Purpose Before Profit in Residential Assisted Living With Dr. Alex Schloe

🎙️ 𝗪𝗲𝗹𝗰𝗼𝗺𝗲 𝗯𝗮𝗰𝗸 𝘁𝗼 𝘁𝗵𝗲 𝗣𝗵𝘆𝘀𝗶𝗰𝗶𝗮𝗻𝘀 𝗮𝗻𝗱 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀 𝗣𝗼𝗱𝗰𝗮𝘀𝘁 𝘄𝗶𝘁𝗵 𝗵𝗼𝘀𝘁 𝗗𝗿. 𝗔𝗹𝗲𝘅 𝗦𝗰𝗵𝗹𝗼𝗲.

💡 What if you could generate real, meaningful cash flow… while also solving one of the biggest crises coming in America—senior housing?

In today’s episode, I’m the guest—and we’re talking about Residential Assisted Living (RAL): an asset class most medical professionals understand from the care side… but have no idea how powerful it can be from the investing side.

We break down what RAL actually is, why it’s different than “big-box” assisted living, and the 4 ways you can invest—from totally passive to owning the business and real estate.

If you’ve ever walked into a facility and thought, “I would never want my parents here,” this conversation will hit home.

And if you’re looking for cash-flowing real estate that actually has purpose…

This is one of the most compelling opportunities out there.

🔥 𝗪𝗵𝗮𝘁 𝘆𝗼𝘂’𝗹𝗹 𝗹𝗲𝗮𝗿𝗻:
✔️ Why I started investing in real estate during residency (and how physician loans + house hacking helped)
✔️ How we house hack today—living essentially mortgage-free in Colorado Springs

✔️ My first exposure to assisted living at age 15… and the moment in residency that made it personal
✔️ What Residential Assisted Living is (6–16 residents in a home-like setting) and why it’s superior care
✔️ The 4 ways to invest in assisted living (from most passive to most active)

✔️ Lease-to-operator explained (and why it can create STR-level cash flow without STR headaches)
✔️ How to find operators (Facebook groups, job boards, AL-focused realtors, “secret shopping”)
 ✔️ A high-leverage strategy: direct mail mom-and-pop operators and ask for seller financing
✔️ The SBA financing angle (10% down possible when you own real estate + operations)
✔️ The biggest pitfalls (zoning/licensing mistakes, weak operator, not enough reserves)
✔️ The demographic tailwind: baby boomers aging + bed shortage = massive opportunity runway
✔️ How to learn more through the RAL Room free webinar + community

🔥 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀:
 ✅ This isn’t just a real estate play—this is a purpose + profit asset class.
✅ Residential Assisted Living can offer better care and better economics than most investors realize.
✅ If you want a passive entry point, LP or lease-to-operator can be a strong on-ramp.
✅ The operator is the linchpin—your best deal can become your worst deal with the wrong partner.
✅ Don’t let “I don’t have the capital” stop you—seller financing + buying existing licensed homes can be a cheat code.
✅ We are heading into a senior housing shortage whether we like it or not… and the opportunity runway is decades long.

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:

Facebook Community
Website
Instagram
Youtube
Invest With Me
Join The RAL Room Assisted Living Mastermind

Transcript

Dr. Alex Schloe: One of our homes in Arizona, uh, we bought it for 975,000. It's memory care, so it does do a little higher level care. Um, but they're paying $11,500 a month in terms of the lease fee. Uh, and so at cash flows. $4,700 a month pretty passively 'cause the operator's doing all the day-to-day care.

 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 Schloe

 Kristin Burton: Today we have a very special guest with us. Dr. Alex Schloe is an incredible husband, father Christian, family of medicine, physician air force, um, serviceman, and in addition real estate investor and entrepreneur. And today he's gonna talk to us about how to generate cash flow using an asset class that we all actually probably are aware of as medical professionals, but might have nothing.

Might have no clue about from an investing standpoint. So we're gonna talk about residential assisted living. Um, Alex, thank you for joining us.

Dr. Alex Schloe: Awesome. Thank you so much for having me on. I really appreciate it and, and thanks for the really kind introduction and the opportunity. Really excited to, to talk more about residential assisted living today.

Kristin Burton: Yeah, this is a, a really unique, um, investment opportunity. But before we talk about it. I wanna know a little bit about your background and why you even made the decision to start investing in real estate at all.

Dr. Alex Schloe: Absolutely. I'd love to. Uh, I've, I've been investing in real estate for quite some time since I got into residency. And really the, the seed was first, uh, kind of laid by my dad when I was going to medical school and, uh. He, we were looking for apartments and, and looking at places to buy. And in the Air Force, I went to the Air Force Health Promotion Scholarship program.

So they paid for my med school and they gave me a, a nice signing bonus, a $20,000 signing bonus. I thought I was the, the richest person in the world. And, uh, it was awesome. But he said, Hey, how about you take that $20,000 signing bonus and buy a duplex or something like that, fix it up, kind of house hacking before house hacking was a thing. And, uh, and go from there. Unfortunately, I did what a lot of kids do and I didn't listen to 'em, but at that moment, the seed was planted and I, I realized after I started leasing out my own apartment, like, wait, I gotta figure out ways to cut cost here. And so I got a roommate and we split the lease and kind of did it that way.

And then I realized as soon as I get in to residency and start residency, I'm gonna start investing in real estate. And so. During, you know, the kind of the end of med school really started, uh, reading like White Coat Investor, rich Dad, poor Dad, listening to BiggerPockets and going down that route. And, um, once I got into residency, that was at Eglin Air Force Base in Destin, Florida, uh, we decided to, to pull the trigger.

So I bought a, uh, home. It was 191,000. It was a physician loan, no money down. There was a $58 fee that they wouldn't cover. And I remember being like. Kind of terrified and also kind of frustrated about 58 bucks and thinking, uh, like, oh man, I don't know if this is a good idea. I gotta pay $58. Uh, it was the best idea. And so bought that, no money down. That was kind of a living, live and flip. And now it's one of our long-term rentals. But that was the first. Taste of real estate in entrepreneurship. And, uh, from there met my partner Charlie, and then my partner Luke. And we've, uh, invested in kind of really every asset class, um, and ultimately landed on assisted living, which we'll talk a lot more about, but, uh, really owe it all to community.

And being in a great mastermind called the War Room, and that's where I met my partners. And then from there was able to grow so much faster and like fast forward now. Six and a half, seven years able to practice medicine and live life how I want to, and really grateful for that.

Kristin Burton: Yeah. That's amazing. First off, you've got a good dad.

Dr. Alex Schloe: Yeah, he's the best.

