Passive Impact: Real Estate Investing & Special Needs Housing
Welcome to "Passive Impact: Real Estate Investing & Special Needs Housing," where we explore how real estate investment can generate passive income while making a positive difference. Join host Robert Flowers as he shares strategies, success stories, and opportunities for investors looking to create financial stability and meaningful community impact.
Passive Impact: Real Estate Investing & Special Needs Housing
How a social worker transformed lives through special needs housing without owning property
We explore the remarkable story of Jasmine, a former social worker who created a special needs housing solution with no real estate background or capital in just 81 days. Her journey demonstrates how knowledge, initiative, and strategic partnerships can overcome traditional barriers to entry in property investing while making a meaningful social impact.
• Jasmine discovered the concept of funded special needs housing through TikTok videos
• She spent two weeks researching Medicaid waiver programs and housing subsidies for people with disabilities
• She realized she could provide housing while letting licensed agencies handle the care aspects
• Her outreach strategy involved direct pitches to care providers looking for housing partners
• She found an investor at a real estate meetup by emphasizing guaranteed tenants and social impact
• The investment required minimal modifications to make the property suitable for residents
• Within 81 days, she secured a three-year master lease for $3,800 monthly
• The arrangement created win-win outcomes for residents, providers, investors and herself
• Her story echoes principles from Robert Flowers' "The Joy of Helping Others"
• Knowledge and initiative proved more valuable than having significant capital or credit
What unconventional partnerships might you explore to reach your own goals, whether in housing or something else entirely?
Welcome to the Deep Dive. Today we're jumping into a really inspiring story. It's about how someone with well, basically no real estate background, no capital, can still get involved in property and make a real social impact.
Speaker 2:Yeah, it's a fantastic example and we're focusing on the journey of Jasmine, a 33-year-old former social worker. Her story just shows incredible drive.
Speaker 1:And you know this topic special needs housing. It keeps coming up. We've had such great feedback when we've talked about it before, especially around the work of Robert Flowers.
Speaker 2:Oh, absolutely. Robert Flowers, the founder of Flowers and Associates Property Rentals. He's a real pioneer in special needs housing. Listeners loved hearing from him on previous deep dives. His insights are just well invaluable.
Speaker 1:Definitely, and his book the Joy of Helping Others seems to have really struck a chord. It actually played a pretty big part in Jasmine's story, didn't it? Her whole approach kind of mirrors the principles Robert talks about.
Speaker 2:It really does that focus on helping people first, finding creative solutions that are centered around the individuals needing support. It's all there in Jasmine's journey.
Speaker 1:So let's set the scene Jasmine, former social worker passionate about helping vulnerable adults. One night, she's just scrolling TikTok. We've all been there, Uh-huh. Late night scroll and she stumbles across these videos about group homes and this concept of funded housing.
Speaker 2:Right and something just clicked for her.
Speaker 1:Exactly Like a light bulb moment, she suddenly saw this path. Maybe she could own property, provide safe housing for people with disabilities, and the rent would be guaranteed through these programs.
Speaker 2:It's that connection, isn't it?
Speaker 1:Yeah.
Speaker 2:Seeing how her passion for helping people could intersect with well, the property world, but in a really specific, impactful way, not just standard investing.
Speaker 1:Totally. It wasn't about flipping houses. It was about seeing a community needs safe, stable homes and thinking maybe I can help solve that.
Speaker 2:And what she did next is, I think, really key. She didn't just jump in feet first.
Speaker 1:No, she paused. She actually dedicated two solid weeks just to learning, really digging in.
Speaker 2:Yeah, understanding the whole landscape, not just a quick Google search.
Speaker 1:Right, she researched Medicaid waiver programs. You know the government funding that helps cover housing costs for people with disabilities.
Speaker 2:And other housing subsidies too right For different special needs groups.
Speaker 1:Yep and she looked at the actual group home models Like what does a three bed or a four bed setup look like? What are the requirements?
Speaker 2:And, crucially, finding the tenants, or rather the licensed providers who would become her tenants. That's a really important distinction.
Speaker 1:It is, and that led her to a key realization, didn't it?
Speaker 2:It did. She figured out she didn't have to be the one providing the day-to-day care. She could be the housing partner.
