kid you not, I was manic. I Andrea can confirm this. Like I I went to the other room and I don’t I don’t even know if I

was speaking English. I was like, “This guys told me about this strategy. It’s exactly what we’re doing and they have a

way that we can do it again.” And it just caught fire. It just caught fire.

What’s up everybody? Welcome back to the hybrid real estate professional podcast. I am your host Aaron Amin and today’s

episode is going to be a special guest appearance I did on the row room podcast

with my friend Charlie Cameron who is now actually a partner of ours on our Everwood Reserve memory care project. So

we talked through a little bit of my story and also dig actually deep into the details of the deal behind Everwood

Reserve. and um Charlie and I are now partnering and we’re right in the middle as I record this of of raising capital

for the deal to get it off the ground. So, if you’re interested in hearing the nitty-gritty, some of the numbers and

where we’re at in the project, this is a great interview for you. So, without further ado, let’s get into it. Welcome

back to today’s episode of the Row Room Assisted Living Podcast. I’m your host Charlie Cameron and today I am

absolutely thrilled to have one of my most amazing friends and one of our row room members on the podcast today.

Special guest Aaron Amin. What’s up Aaron? So glad to be here. It’s an honor.

Let’s go guys. This is going to be a different format today. Normally we have folks who’ve operated homes and we go

through their struggles and solutions for you guys which I think is always super valuable. But this is a different one because what we’re going to get into

is Aaron and Andrea’s backstory. We’re going to talk about how they got into

the row room, how that helped them figure out what path of the many different paths in assisted living they

they chose to go down, the partnership that they they chose to do that, what

that project looks like now, which is super exciting. They’re making lots of progress, how we ended up partnering

together on it, and then just an overview of the opportunity itself. With that, Aaron, take it away, man. I do

want to hit your backstory before even real estate because I think it’s so interesting. rewind it back. Tell us

what you were doing before you got into real estate and how you made that transition. Yeah, for sure. I know Charlie likes

this part about my story. So, I’ll start even before Yeah. before the real estate investing began. I worked my first 10

years of my professional career in the concerts industry. So, I was a booker, meaning I I negotiated the deal terms

and set up all the budgets for concerts, everything from club level shows all the way up to the arenas and even stadiums.

And that was a fun chapter of my life. uh too much fun actually. I worked five

five days a week in the office and I would go to shows three or four nights a week for a while. I was living in Las

Vegas for the bulk of that time and I was going to sometimes three or four shows in a single night. And I had

enough fun for a lifetime. We’ll put it that way. And basically what I realized working that much for not that much

money was that my upside was really capped and the amount of time and energy that I had to put into a career like

that took everything out of me. And I just I came to the conclusion that there was not a reciprocal return on that

effort. And that kind of woke me up to the idea of there has to be some other way to capture and retain my own upside

in life. Long story short, I I had as much fun as I possibly could and I found

my way into an impatient rehab program in 2019 for alcohol abuse because I had

run myself ragged, built all sorts of bad habits. And part of that turnaround

was I asked some really tough questions about what I wanted my life to look like. you know, did I really want to work that hard just for the hopes that

one day I might move into a job that would be even more stressful for the potential to make more money or did I

want to explore or at least diversify into some different ways of of building wealth and happiness? And so that’s

where real estate entered. My wife Andrea and I, we bought our first rental property in 2019, not so coincidentally,

about two months after my rehab stint. So, I took all that crazy misdirected energy that I was pouring into my bad

habits and I chneled it towards something more productive. We knew we wanted to have a family. We knew we

wanted a different path than the one we were walking. And so, it was really a symbolic gesture of how can we invest in

something that where we really do capture and own that upside. So we bought, fast forwarding a bit,

entertainment industry evaporated overnight on March 14th, 2020 when COVID

basically shut down not only the country but the world. One of my last duties in the concerts industry was to go and

cancel all the shows, call all the venues and refund all the ticket sales and pretty much shut everything down and

then my position was furoughed. So at that time we had actually already bought four properties and overnight we had to

basically figure out what’s the future going to look like. I ended up getting a different job in a different career

path. I now work in management consulting which I’ve done for almost the last 5 years. And in doing so we

ended up moving away from Las Vegas. We had to figure out are we going to keep these rental properties? are we going to

sell them and turn it in four properties in Las Vegas equals one house in Seattle

which is where I moved back to and ultimately we became long-distance investors by almost by accident and the

first chapter of our real estate journey was all about that single family rentals long-distance investing and just growing

into that identity but I’ll I’ll pause in a second but the important part of the Las Vegas chapter was that the

second and third properties we ever bought were actually already leased to assisted

living operators. It was just a pure stroke of luck that the agent we were working with, he called us with those

deals. They were on these 5-year leases paying significantly above market rent.