He

Kristin Burton: great advice. That's great advice. Like for anyone out here listening who's like, I would like to get in, start investing in real estate. I have no money and you know, maybe fresh outta training or whatever like that, the small multifamily house hack is beautiful.

Um, too bad you didn't take the advice, but you got a great dad.

Dr. Alex Schloe: Yeah, ironically, we still house hack to this day. Um,

we house hack our house here in Colorado Springs. We have kind of a separate walkout basement apartment, and if you average it over. The whole year. It pays our mortgage, taxes and insurance. So we live for free in Colorado Springs, which is amazing.

And I always, that's like the first thing I always encourage folks that I talk to is like, Hey, is

there a way that you can house hack?

And it doesn't have to be like you're renovating a quadplex or a duplex and living in one unit. Maybe it's just like you're, you're renting out some of the bedrooms of your house, uh, to your residency mates, uh, or to your classmates. And they're paying you rent and you're living for free and or maybe generating some cash flow along the way.

So there's a lot of great ways to do it. I think house hacking is one of the lowest risk and like really incredible beneficial ways to get started, and you can still do it forever.

Kristin Burton: Okay. That's amazing. Um, Colorado Springs, I think is notorious for being like very difficult place to, from a housing standpoint, to get in. Um, considering the massive appreciation of properties there lately and the fact that you have been able to say, Hey, look, I'm in a super high cost of living area, but rather than rent, I've elected to take this approach.

You've lived for free and I'm sure your asset has appreciated quite nicely over the last few years. That's incredible.

Dr. Alex Schloe: Yeah, absolutely. We're super blessed. We actually, that was our goal coming into Colorado Springs and we bought, during COVID, we ended up offering on 18 different houses. We were kind of hitting the point of like, man, we're stressed, we gotta get somewhere to live. I

was moving there for the military and um, we bought our house here, and at the time it did not have a walkout basement, but the way it was laid out, we were like, this would be perfect.

So we ultimately paid about 18,000, I think it was 18,500 to dig a walkout separate. Basement entrance. 'cause we were like, Hey, no one's gonna, we don't want people like walking through our

house and no one's really gonna want to do that.

And we have kids and, you

know, a goofy golden retriever. So we did the, we dug it out and then, um, that, that's a funny story, but we dug it out and, uh, and, and so it's now a separate, you have one bedroom, one bath with the kitchenette and we mostly do midterm renting now, just 'cause it's, it's a little bit more predictable.

Um, but yeah, it's a really great way to do it and, and generate some good income and then we can parlay that savings into other investment opportunities.

Kristin Burton: Love it. So resourceful. So resourceful. So the interest in residential assisted living, did that come from your experience as a medical doctor or did that come from you just being like in masterminds with other investors and hearing about the asset class from that standpoint?

Dr. Alex Schloe: Yeah. Uh, kind of all the above. So, my first W2 job, I kind of was the handyman cook, do a little bit of everything in an assisted living facility. I was 15,

uh, I was getting paid, I wanna say I was $5 and 45 cents an hour, if I remember correctly. And, um, that was my, my first exposure. And I remember being there and like, it was a pretty nice facility, but

I remember thinking like, man, these people are spending a lot of money to be here and this is like not optimal care.

You know, there's, there's been way worse ones. But, um, that was my first exposure. And so really from that time I kind of. Had it in the back of my mind of like, there's gotta be another way or a better way to do this. And then when I was in residency, I was rotating through some nursing homes and, uh, walked into this one assisted living facility with another resident.

And we walked in and the place, it smelled terrible, you're

immediately like, hit with the smell of like a little bit of bleach, a lot of pee, and uh, unfortunately

some feces as well. And it was completely full. And, and there were, there were residents sleeping on the ground, on mattresses in the hallway.

And I walked up and there was this probably 85-year-old, demented, frail female. And she clearly had been sitting in her urine and in her feces for a long time. And, uh, we were trying to find a caregiver. We couldn't find a caregiver, so we kind of cleaned her up the best we could. Caregiver comes running around the corner like, I'm so sorry I was coming, you know, to get here, but I'm taking care of all these other residents.

And, um, I remember looking down at this lady and, and, and looking and, and seeing, you know, picturing my grandma there. Thinking how frustrated and angry I would be if I'm paying thousands of dollars a month for her to get like, quote unquote great care. And she's laying on a mattress in the floor in her urine and in her feces and thinking like, this is ridiculous.

And so that kind of continued to build my journey. And then in that mastermind and through my partners, Charlie and Luke, uh, we used to do what's called a hot seat every week. And so someone would be on the hot seat, they'd talk about what they're working on, and um. Uh, one week Luke came and he is like, Hey guys, I'm gonna buy a residential assisted living home.

And I was like, man, what is that? I haven't heard of that before. And so he explained it to us and we got started in the lease to operator space. And I'll explain what that means here in a sec,

but, uh, he's like, yeah, I'm gonna buy this home. I'm gonna lease it out to an operator. It's gonna be a residential assisted living.

There's gonna be 10 residents

there. Um, and it's gonna cashflow three to $4,000 a month. Pretty passively. I'm like, whoa, this sounds really interesting. Uh, and so from there, uh, we decided to partner up and brought in Charlie, our other partner, and we have, we bought five lease operator homes. We have three that we partnered with an operator in Wisconsin. Um, and then we're working on, uh, with two new development projects right now, uh, and then potentially, um, gonna start raising capital and working on a large, a large assisted living facility, play with a big operator. Um, but yeah, so it's been a, it's been a really, really. Cool journey into the space and, and so I think it was kind of like a introduction over time and uh, uh, uh, exposure to need over time.

And then when Luke shared what residential assisted living was, I was like, man, this just really makes so much sense for a way better way to care for, for seniors.

Kristin Burton: Yeah, it's so interesting. Um, I also was a CNA before PA school and had spent years working in a memory care, so I had similar experiences of like, okay, I never want anyone in my family to be in this situation. And so I've been pretty passionate for years. Not only from that side of it, but then from working on the ICU side of things as a PA of, hey, a lot of these places, they're kind of off the table for what I would want.

And so I've made other arrangements to facilitate like care in a family member's home. However, this is a really unique opportunity to have kind of that homelike feel and still provide really high quality care outside of these big box centers. But then simultaneously, from an investing standpoint, the returns actually look pretty decent.

And so it's like this, this weird blending of feeling like there's a purpose here. And I think as a medical professional, we all can see the potential for really superior care for our elderly population, but then it makes for good business and it's rare that those two things get to go together, which is kind of exciting.