Speaker 1:Ah, okay, so focusing on providing the physical space, the safe environment.
Speaker 2:Exactly and letting the licensed agencies, the experts in care, handle that side. It makes sense. You play to your strengths.
Speaker 1:And she wasn't just reading government websites, was she? She found communities.
Speaker 2:Yeah, she tapped into online groups, forums focused specifically on this kind of specialized housing investment. Smart move, incredibly smart, because that's where you get tapped into online groups, forums focused specifically on this kind of specialized housing investment.
Speaker 1:Smart move.
Speaker 2:Incredibly smart, because that's where you get the real world stuff. You know case studies, practical tips, what actually works on the ground, and connections real connections to providers.
Speaker 1:I bet hearing from people actually doing it, maybe running into some of Robert Flowers advice in those forums to really solidified things for her.
Speaker 2:Oh, I'm sure, Seeing that it wasn't just theoretical, that people, including folks guided by Robert's principles, were making this work, that must have been huge.
Speaker 1:Okay, so two weeks of intense learning. She's got the knowledge base. What's next? How does she make it real?
Speaker 2:Action Weeks three and four were all about outreach, making those connections she'd learned about.
Speaker 1:So picking up the phone, sending emails.
Speaker 2:Pretty much. Her strategy was actually quite simple LinkedIn cold emails to local agencies care providers.
Speaker 1:What was her pitch? What did she say?
Speaker 2:It was really direct, something like Hi, I'm passionate about providing high-quality, safe housing for adults with intellectual and developmental disabilities. Here in our area, are you currently looking for reliable housing partners?
Speaker 1:simple, clear and addresses a need, no fluff.
Speaker 2:Exactly. She wasn't selling herself as a care expert, but as someone ready to provide the right kind of housing, quality housing. That hits a nerve, because finding suitable places is often a major challenge for these providers.
Speaker 1:And I guess framing it with that quality aspect, maybe echoing some of the person-centered ideas from Robert Flowers she'd picked up, helped it land.
Speaker 2:I think so. It showed she understood the importance of the environment, and well it worked.
Speaker 1:Someone bid.
Speaker 2:Someone definitely bid A regional provider, one facing a really long wait list of individuals needing placement got back to her they were interested.
Speaker 1:Wow, so the need was definitely there.
Speaker 2:Very much so, but they needed the right house, of course. That was the condition. Suitable housing first.
Speaker 1:Okay, so the connection is made, the need is confirmed, but there's still that hurdle Jasmine doesn't have the capital to just go buy a house.
Speaker 2:Right. The classic problem and this, for me, is where her ingenuity really kicks in Weeks five and six. What does she do? She needed an investor, so she went looking for one. She attended a local real estate meetup.
Speaker 1:Okay, she needed an investor, so she went looking for one.
Speaker 2:She attended a local real estate meetup Okay, putting herself out there, Yep. And she pitched her idea to an investor she met there. Just laid it all out. This feels like something Robert Flowers might advise looking for creative partnerships when traditional financing isn't an option.
Speaker 1:That takes guts Pitching a stranger at a meetup. What was the angle? How did she make it attractive to an investor who might just be looking at standard rentals?
Speaker 2:It was brilliant really. She basically said look, you buy a suitable property. I have a guaranteed tenant lined up this funded provider.
Speaker 1:De-risking it immediately, the tenant is basically secured.
Speaker 2:Precisely. They'll sign a long-term lease, she explained. So you get consistent, reliable income. I'll handle all the property management, the liaison with the provider.
Speaker 1:Okay, so passive income for the investor management handled.
Speaker 2:And she added, we'll be making a positive social impact, providing a home for people who desperately need one. It ticks a lot of boxes, financial return, low hassle and doing good.
Speaker 1:That's a compelling package Consistent rent from a funded source, professional management plus the social benefit which, as you said, connects back to that joy of helping others idea. It's not just bricks and mortar.
Speaker 2:Exactly and the investors saw the potential, they agreed.
Speaker 1:Fantastic, so they found a property.
Speaker 2:They did. They bought a modest four bedroom ranch home. Importantly, it was already mostly code compliant, which helped keep things simple and affordable.