You know, the operator was already in place. They were well established and it was about the best deal we could ever

ask for. So, we got our first exposure to residential assisted living through those rentals. And but it wasn’t until a

bit later that we really caught on to it as a permanent strategy, which is where we are now. I’ll pause there for a

minute. Yeah. God, man. I do love your backstory. Who doesn’t love like a comeback story? And

I think yours is so cool because you had a realization before things got too out of hand and it life just swatched you in

the face and you took that and you turned it into rentals and a new career and now I won’t spoil the project that

you’re working on now, but man, like the world is your oyster now. and the turnout has been just absolutely

amazing. So, I love to hear that. I also want to point something out like you said just stroke of luck quote unquote

that these assisted living lease operator is what we’ve come to call it

deals fell into your lap. And I think that’s not a stroke of luck. And here’s why. Because you had decided to take

action and to take a different path and you’d already started getting rentals and you made moves. You bought a rental

before that. So that agent knew you were serious, knew saw you, saw what you wanted to do, understood your vision

because you relayed it to them and when they saw the deals, they brought those opportunities to you. So really, you

positioned yourself at the right time in the right place and taking the right amount of action to be able to get those

opportunities. So I think it’s not luck. I think it was fate in a way driven by action. No, I appreciate that. I’m going

to double down on that a little bit because when we first bought the very first rental property, it was an experiment, right? It was me taking all

this energy and resentment that I had built up and you said that life swacked me in the face. I think I swacked myself

in the face, right? Like it was I was self-sabotaging and turning to the wrong direction to try and solve my problems,

right? And the first rental was really just about taking life back into our own hands. But like you said, he took

action, built relationships with the agent and learned what we could learn and set the tone that hey, we are

serious and we are trying to build something for our future. And it’s exactly what you just said. He sent me an email that I have framed. I’ve

written about this quite a bit and I’ve told this story many times, but he sent an email that basically said, “These two

deals came across my desk. I know you and Andrea are trying to build something for your future and you you guys were

the perfect candidate for this deal.” And so he brought it to us offmarket. Nobody else even got a look at it. And I

do really believe and prescribe what you’re saying that we did set the tone by taking action. And I’m very grateful.

I to this day, you know, that I view that as one of the biggest turning point moments in our life because instead of

this owning one rental on the side while we work full-time, all of a sudden, that was only about four months after we

bought our first rental. All of a sudden, we catapulted into this new identity where we owned three rental properties, two of which were these

basically businesses. And so, it really forced a lot of change and growth in our life in a short period of time. And the

consequence of that happening is still playing out. It’s still manifesting in

what’s going on today. Yeah, man. I love that. Okay, so got a

couple rentals. Now, you’re out of state and you’re still buying in Vegas. So, what happened next? How did you decide

that wait a minute this is just a living thing maybe there’s more to this and there’s the business side too.

Yeah there’s about five years in between the last story I told and where we are right now. So at first we just kept

building upon the baseline knowledge of rental properties. You know we wanted to become good landlords. We honestly

didn’t think too much of the whole lease operator thing because we thought it was a fluke. Somebody brought us that deal.

We didn’t know how we could replicate something like that. We were just grateful that we had those two and then we kept building your standard single

family rental portfolio. Life also I one of my strong opinions now is that life

is not a linear journey in most cases. I was not expecting that we would have to move away from Las Vegas when we did. We

started having children very quickly after we we got there. We now have three kids age three and under. And through

that like our life circumstances changed too. So we actually bought it was eight single family rentals across three

states in about three years and that was all leading up to the time when we were having children. So we we got as good of

a skill set and we took our own money as far as we could take it. But at some point we ran out, right? We our expense

profile changed dramatically. We went from dual income, no kids in a low cost of living market to living in Washington

state, which is one of the more expensive places in the country. and we had one kid at the time and two on the

way. So, we had to more or less refactor our entire lives. We ended up relocating down to Houston area and we had this new

equation to balance. Not only did we have to solve for the lifestyle that we wanted and putting ourselves in a place

where we could picture raising our children, but we had to be able to afford it. And I’m in multiple different

mastermind groups. I had been exploring like what are the different strategies that could help solve that financial

problem. And I really, another kind of divine intervention moment was when I heard Alex, Dr. Alex Schllo on a a

podcast, the Action Academy podcast, which is the mastermind that he and I are both in. And he was talking about

this strategy, this lease to operator. I had never even heard of it called that. But I was like, he’s describing the two

houses that we already own. And he goes on to explain not only what the strategy is, but how he went about finding deals,

how he’s done this multiple times. Oh, and by the way, there was this thing called the row room mastermind that was launching three weeks after that. And I

kid you not, I was manic. I Andrea can confirm this. Like I I went to the other room and I don’t I don’t even know if I

was speaking English. I was like, “This guy told me about this strategy. It’s exactly what we’re doing and they have a

way that we can do it again.” And it just caught fire. It just caught fire. It started answering all these questions. I was not lit up by the idea

of doing storage or multif family or mobile home parks. I recognized the upside potential in those, but they did

not resonate with me in the same way that when I heard that episode, it really just started to click. And then

