How To Make Millions From Group Homes/ Assisted Living Explained #landbank Charles Noonan #opwdd

All right, let's go. We're going rapid. We going rapid. High level game today. Y' all gotta pay attention. She's gonna teach how to make a million dollars with group homes. And she said, of course. So look.

Welcome to the Realtor, where we highlight some of the most creative and non traditional ways to make money in real estate. We will showcase some of the world's greatest male and female real estate developers and teach you how you can make money by using the same strategies. Now it's time to develop. Here's your host, Charles Noonan.

Welcome to another episode of the Land bank show where we highlight dope individuals that make a ton of money through non traditional ways of real estate. Today we got a really long time friend of mine, Samantha B. Twenty plus years of friendship. Born and raised in the Bronx. Born and raised in the Bronx. She works. She don't want to say that the agency. No, she can't say the agency that she works for. However, she's responsible for opening up group homes.

Certified opwdd. Group homes? Yes.

Opwdd. What's opwdd?

Office P. People with Developmental Disabilities.

Office of People with Developmental Disabilities.

Yes.

What's your title there?

So I am senior management.

Senior management. So y' all getting all the answers right now? She makes the decisions, you open them, right?

Yes. Help support open them? Yes. Correct.

All right, we're gonna try to fast track this episode.

Okay.

Because I want it to be informational. I want it to be like somebody can come here, pen and paper in hand, take note and open one. All right?

Okay.

We teach on the Land bank team how to get properties. As you know, we're doing an initiative right now called Property to Passive, where we teach people how to get property all the way to passive income. Would you say group homes or assisted living for the owner is passive income?

Yes.

They don't gotta go to work if.

You set it up? No, you don't have to go to work.

So you can make seven figures without going to work? If you set it up right properly.

Correct.

Can they hire you as a manager to help set it up and execute?

Yes, they can. Correct.

Do they do that?

Do people. No, I haven't outsourced, no.

So you ain't work for nobody but my agency. What does your agency do? Oversee or govern?

No. And they go around and they do contracts and stuff. They open up programs, open up group homes. They get people out of the hospitals, out of the shelters and funding and place them in a place to live.

So in New York City, if you open A group home. There's agencies that will put people in it for you based on the services you provide.

Right. So this is where OPWDD comes in at, right? So they have family members that have people with special needs.

And.

And they're on this, let's say, this big list, right? So they're on the list. They can't house all of them. They can't help all of them. Right? So that's when somebody, a side person, comes and opens up agency, and then they get to screen, look through and say, hey, we want to service this person, this person, this person. We can manage this. And they'll help you with the funding. They'll also help with startup costs, too.

To get the house how you want.

It, to get it owned, and I mean not owned, but to get it operational, to get it certified, to get all your stuff in place. They'll help you do that.

This is crazy.

They will.

So this is crazy. Well, let me. Let me take a step back for the viewers. Let me take a quick step back for the viewers. Samantha and I used to be like neighbors, right? You live two, three block, two blocks away. I lived on Mapes Avenue in the.

Bronx, and I lived on Belmont, which.

Is like two blocks away, up the.

Block, around the corner. Right.

But I know Samantha because I used to, like, go to my properties on yours was Belmont, mine's was Beaumont, up the street. All right, so in between a house that I own, do you live right in the middle? So I used to own a ton of properties in the Bronx. I wish I knew this strategy because I got properties on Whole Avenue, on Home street, on Bryant, Beaumont Teller Avenue. Imagine I would have had this strategy 20 something years ago.

Right?

How old is your son?

23.

23. About 20 years ago we knew each other 19, something like that.

Like 3. 4.

3 ish. 4. So 20 years ago, I could have had a strategy where I had all these three family homes in the Bronx, like we was killing it, right?

You could have, but I didn't know the information then.

So I could have been a millionaire 20 years ago.

Correct.

Took me a while. All right, so here's why Samantha's teaching. She. She. She came across my Instagram and she just contacted me. She likes what I do. She knows I've always been nice and love to help people. So I asked her to come on the show and share, because this is the hottest topic that everybody wants to know. This is the way. This is the most lucrative way of real estate of all avenues. In real estate, the millionaires I know owned group homes, some own OMHC outpatient medical health clinics, but they tie them into a home and they house and there's housing money and all that stuff. So the friends of mine that I know that make tons and tons of money, they have those types of setups. This is very different because so they have their clinics and they house some of their people, but the most of their money is for mental health services for the clinics. This most of the money is for housing, servicing the people in the home.

