How They Went From $0 To $30k/Month With Sober Living Homes

So if you guys wouldn't mind. Again, thank you for, for being on today. Can you introduce yourselves and the name of your. Your company and where you're from?

Yeah, so we're. We're Bedrock Co Living. My name is Monty.

Hi, my name is Jasdeep.

Jazdeep. And where are you guys located? Stockton, California. I love it. And go back to the beginning. Why were you even interested in sober living?

Yeah, I think especially for me, I think I could probably speak for Jazeep here as well. One of my really good friends was actually in a sober living home in Lodi, which is where I'm from. And he has this background where he comes from a really well established family, had all the resources in the world and still didn't help him in terms of his addiction. And so he was in college, got into drinking and partying to the point where the addiction kind of led him to come back to Lodi because his dad was a professor here. He ended up being in Valley Sober Living, which is a sober living home here in Lodi. I met him through, actually, the church that I go to. He was kind of, you know, a new face for me. It was someone my age. There's not a lot of people my age at my church. And so I said, hey, let me go say hi to this guy. After the service, said, hi, we, you know, we got coffee, told me his story, and he was living in the sober living home at the time. And that's when I kind of learned all about sober living and all that it has to offer and the ways that it can impact people, you know, both young and old, wealthy and poor. It doesn't really matter where you're from. Anybody can kind of get attacked by addiction. And it was really cool to see that something like a sober living home could have. Could actually help him in the ways that it did. And so, you know, fast forward six months to a year. He became a Christian, got saved, he graduated college. Now he's working on the east coast. And I think he graduated with honors. And so it kind of just goes to show that, you know, a little bit of guidance and routine and structure can go a long way in changing someone's life. And, you know, ever since then, I realized, you know, this is something that I want to want to be in and we want to be in.

That's awesome. And so you decided, yeah, you want to make this happen yourself and provide housing like this. What was that journey like in. In figuring out how to get started?

We, we actually heard about Monty when did you actually speak to him about that was a few years ago, right?

Yeah, I want to say that was probably a couple years ago. Probably 20, 23, 2022.

Because we haven't heard of, because we, we heard of that a few years ago what sober living was. But so we, at that point we just, it was like all an idea to us, like, how could we navigate? How could we actually start this? And then it was until just like this year or last year when we actually decided to like initiate and started.

Nice. And then you, you started looking. How did you find us at Sober Living Riches?

Yeah, I mean, I was, what was I doing? I think I, I was just looking for different resources on YouTube and, you know, how algorithms work together with cookies and everything like that. And shortly enough, you know, I would start scrolling through my Instagram feed and I would start seeing your ads and then, you know, I, I clicked on one of them. I think I watched one of your YouTube videos where I think it said that you scaled to seven homes and a certain amount of time and you know, book a free call here. So I booked the call and I think the rest is history.

Nice. Also, what is your background? Because it. Was it real estate investing or you had a. Might still have a full time job.

We were both in corporate America. I was working at Yahoo. As a product manager for about a year and a half or so and just deep. You were.

I was in accounting here in San Jose. Public accounting. I just finished off three years. I actually just quit. I put in my two week notice like this week. I mean, I already had a leave of absence. I stopped working the last like three to four months, but now I. Today is my return week, so I just put in my notice.

That's awesome. And then. Moni, are you still at Yahoo?

No, not any longer. I was actually. I went through a round of layoffs back in May.

Okay.

Yeah. So it's funny how things kind of worked out. You know, this thing, you know, kind of took off in a short amount of time, soon after I got laid off. So.

Yeah. Okay, so now that's making a lot more sense because you joined us in May. You really got started after all the craziness with the layoffs in June.

Yeah.

And so, yeah, I guess just tell us because it hasn't been that long, maybe six months. Tell us where you are today.

Yeah, so, I mean, it's, it's, it's been kind of crazy. We, we have two homes up and running. We just furnished our third and then bought our fourth via creative financing. And we're in the process of furnishing that one. So both of those should be up and running by the end of the month.

I love that. Yeah, that's amazing. So you're helping people. You have two full houses and two more on the way. You got started with rental arbitrage, so you started off leasing and now you're buying. That's incredible. And so I love hearing those results. And it sounds like you haven't needed to go and get a new job.

No, no, not yet.

Okay. Legal.

Yeah.

Jazeep, you just quit a job. So is this like providing more than enough for you guys to live now?

Yeah, I think we. So we took it on. We took it head on. Like we. So I think when Monty got laid off, that's when we like went full in in May. We started the course, we got the house. It was, it was definitely a struggle at first we getting our first resident and was a huge accomplishment for us. And then after that, shortly after that, a month later, jump started and it's been history from there. But yeah, even then even I decided to fully commit to this as well. And it's been a great journey so far.

That's amazing. So, so basically you both were in corporate America. You decided you wanted to help people, you were looking for help, you found us, you got up and running pretty quickly and now neither one of you is working in corporate America. You're like full time serving people and real estate investors like in a six month time frame. Is that right?

Yeah, yeah.

That is awesome.

Yeah, it's been pretty awesome. We also were blessed to have, you know, a connection with the contract via Medi Cal and it was kind of a subcontract through one of the companies here. And that's also skyrocketed or growth since you can house so many people.

Nice. Yeah. Like we're doing the medical thing too. So talk a little bit more about that. Because you didn't have to go directly through the process. You're essentially subcontracting with someone else who is. What does that look like? And like what is the. Because people always wonder how am I going to get people to fill up my home, how am I going to make sure I get paid and all that stuff. So how has that process worked out for you?