Andrea got on board, too, right? And she’s heard me participate in enough of these groups and come with all sorts of

ideas, and she’s always supported the ideas and what they could unlock. But this one actually clicked with her. It

resonated with her background. Her father had early onset dementia, diagnosed when she was 19, passed when

she was 26. He was in a big smelly facility, nursing home, understaffed,

overworked. People were really unhappy. She was always not sad when she was visiting him and then ashamed when she

would leave. It was just a horrific experience. And so when we started talking about this residential assisted

living as a business, it really unlocked something in her where she felt like she

wishes she could have provided better for her own family, but now she found a way to give back. So it just it met the

intersection of everything we were looking for. It solved the financial problem. It it provided an opportunity

to give back and make an impact in society. And then of course the more we learned from you guys about the

overwhelming supply demand gap and what’s coming, it just became too

obvious not to pursue and we haven’t looked back since. Man, I love that. And

you mentioned something. You have three under three. So, you’re not busy at all and with the full-time job and you have

your own podcast and now all the things you’re getting involved plus all your rentals and but for Andrea to get on

board for your spouse to get on board with something you know that you’re so passionate about. How does that make you

feel? It’s the greatest thing ever. There’s challenges working directly with your spouse. You’re now partners on

you’re already partners on several levels when you’re a parent and you’re a spouse and you’re running a household.

Now, we’re running a business together. So I will not sugarcoat. There are plenty of challenges as we learn to

adapt to that new dynamic. But the upside there’s nothing greater honestly like that we feel like we can truly be

together on this journey and we have such distinct lanes like the stuff that she’s passionate about she can pour into

this business that we’re building. And the stuff that I’m passionate about and that I have good foundational skills to

support like we we’re not occupying the same lane. we can bring different things to the table from our backgrounds and

create this what we believe is a beautiful vision. The whole industry and

particularly residential assisted living I think is a wonderful antidote to the

big smelly facility. But the fact that we can start this brand that’s inspired by experiences in our family, Andrea can

pour her heart and soul into it and yeah, just to see the look on her face when she talks about this business.

There’s very little else I can think of that makes me happier than being able to be on this journey with her.

Yeah. Game changer. Game changer. Aligned goals. It’s It’s There’s nothing better. Okay. So, tell us about the

project. It’s time. All right. It’s time. Yeah. So, we are building two memory care mansions. Shout

out to Brett Shakavis and Laura Shakavis. They pioneered or at least branded this model of the 10,000 ft²

16bedroom 16b luxury builds. and each one. So, we’ll have 32 beds total. We

under contract for seven acres of land in Tombball, Texas, which is a suburb in the northwest part of Houston. It’s a

beautiful little town. We spent about three months, mostly Andrea, driving up and down northwest, north, and the west

parts of Houston looking for suitable land. We’re working with Brett who is has a great template for the end-to-end

project life cycle from finding the land to developing to actually starting the businesses combined with everything that

we’re learning and everyone that we’re meeting in the rail room. And we’ve scoped out this project where we’re now

about two months as we record this from the finish line to close on the land and start construction. And at the end of it

all, we’ll have this two beautiful homes with enough land to potentially expand

into houses three and four. uh we are raising about $2.8 million in investor

capital and funding the rest through an SBA loan. The SBA loan is an incredible tool where in many ways it’s government

subsidized so banks are willing to take on and lend on projects that they might not otherwise be able to but we’re

bringing investors along for the ride. We’ve crafted what we believe is a very investor-friendly structure. So, it’s a

really incredible feeling coming from single family real estate and which we really enjoyed and it created a lot of

financial upside for us. It created inhabitable and good environments for our tenants, but now we feel like the

impact of these efforts is going to not only serve the residents first and foremost, but we’re able to bring

investors in and create returns and kind of abundance for everyone involved. And

yeah, there’s no feeling quite like it. Yeah. Wow. Okay. So great overview. I

want to double tap a few things or and highlight some things I will say. Yeah. So Brett, he was on the podcast. You

guys can go back and listen to that episode. He talks all about that model and he talks about how the cash flow on

those homes, if everything’s done anywhere from 30 to $40,000 a month, which is wild. At the same time, you’re

serving 16 families, 16 residents in a boutique, fantastic environment, a

totally opposite of a skilled nursing facility, yet you can provide that sort

of care on a more part-time basis in addition to assisted living. And so, you’re like checking all the boxes.

You’ve got a cooler thing, a thing that cash flows really well. And that’s one home. Aaron’s building two from the

get-go. So, total project cost, what’s that look like? Yeah. So, right now it’s hovering around $9.4 million and that’s

including the construction, the purchase of the land, bringing you developing the land, bringing in utilities, paving all

that stuff, building everything luxury build, luxury finishes, purpose-built specifically with memory care in mind.