Right?

All right, let's get into it, right?

You can. And some of the ways that you get them, get the money, right? They'll fund you. Right. You'll get funding to take care of the first day.

So let's break this down, start to finish, because this is what you do, right?

Okay. Right.

So you're speaking it in a language that they gonna find you. Everybody don't know.

So the same.

I'm Joe Smo. I'm about to buy a house. I'm watching this episode. I'm about to buy a house to open one up.

Right?

What do I do?

So what you should do first, if you're looking to open one up, you have to make sure that the community is okay with a group home setting. People with special needs. Actually, they have a radius that has to be before you can open up one. And if not, you have to go to the community and say, hey, listen, I want to open up a certified setting group home, right?

Certified setting group home. There's a community board in this building right outside. So you go to the community board.

And you say, this is what I'm looking to do, right?

They say yes.

So they say yes, right? So then you want to go and you want to look for. If you want to work with people with developmental disabilities, if you want to work with people with mental health, because that's where mental health come in. That's where the most money's at, through mental health. So, so then after you find that out, you want to look now for dqi, right? Which is the people that kind of oversee and look and make sure everything is okay. So you want to set up an appointment with them.

You can use acronyms. Who is dqi? Department of Qualified Individual Quality Insurance. Department of Quality Insurance.

So they want to make sure that you're going to give. If you're saying, I'm going to open up this residence, they want to step in to make sure this is going to be a quality setting that you're going to put these people in, right? And Then OPWDD backs them to say, okay, and now we want to see what kind of services are you gonna give them. Right.

So when does the help and the money come in?

So after you do that, right then, like right now we do screenings. So then they say, hey, you know what we do? We have about 500 people that need a home. So then after that they'll start sending you what they call packets. So really it's just a profile of the person. And then you will kind of read through the packets.

At that point they're sending you people to take.

No, you getting packets to see if what you are opening up, you can support this. Right. It's almost like you're doing a pre screening. But they don't like to say it that way. So you're going to read through this stuff. You're going to kind of get a glimpse at, okay, what people am I going to take in? Because you don't know if you can support them. So if somebody has wheelchair ambulation issues, you don't want to put them in a four story. You can't take care of them, you won't get funding. Right. So you want to kind of know what's your setting, who you're going to work with. Right. Who's coming in. You can go and say, hey, I'm looking. If you already have property, you can say, hey, listen, I want to work with these people. People aging out. So aging out just means that they're young adults and they age out of like being in foster care, residential.

That's what I hear, age out. I aged out of foster care. I understand, like you passed 18 or 21 and you got to go somewhere else.

Right?

So how do you age out of like mental health?

So they have them in. I don't want to say they, they said don't use the word institution anymore, but that's the only way that I can explain it.

But some of them, this ain't a.

Governed podcast, so some of them are in institution.

Just don't use anything offensive, right?

I won't. I love.

First job out of college was servicing the developmentally disabled. I worked at the ARC association for Retarded Citizens.

Oh, yeah.

Yes.

They don't use the R word no more either.

All right. No, I'm just referring to the name. Yeah, yeah, but all right, nothing offensive. No, no acronyms. But we need to know what you're talking about.

What was it? What was he talking about? What was it?

This your field.

So if somebody ages out, right. They can be in Like I would say they put them away. I hate to say that, but they kind of. When you're six, if you have autism, you special need, property destruction, you bite, you do all those things. They put you upstate in school, right. So when they say they aged out that time frame after you turn like 19, 20, 21, then they say, okay, this person's old enough, we're going to try to get them back into the community.

So are these people whose parents just gave them up or just put them in those schools, put them in a.

Condition manage them anymore.

Okay.

Because they sometimes. Right.

Hard to manage.

Right. So they can be hard to manage or the parents can just be older and they, they can't or pass away.

So the state pays money for them to stay there or the parents.

No, the state pays money.

So this is, where is it Medicaid?

Yes. Some of your funding is Medicaid, but when you open up the group home, some of it Medicaid, some of it's your startup, some of it's their ssi. So it's a whole bunch of different okay sources because you can also get food stamps for the people that's living in a group home, which that still bugs me out. I don't know how they we're gonna get there.

Let's go from opening so dqi.

So after you do that and you meet with them.

Yeah, right.

