It’s the only asset class that I know of that you can cash flow six figures on one home. It’s not just an easy sell.

People are paying 5 years ahead deposits to reserve assisted living rooms. The data is pretty shocking. There are

77 million baby boomers, all of whom are entering their mid-60s and at the higher end they’re already in their 80s. Not

only is there already a huge supply demand mismatch, but it’s going to become an enormous problem. And the industry, senior care industry as a

whole is expected to be about $140 billion. It’s one of the best opportunities in the next couple decades.

Welcome back to the Hybrid Real Estate Professional Podcast. Today I’m going to air an appearance I did on the Action

Academy podcast. For those who haven’t heard it, Action Academy is a group run by Brian Luben. I have been part of this

group for going on two plus years now. It’s been instrumental in my progress,

both personal development and building up towards the project that is now known as Everwood Reserve. We talk about that

journey of what it was like to come into the mastermind and um develop and explore different things and how I

landed on this project and also just a bit more about residential assisted living and why we believe it is the

future. So without further ado, here is the interview with Brian Luben on the Action Academy podcast.

All right. All right. Welcome back to another episode of the Action Academy podcast. Today we are talking all things

residential assisted living. What the heck is residential assisted living, you may ask? Well, I’ve got two gentlemen on

here that will answer that question and walk us through a really, really interesting story about how we got to

this asset class and where we’re taking it in the future. So, let’s start with Mr. Charlie Cameron here and then my boy

Aaron Amin. What’s up, Brian? Great to be here, man. Uh, long time coming, big fan of your podcast. So, so thanks for that. And,

uh, yeah, I’m Charlie Cameron. I’m an Air Force veteran. uh myself and my two partners, Alex Schllo, who’s in the

academy, and and Luke Friselle, um couldn’t be here today, but we run a

assisted living portfolio company, Open Range Capital, as well as a mastermind, uh kind of kind of similar to to your

model, Brian, Ral Room. R that’s Room for people. It’s

it’s an awesome name. Yeah. Yeah. And uh and dude, like a year ago, if you’d asked me what we’d be

doing now, I wouldn’t have said growing a mastermind and building out a portfolio like we are, but it’s been an

absolute blast. I think we’re getting the same excitement. I understand now your podcast how much excitement you’ve gotten out of having a mastermind and

just having like-minded folks all the time. But Erin was one of our first joines. Um, and he really has helped us

build this community and and really, you know, with the goal of launching as many residential style assisted living homes

as possible. It’s the only asset class that I know of that you can cash flow six figures on one home that you can

make a massive impact and build wealth at the same time. Like that, it’s just

kind of unbelievable all the things that come together. We’ve got this massive tailwind that’s pushing more demand and

there’s not enough supply and it just seems like everything’s kind of coming together at once to to make this one of

the best opportunities in the next couple decades. So stoked to to get into it. Excited to talk about it. So Aaron,

introduce yourself to the audience and how did you get into the RAL space?

Yeah, absolutely. Well, thanks again for having me, Brian and uh and Charlie. We’re we’re grateful to be here. I’m Aaron Amin. I live in Houston, Texas

with my wife, Andrea, and we have three young children, all ages three and under. Uh, I started in real estate as

single family, boring, long-term rentals. I still believe in those. However, over time, what happened is

something that happens to most people, which is you end up running out of your own money, and whatever path you took to

get to wherever your ceiling was at the time, you got to figure something else out. Um, so I did what a lot of people

listening to this show either have done or will do and I I rung up Brian Luben for one of his uh signature 15-minute

phone calls and I said, “Hey, how am I going to get to the next level here?” I remember having a great chat with you. It was the summer of 2023 and I don’t

know why this doesn’t sound like a great idea on paper, but we were about to have twins and we were about to move across

the country and I said, “Why don’t I go ahead and join this very intense sprinters mastermind group with Brian

and and uh 200 other people and I remember sitting on on the driveway of

the house we were moving out of as the movers were loading the truck and binging through all the onboarding

modules for Action Academy. But the net of it is that um what got us to where we

were then was not going to get us to the next level. And so I I joined Action Academy with the intention of of

discovering partnerships, exploring different asset classes and just building relationships, you know,

leading with value as much as I can and trying to figure out what my next step was going to be. Uh as we record this,

I’m entering year three of Action Academy. So we um two full years in the group, hundreds of people met. Um we

were actually the project we’re working on now four of the GPS are all Action Academy members. We’ve hired consultants

from Action Academy and uh have about I think eight investors so far from Action

Academy in this project. So this has been a huge part of the the DNA for this next chapter of life for for my wife

Andrea and I and now we are going all in on on re so I’m happy to un unpack any of that that you’d like to.