So, every every minutia, no detail is too small. We’re optimizing it for

people who are dealing with dementia and Alzheimer’s. Um, and there’s a lot that

goes into that, too. But yeah, the cost it it should be significantly lower than the equity we’ll be able to create. We

bought the land. We’re under contract at a pretty significant discount. We were able to reszone it from agriculture to

commercial, which immediately added a ton of equity value as well. And we have strong buyin from the city. We were able

to not only get it reszoned, which involved getting in front of the movers and shakers of the city, but we’ve

really built relationships with the city and got people bought in behind the vision of what we’re doing. And everyone

we talk to, whether it’s anecdotally meeting people in the community and also the people that we’ve hired to do

research on the stats and demographics, everything supports that this is a big need in this community and will be

adding value in more ways than one. Dude, I love it. And I mean it we talk

about a lot on this podcast. The lender is a partner, right? The real estate professionals are partners. Your

partners, your investors are partners. Your staff are partners. And guess what?

The zoning and the planning and everybody else that has to get involved that has to touch your project and improve your project from one

perspective or another, they’re all partners in the deal. So, the more relationships you can build in an amicable way, the better off you’re

going to be. You got that thing reszoned in record time. Andrea is basically the mayor of Tombball at this point. And you

guys are crushing it. And I just think that that’s so cool and it just speaks to kind of your personalities, your value ad perspective on life and just

just move it and shake it. Take the action, make the relationships, and everything else will fall into place. I want to slide back to something you

said, right? cuz you know it I it was I know it’s a half joke half real but three kids full-time job rental

portfolio and all that and it sounds like it would be not easy to do this but

I explained the why behind it right this is a purposedriven business for us it solves more problem

than one and it’s something that we believe is a really long-term piece of our lives not only in the next one to

two years but in the decades to come and so being able to create this and and

share it with other people. This became the focus of our lives. Yes, we still have to cover the bases. I do still have

an obligation to my employer. I do still have obligation to my family. But we believe that this is a centerpiece of

what is now our long-term vision for our family. So, I think when you can there there’s a reason that there’s that

cliche start with why. If you have a strong enough why, then the determination and your ability to work

through difficult things even when maybe there’s a lot of pressure stacked against you. I think that you can you

being anyone listening to the show can overcome just about anything with the right level of motivation and a sense of

why. Yeah, agreed. And you’re setting out for a new goal, a new vision for what your

life is going to be. And you’re making that shift gradually over time. And some people decide that burning the boats is

fine. I was like you. I did the gradual slide of, okay, I got some rentals. That’s not quite enough to replace my

military job. Let me get my real estate license. Oh, wait a minute. Okay, now I’m there. And so for me, it was like,

oh, okay, this is creating a lifestyle change and it’s still continuing, right? My wife’s still active duty, but within

a few years, it won’t be that way. And assisted living will be everything for us as well. In fact, I’ve I have shut

down all the other real estate things solely focused on this because I just I believe in it so much. Okay. So, you’re

now doing your first operating assisted living project. For the listeners out

there, $9 million. He’s buying land. He’s building two homes, 32 beds from

the ground up. Is getting an SBA loan for that. 10% down.

No, it’ll be more like 27% down when it when all is said and done. So, first of all, I want to make one

correction. It’s not he, it’s we, right? There’s a huge team involved in this. and between the banking partners, the

capital partners and the active partners who you are you and the boys are part of that team.

Yeah, we we are so going to the lenders you brought up that is a big piece of the puzzle and SBA lending while they do

have very favorable potential low down payment options when you are a newer operator and when you are doing groundup

construction you’re fighting against a lot of headwinds, right? There’s a lot of different things to prove and especially in a difficult environment

like it has been over the last few years for banks, they have more stringent policies on how they manage risk, right?

So in our case, we do have a strong profile. We have a lot of collateral from our other rental portfolio. Like we

we have a reasonably strong case to make, but they still have their requirements on how much liquidity they

want to see, how much down payment they want to see. Banks do want to see skin in the game. So we are putting in I

think it is 27% all said and done and that includes raising some additional capital. So we have some reserves

because the last thing they want to do is fund a loan to start a construction project and then you run out of money in in six months or eight months. You got

to budget in for those contingencies and anything that might happen. So yeah, it’s a little more complex of an

equation than some of the advertising materials might make it look like.

Yeah. Yeah. There’s a lot of moving parts. There’s even lots of different parts to the loan itself through the

SBA, which is interesting. We won’t dive deep into that because our listeners will fall asleep, but it is intricacies

you learn through through the process. Luckily, we’ve had a lot of folks to lean on, right? We you got Brett’s team.