They're gonna give you. You're gonna have be able to look and screen the people that could possibly that you can take care of and you want, you want to call them, you want to kind of me, you want to look on their website to see like who in your area, in your region is the person that you're going to be connecting and talking to. Because they have people that actually that's their job.

Is that you other people?

No, that's not me. I don't work for them.

People that you manage, right?

No, no, opw. I don't manage opwd. I wish I would be a millionaire too. No. So I'm somebody that I will go to them. So if you're opwd, I would say, hey listen, I, I have a house over here and I want to take four people off your hand. So that's not me. So the person that's opening a group home, they have to get to them because that they're the ones with the source. And they can also say, you know what, how much money do you need to start up? What do you need for your funding? And that's where your business plan comes in. And your paperwork to say, hey, yeah, we need X amount of dollars to get this started.

Will they give you money to buy a property or you have to own it? If you own it, they'll give you money to make it wheelchair accessible.

Yes.

Furniture.

Yeah, stuff like that. Those things.

So all you have to do. And they pay per person per bed?

Correct.

How much is it per person? Per bed.

So again, it's 250 per night. Right.

2.

Wait, no, $251 for them to sleep there per night. Right.

$250 per person per night.

But they will give you startup costs for furniture. Right. They'll give you startup costs for staffing. Right. All of that stuff comes within that budget plan. Because you actually helping, I don't want to say taking them off their hands, but you're actually helping them because they have to service these people. They have to get them out and back into the community.

$250 per night is $7,500 per person per month.

Right.

Can they share a living? Can they share a room?

So two people. They can. The room has to be, which I don't have those numbers, but the room has to be a certain size and you can have two people to a room. But again, that's what you read in your screen. Because if me and Charles don't get along, if Charles likes the light on that night and I don't, you're going to have problems in that room.

Yeah.

So you want to have two people that's really similar that you're going to put in the room. If you're going to put two people to a room.

So you could potentially get six people in a three bedroom house.

You can. Absolutely.

Let me do the math. That's 45. That's, that's. You can 15, 30. That's $45,000 a month for one three bedroom house.

That's just for them sleeping. Because you get money, you build estate. If you teach them a service.

Crazy.

No, if you teach them a service. So gonna use something simple. If you're teaching them how to tie their shoe. Right. Some of them depend on their functioning level. They want to learn how to get a job. They want to learn how to drive a car. If you teach them. And you have to document this every day that you're teaching them, you bill the state and the state pays you for teaching them that service.

Can you bring on like licensed staff to teach them like a curriculum?

You can.

Let's just say they wanted to learn whatever, how to write a book, how does, you know, just they wanted to learn something. Can part of your staff teach them and you bill for that too?

We. So the staffing that you have, they teach them those, I guess, life skills. If they want to go to school and stuff. Again, it's to put them back out in the community. So they would tell them to go and go to a school. Okay. So you wouldn't be able to kind of.

So what are the summer. You telling me you can get paid for teaching somebody how to tie a shoe?

No, it's correct. I. When I was.

Cause I was working at my college, billing Medicaid.

Hello.

People out here are billing Medicaid to teach them how to tie a shoe.

Yeah, so I used to teach this particular couple, was a married couple that lives over there on fifth Avenue. I was just teaching the wife how to make white rice. And that was a billable service. I went there, I taught her how to make white rice. And the agency billed for that because that's something that she wanted to work on. So it has to be meaningful to the person. So we can say, no, you know what, I want my child or my daughter or my son to work on, I don't know, getting a master's degree. And they say, no, I don't want to work on that. I want to learn how to make rice. Then, because it's person centered, we have to side with the person because they live there and we have to teach them how to make rice. And that money goes to showing them how to make rice.

Give me a. Give me a number, an idea of a number that you can bill for teaching services.

The lowest that I know is $214.

Per what?

Per the service.

All right, so you're gonna teach them how to tie a shoe. Start to finish is 214. It's not like 214 a day or per lesson.

Oh, no. You can charge Medicaid dollars, $214. So let's say something more meaningful. So I'm gonna teach you how to budget. Right. And go to the bank or travel train. That's a good one. They give grants for travel training. So if you have say like 23 or 24 year old in the house and they say, you know, I don't want to learn how to travel. I want to know how to get to Manhattan on the train. They will give you a grant to train this person how to take the train every day.

You. All right, that's crazy.

