, this guy's paying five, six grand a month to be here  and no one's even willing to change the batteries of his remote.

 Now obviously that's a small thing, but also rotating as a physician through a lot. Of these nursing homes.  You know, I was seeing residents with pressure ulcers that should have never happened, that are like laying in their urine for way too long because caregivers can't get there in time 'cause they're taking care of 20 other residents.

Like  there's just such a need for these homes and this more personalized care and a much more hands-on approach that that's a big driving factor for me. The other thing too is my. My grandmother passed away of a LS when I was in med school and, and she never made it to one of these assisted living homes, but she did go on hospice and, and have some really good end of life care and that was a huge game changer for, for her and for the family.

And gave us a lot of closure as well. 'cause she was able to really  die peacefully and die with dignity. And, and a LS is a. Absolutely terrible condition, but she was able to do that with Grace and and die with grace. And so that's always been a motivating factor for me is  like, can we, can we do the same thing for our residents going forward  and can we do the same thing for every senior in America?

 That's impactful, man.  That's, that's very powerful. At the hunt for incredible. We believe that.  Questions are the answers. So what questions do you feel people need to ask themselves or others to be successful in the space?  Absolutely. I think one really easy question is just ask yourself what type of environment do you want your mom, dad, grandma, grandpa?

What type of environment do you want them spending out their last days? And what type of care do you want them  to receive?  And if there's nothing in your area that provides that, maybe you're the one that needs to open it.  Maybe you're the one that needs to start it.  That  Alex, where can people find you?

 Absolutely, man.  You can find me all over the place. I'm the only Alex Schloe, I think that exists, so just Google me. That's fine. But I'm on Instagram. ALO three is my personal physicians and properties is my physician account  there. And then I'm on LinkedIn. Just Google, Alex Sch low. And then if you  want to know more about assisted living, we have a free 10 step guide on our website.

So if you type in the ra room.com  or the RAL room.com,  that'll come right up for you. You can sign up and get a free 10 step guide. And  if you wanna know more beyond that, just reach out to me. I'll always happy to connect and chat with awesome folks.  Awesome, Alex, thanks for being on the show. And let's start a $200 million fund, man.

 Hey, let's go Gideon. Looking forward to it, man. We'll start the boutique hotel,  if you will, for seniors. Man. Let's go.  Hell yeah, let's do it.

 Hey, real quick, if you're still listening to this, I'm assuming you got value from it, so I need your help. Specifically, my two year vision with this podcast is to help 100,000 physicians learn how investing in real estate can give you the freedom to practice medicine and live life how you want. There are two main ways that a podcast grows.

One is the ratings and reviews, and the other is word of mouth. If you can please leave me a five star rating and review on Apple Podcast and Spotify as well as send this to one to two friends that you think would get value from it. We can reach the position that we want reach. Thanks in advance and talk to you on the next episode.

Please know, podcast Financial Press on this podcast host. Guest do not necessarily reflect use of Department of Defense or the United States Air Force.