We’ve had a lot of experts and SBA lenders come on and talk. Um, we had a lending broker who I believe connected

you with the current lender you’re you’ve decided to work with, which is awesome, right? right? That those all

those connections happened and now we’re at where we’re at. Yeah. I’m so excited for this project. I’m just so excited

that your first thing, your first path is I’m going to develop 32. Oh, by the

way, there’s room for two more homes on this lot that we now own, which is just mind-blowing. And I think it’s one of

the most appealing models to me in assisted living is developing these homes exactly how you want from the

ground up just to be beautiful and to be able to build enough in a small location

to be able to have economies of scale without feeling like a an assisted

living facility. Yeah, it’s a beautiful thing. I want to underscore something you said though, right? Is that first of all, we have

been under contract for four and a half months. We’ve been working on this specific project under Brett’s toutelage

and with the support of the rail room for almost 10 months, right? So, this didn’t happen overnight. All the stuff

I’m rattling off about this vision and the very specific details like it took a lot of work to get even to this point

and we’re up on the edge of closing. It’s like you you work this hard just to get to the starting line. The closing

date is the starting line and then you have to build the places and then that you get to another starting line where

you got to run the businesses. So I think the vision is very strong but a lot of the specific motions and you were

talking about how the network came together. We have Brett’s contacts, his playbooks. We also have the RA room has

been an unbelievable resource, right? You guys have six calls a month. Each person is an expert from different parts

of the business plan. You got everything from lenders to lawyers to current operators to people who specialize in

floor plans, architects, and engineers. These are people that we’ve been Andre and I have been lucky to add to our

rolodex by virtue of just being in this group. And we’re surrounded. We have a pod. Shout out red pod if you’re

listening to this. We have a small pod is there’s seven of us. We’re all doing groundup construction. We meet once a week and we talk all the time in

between. We’re sharing construction bids and looking at term sheets together. We’re dissecting all that stuff to make

sure that we’re not seeing you missing any blind spots. We’re there for each other. Believe me, I’m smiling a lot

during this interview, but there have been plenty of challenging moments and it has been one of the more challenging

stretches of our life. And like I said, we’re just getting started. So, I think the people we surround ourselves with,

the network we’re a part of, our commitment, like those are all the things that are powering us. And I don’t

take any of that for granted. And I certainly this is a Wii mission. It is not something that I would recommend a

single person take on with that solo mentality. It’s it’s a team sport. Oh yeah. Yeah. And man, there’s you made

such a good point. There’s so much work that happens along the journey, right? And there’s so much more work to your

point to still get there to get it across the finish line to get it to this new valuation which is going to happen a

couple times along the way over the next decade. And and those are man that’s the projections are wild. But you always see

those memes or whatever that’s oh he’s so lucky, she’s so lucky. They did such a good job and nobody ever really

acknowledges the part in between. Ladies and gentlemen, this is the part in between, okay, that’s going to be

setting Aaron and the team up for stratospheric success through residential assisted living. So, you’re

hearing it now. The journey is not easy, especially groundup development, but

it’s worth it. It is absolutely worth it from every perspective you

could think of. the fulfillment, the financials, the freedom that’s going to come with it. It just makes so much

sense. If you have any questions about those, either of us will gladly answer why because we are so passionate about

it. Okay, so I’ll shut up about that piece. Erin, why did you decide to

choose the path of development? Yeah. So, it’s interesting when we joined the rail room, I told you I had that I listened to Alex’s episode on

action academy. I had that manic moment and I was like, we’re going to go recreate and do all this lease to operator. We were already comfortable

with long-distance investing. So when I joined the RA room, and that was before I even told Andrea or looped her into

the calls and all. That was the plan. It was just going to be more lease to operator. We’re going to do long distance maybe research what’s the best

market to do that. But I mentioned the more I learned, the more I actually went through your guys modules. You know, you

guys have a really good system, which I firmly believe it is the start with why. You start with a big strategy worksheet

of set your goals. Not just your financial goals, but what do you actually want out of your life and what

do you want real estate to do for you? What do you want residential assisted living to do for you? So, we work through all your prompts and then we

work through your build your own business plan, which also is sequential and very thoughtful. And it starts with,

okay, pick where you want to look, pick what type of home you want, which strategy do you want to use? And there

was this fork in the road of, okay, are you going to lease out to an operator or are you going to operate? And I got really stuck on that that part of the

plan because it had never even occurred to me that operating was an option. But the more time I spent around other

people who had already made that commitment and that decision, the more exposure I got to existing operators who

didn’t come in with 25 years of medical experience, they learned how to do it. Um, that showed me that it was possible.