So you have enough money to hire a staff to pick this person up to pay for the transportation, to get the person back and forth to travel.

Training and that staff to travel train. You don't have to be licensed. You don't have to be like a. Whatever, RN or whatever.

No, no, no.

Okay.

Just like some people just have high school diplomas.

They come in, man, that's crazy.

Because the amount of money that they pay the staff and coming in entry level is 1650 for your staff. That's it coming in. Yeah, the entry level.

Friend of mine. A friend of mine has a, has a similar setup in another state. Very similar. He does out O M H E out or what is it? Mental health clinic. Outbound, outpatient mental health clinic. Right. It's all news to me. So the acronyms are a little tough for me. So he does that and he says he struggles with staff. He said they don't want to work.

Yeah, right. Because once they get this kind of information, right? And you paying B1650.

But you know, I made $45,000 or $70,000.

Right. Now you want to look at the money, right? Because again, if somebody needs medication, you have to have, you have to get the staff certified where the nurse teaches that course to give meds. Right. You also want to have, where you give nursing. You want to pay for a nurse to come in to give nursing services to the nurse too, right? So once you start looking at the money, of course you want to keep enough money to operate, to keep yourself in operation.

Okay.

And the staff, you're not, I mean, you, you want to keep going. So you're not going to pay them top dollar because it's kind of like.

But why wouldn't you pay them if I'm billing you? Because if I'm making $45,000 a month.

I'm going to tell you, let's just.

Say I got a million dollar house, okay? Right. Mortgage is 8,000amonth. I'm making 45,000. I could pay a staff member $40 an hour, $30 an hour.

So here's where OPWDD comes in at. They pay their staff $25 an hour, right?

Okay.

But they, again, they have the source, they have the money. You kind of go to them and they get the people.

So they give you staff too?

No, they won't give you no staff. Yeah, but that's how much they pay. Because one of my nieces work for OPWDD herself, okay? And she makes $25 out, which is, she's in the entry level, which they call it a direct service provider. It's a DSP level. So she's in there. But in my agency, that's why I don't want to say their names. They pay 1650 coming in. 1750. $16.50. Oh, $16 an hour coming in. I think it's ridiculous what they do.

All right, so we'll keep your agency confidential.

We will.

What does your agency do? You assist. So, so, so I got a team member right now. Land bank team member, say, Charles, I want to open one of these. I want to be a millionaire in five years. Right. They do all of that stuff. When do you come in?

So after, after they have the property and as they start getting, they say, okay, it's a goal. Yes. Then that's when I step in.

And what do you do?

So I make sure that all the staff are trained. I hire everybody, I train them.

You hiring for my group home?

Yes, that's my job.

That's your job. So I don't have to hide. I just gotta buy a house. A three family house. Imagine if I got a three family with like three, three bedrooms. That's crazy. That's over a hundred thousand dollars a month just to sleep there. That's crazy. Actually, $135,000 a month. Right.

But it's open 24 hours. So a little bit of that money is going to go towards the staff that's there. And overnight just making sure that the place is okay. So my job, well, I hire, I train the staff. I make sure that everything that the person needs to come in so that they're okay. So I read all the documents. There's this paper that we have to submit to the state called a plan of oversight and protection. Right. So I have to look at everything that's going on with the person. Their diet, their medication, and I type all. It's like a six page document on the person. And I have to train all the staff on their needs, you know, whatever's.

Going on with them, like representing the individuals, so to speak, to where you're telling staff, hey, this is Mike. You gotta care for Mike this way. He likes to sleep till 8.

Yes. That's the management part.

That's your role?

Yes, I have to kind of set that stuff up and then make sure that their rooms are okay. Everything they need, their medication is in the house, like that whole setup.

How do you find, how do you hire staff? Where do you find people?

So we have, because it's an agency, right? We have a person that does that in hr.

What do they post that ads like?

Indeed, indeed. She goes to Colleges all over. She does that. We have a recruiter, but I do some of my recruiting on my own, too, because I need healthcare specialists. I need assistance. I need. So I have six assistants, allegedly. Now I'm down to three. So I have to keep replenishing that.

If you're teaching people how to get a million dollars, ain't nobody gonna raise their hand and call you for no job at $16 an hour, that's a little crazy.

Yeah.

All right.