Dr. Alex Schloe: Yeah, I completely agree. That's one thing that we really love about it is, you know, you have the, the profit potential, but most importantly, you have the purpose. You have the ability to really take great care of grandmas and grandpas who need it

most and kind of get 'em out of that. Big box or you know, more poor environment from a care perspective.

And just for folks I think who are listening who don't know what residential assisted living is, I'll, I'll kind of define that for you. 'cause a lot of folks that here assisted living immediately think that big facility,

uh, what residential assisted living is, is a, is typically a large shingle story home that's been renovated or retrofitted to take care of seniors. And typically that's gonna be anywhere from six to 16 residents. It's gonna depend on your state. How many. Residents you can have, but typically six to 16. And it's, it's often, you know, it's in a neighborhood, it's in a community. Sometimes it's in the community of the seniors that are living there, which is really, really cool that they, you know, uh, no one wants to leave their home.

Right. And I'm, I'm totally an advocate for like, if you can safely. Live in your home and get the care you need, that's probably gonna be the best for you. But a lot of times you can't. And so residential assisted living helps with those activities of daily living, bathing, cleaning, cooking, toileting, all those sorts of things.

Medication management, for example. And, um, when you need help with those activities of daily living, then residential assisted living can be fantastic. And sometimes you can stay right in your community, and even if it's not, maybe it's near family members, uh, you know, but it's, it's, it's just a way better environment, especially when you think about. Caregiver ratio in a big box facility, maybe one to 15 or one to 20, and now we're dialing that down to one to eight or one to five, depending on acuity and so forth. It's just a, a way better way to do it.

Kristin Burton: Yeah. Yeah, that part. Um, the caregiver ratio, I think just in and of itself, if you're thinking of this from the standpoint of like, should my grandma go enter a facility like that, that immediately like perks your ears of what? Someone having five patients versus having 15 or 20 people, um, you know, oh my gosh.

Like you can just already imagine that the care would be better. Not that the caregiver would necessarily be better, but you know, one person can only do so many things at once.

Dr. Alex Schloe: Yeah, absolutely. And, and they get more time, you know, with each of those residents and

the caregivers get to know them more and they're not burnt out, right. Because they're like, Hey, I'd, I'd rather provide really exceptional care for five people. I mean, I think about it, you know, as, as a family medicine doc, like when I. Was seeing 18, 20, 22 patients per day. It was like, man, I'm doing the best that I can for each one of these patients, but

I'm limited by time. And you know, when you drop that down, like now I'm working in direct primary care and like on a busy day I'm seeing eight to 10 patients. It's like, okay, now I have.

30, 40 hour long appointments. Um, and I'm able to like, provide way better care because I have the time to really drill down on what are the social determinants of health? What does the patient actually need to really, uh, succeed and, and to really like, improve their health, uh, long term. So

same, same rules apply in residential assisted living.

Kristin Burton: Yeah. Great. Great parallel there. You mentioned one of the options is like a lease to operator where you own the physical building and then you are leasing it out to some other operator who's gonna run all of the business side of the residential assisted living. Can you tell us a little bit more about what that looks like compared to a couple of other approaches you could take to residential assisted living?

Dr. Alex Schloe: Yeah, I would love to. 'cause I think a lot of times when folks here investing in residential assisted living, they jump to like, Hey, I have to own the real estate, own the operations. I'm gonna be the one providing the day-to-day care. And that's really tough for, for folks like kind of in our, uh, work demographic and who are in medicine, who are clinicians and, and work in more full-time.

And so, uh, there, there are four different ways to invest in assisted living. Um, three of which are more pertinent to the listener. But I'll talk through all four,

uh, and we'll kind of go from most passive. Lowest returns, but still good returns, uh, to most active highest returns. So,

uh, the most passive way to do it would be you invest as a limited partner, similar to any, you know, kind of syndication

project, right? Like, Hey Alex, you're doing this new development memory care project. I want to invest. Um, here's, here's my capital and I'm expecting, you know, monthly or quarterly distributions, whatever those will be.

Uh, typically cash on cash returns are around 20%. IRR around 20, 25%. So still really good returns from a LP position perspective.

Um, but that's passive, right? That's mailbox money. Ultimately, you need to do your due diligence on the actual opportunity, but really that's gonna be the most passive way to get involved as we're continuing along that spectrum. Next would be the least operator model.

And so that would be, you own the real estate, you own the assisted living home, and you lease that out to an operator who comes in under a commercial lease and runs, runs the business.

They do all the day-to-day care. That's how we got started. That can be a really great way to get the benefits of real estate and also be able to serve that population. There's. There's a lot of pros, there's some cons. The pros are it can cash flow really well. So typically you can cash flow, um, three to four x what the long-term rental rate would be.

Uh, for example, like one of our homes in Arizona, uh, we bought it for 975,000. It's memory care, so it does do a little higher level

care. Um, but they're

paying $11,500 a month in terms of the lease fee. Uh, and so at cash flows. $4,700 a month pretty passively 'cause the operator's doing all the day-to-day care. So that's just one example.

The, the, the beautiful thing about that is

Kristin Burton: even more than three x. The the, because if you look at just a 1% rule for a long-term rental, that seems like even better than that. Wow.

Dr. Alex Schloe: yeah, yeah.

Kristin Burton: didn't mean to interrupt you. I'm just doing math and going That's

Dr. Alex Schloe: No. Yeah. Yeah, absolutely. Yeah. We have a few other ones that, um, like one we bought for 619,000, we lease it out for 6,500.

Uh, that cash flow is 20. Eight 16 a month.

Um, and so still some pretty significant cash flow. And

I bring it up because, uh, you can get the short-term rental kind of cash flow without the headaches of, uh, the hospitality aspect

of short-term rentals, which we've had short-term rentals.

We love short-term rentals. Um, but it's just another, another way to think about it and to also. Kind of tap into the aging demographic. The, the biggest con of the lease to operator model is you're, you're fully dependent on that operator. So it's really, really important to find a good operator to, to vet the operator, to make sure, most importantly, their heart's in the right, right place. 'cause if we're looking at the financial numbers of assisted living, I mean the, the median assisted living cost per month is, is 5,500 last year. Uh, and so if you have 10 residents, that's 55,000, typically you have about a 30% profit margin.

So you're talking over $10,000 a month in cashflow.

Uh, and so you need to make sure that the alignment is there, uh, that the operator has a, has a great heart, has the financial reserves to weather any storms that may come up.