Yeah, I mean it was essentially a company that's gone directly to medical kind of like yourself. Andrew secured the direct contract with Medi Cal and then so they were kind enough to start subcontracting out to a lot of the Local organizations here, you know, at the time when we got the contract and, you know, funny enough, shout out to my aunt, she. She helped connect us to some people that had the contract and, you know, we kind of hit it off and we're all, you know, people of faith. And so that's kind of where we found our common ground and realized that we're both doing similar things and. Yeah. Established the contract, and then from there we were able to fund our residents through the subcontract.

That's awesome. So now you're getting consistent payments from an organization, consistent referrals and people placed in your homes and. And you feel like it's more than enough to grow and fill up a couple more places now?

Definitely, yeah.

Like, as far as joining our community and learning what Calaim is or, you know, all these different sources of referrals and all that stuff, and then everything along the way, like, what's the biggest thing that being a part of sober living riches has helped you with?

I'd probably say, like, the community. Just like when we first joined, there's a lot of people that were similar to us who were just starting, had a lot of questions they might be asked. We always just go through the forums and see the videos. Just, just talking to people who already have a little bit more experience than us, just picking their brains and everybody just kind of being supportive of one another and just helping each other out.

I love that. And what's been the best part so far of working with us?

I think seeing the success stories, right, of folks coming in and realizing that there's a community to help them and, and, you know, people even that came in after us and seeing them take off and get off the ground has been kind of cool to see for sure.

Yeah, very cool. What's your. Your big goal, like, moving forward? Like, you came in just wanting to start one home. Now you have like four. You're. You're not only renting real estate, you're owning real estate now. Creative finance, which is something we talk about. I've purchased a few of my homes that way. So it's like you don't have to go and get an 8% mortgage to take over somebody else's, you know, existing mortgage, which is awesome. Like, what's next for you guys?

I mean, I think, you know, the sky's the limit. Help as many people as we can and, and see where this thing takes us. You know, it would be, I think, amazing to, you know, tap into maybe some of the medi cal resources that California is now offering and, and help even more people across the state that way.

That's awesome. So do you see guys having like a dozen properties? Like what does that look like?

I'm gonna, I'm gonna let Justeep decide that one.

I think our next main goal regarding the properties or beds is we want to get to that 150 bed mark. Then probably evaluate once we get there, like what we want to do after that.

Yeah. And where are you right now with the four properties? How many beds?

I think we're somewhere around 55.

Okay.

Yeah.

And what is your average price you're bringing in per bed?

Our. So our private pays are 850 and then the medical subcontract is 45 a day, which is around 13.50amonth.

1350.

Yeah.

Very cool. How, what's the split? What do you think between private, like what percentage is private pay versus the medical stuff?

It's mostly medical right now.

Okay.

I'd say it's like 90. 10. Yeah. Yeah.

Wow.

Because here's the thing. Even if someone like we've had people come and say, hey man, I have a full time job, I just need a place to stay and even those folks will kind of convert them on medi cal because it's a win win. They get six months to a year of funding. Right. So they can save their money from their job, you know, and then they can pay a higher price point as well.

Got it. Yeah. Even after the cost of your, let's say you have 50 of your beds as medical. Even after the cost of either the rent you're paying or the mortgage on the creative finance deal, I mean you should still be netting somewhere around 50 plus percent, which is, I mean that's over $30,000 a month. So at 50%, so it makes sense why you guys don't want to go back to work.

Yeah. Jazeep and I were actually talking about this. It was one of our business partners actually, we were driving down to LA for some business and, and he's like, you know, if you could be doing anything in the world, what would you want to be doing? And you know, we said this is probably right up there at top one, top two things that we could possibly do because I mean never have I seen a, you know, kind of a, a way of living or making a living through helping a ton of people that have been kind of overlooked and feel like they're less than and actually being able to give them some hope. And you know, when we go into the houses We've had people tell us, hey, man, like, thank you so much for this, you know, and, and I think that there's like a special place for that. Right. While also, you know, bringing in money like a normal business would. Right. And so it's, it's. And then having the time, freedom. Right. As well, you know, to check in the homes when you'd like to and things like that. And so it's really the best of all the worlds, I would say. And there's a real fulfillment that comes from it, for sure.

Yeah, there is. I always say it's the ultimate win win. And it's so cool that you have not only the income, like to support yourselves, but, but you're people of faith, so you can like give and be generous and feel good about what you're doing in the morning. Like, you wake up and you feel great about, you know, what it is that you're building. So I just love that you guys jumped right in and you didn't wait till you were like 50 to get started, you know, like you're a young guy, Bonnie.

Yes.

And so I guess for, if someone was on the fence about joining Sober Living Riches, what would you tell them?

I would, I would tell them, you know, jump right in, don't, don't hesitate. You know, there's nothing to, to really be scared of. And I, I would say anything good is on the other side of risk. Right. So, and then the cool thing is I would say there's, there's really not much risk with this program. I think you get a lot of the resources, a lot of the hand holding and everything that you need to, to get off the ground and up and running real quick. Yeah. But I will say one thing. I will say you definitely have to put in the work. Right. You have to be, you have to be diligent. You have to be disciplined every single day and, and you know, believe that something's going to happen even when you don't see the results right away. Because like Jazeep was saying, you know, for a while there we were kind of just, you know, hitting our head against the wall and saying, you know, gotta just keep going. Where's the client's at? So it's, it's, you know, it's not always, you know, dandelions and roses, but I think if you stick with it, you'll definitely get some results for sure.

Yeah.

Awesome.

Well, thank you guys for sharing all that and for being part of the community, for giving back, for sharing resources. I've seen you in our community, sharing resources and telling other people how they could subcontract as well to increase the amount they're getting for bed and all of that help our people. So I just really appreciate you guys and thanks for sharing your experience with us.

Of course. Appreciate you too as well for all the guidance and help that you've given along the way.

Definitely.

Thank you.