But that's the entry level position. So that's if you're green, you don't know nothing. You don't have no degrees. You're just coming in the door, right? Cause I want to be fair. Now, if you have degrees and you do know stuff, then there's another level, which they call it a DSP2, which is a direct service provider 2 and a direct service service provider 3. So you can come in on a different level where you're not entry, but you hire them.

I don't need to. I don't need to have staff. I just need an empty. Now let me ask you this. Can people. You have to own the house, or can you run this out of a place that you're.

Okay, so one of the programs that I'm opening up is in Ozone Park. It's supposed to be open up June 1st. We actually renting from the church. So the church has all these convents. Yeah, Right. And we have all those rooms. So this is a 13 bed thing that we're going to open up because. And they're renting. They paying the church.

But when you say we. Is it an owner?

No, no, no. It's the agency. So I'm underneath an agency. Right. So the agency is renting from them, and I'm helping them open it up.

So the agency is now going to.

House patients, students, 13 people. That's correct.

So y' all getting in on the money, too?

That's what I do.

Of course. But you help other people open them. You didn't tell me that y' all opening them yourself.

That's what they do. They open them themselves so they can make money.

Oh, so you don't open them for me, you open them for your agency?

Yes. Then, right? Correct. I want them for my agents.

Oh, so your boss is going to be mad, mad you sharing this information.

Right. That's why I said I don't want to be saying what, Ace.

All right, all right, all right. I take her name back. Her name is Rachel. Nobody knows her name. She just giving information.

Right.

Nobody Cuz your boss will be like, yo, you giving away a million dollars?

They actually today I was looking at a couple of their salaries. It's ridiculous.

Just ridiculous.

Yes.

How much? Give me. Give me an idea. You already in trouble.

200 and something.

200 something thousand. For whose salary?

Some of the. The upper. I swear, I don't think they do anything but send emails, but that's another story.

All right, what's next?

What's the next question?

All right, we gotta know people gotta know how to open these.

I told you this, but all right.

So your agency, you got an agency that you run and operate.

So just how. I have an agency. So my agency started with PA parents. So anybody can do it. Right.

So I would open up my own agency.

You can? Absolutely. You can. Or you can open up your own.

Would you still come in and help me open up an agency?

If you pay me, you're.

You're natural. So you work for an agency. Let's just say you work for the Land bank team. Somebody random wants to open up a group home. Why do you go help them?

So I don't go help them. I do, but I help my agency do that. So if they go and say, hey, you know what, Samantha, we found a property over there.

Your name is? Rachel.

Rachel. They say, rachel, I want you to go over there. We have a property, come help us open it up. It's my agency. I said, okay, we're going over here. So we go over there.

All right.

And then if they say, come on, let's go to.

So you're teaching us how to open up an agency?

No, you can open up a group home. I help open up group homes for your agency.

Your agency own how many agents, how many group homes does your agency own?

A lot. I think we have.

That ain't a number. I think we have 52 in Queens, 52 in Queensland.

No longer. They're in Long Island. They're in Queens. Oh my God, this is crazy.

Somebody making like. Like 50 million.

Yeah. And they just started to open up in California.

Now here's my question, and I know you don't like this question, but I have to ask it. And then we're going to go right back to the transitional piece. Okay? You know what I'm asking? No, because we talk about it all the time. You watch me be an entrepreneur since the day you've met me, right? From owning staffing agencies. But we're not going to go there. We're not going there.

Right?

We're not going there. Okay, right but you watch me open several agencies across New York City, Correct? Right.

Correct.

You're watching people make millions of dollars. You're helping the people make. You're doing the transactional piece. You're doing the work to open up an agency that makes millions of dollars. Please give me a logical, reasonable answer why Rachel hasn't opened up her own agency and make it make sense, please. Because I don't get it.

I would have been. You don't get it? I was trying to explain to you earlier, it's kind of this thing where you have pilots, you have doctors, you just have people that are in the element, right? So the whole being independent and just all the stuff that comes with that, to get it started and to get it going and to be the brain.

Of it, you do it every day.

I'm not the brain because, remember, I have the umbrella of the agency, right? And I work with some real wonderful dope people. It's not me with my decisions. I think entrepreneurs, they have to be a good decision or bad decision. They have to roll with those decisions. Right. Sometimes if I don't make the best decision, it's kind of like we sitting off as we have a talk. I don't feel. Feel no big loss. My checks look exactly the same when I walk away.

So you'll be losing their money.

Things happen sometimes.

But I want to say I lose money. Is there not so much money involved?