Beautiful man. Yeah, this is a a really cool story. So, I want to give a quick shout out to Alex Schllo again, uh,

friend of the pod. He’s been on the pod. If you guys, uh, want, we’ll link his show in the, uh, description of this

episode. Uh, he came to me and he was like, “Hey, man, you know, I see what you’re doing with Action Academy. Like, I want to do something like this.” He’s

like, “I want to start a podcast. Uh, do you have any advice?” And out of maybe three to 400 people that I’ve given

advice to, the only person I’ve ever seen actually take it and run with it is Alex Schllo. Uh, and so now he’s a

friend. I wish he was here. I’ll probably still see him over here in Europe while he’s traveling with his family right now over in I believe

Germany. And so it’s uh it’s a really cool full circle moment, man. I’m honored to uh be able to share your

guys’ story and the freaking awesome deal that you’ve got going on right now. So uh Charlie, let’s start with you.

Talk about residential assisted living in the macro and then let’s go to Aaron afterwards about maybe a comparison

between RAL and different asset classes that people are perhaps familiar with. Yeah, a lot of people when they they

think residential assisted living or just assisted living, they’re thinking of nursing homes. And that’s not what we’re doing at all. Um, what we’re doing

is kind of a niche, newer model, and it has been around for a couple decades, but really in the way that we’re

presenting it, it’s it’s quite different. We’re building luxury homes with individual bedrooms for assisted

living or memory care. The definition of assisted living is just needing help with three or more daily tasks of

living. So that can be bathrooming, that can be, you know, mobility, uh that can be food, right? These are folks that,

you know, they don’t necessarily need um a bunch of medical care. Of course, they all have meds and they all h have things

at that age, but we can kind of bring those services in as well as our caregivers can support those services.

So really, this is a an assisted living care opportunity in a a home that feels

like home. So families love this because they can come in and it feels like a house. I mean, they’re literally houses

or mansions in this case that are anywhere from 3,000 to 10,000 square feet, individual bedrooms, on suite

baths, and then big common living areas, a commercial kitchen that feels like a regular kitchen, outdoor spaces,

activity spaces. Um, because we want we want folks to be as comfortable as they can be to live out kind of their golden

years with us. Um the and the really wild thing about it is it gen it generally tends to be less expensive

than those big gross nursing facilities that smell like pee and there’s one caregiver to 30 people on a floor. In in

these homes we’re talking one to five one to four in some cases depending on the acuity of the patients if they

happen to be or residents if they happen to be memory care that’s a little bit higher. Um, but this is a really

beautiful model um that that we’re just stoked to be a part of and it’s getting better and better. Like they’re we’re

tweaking these homes. We’re making them even better. It’s just continuing to improve and continuing to be a an I mean

it’s it’s not just an easy sell. People are paying five years ahead deposits to

reserve assisted living rooms. The demand is so high. Yeah. And Yeah. And oftentimes those big facilities,

it’s like uh oh, should I open a Taco Bell here? Well, there’s a McDonald’s, right? The big facilities is just an

indicator that there’s a need for assisted living in this area. And your residential style luxury home is is

perfect to have there because those big facilities are going to be a feeder of of residents that don’t want to be in

that spot or families that don’t want their their parents in that that home. They’re going to come to the assisted

living home um and come be a resident for you. So that’s it in a nutshell.