Like, Hey, what happens if there's a pandemic? And unfortunately a lot of residents pass away,

how are they gonna continue to pay your lease fee? Or what happens if the home's vacant? And they have to increase occupancy, and that's gonna take time as well. So be thinking through that as well. Of course, background checks and those sort of things are important, but at least operator away is an incredible way for, for healthcare workers, for uh, providers to, to get started and to get the real estate benefits and the tax benefits of owning real estate. Um, next would be. The reverse of that. This doesn't apply as much to probably our population, but it would

be you really want to run, run the care business and own the care business. So you come and you lease it out from us, for example. Um, so that would be the reverse of leased operator. The operator comes, they lease out the home, they pay the lease fee, they run the business. It's a high cash flow business. That can be a great way to do it, especially for people who are like. I still really want to have a care business. I still, you know, maybe I'm burnt out of medicine and I don't have 25% down for a down payment of a property. Let me run the business and

so I lease that out from someone else.

So that's the opposite of lease to operator. Of course, that's gonna be a lot more active of a, of a investment, active of a job running that business. And then the, the most lucrative, but also the most time intensive is gonna be owning the real estate and owning the operations.

And that may be that you renovate a home to assisted living. Maybe you buy an already operating, assisted living home and you run the operations out of that, or maybe you're building ground up, new development. There's a lot of different ways to get started in that space. But owning the real estate, owning the operations is really, really great. Um, because you have control over the care that's provided.

You have control over the hiring process. Now, it may not make a whole lot of sense for folks listening to this who are working at W2 to be like. I'm gonna, I'm gonna go do that on top of my W2, but maybe you have the real estate knowledge and experience and you have some capital, and then you could partner with an operator and you could give them some equity in the real estate.

They can give you equity and the operating business. And then you own kind of the, the fuller, uh, puzzle. You own the, you own the real estate and the business, and you can benefit from that as well. So there's a lot of great ways to do it, but those are the four main ways to invest in assisted living.

Kristin Burton: Yeah, it seems like, as you mentioned, right, like 10 to 15,000 a month in cashflow if you own the business and own their operations, but, and there's the only way you could reasonably do that as a practicing medical professional. Would be like you actually have to know a thing or two about business and actually hiring an operator and an integrator to run things in order for you to have like a true owner position and not be an owner operator.

Because if you're gonna try to be an O owner operator, then like, well, that's just your new job, you know? And so

Dr. Alex Schloe: Yeah.

Kristin Burton: think that would be a little bit tricky to get into, especially if you have like no business exposure and you're completely new. But the idea of like the own, the business lease to an operator.

Seems really achievable for someone. Even like this might be their first investment if they know how to find the right operator. So do you have suggestions for how to go about that process or putting yourself in the right circle to get connections there?

Dr. Alex Schloe: Yeah, absolutely. And, and just to kind of piggyback what you said, I think the, the other way that you could own the real estate and own the operations is if you run it from the mindset of I'm gonna hire a manager. And that's what we, to kind of teach everyone in the Mastermind is like, Hey, be thinking about.

Could I hire a manager who kind of oversees day-to-day operations and then you're the CEO who's like working on the business, not in the business. Now, you might not be able to do that immediately. Like you might need to have a couple homes that you can, um, you know, you have one or two homes, uh, maybe you can support having a manager with two

homes and they kind of oversee that day-to-day care and the hiring and all those sorts of things.

But I agree, I think. Least operator, lower barrier to entry,

especially for medical professionals.

And you're right, finding an operator, that's the key piece. Um, some, some ways to do that. There's, uh, some Facebook groups. We have multiple Facebook groups, um, that, uh, we really started honestly to try and find more operators and so we started a Facebook group.

Gosh, it's been about. Two years ago now. Um, and we started a Facebook group looking for more operators and it just exploded with like everybody in, uh, who wanted to invest in assisted living. And we have three different Facebook groups now that are like 50,000 people. And, uh, and really it all started from the aspect of like, let's try and find more operators. Um, so Facebook groups can be a good way to do it. You know, posting on, on some of the job sites like Indeed, LinkedIn, et cetera, can be a good way to do it.

Um, a really great tip is that there's oftentimes real estate agents who specialize in assisted living. Now, this is gonna probably be more, uh, more known in, in, in the areas where you think about.

You know, a lot of seniors being, so, like in Arizona, for example, in the Phoenix area, there's a really great team called the Stacey Dragos team that is, all they do is assisted living. And so they, um, they're really a helpful member of your team because they know the regulations. Uh, they, they know what house, you know, would make a good assisted living home. They know any zoning or licensing requirements, but they also have a Rolodex of operators typically, so they can help you on your operator search as well. And so, you know, whatever area you're thinking about investing, that's a really great person to see If you can find someone who specializes in assisted living as a realtor. Um, and sometimes that's called a senior living specialist. There's multiple different names for that. But that's a great person to reach out to. Uh, and then also going to different facilities or calling different facilities and kind of secret shopping can be helpful. And talking to the caregivers and seeing like, Hey, have you thought about opening up your own assisted living sometime?

Or, um, you know, are you potentially interested in expanding if you are talking to the owner? Those sorts of things can

be helpful to find more people. Um, but those are some, some ways to do it. Uh, and then just telling everybody that you meet, you

know. I think for us we're in a unique position of a lot of exposure to healthcare workers and so, you know, some really great operators are, you know, burnt out nurses who are like, Hey, I don't wanna be on the floor anymore.

This is crazy. You know, it's so much work, but I still want to care for folks and care for

others. And so that makes a really, really great operator. 'cause they're like, Hey, I understand the care aspect. Maybe they need help with some of the business aspect. Um, but that's a really great partnership as well.

Kristin Burton: Do you have to have any specific type of like. Credential or certification or something to be an operator of an assisted living, or is it just like experience with healthcare and willingness to learn business? So skills,

Dr. Alex Schloe: All depends on what state you're investing in.

Each state as a whole is gonna have different licensing requirements, um,

and then each municipality too. So part of, you know, getting started is figuring out, Hey, where do I want to invest? How do I want to invest in those four different paths that we talked about?

And then from there, figuring out, okay, what are the licensing, zoning, uh, requirements that, that are pertinent to me in this area? And then going from there. So it all really depends. Um. to to kind of answer the question more broadly, you don't, you do not have to have healthcare experience to

be an operator, but you often oftentimes need some sort of of training depending on what the state is, um, to either be the operator or to be the administrator, which is sometimes what the operators are called.

Um, and to get licensed, that's gonna depend on each state municipality.

Kristin Burton: So if you were doing this all again, and this was your very first residential assisted living move, which of the four approaches would you take outta the gate?