I don't want to say that I lose their money. But, you know, things can happen where they can say, hey, I'm not. I don't want y'. All. The contract here. You got y' all done. Right. Sometimes you can go back and forth with. So say you have two people, that they're important and their role is important. And then things happen. It's kind of like, okay, the person with seniority and stuff, you can get. Things can happen, and they can let the other person go, which you cost them a great loss. Because y' all was in a disagreement. It was kind of a meaning.

You don't want to be a boss. You don't want to be responsible for all the intricacies of running a company.

I think if I would have me somebody on my side to help me how I am, I think I probably would.

You can hire you.

I can't find her yet. I'm looking for her.

If you quit, they will replace you.

They will replace me, but it wouldn't be as they would. They could never replace me. Nobody could. I could never. Never.

How often you go on vacation how much vacation you get a year?

Four weeks.

Four weeks?

Yes.

Does the agency crumble those four weeks when you're not around?

Sometimes it does. Sometimes not the agency, no. But the programs that I oversee and run. Sometimes it can get real crazy. All right, sometimes. But it doesn't crumble. They can survive. They'll run if I leave.

I didn't want to say it, but the reality of it is, I'll leave.

They'll replace me.

Even if they had to replace you with two people, they could.

They would do it, correct?

Now, the hiring part is tough. All my millionaire friends that do this tell me hiring is tough. It's the hardest part. People don't want to go recruit. People don't want to show up for work. They want to do a mental health visit at home on a zoom on their iPhone with patients, and they want to bill 400 an hour. And it's like, no, they actually need you to see you. They need to meet, connect, understand? They don't want to meet over a phone all the time. So they say it's a challenge.

So team building is one thing. When I'm hiring or interviewing, I do group settings, and I kind of try to make everybody feel comfortable and kind of loosen up.

All right, all right, all right.

And then you put. They have to put the expectation on the staff. If you let them do it once, they'll. They'll continue to do what?

Take advantage, of course. Oh, I'm gonna give y' all a tip. Every millionaire, every company owner, the biggest fear is that people are taking advantage of you. That is the biggest fear. Like, you flip out when you think somebody's taking advantage.

Oh, that's.

You get so defensive because people try to.

That's how you feel being an entrepreneur.

Oftentimes, Yeah, because people are always trying to, like, take advantage to some degree. Like, they know you're the owner of the agency. Right. They just know you have money. It's just natural for them to say. And people say it all the time by accident. Oh, we know you got it. Oh, you got it. Oh, Charles, that's nothing for you or whatever. And it's like, you wouldn't say that or act like that with anybody else, but because it's me, and, you know, I'm at a certain level now all of a sudden, like, you know, that you feel taken advantage of. So especially with hours time, all that kind of stuff, it happens. But look, we got an audience to serve, okay? People want to become millionaires, unlike some of us. All right? I'm like, no, but I get it. I get it. No, no, no, no. Let me say this.

Somebody has to. Well, I like what I do. That's a big part of it. I can go and branch off, but it is an element. And some people think confidence or whatever, there was an element of fulfillment, reward. Yes. And then if you screw up, it's all on me. Sometimes when you screw up, it's on somebody else.

You know, kind of the reality of it is the reality of it screw ups. But people are going to make mistakes.

It's correct.

We got to deal with that anyway.

Right.

So mistakes happen.

But who knows? Maybe I'll open up one.

It ain't gonna put me out of business. People's mistakes that they make don't. Don't put me out of business. It don't. It. I've seen it all. And you know how long I've opened agencies like Parsons Avenue, Queens, Manhattan, Bronx. I had agencies all over the city. Yes. Oh, damn, girl. How you remember that? On Broad and Market Street. Yes. In New Jersey. Right. Downtown. But look, it comes with the territory. It comes with it, right? They say with great something comes great responsibility.

But you used to it.

With a lot of money comes a lot of responsibility. Yeah, you get, you do get used to it. Because not a lot surprises me. People say they're not showing up for work. I'd be like, all right, cool. People say they didn't get stuff done by the deadline. I'd be like, all right, cool. That's why I give fake deadlines too.

But do you do it?

That's why I give fake deadlines, so I could go do it. So I might say something's doing the 12th, okay. And they be cry boohoo, it didn't work. It didn't happen. I'd be like, all right, cool. Like, I almost didn't really expect you to get it done anyway. And then I got time to go knock it out real quick. So let's get back to it. Let's get back to it. People want to know how to open up these million dollar group homes. Am I saying it right? Group homes, assisted living, group home.