Yeah. Erin, do you have any data on the kind of baby boomer and the wave that

we’re going to see here? Because the wave that we talk about on uh business buying about that being one of the

greatest economic waves that we’re going to see in our generation, I think on the tail end of that, on the flip side of

that coin, we have baby boomers that are retiring. The largest generation that’s ever existed in the in the history of

the earth is now going to be going into retirement and they need somewhere to live and they all are capitalized. They

all have equity. Do you have any data on this about this migration and this kind of economic wave for us to take advantage of? Not in a bad way, but from

an investment perspective. Yeah, absolutely. I mean, the the data is pretty shocking, right? So, you

mentioned a lot of people are going to be selling off their businesses as they retire. Well, those same people are going to continue to age over the coming

couple decades, and there are 77 million baby boomers, all of whom are entering,

you know, at at the low end, their mid-60s, and at the higher end, they’re already in their 80s. There’s 10,000

people in America that turn 65 every day and there’s over 4,000 that turn 80. And

that those are national stats, right? But if you zoom in on any local area, the stats are largely similar. So, you

know, the place we targeted for our project, which we can get into a little bit more, you know, it’s a suburb of Houston and even just when we look at a

localized area, there’s already a shortage for for assisted living and memory care beds. So, it’s not that you

can rely completely on those national stats, but they do tell a story that not only is there already a huge supply

demand mismatch, but it’s going to become an enormous problem. There’s a projected 1 million bed shortage and the

industry, senior care industry as a whole is expected to be about $140 billion. So, this is not a small pie

that we’re trying to, you know, get a small slice of. It’s also solving an enormous problem that’s coming up. um it

already exists, but that problem is going to switch from a problem to a crisis here pretty soon.

100% agree. I like uh the Jeff Bezos analogy where he he says you don’t

create the wave, you position your surfboard in front of the wave that’s already created and and approaching

shore. And so that’s what I like about this from a macro perspective. I love the residential assisted living class

overall. And that’s why I’m excited to have you guys on here because I think that there’s a few people that can pull

out to the front of the pack here and and really claim some market share because when we think of uh it sounds it

sucks, but when you think of residential assisted living, you think of like nursing homes, which I know is different, but you think of retirement,

it’s like almost like Happy Gilmore, like the the movie where it’s like he’s he’s literally fighting to make sure

that his his grandmother is like being able to be taken care of and get out of that nursing home and move back in with

And we see a lot of abuse. We see a lot of like decrepit rundown over over uh

leverage, understaffed facilities. And so anytime that we can be a premium position in a comfortable position uh in

a premium offering in a macro wave, it’s just like it’s a it’s a double whammy.

So Erin, tell me what we’re doing here because we’re building what you guys are calling a memory care mansion. I love

the sound of it. It’s it’s super it’s super snappy off the tongue. So, what’s a memory care mansion, man?

Yeah. So, this model in its current form was patented by uh our mentor and friend

Brett Shakavis. He and his wife Laura have built two of these mansions in Georgetown, Texas, just north of Austin.

And they’re also partnering with several other operators such as myself and Andrea and Charlie and team um all

across the country to build the same building. And essentially it’s a 10,000 square foot 16bedroom 16 private

bathroom luxury assisted living mansion and it’s purpose-built for memory care.

So everything from the colors that we use on the walls to the materials that we’re using is built to create a

soothing dignified environment. You know memory care is a very specific people dealing with Alzheimer’s and dementia.

There are very specific considerations to make sure you’re not triggering certain behaviors or causing any more

distress than is needed. And so being able to build from the ground up, you could control all the variables that go

into the project. So Brett and Laura and their team, they already, you know, blazed the path and have built these

exact buildings. They’re absolutely gorgeous. I’d love to share photos of, you know, their buildings with anybody who wants to check them out, but they’re

beautiful. And and the idea is, and I want to, I guess, rewind one second and share a bit of why we’re doing this. So,

my wife Andrea, her father had early onset dementia, diagnosed when she was 19, uh was in a really crappy nursing

home. Uh like you said, Brian, understaffed, overworked, just bad environment. And um he was there for

seven years until he passed away. And it haunts Andrea to this day that you know that there couldn’t have been a better

experience for him. And she also had two grandparents that were in these nursing homes. And just the quality of their

life towards the final years, it it was really sad. it was really hard for her to see. And so this idea of this memory

care mansion, it’s this beautiful building, you know, um not only is it a more personalized style of care, but

it’s just a place where if you’re a family member going to visit someone, you’re not going to be crying in your car when you go to leave because you’re

so sad about the conditions they’re in. You might actually even be happy because you see that the people that are running this home are taking care of them.