Dr. Alex Schloe: Oh man, that's a good question. Um, I would either invest as a limited partner to get the exposure and kind of understand, uh, what that looks like, what assisted living looks like. Um, I would do that if I wasn't willing to be in like some sort of mastermind community and really get that experience so that I could kind of learn by doing,

um, if, if I was. Ready and willing and understanding and ready to go, kind of all in on assisted living. Then I do lease to operator to

get started. Uh, and then once you figure out, okay, what does it look like? Leasing to an operator, what does operations look like?

Then be thinking about, okay, how could I potentially, um, get control of the operating business as well, whether partnering or whether owning an operating with a manager on top of it.

Kristin Burton: Yeah, it's interesting as I was thinking about this personally, I would of course run all of this by our CPA, but it seems to me like whether or not you have a partner or spouse that wants to pursue real estate professional status. That would kind of segue into this a little bit because again, I would double check with my CPA, but my suspicion would be if you own the whole entire business, then it's no longer like a real estate investing activity where you could say like the hours would count towards reps, where if you were like, own the business lease to an operator, it likely would.

And so that part was interesting to me to think about like the changing of that and whether or not. As a real estate investor, if that's a goal. Um, is that something that, have you and your spouse ever thought about that? I don't think I've ever even asked you what your wife does. Um, if that's a piece of your,

Dr. Alex Schloe: Yeah, she's, uh, she's a wedding photographer and entrepreneur. She owns her own business. Uh, she's, she's the best. Um, I have, I've tried very hard to get her to get real estate professional status, uh, and she has not taken the bait despite, uh, me calling her out on many, many podcasts. Um, I, I will qualify for real estate professional status,

um, for 2025 and going forward, so now I work part-time.

And that was part of the plan, like,

Hey, let me work part-time so I can qualify for reps. 'cause

we have a bunch of depreciation that we can use.

Um, so yes. Great way to do it. You can, you can do it in the assisted living space for sure. Uh, typically how the owning the real estate and the operations are set

up is you own the real estate in one entity.

Again, um, talk to your CPA and talk to your attorney, but you own the, um. You own the real estate in one entity and then you own the operations in the other.

Uh, that there's also a massive amount of accelerated depreciation you can do because, you know, similar to like a boutique hotel, you're also oftentimes putting in all the ff and e or similar to short-term rental, right?

You're furnishing that,

and so you can do accelerated depreciation on all those furnishings

as well. So when you're talking about like 10 hospital beds and 10 lounging chairs and everything that goes into an assisted living, um, home, you can have some pretty massive depreciation,

which as you mentioned, you know, as a real estate professional status, you can then use that to write off against your W2,

um, from that perspective or your 10 99 income.

So it can be a great way to do it,

uh, as well. Yeah.

Kristin Burton: Nice. So yeah, you're two days a week now, right? So then 2025 you get to qualify. That's awesome. Very

Dr. Alex Schloe: Yeah. Yeah. I had three months of paternity leave slash terminal leave in the Air Force last

year. Uh, so that was kind of like more full-time real estate. And then I started two days a week, two to three days per week. Uh, and now I'm like, yeah, I'm gonna roll that as long as I can. 'cause reps, I mean it. It's, it's just such a massive benefit, the real estate professional status. It, it doesn't, it doesn't bring my income fully back to what it was for the Air Force, but it, it comes pretty darn close, just working two days a week, which is, which is pretty cool. Uh, and then I get to do awesome things like this on a Tuesday afternoon

chatting with you.

So, uh, it's

Kristin Burton: like, how much more time do you get with your kids and your wife? Like that's, that is irreplaceable. So

Dr. Alex Schloe: Yeah,

Kristin Burton: Oh, well played. I mean,

Dr. Alex Schloe: best. Yeah. I mean, during,

Kristin Burton: To get here though? Just for, for people's reference, like if they're trying to rep emulate you, how many years would you say it took you to position yourself to be like living the dream as you are right now?

Dr. Alex Schloe: Yeah, I would say, you know, actively investing five, five

years. Um, in, in terms of like thought in planning, you know, about seven years when I

bought that first, first property or seven and a half years, um, you could totally do it in four. The, the goal was once I got out of residency, it was like, Hey, I have these four

years, um, to really like.

Go pedal to the metal

and, and, and create some degree of financial freedom with the goal of like going part-time. Um, and, and, and you know, I I, I think a lot of times there's like, you know, especially in the doctor space, they're like, there's this, uh, there's a crowd of like, oh, well why should you even be a doctor at all?

Why don't you just do real estate if that's what you like? And it's like, no, if you have some degree of financial freedom, like you're gonna be a better doctor, you're gonna be a better provider. 'cause

you don't have like the monkey hanging on your back of finances. And so. That was, that was the goal behind it.

I still love seeing patients. I mean, I'm, I'm working this afternoon and I, I love seeing patients and, um, and so for me it was like, Hey, I wanna practice medicine how I want, when I want, where I want,

uh, and do it that way. And so, yeah, it was four years of like really, uh, diligent effort to, to make that happen.

And folks can certainly do it faster probably as well. I, uh. I definitely had some shiny object syndrome and have invested in a little bit of everything. So if I could have turned back time, I maybe wouldn't have. But I think it's important when you're getting started, like I, I talk about it a lot of, of going to an ice cream shop

when you're thinking about shiny object syndrome and each of those different flavors of ice cream is a different asset class, short-term rental boutique, hotel, mobile, home park, you know, residential assisted living, whatever that may be. Uh, it's totally okay in the beginning to go up and ask for a sample and maybe that's like, Hey, I'm gonna invest as a limited partner. A mobile home park deal just to see, do I even like mobile home

parks? And, uh, if you don't, great, let me go try another sample. But where folks get in trouble with shiny object syndrome is when they figured out, okay, I really love assisted living.

I'm gonna focus solely on that. I'm gonna get the full three scoops of assisted living. And then they're like, well, you know what? I'm kind of bored. Let me go do something else. Uh, when you find something that you really love and you're passionate about, like that's when you really need to dial in, make that your one thing.

Kristin Burton: Which you have done an excellent job of, and honestly like four, if you think like four to five years, that's such a short period of time of life to be like, I will focus and execute this plan and then now I will like get to enjoy the fruit of that for literally decades. Like, I think that is inspiring.

It sounds like a long time, but if you think about like how long your professional life is, for most people it's 30 to 40 years and then like in five years you basically said, Hey, I get to now own my time and like practice medicine how I want. And that's incredible. That's so cool. So

Dr. Alex Schloe: Yeah, it's been, it's been amazing. A lot of hard work, but it's been amazing. Sorry. Go ahead.

Kristin Burton: No, I was just gonna, I wanna ask some like, logistical questions of like the money side and like how do it, how to get started, how much capital you need, that kind of thing, if that's okay.