Doesn't matter. Just depends on where you're at, what you would call it or what you would say.

Okay, give me the five steps. Just give me five bullet point steps right now. Buy a house.

So you have to have a location, right? You have to make sure that the community that you have the place in, they're okay. Right. You got to reach out to mental health and hygiene people or opwdd you have to reach out to one of them because that's where you're going to get your people from, right. Then they're going to show you the folks a little bit. Right? You're going to kind of pre screen. Right? And then after you pre screen and you have that, the plan between the both of you, agreement, they're going to give you funding, you're going to make sure that the facility is what you agreed upon, hire the staff, opening day, the people move in.

That simple.

No, I mean, that's simple.

Give me timeframe. Because when I was thinking of doing an outpatient, outpatient medical, whatever, mental health clinic, omhc, they told me I had to contact a city, a city official, A public official.

Yeah. That's this map that I'm gonna send to you so you can send to.

Your people that will give you all the.

The person's name who you should be looking to contact.

But here's in each, in each location that.

That list will show it to you. That list, right. Can be long because if you're trying to open up this channel, so you want to get your stuff done and you want to go and get in as soon as possible.

I paid a consultant to do it for me.

Okay.

I didn't. I just didn't do it yet, though. It's like. It's like one of those things where you see your friends make millions of dollars. And I'm just watching. So we all do. Well, I'm just watching, but it cost $30,000 for the consultation and for the guy to tell me. So he looked up everything in the state. He looked up the county that I want to do it in. He looked up what agencies were there already. He said, you just have to. He said you can apply once a city official gives you the okay.

Yes.

And he was like, look, I got four people that we can go after. Do you know anybody that knows these people? Whatever, whatever. And I kind of just stopped and I didn't really continue because I know it was going to be a larger task and take a lot of time. So I kind of just held off because I'm developing a bunch of properties that I have to, like, get through.

Right?

Yeah, I just got to get through them. It's like 20.

So in order for you to open, have an open day, you have to have staffing. They have to be trained on the people that's coming in. Right?

Okay.

So that's the, that's the main thing that will kind of slow you down and hold you up, because after you get in the door, right after you get to connect the contact person, they say, okay, yeah, we have about 15 people, 20 people. And you have this. It's kind of like a match made in heaven. When I. I want to serve. I want to serve. And then you have. You have the people, right? So then you connect. Now it's you. And here's where I come in at, too. The hiring, the training, and to get everybody up to speed. Speed.

But you only do it for your agency, right? I thought she was like a city worker that runs the whole city.

Oh, no. Yeah, right.

That's what I was thinking when you told me. That's why I said, don't tell me anything else. Let me find out when we do the show.

I wish.

You run a big. You work at a big agency?

One of the largest ones.

50, just in one borough.

Yeah, one of the largest ones in.

That's crazy.

In New York. All right. They have a lot of. They have a lot of.

So. All right, so tell me this now, because people need to know both sides of the fence. Tell me, what are the. The nightmares, the pitfalls, the worst of the worst that could happen. Being an owner of a group home in New York City.

So I manage. I will say that Sheetrock, because hoes. But holes being put in the wall is a. That can happen on a daily basis. If you have somebody that has property destruction, anger management in their profile. So you want to get whole proof Sheetrock. Even if you don't think. If you have somebody wheelchair. A wheelchair. And somebody turns the wheelchair. There's a hole in the wall. It's gonna cost you money. So you want to start off with good.

But that's not a nightmare. It is if you have somebody bust their head on.

No, no, no.

With the wall.

So we have one gentleman. No, it's not. He bust his hell with the wall. We had one gentleman that moved in just recently from the hospital. He went and punched holes in all four floors of the residence that he was living in. All the walls, all of them. Once he realized that, because it's sheetrock and he's strong. So he was like, boom, boom. He just went through and broke apart.

Now, who. Where does the money come from for that? See, you ain't say that. You kind of dressed it up saying, get whole proof. You didn't say, like, so they could.

Wreck your entire house and they're moving it. They moving. That's why you're going to read. You're going to screen those profiles and you're Going to make sure that the house can support or whatever you're doing that can support the person because absolutely they can.

Okay, so all you said all four floors or all four rooms?

No. Well, he went up and down where the hallway was and he just broke.