They’re actually programming activities. It’s built to serve their current condition and give them a place to age

with dignity. And so that’s a little bit of the why. And and so the building is going to be beautiful. It’s going to be,

you know, uh worth a lot. We uh we can talk about, you know, we even got some numbers back on what the business and and the real estate’s going to be worth,

but it’s all centered in that quality of care and providing the the best possible experience we can for for seniors as

they age. Beautiful. Uh Charlie, can you talk a little bit about your guys’s partnership on this? So like give us some of the

numbers behind what this looks like. Like how many bedrooms is this? And it’s a new development groundup build.

Correct. So two phases essentially. The first phase is is what we’re raising for now. What we’re focused on now is to build

two 16 bed homes, right? So 32 beds total, get all of that filled up, do the

refinance, and then at some point build two additional because you already have the free land and you’ve already prepped it, you’ve done the utility work and and

you’re ready to go. So, as the demand continues to rise, which, you know, it’s kind of the hungry crowd analogy, um,

it’ll be quite easy to then build two more, uh, and expand from there. So, um, it’s about a $9 million project. It’s,

uh, it’s it’s hefty. Um, but, you know, I I’ll let Aaron talk to the appraisal.

I mean, it’s already coming back and looking pretty darn good from a a numbers perspective. Yeah. So, um, you know, it’s going to be

total development costs, including the land acquisition, the construction, the

startup costs, everything is around $9.4 million total. We just got an appraisal

back that as complete, meaning just the real estate, the land, and the buildings will be worth $1.6 million. And once

stabilized, so once we fill up all 32 beds and get them to the market bed rates that we know we can get, uh, the

the total valuation of the business and the real estate will be 13.4 $4 million. So essentially within three years we’ll

have created $4 million of equity um you know as a spread on top of what it costs to start up the project.

It’s a very heavy st that’s the stabilized value. That’s just the that’s the baseline value

based on today’s conditions. Yeah. Exactly. So there’s we hope there’s a lot of room for improvement. You know

our plan which again we can dig into a little deeper but our plan is is based on a refi at the end of year six. So we

believe there’s also plenty of of room to improve upon that number uh as we grow the business and then of course

market conditions could improve as well over that time. Beautiful. Aaron, quickly talk about

somebody’s listening to this and maybe they’ve got five doors or two doors or 20 doors and and they’ve been a single

family guy or girl and they couldn’t fathom the idea of going for their like

one of their first commercial deals doing a freaking $9.4 $.4 million groundup new development in this brand

new asset class, assembling this dream team of mentors and board adviserss and different operating partners and then

raising capital for it like you guys are right now. So like what is some advice you could give to somebody that’s in

that position and they’re like how the hell can you mentally do this and like

make that shift? Absolutely. One of my favorite topics. So, as I mentioned at the top, you know,

I I own my wife and I bought a portfolio of eight rental properties across three states while working full-time and

bringing three children into the world. That was that was not an easy sprint. U but it was very twins was one of them, right?

Yes. We’re very efficient with our children producing. We had we had three kids in three years, two of which were

two of which were twins. So, um all the credit there goes to my wife for for everything that she went through there.

that um you know it was a busy stretch but ultimately we kind of came to the end of what we could provide from our

own resources, our own time, our own money. Kind of ran out of both and um so

we had to seek, you know, an alternative, right? The math changed. We went from dual income, no kids in a low

cost of living market to three kids living in a high cost of living market with one income temporarily at least.

And so the math changed for us, which means we had to solve a different problem. Brian talks about this all the time, right? Like people, if you want to

build a, you know, slowly build a a cash flow stream of rental income while you work for 25 years, that’s a different

path than if you want to replace or or supplement a $100,000 income stream,

right? There’s different ways to solve both problems. So, I think we did a lot of reevaluation. This is one benefit of

joining Action Academy where you have to really cast your vision, think ahead. What do we want life to look like? Well,

we had to basically reinvent our life, right? Okay, we had we our our circumstances completely changed and what it led to is actually another

framework that I learned from Brian that I really think about quite often which is your CVC framework clarity volume

consistency a lot of people you know for anyone who hasn’t heard that right the idea is that the very first thing you

should focus on is getting clear on what your goals are and what vehicle can get you there and a lot of and the volume is

once you know that you can start figuring out what are the KPIs and metrics that are going to get me there

and And then consistency is just doing that for a really long time. Um, and if if you’re clear and if you’re putting in

the right type of reps, like you will get to the goal. And so the first time I heard so funny. Yeah. What’s so funny

about that is I mean it’s just like from an engineering perspective, it’s just a three-part diagnosis, right? Because

it’s just and like and Charlie, you’re from the Air Force, so you’re from military. So it’s just you’re trying to just sequentially go through problem

solving. And so what I found to be true is you’re either unclear of what you’re supposed to do. You’re unclear of the

amount of volume required of said thing or you just haven’t been doing it long enough. So it’s just like I think most

of it is caught in the volume. Can you talk a little bit about the volume because and and then we’ll throw the

same question to Charlie because people come in and they’re like, “Oh yeah, I know that I want to underwrite deals and

