I want to give the people what they want. I’m working on new classes that will delve into the property side of things. What I search for, how I decide if it will work, how I come up with pricing for leases I really like going over this stuff live for the people who give me their precious time on zoom so we can discuss. I’m walking a 1,000,000 dollar property tomorrow for a big private equity player. I want to take you guys through the whole process. This will be a lease of 16-18k NNN. I’ll tell you how I do this stuff.

The “Not in my backyard” mindset will be the biggest challenge when investing in this business. It’s very important to lease to operators who either: A. Have a good relationship with the community B. Have the skill set and preparedness to make the neighbors feel comfortable and BECOME part of the community. From my experience, cities don’t really care about sober living. It’s very difficult to argue against the benefits of a good sober living home. Certainly nobody can deny that our mothers, fathers, siblings and children are dying from addiction. Sure, they will want to satisfy life safety code. However, they are ok with you helping people if done the right way. What screws up deals? The neighbors. Be smart about where you choose to do business. More importantly, be smart about who you choose to lease too. I work with some operators who are TENACIOUS about advocating for themselves and their new home (your investment). Others are more passive. You want the tenacious ones. The ones who have a burning desire to help others and will assist in the fight. They are the ones operating the house. They are the ones who can accurately depict the rules, regulations, process and why the neighborhood will not be negatively affected.

Obviously people are joining this group with the intention of learning more about the niche. That being said, the power of this is in COMMUNITY. I’ve already learned so much from connecting with other people in here already. Who here has access to private money lenders? I’m looking to scale (both behavioral health and regular residential) and bringing in equity partners who have access to capital is on the table. Also, if you’re really good at raising money, feel free to reach out to me. Happy to learn from the community as well.

Below is a text thread of my most recent deal (sept 20). This particular operator is in CT. He’s a licensed agent and this is our first deal together. He’s a smart guy and we’ve been chatting back and forth for 6 months now. He said he found a property with great potential. He’s 2 hours from me so he walked it and sent me videos. From there, I was able to see enough that it was worth the drive to go and look at. I saw it and we put a deal together on the spot. 275k was asking We figured 100k with of work (quote came in at 80k so we were accurate) We shook hands on $5,500 for a 5 year lease on the spot. THEN I PUT THE OFFER IN. We close end of this month. I hope this is starting to make more sense to you guys. Find the operators FIRST. That’s the key. Then they can operate from a place of abundance and opportunity because they know if they find a place that works, YOU can find it. Money isn’t holding them back so they can assist in the dirty work. Although to be fair, I find the properties 90% of the time. We’re just better at it than them. But that’s ok. They are way better at saving lives than me. It’s a win win.

Attached below is the settlement agreement I entered in with a city in Nashua New Hampshire. Although I was issued a building permit in April, the neighbors complained and appealed it. From there, the ZBA wrongly discriminated against us and revoked our permit due a “zoning violation”. Although it took months and months to solve, they have signed a settlement offer and I’m being rewarded 40,000 dollars. I’m not profiting off this settlement. I’m posting this for multiple reasons: 1. Real estate is hard. This niche isn’t “easy”. Even when you do things the right way, circumstances can pop up. Life isn’t fair. Navigate and move on. 2. I’m proving that you can win these battles. Fair housing is a real thing and it’s powerful. 3. When problems arise, consult attorneys immediately. It’s easier that way and you’re taken more seriously. You’ll save money in the long run. 4. This is a single family home in a tight knit community. The house is great, however, there were signs this could be an issue (homes very close together, quiet neighborhood with no traffic other than neighbors). I suppose I’ve learned to be more thoughtful about placement. 5. I paid for all of this. It sucked. We’re getting our money back and I’ve earned the trust and respect of the operator and many other operators. I easily could’ve just sold the asset and moved on. I made a promise to make it happen so I’m doing it. I’m not saying you should be emotional and run a business with no thought process or plan. However, we navigated through this professionally and further earned respect in the recovery community.