Speaker 1:Good point Doesn't need to be fancy, just safe, accessible and functional for the residents' needs.
Speaker 2:Exactly right. So now they have the house. Weeks seven and eight were about getting it ready.
Speaker 1:The provider probably had specific requirements.
Speaker 2:Oh yeah, they gave Jasmine a detailed list. Things like adding ramps for wheelchair access, making sure there were fire extinguishers, installing secure storage for medications.
Speaker 1:Standard safety and accessibility stuff for this type of housing Makes sense.
Speaker 2:And basic furnishings too, making it feel like a home, not just a facility.
Speaker 1:So how did Jasmine manage that part? Still no big budget, right?
Speaker 2:Nope, resourcefulness again. She hired a handyman for the modifications ramps, locks, that sort of thing. She used her own funds but kept it tight Under $6,000 for everything.
Speaker 1:Wow, that's impressive.
Speaker 2:Well, part of it was community help. She actually got furniture donations from a local church.
Speaker 1:Oh, that's great Tapping into community support. Another thing Robert Flowers often highlights finding those local resources.
Speaker 2:Absolutely. People often want to support initiatives like this if they know about them.
Speaker 1:Okay House bought prepped according to spec community, chipped in Moment of truth.
Speaker 2:You got it. Week nine, just nine weeks, 81 days from that initial TikTok discovery 81 days.
Speaker 1:That's incredibly fast.
Speaker 2:Isn't it? The provider signed the lease, A three-year master lease.
Speaker 1:Amazing, and the rent $3,800 per month. Okay, let's break that down. How did the money work for everyone?
Speaker 2:Well, that $3,800 covered the investor's mortgage payment, taxes, insurance you know the usual PITI. And there was still a surplus profit for the investor from day one.
Speaker 1:Nice and Jasmine's role.
Speaker 2:she wasn't the owner so she was the leaseholder, essentially the middle person. She carved out a monthly margin for herself from that rent that covered her work managing the property, being the main contact point, coordinating everything between the investor and the provider.
Speaker 1:So she created her own cash flow stream without owning the asset yet.
Speaker 2:Exactly Consistent income for her role as the coordinator and manager, and she had a longer term plan thinking about using creative financing down the road to potentially buy the property herself, Again very much in line with the kind of forward thinking Robert Flowers encourages.
Speaker 1:So let's recap In just 81 days no personal property ownership needed, no loans in her name. She secured a long-term lease with a state-funded provider, created consistent cash flow for herself and an investor, and developed a model she could potentially repeat.
Speaker 2:It's quite the achievement and it really hammers home the main point for anyone listening who's interested in this space.
Speaker 1:Which is.
Speaker 2:You don't necessarily need a pile of cash or a perfect credit score to get started in this kind of impactful real estate. Jasmine proved that.
Speaker 1:Knowledge initiative. Finding the right partners. Those were her assets.
Speaker 2:Absolutely Knowledge about the niche, the funded housing landscape, which she got through dedicated research, maybe boosted by insights like those from Robert Flowers Initiative to make the calls, attend the meetup, make the pitch and the strategic partnership with the meetup, make the pitch and the strategic partnership with the investor and the provider.
Speaker 1:It really shines a light on this whole area of funded housing, doesn't it? Especially for special needs populations, it's often overlooked, but the potential is huge.
Speaker 2:Huge potential. It's a true win-win. Residents get safe, supportive homes in the community, not institutions, and it creates opportunities for investors, for coordinators like Jasmine, for providers. It strengthens the whole ecosystem.
Speaker 1:And it aligns perfectly with those principles from the joy of helping others that Robert Flowers champions, it's about service community and finding smart ways to meet real human needs. Jasmine really embodied that.
Speaker 2:She absolutely did. Her focus wasn't just the deal, it was the people she was ultimately helping to house.
Speaker 1:So it really makes you think, and that brings us to our final thought.
Speaker 2:For you, the listener, inspired by Jasmine's story, Considering how resourceful Jasmine was in finding that investor stepping outside the usual path.
Speaker 1:What unconventional partnerships, what creative connections might you explore to reach your own goals, whether that's in housing or maybe something else entirely, something to mull over. Thanks for tuning in to the deep dive.