I want to do something like Aaron and Charlie and and Alex are doing. um I’m going to go underwrite a deal and maybe

submit an LOI a month and see what happens and they’re just unclear the amount of volume that it takes. Can you

perhaps talk a little bit about that? Yeah, I mean again it’s it’s very situational. It depends where you want

to go and how fast you want to get there. Right. Pretty much everybody in Action Academy has made a commitment to

a very lofty goal. Uh usually a high financial goal and um and also

everyone’s driven and motivated. So you’re in a room full of people who are action takers literally by you know the

name of the group and just the DNA that these people have. So for the most part like putting in the reps is actually not

too hard when you’re in an environment where everyone’s doing that. U but yeah if if you if you have a ton of top

offunnel KPIs but you don’t have any bottom of funnel. The classic one being people love to look at deals. People

don’t love to send offers because it’s uncomfortable. You can analyze a hundred deals. If you only send one offer, you

wasted a lot of that effort, right? So, I think there’s um you know, creating the funnel of your activity and then

making sure that you’re not avoiding the uncomfortable one at the bottom. I think that’s you know, that’s probably the most common pitfall. And so, for us in

this instance, like we have a lot of different work streams with residential assisted living. There’s finding the deal itself was was difficult. we’re

finding land and um you know developing it from scratch, but we’re also building different relationships across all these

different verticals, construction, marketing, capital raising. So, it was really a lot of networking and

relationships, which um you know, that was the the key bucket of activity. And

um and so the submitting offers and like the actual acquisition, we’ve been under contract since the end of January.

There’s still plenty of volume left. Like going under contract is the beginning of the sprint, not the end. So, I mean, those are my those are my

quick thoughts. What do you think, Charlie? Yeah. And Charlie, you helped with the underwriting a lot, correct? Yeah. Yeah, I did. Yep.

Well, yeah. So, what I’ve found to be true is um in particular with like commercial assets, what we see is a lot

of people will either have a kink in their funnel, each part. So what we what

I want to do here is both like help help the listener that’s listening to this episode right now not only

understand the transition to where you guys are today but then also the asset class itself. So the the kink is always

either in they don’t have enough deals coming in or they do have enough deals coming in and now they’re getting caught

on underwriting. And then when they’re caught on underwriting they’re now not sending enough offers. And because

they’re not sending enough offers, they’re not even getting enough like water running through the machine to figure out what’s broken or not. So, can

you talk a little bit about like what what the underwriting look like on this deal? Kind of how do you think about

underwriting when it comes to properties like this? Maybe in this specific asset class and any advice that you can give

to somebody following the same journey. Yeah, I think well to address your earlier question, hey, maybe I’m not I

don’t know enough about underwriting or I don’t know how to underwrite deals. You know, you have two options. You can either do the reps or you can partner

up. And it’s it’s that simple always. And and what we found, I mean, through,

you know, of course, Alex and Luke and now Aaron and other partnerships, we’ve just found that we can always go much

further as a bunch of partners than we can on our own, right? Aaron needed help with the underwriting. And I said,

“Well, I’m, you know, I’m an Air Force engineer. I did weapons development. I think I can help.” Right? And so, um,

and so I that so I did, right? Just stepped in and helped with that piece because I could, right? And but that’s

not not everybody’s naturally not drawn to that. Like Alex and Luke definitely

not that’s not their thing. That is my thing and that’s why they brought me into what was originally their partnership, right? Um hey, I brought a

different skill set. I also brought availability during the day. That was like my pitch. Hey guys, um I I have

availability during the day. I’m out of the Air Force. Can you bring me in? Right. And that that worked. So grateful for that. um uh they’re great dudes and

uh and so that but it it all comes down I think to networking and like you said consistency and reps, right? You you you