Dr. Alex Schloe: That'd be great.

Kristin Burton: on the LP side, um, I'm, my assumption would be for most of those deals you need to be an accredited investor. Is that correct?

Dr. Alex Schloe: Yep. Typically need to be accredited investor. Typical minimum investment's, 50,000.

Uh, some of 'em are higher, but typical minimum investment's, 50,000 need to be accredited, um, or prior relationship. So, uh, the last. The, um, we did, we're working on a new development project outside of Houston in Tomball, Texas. That was 5 0 6 B initially. So for folks who are kind of wondering what the heck that means, there's 5 0 6 B and 5 0 6 C when it comes to kind of SEC classification for investing in syndications. A simple way I remember it 'cause I am, uh, not that intelligent is 5 0 6 B is both and meaning, uh, you can be unaccredited or accredited.

You can, both of them can invest in that deal. But they need to have a prior relationship with you, um, that's documented.

And so, uh, 5 0 6 B for both unaccredited and accredited. And so we started 5 0 6 B for that deal. Um, and then the last, I think it was like about a million dollars we needed to raise. We flipped that to be strictly 5 0 6 c.

Which is only accredited investors, but you can market that. Um, so you do not have to have that prior existing relationship for 5 0 6 C and then go from there. So, um, we try and do it that way for our deals. 'cause we have, you know, plenty of friends and colleagues who aren't accredited yet that we're like, Hey, we want to be able to offer this opportunity. Um, but that does require that pre-existing relationship, which is really important.

Um, so yeah, sometimes unaccredited, sometimes accredited. Usually $50,000 minimum, um, from that perspective.

Kristin Burton: Okay. And then if you're gonna buy a physical building, my assumption would be. That location would matter quite a bit, but also that there's probably not a lot of homes that are set up as like, I'm a single family home that's a DA accessible with 10 bedrooms and all these bathrooms. So my guess is there's some reno, like outfitting involved.

What would you guesstimate would be the capital requirement there?

Dr. Alex Schloe: Yeah, that, that's a fantastic question. Uh, it kind of depends on, on how your, what's your ultimate goal gonna be? If you're gonna buy a house and you're gonna lease it to an operator, typically that's gonna be either a debt service coverage ratio loan, DSCR loan, um, or, or a kind of a commercial loan with a small regional bank.

Those are typically the folks. That, uh, you're working with from a lease to operator perspective. And the big thing for financing is talking to them about what you're doing and really explaining what you're doing and then having that operator lined up so you can show, hey, this is what the lease is gonna look like

once they come in and start operating.

Because they're typically lending based off that income. Usually that's 25 to 30% down for the home. Uh, and then depending on what renovations are needed. That that can increase, um, to hit on like what really we're looking for for a house. Yeah. Usually large single story house is gonna be best as many bedrooms and bathrooms as you can have.

'cause you can have more private rooms and you can charge you a bit more.

Um, the, the accessibility features are gonna depend on the state and the location, but typically you're gonna need. Excuse me, a wheelchair ramp, usually some widened door frames that you can get a wheelchair through. You're gonna need a, uh, fire sprinkler system, fire alarm monitoring panel, and at least one or two roll in showers or wheelchair accessible showers for bathing.

Um, and then like grab bars and the showers and those sorts of things. But those are the big features that you're gonna need. Um, usually if you're, you know, if you're renovating a large single story house, you also want to think about how can I add more bedrooms and bathrooms if possible. 'cause again, the more private.

Bedrooms and in bathrooms, the more private rooms, the higher you can charge. And so it depends. Usually we tell folks, uh, you know, that budget can be anywhere from like $250,000 to 500,000, depending. We have

one of our mastermind members, she bought an eight bedroom house,

but in Texas she, you can have up to 16 residents.

So she was like, Hey, I'm gonna do an addition of eight more bedrooms.

Obviously that's way more expensive.

Uh, so it just depends. Um, now that's a lot of money, right? And people are like, man, I don't have. A 25% down payment,

and I don't have this, all this money to renovate. Another way you can do that is you can reach out to mom and pop operators of these homes already.

So, uh, this, this is a huge value add for folks that are listening. You can typically find a list of every operating assisted living home in your state, and then usually it's broken up by city or or location. And we would direct mail those homes and so. Then you get, you know, the callback and a lot of times it's the baby boomer, mom and pop operator who wants to retire.

Oh, by the way, they've been doing this for 30 years. They've already paid off their house

and the house is already licensed. So then you can come in and maybe negotiate seller financing, uh, and then take over their home, lease that out to an operator, maybe partner with one of their. Care team members and go from there.

So there's some other ways to do it. So don't let capital be like, oh my gosh, there's no way I can come up with 25% down

in renovations costs. The, the money is out there and there's ways around it, um, from that perspective.

Kristin Burton: That is a great tip. That is a great tip. And I think realistically, like those folks probably are not getting offers left and right. I feel like this is still relatively niche and so it's likely that, especially if you're not in one of the areas where these are really common, that you might be the only person that contacts them this quarter.

And so it sounds like you might have a decent chance if they were, um, wanting to move on, like you said.

Dr. Alex Schloe: Yeah, a hundred percent. It's, it's a great way to do it. That's how I would get started is, is let me pull that list, draft a letter, mail that out to as many people in the area that I want to, you know, have some way of, of A CRM and following up with them. And then always, always, always bring up seller financing.

'cause a lot of times the mom and pop operators, they don't, they don't even know what seller financing is.

Like the, the la the last one we bought. We, we paid 6% down. It was, it was 6% down. They were like, Hey, we, we just need 40, we just want 45,000 bucks. And then we'll be the bank and we want cashflow as we're retiring.

And so, like, they, they're our bank. We paid 6% down 40 5K. We got this $725,000 just a living home in Arizona. And so, uh, it's a really, really great way to do it. And then a lot of times they also haven't optimized things, right? So many of these homes don't have a website. They don't have a Google My Business page.

They don't have any sort of social media. So there's like so many ways that you can come in and optimize it as well.

Kristin Burton: Oh, that is really cool. Um, and like you said there. I think that one of the themes has been just like resourcefulness, you know, like, Hey, you could easily say, I'm gonna write myself out of this because you're saying big numbers, or I'm not sure how to do this, or I don't have the time, but realistically, you're exhibit A that you can solve a lot of these problems if you get creative.

Um, perfect Pearl for

Dr. Alex Schloe: Yeah. Relationships. Yeah.

Kristin Burton: Yes.

Dr. Alex Schloe: Relationships, partnerships. The other,

yeah. The other financing piece I think is helpful for folks to know is if you're, if you own the real estate and operations, you may be able to get SBA financing. That's where it gets really cool. 'cause you could potentially do 10% down,

um, for everything.