And then combined with Andrea and her vision coming in and that really catching fire, we we built the courage,

right? We saw people in our pod who were already working with Brett who had taken that leap and like it just being in that

room gave us the courage to expand our vision. And then once we made that

decision, we took it step by step. That’s when we started working with Brett. That’s when we did exactly what

he tells us to do, right? And how to find land, how to scope it out and all that. And I think at the end of the day

too, de development versus rehab or anything like that, we really like the

idea of controlling the variables because you’re building it purpose-built. You’re not trying to

retrofit or make something force a certain layout that might not have been

the original idea of that property. And we really can come in and take a clean slate and build something exactly in the

mold of what we would want it to look like. And the when you have a premium product that you’re really proud of, it

it becomes that much easier to provide the quality service and get behind what you’re positioning out to the market, if

that makes sense. Yeah. Yeah. I think looking back a year

ago, A, we didn’t know each other. B, like looking at where we are right now, I never would have guessed it. it. I

don’t think you that might be more shocking to you that this is what you’re doing now that you and your wife are

developing an assistant two assistant mansions right next door to each other

that I’d be running this podcast and the mastermind doing so well and getting to meet so many people and networking with

so many folks and to be hopefully getting under contract in our own land. I don’t want to I don’t want to jinx it

like I would soon to do a very similar thing. Like just unbelievable that this

is where we’re at. And it just speaks to you just don’t know where life’s going to take you and where you’re journeying. I truly believe that first of all I’m

very humbled to be in a position to even have gotten this far with any of this. I don’t take any of it for granted.

Whether it’s the investors who are trusting us or the people who have chosen to partner with us, yourself included, all the resources that we’ve

been able to consume, the ability to just even afford to be in these type of groups, right? That’s all stuff that

we’ve layered on step by step over the years. And I really do take a lot of time to appreciate that how that

progress incrementally developed over time. And I also think that sometimes when that’s when I heard that episode

and when I had my weird little whatever you want to call that, um, I knew right then and there that this was the right

fit. Again, as somebody who had been exploring all these other asset classes, I knew I loved real estate. I knew I

wanted to sink my teeth into it. I knew I wanted to grow and evolve and expand, but I hadn’t found that right fit. When

I heard that episode, it became very abundantly clear to me that this is the right place to focus my energy. Then I

went through all those steps we talked about. Use all your guys’ resources. Did what people that are smarter than me

said I should do. And that’s how I got here. Not at by some stroke of genius out of out of my own, right? Not

reinventing the wheel, but just modeling after people who are doing things that I really admire and appreciate and

actually listening to what they have to say. Yeah. Yeah. take you have to learn the

hard way before you start actually paying attention and just modeling after people who are smarter and listening to

them and following them. Been in that boat. I started with eight apartments and as a brand new dad and it was a

disaster and I made it work and but I it it takes us a little bit to learn that lesson and I’m glad we have because

everything has come to where we are now and it’s not by luck, right? It’s by action and by all the things we did in

the past led us to this exact point where we’re now partnering on this deal. So, we we were lucky enough to be

invited by Aaron to be a part of this opportunity to help put this deal together to help raise money for the

deal and and dude, we’re just so excited about it. We’re talking about it non-stop and and yeah, we’re really glad

to be a part of this opportunity with you and with Brett and the team. It’s just absolutely awesome. So, why don’t

we talk a little bit about the opportunity that investors have that that are partnering with us on this one?

Sorry to interrupt this episode, but let’s be honest. Most real estate investing right now, it’s either buy a forplex or try Airbnb and hope for the

best. Yeah, we’re not here for that. We’re here to show you what we believe is the most overlooked high cash flow real

estate strategy in the game right now. You guessed it, residential assisted living. It’s literally the one place in

real estate where you can net six figures on a single home and feel like a decent human being at the same time.

You’re helping sweet old ladies eat pancakes and play bingo and live longer through better care. You tell me what’s

better than that. So, we’re hosting a free live webinar called How You Can Financial Freedom

with Residential Assisted Living. No fluff, just value. And it’s happening at 8:30 p.m. Eastern time, 6:30 Mountain

Time. No excuses. It’s online. Put on sweatpants. We won’t judge. We’ll break down why residential

assisted living is the best opportunity right now. the five steps to take down your first home and how to set up a

business that makes a real impact and real money. Spots are limited, so don’t be that

person who DMs us in three months saying, “Wait, is it too late to start?” So, hit up the room.com/webinar

and register now. Be the hero your grandma already thinks

that you are. We’ll see you there. Pancakes not included.

Yeah, sure. So, like I said, we’re raising 2.8 million in outside investor capital. Andrea and I are making our own

contribution. All GPS are actually invest co-investing alongside, which is nice, right? I think I’ve invested in

other deals. And I always appreciate knowing that the people that are putting the deal together have some type of skin

in the game. And so, we are co-investing. We are personally guar personally guaranteeing that full loan,

which will be a north of $7 million. you can know that we’re right there alongside you and we have every aligned

interest in the project’s success. But the opportunity essentially we have it as standard syndicated structure. We’re

going to have a preferred return. We’ll have a waterfall that’s very favorable towards investors. So the first large

chunk of capital is going back to investors before the sponsor team gets paid. Most of our upside is on the back

end once we’ve fully returned the capital. We are using loan products that don’t have balloon debt or crazy

floating rates that are going to force us to make decisions at inopportune moments. Um, so we have currently a

modeled to return all investor capital and even actually double that by year six. And we have worked out a structure

where we’re aiming for over a 20% irr over the course of 10 years total. So,

we get people’s capital back by year six uh with 2x multiple and then we’re continue to pay them until we meet or

achieve a 20% irr. So, people are getting long-term particip participation.