have either option. If you don’t want to put in the work for that specific task, bring somebody on like we just brought

in uh Ryan from from the Action Academy to help us with acquisitions because we’re we’re timetapped, right? So just

bring bring more folks in because you can always do more together than you can on your own. Um, when it comes to the

underwriting for this, yeah, it’s it’s definitely a a very complex deal. You know, syndications are always quite a

bit complex. Uh, but the end of the day, it’s really kind of a cool structure

that Aaron built. What Aaron did is, you know, a typical syndication, you’re looking at like a five to sevenyear hold

and then you get your money back roughly 2x 20% IRR. Those are kind of all the target goals that that everybody looks

for in a a passive syndication as an LP position. But, you know, this is a development. So, there’s going to be

essentially two years without, you know, returns to investors. So, what Aaron did is, hey, we we already know that it’s

going to, if everything goes as planned, um, conservative underwriting, hey, we’re going to get that return for

folks. We’re going to get them a 2x multiple by year six with that refinance at the new value, the new future value,

which we expect will be even higher than the current appraised value. Um, so we’re going to give everybody’s money

back at year six. and double their money at year six. And then we’re going to leave them in the deal and split 5050 on

revenue with them uh for four more years. We’re going to give them free cash flow. They’ve gotten their money back 2x and they’re going to get free

cash flow as a thank you for investing in a development deal where they essentially get zero returns in the

first two years. Um so I just think that that’s so cool and so unique. You know, most operators would be like, “Nah, we

you know, we paid and we paid our investors back and and they’re out now.” And Aaron’s like, “No, you know what? They’re committing to this opportunity

with us. They are our partners in the deal, literally. And so, we’re going to pay them 50/50 split extra through for

another four years.” Yeah, I absolutely love that. I think that that’s a that’s a great thing. And then that’s also kind of what we’re

doing with the hotel. Same same dig because we’re doing a new development. It’ll be ready 2027. And so, it’s just

like kind of Yeah. Afterwards in perpetuity, you get to participate in the cash flow uh afterwards. I think

it’s a wonderful strategy. Uh Erin, can you talk a little bit about like let’s get into the specifics of this deal in

particular? So, what what are maybe the top areas that you’re most excited about

and then what are some of the top challenges that you’re going to be facing as you’re going through this process? This is a very personal journey for

Andrea and I in that we can really, especially her, pour our hearts into providing the quality of care that we

would want for our loved ones. So, the impact component really is front and center for us. um and what is going to

propel us through all the challenges that we will inevitably face in a in a deal of this magnitude. But the part of

the reasons that I’m excited from the the business opportunity standpoint, we’re building into an extreme existing

demand. So even within six miles of this lot, there are there’s a current 150 bed

shortage for assisted living and memory care. We’re building 32 beds and there are zero other comparable projects in

the development pipeline. So that 150 will likely increase over the coming

year and a half that it takes for us to get fully online. So we’re building into very strong demand. Uh the the rates

we’re able to charge have been validated by thirdparty market research and by our

appraisal. And so we feel very strong about our plan and our ability to absorb

the demand in the market. The location is right in the heart of what’s called a medical complex drive in Tombball, which

is a northwest suburb of Houston. Tombball’s a beautiful town that’s really preserved its small town feel

even though it’s within a metro of 8 million people. So um you got the small town feel but you have uh access to a

large population center and medical complex drive is 2 minutes to the closest hospital and specialty doctors.

So for people that are dealing with difficult conditions and trying to you know live the highest quality of life

possible we also believe it’s you know one of the most convenient locations. Charlie mentioned this earlier, but

actually one of the biggest feeders into homes like this are people that are uh disaffected uh consumers of big box

products that hate the experience like how my wife did. And so we are positioned well also to be around places

that might feed into our business. So we’re just excited to build all these connections within the community both healthcare and non-healthcare meet the

moment. Right? This is we’re we’re meeting an existing demand. We didn’t go seeking a solution or you know seeking a

problem and trying to wedge our solution onto it like this is actually in response to real demand out in the

market that we’ve validated 10 different ways. Beautiful. And then what are the challenges that we’re anticipating with

this? Yeah. So you know two primary buckets right it’s a development project so

construction is always on people’s mind. We are very lucky to have a great team. It’s kind of three-pronged. So, in

addition to us as the core sponsors, we actually hired Bailey Fate and his partner Blake from uh Baileyy’s an

action academy member. He started a construction consulting company. So, they’re acting as our owners rep and

they’re coming in and doing very granular project management. They have a ton of experience with commercial

development, billions of dollars of um of projects that they’ve managed collectively. We also have Brett and

Laura and their team that I mentioned earlier. They’re our mentors. They built these exact buildings in uh Georgetown.