And so the, the beautiful thing about SBA financing is oftentimes like, let's use that new development in Texas that we're working on for an example. We were able to get SBA financing 10% down on this project. Not only is that covering the land costs, but that's covering the land costs, the construction loan, um, that's also covering the reserves, right?

Like the home's gonna be built, not gonna be completely full. And as soon as you first start to have residents, you have to have 24 7 care, which is costly. And so

they cover those reserves costs, everything's wrapped into that loan, 10% down. So that's a really great way to do it. You can only really tap into S-B-I-S-B-A financing if you own the real estate and own the operation.

So it's not an option from a lease to operator side of things. Um, but if you're partnering with an operator, it may be something that you can do. Um, it can be a really great way to do it as well.

Kristin Burton: Wow. That had not even occurred to me. That's

Dr. Alex Schloe: Yeah, it's pretty cool.

Kristin Burton: Yeah. So you've done this, this is the thing about like talking to somebody who has experiential knowledge versus is aware of a, of something you could do, right? So. From someone who's been in the trenches, like what are the pitfalls? What are the downsides?

Dr. Alex Schloe: Absolutely. Um, I think, again, kind of looking at that four step framework of how you're gonna invest biggest

pitfall from a limited partner perspective would be like not doing really great due diligence on the operator. Not doing good due diligence on the team. Um, and, and, and just goals not aligning, uh, from the lease to operator perspective.

Biggest pitfall, of course, is the operator. Um, and then the other pitfall would be making sure that you're buying a home in a place where you can operate it as an assisted living home. So making sure you're looking at the state licensing and zoning requirements and looking at your local, uh, city licensing and zoning requirements and make sure that the home is in an area where you can. Actually operate. There's some municipalities like Glendale, Arizona, where you can legally can only have a assisted living home within 1200 feet of another one. As the crow flies, it's gotta be at least 1200 feet or further away. So it'd be really bad if you're like, Hey, I'm just gonna buy this house, turn it into assisted living, and you can't even do that.

So make sure you're looking at that early on as well. Um. From a operating perspective, you know, not having enough reserves, that's a big thing we see operators,

uh, struggle with as they come in to operate the business. And they don't think about that period of time as they're increasing occupancy of the home. Um, so making sure you're having enough reserves. And then owning the real estate and operations that the, the big pitfalls are kind of all of that all together. Um, you know, uh, the, not figuring out your operations piece, making sure you're zoning and licensing stuff's, uh, uh, uh, worthwhile. And then getting yourself ready from a financing perspective to be attractive to the banks. And you, you have to remember, you're, if you're owning the real estate and the operations and you're just getting started, you really have to sell your story as well. Like, why? Where's your heart? Why are you. Gonna be someone that the bank is gonna be willing to lend millions of dollars on for this project. That gets easier as you have more experience, or if you have more experienced folks on your team. But just be thinking of that going forward, of like, Hey, what's your why? Um, and, and of course like only get into assisted living if you're. You know, heart is there to take care of seniors 'cause it's really, really hard work as well.

It's not, this is not a way, this is not an asset class I tell anybody to come into. If they don't really want to have that, that purpose, they don't really want to care for seniors because it's, it's really hard work.

Kristin Burton: I'm gathering that, but it does sound like there is reward to justify the work. If your heart's in alignment, it sounds like, you know, the numbers are also really there. And so this could be a, a really genuine path towards creating cashflow that could replace the income of a Pa NP pharmacist physician with within a relatively short period of time.

Dr. Alex Schloe: Yeah, absolutely. I mean, one well run. Yeah.

Kristin Burton: Go right ahead. What were you gonna say?

Dr. Alex Schloe: Oh, no, no, I am sorry. Yeah. Uh, uh, I was just gonna say, yeah, one well run, you know, fully occupied, uh, owned and operated, assisted living home. Yeah, you're, I mean, we're talking 10 to 15, $20,000 per month in cashflow potential that's there. Uh, not a guarantee by any means, but that's, that's financial freedom, which is

one home which you can't really achieve in any other asset class.

Certainly not in a single family type environment.

Kristin Burton: Right. Right. Absolutely. Those are big numbers. I mean, for most, like most PAs, that's the whole PA salary, you know, with one single help. That's impressive. You did say like most people are paying, on average, I think you said $5,500 a month in terms of just like nationwide, what a resident would pay to live at a place like this.

I'm curious what portion, at least for yours. If people are paying cash versus using like long-term care insurance policies.

Dr. Alex Schloe: That's a great question. Yeah. 'cause it certainly relates to how folks are paying. We, we typically go after more of the private

pay model, um, than, than Medicaid. We do have some folks that are doing long-term care insurance, which that essentially looks the same as private pay

kind of overall.

Um, so we, we tend to encourage folks to think about going down that route. When we start thinking about Medicaid or some state sponsored programs, um, there, there, there's certainly a need there. And, and I wish that there was a way to figure out how to do that side of things more cost effectively. Um, we, we have tried to stay away from that because it's super cumbersome. You have to send all these reports every month. And if, uh, like for example, if you're just missing like a period, and I'm not exaggerating, folks have told us this, if you're just missing like a period on your report. They won't pay you.

Uh, and they don't say what's wrong with it. So then you send the report again and you're like, okay, maybe let me add this period.

Okay, now I got paid. It's crazy. So we tend to focus more on private pay,

uh, in the 5,500 number that's, uh, uh, gross just across the, the country as well. Certain markets are gonna pay way more. And then we didn't really talk about, like, you can do memory care, for example, which we love. And that is typically residents who need help with, uh, dementia and, and you can charge significantly more. With memory care, there's some other kind of subspecialty homes as well.

Um, but yeah, that's, uh, that's kind of what we're looking at. There's a good website for folks who are listening. If you Google Genworth Cost of Care or Care

Scout, uh, you can put in your zip code and it'll give you a ballpark median on what the assisted living is in your area. That's mostly pooling from big box facilities, but it'll give you an idea on like, Hey, what are folks charging in that area? Uh, for example, we have some friends who, uh, just started a memory

care, uh, home in Carmel, Indiana, not too far from

you, and they're charging $9,000 a month per

resident. Um, and so, uh, different, different areas, different levels of care.

You know, you can certainly a adjust that resident rate accordingly.

Kristin Burton: You know, I think you can look at that through two lenses. I think you of course have to know like this is the equivalent of your rent, right? Like if you're buying long-term rental, like those numbers matter so much for figuring out your cash flow, but even just not as the investor, like, put on your individual hat for a second and think about the fact that at some point all of us, statistically speaking, will need long-term care or like 70 plus percent of us.