They’re getting exposure to this incredible resilient asset, making an impact in the local community, and we’re

grateful to be able to deliver that for investors while hopefully starting the

snowball down the hill for what will be a long road ahead for Andrea and I.

Yeah, dude. Man, when we first started getting to raising money, I think this

happens for all real estate investors. You have this fear of, oh man, what are people going to think and I can’t do

this. I’m not capable because XYZ. But the coolest part about this is that,

man, there’s so much there’s so much opportunity in this deal. There is so much cash flow. There’s so much equity

going to be built on this deal that we can bring investors in. we could bring a lot of investors in and we can pay them

double or more what they would make from the stock market, which is just mind-blowing, right? Because now they’re

partners in this deal and we’re all winning together. So, just to kind of rehash some of these numbers here, the

goal is an over 20% IRRa. So, basically a a a 20% return on your money over

time. And because it’s a development, there’s a it’s going to take a couple years before it really cash flows to

investors. And the way that and I think it’s so creative, Erin, the way you approach this in a typical syndication

model where you’d bring investors to a deal, a lot of times it’s not a development. And so what’ll happen is, yeah, you probably won’t get cash flow

in year one as they’re repositioning the property. And you’ll get some cash flow in year two and then it’ll pick back up.

It’ll pick up quite a bit. And somewhere between five to seven years, there’ll be a refinance or a sale event. Um, and all

the investors will get their money back. Usually hopefully close to a double, right? So,

if you invested $100,000, hopefully you’re getting about 200,000 by that point. And you leave the deal. And what

you decided to do was keep investors in after that event, which is really cool.

So, what’s happening is yes, there might be a little bit less cash flow in the first two years compared to a reposition

syndication, but the cash flow picks up really well after that and at the six-year point, a refinance event,

investors get their money back 2x is the projection, right? So, you invested 100,000, you have a 200,000 back by year

six, which good luck with the stock market on to to do that, right? You’d have to get real lucky and then you’ve

gotten your money back. So, if you think about it, it’s technically like an infinite return because now your money

is back in your pocket and we’re leaving the investors in the deal and splitting the returns 5050

for four more years. We’re just going to pay investors that don’t have money any money left in the deal for four more

years. So, if you’re listening to this and you’re like, “What on earth are they talking about?” Guys, this is a really

cool opportunity. Most syndications aren’t set up this way and I just I think it speaks to you and what you want

to do in terms of providing value to everyone involved, including your investors. No, I appreciate that. And two things I

would add hopefully in favor of of your case you’re making here is that we’re also going to do a cost segregation

study and on a $6.5 million building, we’re estimating about $1.4 4 million in

depreciation that we can take in year one of the building and that will be distributed prata out to investors. So

for anyone who has other capital gains or passive income that will effectively

act as a tax shield including the cash flow that we produce from this. Now it’s not taxree but it’s tax deferred which

is very common in in this type of investment. And then speaking of tax deferred, when you get that payday in

year six, since it’s through a refinance, you’re not taxed on money that you get in your pocket from debt.

So that will also come in a lump sum that you don’t have to pay tax on at that time. You would pay tax when you

exit the deal entirely. It’s pretty difficult to come by tax deferred heavy

cash flow and also lump sum payments. So I do think those are two other elements of this structure that make it really

attractive for investors. Yeah. And for maybe for those that

aren’t as spun up on cost segregations, really all that is it’s, you know, Uncle

Sam allows you to depreciate the structure on a property, rental property. So, the building itself and

most just one or two Z rental owners will just write off that depreciation linearly, which is fine. But the IRS

actually wants you to do a cost segregation study to basically do an engineering study to say, “Hey, no, the

carpets are going to not last 27 and a half years or in a commercial 37 and a half years. The carpets aren’t going to

last that long.” So actually, you can write those off in the first five years and the appliances and the this and the

that. So essentially what happens is all that depreciation that you would get over a 37y year 37 and a half year time

span linearly, you’re able to depreciate most of that in the first couple years.

And so what’s actually going to happen in that case when you do this is you will get cash flow and cash flowing

years, but on the books you’re going to have losses because of those depreciations, which is really cool. I

know this has been a big help for me when I’ve done this on properties from a tax perspective. And so for folks who

are looking for a passive investment opportunity that pays a 20% IRRa, so

looking at more than double the historical S&P 500 performance in a real

asset class, that is serving real seniors and their families, that is

employing caregivers, that is making an impact on the community,

and that you’re going to be able to write losses off of while making money. This is a really good opportunity. Man,

I knew we partnered with you guys for a reason. Man, I this is just so exciting. I love

it. I think it’s so great and I think it’s an opportunity accredited investors should definitely take

Absolutely. No, I appreciate that. And I also just want to say too that like the RA room is full of people that are

booting up similar operations and it is really cool to be part of a community.