And so their construction consultant is working with Bailey, working with us. And then we have our local GC who has

been building uh he it’s a family-run business. They’ve been in Tombball for with decades of experience with

commercial projects. They have a a very great reputation. And so between those three, you know, we feel we have the

right people in the right seats to execute a um you know, the construction plan that we’re working on. People are

always asking about tariffs. People are asking about supplies. These guys have a handle on how they’re going to source,

when they’re going to source, how they’re going to store all these details and we’ve also made that available to

potential investors that want to look behind the hood there. The second one that is probably the biggest ongoing

challenge will be staffing. So, this is a an industry notorious for high churn. Like we mentioned, the culture in big

box facilities is not a good one. People enter those jobs, they’re relatively thankless. So, oftentimes they’re not

treated that well. So, there’s a lot of jaded people in this industry. They’re willing to do the work, but they don’t

like the environment that they’re in. So, we’re going to counter that by creating an incredible culture. Again, Andrea, this is like her life’s calling.

Uh there’s so much passion behind making sure we solve that problem so that we can hire and retain good staff. Joseph

Raspberry is another Action Academy member. We brought him on. He’s got, you know, a decade plus of uh clinical ops

and and bedside facing care experience. And so he’s going to work with Andrea to

help create the policies and um make sure that we’re hiring and retaining the best staff we possibly can. Um we know

there’s going to be churn. We’ve budgeted for that, but we also know that that’s an area that we can make a market

improvement on what is now a a pretty poor standard across the industry. Beautiful, man. Yeah, you could you

could tell that you guys are in the pitch circuit. Like you’re polished. Like you got everything down, man. No,

it’s it’s amazing. Truly. Uh Charlie, I’m curious like for this project in particular, how does this compare kind

of uh indifferences to your current uh already established RAL portfolio?

Yeah, so most of our assisted living homes, we kind of have two different asset classes. We have uh we have a

handful of homes that are leased to operator. So for those, they’re they’re either built or renovated to suit for

assisted living, but we’re we’re commercially leasing them out. You know, we’re not involved in the actual operations. So, for one, we’re going to

be, you know, on the GP of an actual operation with Aaron. Um, and we do we

are partners on a few operations on some homes in uh in the Wisconsin area. However, um those were not new

developments. Those were um kind of uh repositions, renovation style repositions. So, this is a a new

development project for us, which is great because we’re now under contract to do something very similar in Winchester, Virginia. And so we’re going

to be uh hopefully developing from the ground up as well. So we’re kind of getting uh building out experience

together with Aaron um and and helping that out with our own project. So yeah, we’re very excited to be a part of this

and to help Aeron’s team bring our especially real estate experience and and network in assisted living to the

project and then to kind of leverage what we learned for for our own project. So it’s it’s very exciting.

Beautiful. So Erin, what’s uh what’s next? you know, walk us through a little bit about where the raise is right now.

Like, is this still available? I’m assuming this is a 506C now, if I’m correct. Walk us through a little bit of

the details. Yeah. So, without getting too nerdy on the SEC stuff, basically, we did this in

two rounds. We did one round of 506b, which is an offering only available to

friends, family, and people we had a pre-existing relationship with. Uh we were able to raise over a million

dollars in that round and we just a couple weeks ago opened it up to a 506c which means we can now accept any

accredited investor uh must be a US citizen. Um but we that round has been

going really well. We’ve we’ve this is part of where partnering with Charlie, Alex, and Luke has been incredible because they’ve built for the last

several years a network of people who are interested in either starting or investing in their own residential

assisted living deal. So we’ve been able to open this up to a broad network. We’re really grateful for the opportunity to share about this, Brian,

to your network because, you know, largely I run in uh these circles now with Action Academy and other other

folks that are are drawn to the show. But yeah, we’re still raising. We have um currently our deadline is Friday,

August 8th for funding and signatures. We’re hosting office hours pretty much weekly. Also very available for

one-on-one calls. We created a cool landing page where you can actually key in what your return uh investment amount

would be and it’ll it’ll project yearbyear based on our underwriting what your returns would be and it explains,

you know, uh very granularly what you can expect. Um so we put together a ton of assets and resources. It’s been it’s

been a wild ride. You know, this is our first capital raise of this magnitude. It’s been so fun to connect with people.