And I think we're all familiar with what CMS will pay for long-term care and what kind of facility that might be. And so like as an individual, from a personal finance standpoint, I think we all need to consider that the average, like extended care for any individual depends on state, like you said. But you can go on any of these websites and look it up.

It's like a hundred thousand dollars a year. So to pay $5,000 a month is actually way less than that. If you don't have long-term care insurance, like this is an expense that we can all anticipate. I like to think about that part too. Just like, am I prepared for this? Is my spouse prepared for this? Um, because we think of it differently now.

We're young and we're trying to, you know, invest and operate businesses, but at some point we won't be young and we might be the ones in the memory care unit.

Dr. Alex Schloe: Yeah, you're, you're exactly right. And I, I, I think about it too. And, and Charlie. Luke and myself, my two partners, we, we've talked about how, you know, when we're getting, we we're, we're getting older, we're gonna build the most like epic assisted living home, and we're gonna reserve beds for us and our spouses there. Uh, so yeah, it is, it's, it's totally away. And, and we've, we've talked with multiple folks who that's where they're thinking about, you know, usually folks who get into the assisted living space have either been touched by it, from a family member who maybe had a, a poor outcome or experience, or they're a healthcare worker who's exposed to it, you know, on the daily. Or they're just thinking about like, Hey, what are some ways that I can really make a difference? And, and uh, so it's kind of one of those three buckets. And, and you know, certainly we're all, yeah, we're gonna need it. You're right, seven outta 10 folks will need long-term care, uh, in, you know, in, we haven't even really hit the demographics, but. You're looking at about 77 million BA baby boomers in America. Seven out of 10 of them are gonna need long-term care, which is 59 million boomers. That's a ton of boomers who are gonna need long-term care, and we're already in an environment where we're anywhere from like 645,000 to a million bed short.

Right now,

and the important thing to know is the first baby boomers just turned 80, and so the median age of assisted living right now is 82. So a lot of those boomers have not even started aging into these assisted living homes. So now is really the prime opportunity for us to get started. And you know, and I'm personally, you know, kind of terrified for. What's gonna happen if we don't solve the senior housing crisis? Right?

Like, and that's the beautiful thing about this asset class is everyone we talk

to could open up a, a residential assisted living home. We're still not gonna put a dent in what's really needed. So you don't have as much of that pressure and competition that you have in some of these other asset classes as well.

It's probably a little bit more work, you know, as a whole getting started, learning, getting spun up, but, um, the opportunity and the potential is, is just so high.

Kristin Burton: Yeah, I, I love the idea of just like being a part of fixing that. You know, I don't know. I have fond memories of my memory care days of like watching the sound of music with the residents and like, I enjoyed it and like. I don't know. I, I like the idea that you could be a piece of that puzzle, solve a need.

That's a very pressing need for us from, on a nationwide level, but then also like do it in a way that you can help individuals and like, you know, 10 to 16 people, of course you'll have turnover, but like that you are actually making like a pretty narrow impact there with one. I don't, I like that.

Something about that speaks to me.

Dr. Alex Schloe: Yeah, it's beautiful.

Kristin Burton: Now from an LP standpoint, if you're interested in that, is that something that you do now you're a gp, right? And so you, uh, people could invest alongside you if they're interested in pursuing that avenue.

Dr. Alex Schloe: Yep. If folks are interested in investing, uh, with us Yep, they can absolutely do that. Uh, I don't think I sent you the link for our investor list, but, um, you could always reach out to me,

uh, you know, in, in any form. And we'll put those in the show notes. Um, we can get you on the investor list there. We got a couple cool projects coming up. Uh, one is a new development in just outside of Springfield, Missouri. This is gonna be really cool. It's actually. We're kind of building a whole, like a neighborhood model essentially. And so, uh, it's gonna be two assisted living homes. Um, probably 16 bed, that's kind of a sweet spot from a bed perspective. Two assisted living, two memory care, and then some independent living town homes. Um, so ultimately one in a clubhouse with pickleball and all that. On stuff. So once, uh, once that's built, it's gonna be like a complete aging neighborhood. And so we're really excited about that. 'cause

folks will go from independent living to assisted living to memory care, and uh, really excited for that.

So that's coming up. That'll probably be, we're gonna close on the land, um, into February and then start raising capital probably March timeframe for that project. Uh, and then we have a, a few other projects we're working on as well. So yeah, always, always open to have that discussion if it's an opportunity that folks feel like would benefit them.

Kristin Burton: And then if someone is interested in joining like a community or a mastermind to learn more about investing in this asset class overall, where would you point them for that?

Dr. Alex Schloe: Yeah. Yeah. That's the, the RAL Room Assisted Living Mastermind, the RAL Room Assisted Living Mastermind. Uh, if you type in the RAL room.com, uh, it'll come up right there. You'll see. Tab we do. We do free webinars every other week, and so that'd be the first place I'd say to start is go ahead and sign up for the free webinar.

That'll be just kind of nuts and bolts about residential assisted living and how you can get started, and then we'll talk a little bit about the community. There's also a free 10 step guide there as well. That's really helpful. Background information and things for you to learn. Um, and then you can always book a free call with our team too and talk through that.

Uh, the, the RALRoom mastermind, man, that's been like such, just such a blessing to, to be a part of that and to start that and to really see. Now we're at the, the stage where, uh, the mastermind's been gone for about a year and a half. We have about 110 members and so many of them are doing really awesome deals.

The Texas deal, I mentioned, that's one of our members that we partnered with them on. And uh, it's been really, really cool to see the impact that they're having. And so. We're just looking forward to that growing and scaling and appreciate you letting me get the word out.

Kristin Burton: Of course there really is nothing quite like trying to do a new venture, and you have. People by your side have actually done things and have eyes for mistakes and things before you would have eyes for that. So if this is something that you're serious about, um, not, there's just really nothing like having a genuine like mastermind community group.

Around you. So, um, we'll make sure to include the links to that in the show notes. But thank you so much for joining me today and talking about this. I know we have a lot of folks interested in cash flowing investments and this is a really unique and cool opportunity. So I appreciate your time and all your expertise in sharing with us.

Dr. Alex Schloe: Absolutely. Thank you so much for having me, and folks, feel free to reach out. I'm the only Dr. Alex Schloe who is, uh, family Med Doc and investing in real estate, so you can find me on all the socials.

Kristin Burton: Love it. Love it. We'll include links below. Thanks guys. Appreciate it.

Dr. Alex Schloe: Awesome. Thank you so much. 

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