There’s about 100 people in there and everyone’s doing cool stuff and everyone has made that commitment and I really

what I said earlier when people rise to the circumstances that are around them and we all lift each other up, right?

There’s moments there’s a lot of moments where I think people want to give up on this type of journey because it gets

tough and they’re balancing other things in their life. But I just got to pay a lot of respect to the community that you

guys have built. I mean it when I say meeting you guys and learning about this

and leaning into it has totally changed the trajectory of our lives and it’s created the opportunity that we’ve

described on this episode and we’re eternally grateful for the role that you guys have played in that

dude. Yeah. Start starting this community is one of the best decisions we’ve ever made. And I don’t really mean

from a financial standpoint. I just mean from a networking standpoint and and the impact like we’re just looking at it and

measuring it in terms of the impact we can make, right? That’s how we set our goals for the community. We want to open

a 100 homes within three years. We might just do that. There’s I I I think we’re we have to be nearly 20 people are now

under contract, have opened a home, are are offering on land to develop or are

in the process of developing at this point. That it’s wild. We started with like 40 members originally just and

that’s we’re not even a year. It’s wild. So I think we can do a hundred homes in

in three years. I think it’s totally possible and maybe we could just blow it out of the water sooner than later. So

yeah, it’s Dude, it’s so exciting. So cool. I love the just the culture is

amazing. Everybody’s taking action. Everybody’s value first. Help each other. How do we win? We had a bunch of

newbies on the Q&A call last night and they’re all like, “Yep, I’m evaluating deals. Oh, yeah. I’m making offers.” I’m

like, “Whoa, slow down. What? What do you mean?” Just absolutely blowing it

out of the water. Yeah, it’s awesome. I love it. And I hope some of the listeners to this episode might consider joining as well if you’re thinking about

getting into assisted living. Very good decision. Never looking back.

Yeah, seriously. That happened with my first mastermind that I joined. I’m never leaving. and now starting a

mastermind. Of course, it’s just been an awesome journey. So, I’m glad we were able to model it after the one that we

were never going to leave. Shout out to Dave Pere War Room. Okay, Erin, we have another webinar coming up on this deal.

So, if folks want to learn more about this deal, let’s give them the Yeah, absolutely. So, we are going to

share all about this deal down to the details and retrace everything what it would look like to invest. you’ll get to

meet the team, including Brett, all the RA room guys, and our broader team, too. And that’ll be on Monday, June 30th at

6:00 PM Central. We’ll make sure to include the registration link in with this episode. And if you missed that,

don’t worry because we’ll have a recording. And if you get in touch with Charlie or myself or any of the Row Room

guys, we’ll make sure you get all that information. And we’ll have a few window accredited investors will be able to

jump on if they’re interested. We do already have a significant amount of capital banked and we’re hoping that

once we open it up to a broader group, it’ll go quickly, but would love to have anybody who’s interested in getting on

board, learn about the deal. One other last thing I’ll say is that one of the benefits, you know, when I’ve invested

in deals in the past, part of what I’ve been looking for is exposure to how operators think and what they’re going

through, how they make decisions. Andrea, myself and the whole team. We’re very transparent and plan to share all

the whole journey, not just the highlights once a quarter. Really bring investors along for the ride into the

decision-m, the good, the bad. And so people who are considering getting into this that just want some exposure to

that business model and what the journey might look like, this could be a good opportunity for that as well.

Aaron, I’m so glad you said that. It’s such an overlooked advantage to being involved in one of these opportunities.

And that’s why I got involved in a syndication, I don’t know, five years ago is I just want to learn by being a

part of it. And same thing with a a money fund. It’s just so cool to hey, I’m going to get paid passively, but I’m

also getting paid to learn, which is baller, right? Okay. So, for folks that are looking for how to get to the

webinar, we’ll have it posted in the show notes. It’ll be on the YouTube version of this. We will also if you want to go to our Facebook community,

our main one is facebook.comgroupsialass assisted living. Yes, that’s ours. Hop

in there. The event will be advertised there. As well as if you’re lost at all about and have any questions whatsoever,

just email team tamalroom.com

therroom.com and then we’ll happily point you to whatever resources or information. And

for anybody who’s interested in this opportunity, like Aaron said, it will fill up fast and we have more coming in

the future, but those will be advertised to our previous investors first. So, we

have more of these coming. This one is absolutely beautiful. So, really excited

for it and we hope to hear from you. Yeah. Thank you for the opportunity to share about this, Charlie, and also for your partnership, Alex, Luke. You guys

are incredible and just sincerely appreciate you all.

Aaron, it’s been a pleasure, man. Thank you for making it to the end of today’s episode. As you may know, podcasts are very difficult to grow

organically. If you’re getting value from today’s episode, I’d deeply appreciate if you could take 30 seconds

to leave my show a fivestar rating and review. This will go a long way to helping me reach more listeners just

like you. Thank you so much in advance.