Honestly, one of the other big benefits that that we found from the people that have invested so far is that there are a

lot of people that are really intrigued by this industry. They don’t know if they are interested in doing it themselves, but this is a front row

seat, right? By by investing, you’re going to you’re going to see real decisions being made. You’re going to see the full business plan run end to

end from development to operations and um and you know, get the benefit of essentially asking any questions along

the way. So, there’s a lot of people that have joined that are are doing it for that reason. Uh, and I would be

elated to talk to anybody who’s interested. Beautiful. And so what returns? What’s kind of the return profile? Like walk us

through. If somebody’s listening to this right now, they are accredited, which as a reminder is going to be somebody that has a personal net worth of a million

dollar or more excluding their primary residence and or you’ve made $200,000 take-home uh over the last two years

with reasonable expectation of doing that the same this year. So what would be the return profiles? Like what are

they expecting? Yeah. So, it’s a development project. So, the first year is dedicated to construction. Our GC

estimated 10 months. We’re budgeting 12. Uh the second year is dedicated towards lease up. So, there’s some licensing

stuff you got to work through. At first, you can open with a limited capacity, then you have to ramp up to full

capacity. We budgeted an entire year for that. We hope we can improve upon that, but we wanted to be conservative. So

essentially those first two years uh we actually we actually start acrewing a preferred return as soon as we start

generating revenue. So even though distributions don’t start until year three investors are acrewing a preferred

return that we owe to them before the GPS take any split. Uh heavy cash flow

starts in years three and run through year six when we do our refi. Average cash on cash return will be around 18.5%

during that period. So even though you don’t get distributions for the first two years, it kicks in pretty heavy

there. Uh then we aim for a refi at the end of year six at which point, as Charlie mentioned, we will have already

doubled uh our money. So it’ll be over a 2x multiple by the end of year six. The unique structure that we added at the

end was four additional years of residual distributions at a 50% profit share and that gets us to our target

return of over 20% irr. With it being a development project, we want to honor,

you know, the risk that people are taking and make sure that, you know, they’re getting a a return that is commensurate with that risk and getting

over a 20% time value adjusted return was an important metric to us. So that’s how we built our model.

Beautiful. So if people are wanting to learn more about this, if they want to check this out, where can they go to find out more?

So the project is called Everwood Reserve. You can go and and check out that landing page with the calculator at

everwoodreserve.com. We also have our webinar and a link to book one-on-one call with myself or our

partner Joseph. And um happy to talk to anybody, run through line by line. No

question is too big, no question is too small. Um this is, you know, this is where we’re at and happy to have the

conversation. Beautiful. Anything in closing, Charlie? No, just excited to be here, excited for this project. It’s it really is the the

most beautiful model I think in like combining real estate and business right now and and really one of the biggest

opportunities in in business. So really excited to be a part of this and yeah

have folks are more than welcome to reach out. We we’d love to have you join our team. So guys with that we’ll have Everwood

Reserve in the show description. Uh we’ll have the link there for everybody to that is interested to click. And man

it’s been awesome watching you Aaron over the last three years. is I remember the first time we met uh you and your

pregnant wife with twins uh showed up to Costa Rica back at our first event where we thought, “Hey, it’s a pretty normal

thing for us to just have like two big houses and then of course people just share beds. Why wouldn’t you share

beds?” Like we had two dudes to the same bed because we didn’t know anything. Um

thankfully you guys had your own room so you’re okay. But uh man, it’s been cool to watch from that to uh to where we are

today. Man, it’s it’s been fun to watch your journey and honored to be a small small part of it. So, uh guys, thank you

so much for coming on. Guys, if you want to invest 506c, you must be an accredited investor to uh go and check

out Aaron and Charlie’s offering. Find it in the link and then uh talk very soon. So guys, thanks so much for

coming. Thanks so much, Brian. Cheers, Brian. Thanks. 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 can 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.