Up all the walls with his elbow.

Elbow punching, whatever. I didn't see it. I just saw the aftermath.

All right, that's kind of crazy. So who pays for that or you after that? You already signed off, they yours, Right? That's your people.

Correct.

Okay, what else?

This is where you have people that are behavioral specialists and on your team. So they'll know like, oh, we need to do this, we need to do this. People that's been through it before, we need to this. So for me, I tell them, listen, we have to do whole proof Sheetrock. I'm reading their stuff. We need this, we need a lock kitchen.

So.

So my kitchen is locked because one gentleman, he started a fire on. He started a fire the day after Christmas because he was lonely in his own kitchen. He used to live independently. So I said we gotta lock the kitchen.

All right, so we got people starting fires, people busting up the sheep.

And they also, I mean some of them can't communicate properly. So they will take their anger out on someone else. So they'll hit you or become aggressive so you can get hurt.

Most staff will know is trained on that.

And you read the file profile writing, so you kind of know what's their trigger words. Like this one particular gentleman, if you tell him no, he will attack you. But if you say give me five minutes, wait a minute, one minute, one momento. He won't attack you. But if you say no, he will get aggressive.

If you say no, you're getting attacked.

No, he'll put you in the headlock. He put me in the headlock a couple of times.

He put you in the headlock?

Yes.

You still know how to go?

I was at my desk and do.

You still know how to go?

And then he was like, like you said, no, it's like a trigger war. He just came with and what'd you do?

Right, this is interesting. Put you in the headlock. And what did you do?

I got out of it. So they teach us who got hurt? Nobody. No.

So you safe. You kind of safely like.

Yeah. So they teach you moves, how to make sure that you're okay and also to get the. I don't say get the person off of you, but protect yourself. That and also so that you don't hurt the other person.

All Right. So to make a million dollars, you got to be willing to be put in a headlock, house set on fire, holes in the wall, possibly.

It can be. And then the other thing, too, is sometimes you have to come in when there's nobody there, because the staff will call out. Holiday times is the worst. Christmas, New Year's, the Fourth of July. The summertime seems to be a holiday.

It is.

New York.

New York is a holiday. We still waiting for that first hot day.

I know.

Where everybody comes out with nothing on.

This was not my plan. I had, you know, today I was like, okay, it's raining. Yeah.

Yeah. New York is spring.

It didn't break yet, but when it.

Breaks, the whole city knows.

But the summer, for some reason, it's like, everybody's sick. I might. Because it's popping.

There's stuff to do nobody wants. We're inside. And this is what I'm realizing about New York. We really be inside a lot during the winter. So the sun, because it gets so cold. So the summertime is like our time. Like, we're never home in the summertime. It's just. You're just not gonna be home.

I like winter life outside, though. It's kind of cool. I do. I love. I'm a cold. I like the cold. So.

All right.

Went to the snow.

Top three reasons to open up a group home in New York City.

Those people need a home. They need a place to stay, Right?

How do you put that?

How do I put. They do. And some of them are really lovely.

No. How would you categorize that? Like, give me, like.

So I like working with them.

Service.

Right. I love the way they live life. Right. They just have.

Putting people in a headlock.

No, no. Okay, so 1. 1. One of the gentlemans had passed away, right? And so they had. Did a group. And one lady was like. We was talking to him. We thought they was gonna be sad and was like, oh, you know, so and so passed away. And one girl was like, oh, it's okay. I don't like him anyway. Done. They wasn't crying. They don't make no big deal out of it. They just keep going. We kind of drag stuff, like, let it go. And I'm like, we trying to put stuff on them. But they don't live life like us. I mean, they can't, but they don't. And they're lovely and they're funny.

Reason number one, to open a group home in New York City. Fulfillment.

Yes.

What else?

Number two, Once you get it open and running, you can make a lot of money. You can literally sit back, cross your.

Legs, tons of money.

Number two, just be okay.

All right, give me number three.

The agency that I work for started way before I was even born. So definitely generational wealth. You can definitely. That can definitely.

I didn't think about that.

Right.

So if I opened up one, we got good staff. Sounds like a recruiter or an HR person or department is important. You may even want to over hire a little bit.

Oh, yes.

Yeah, yeah.

You can.

It runs itself. You can hire a manager or like a supervisor or something. Something. Whatever to that nature.

And it'll.

And let them run it. And you just kind of oversee and you make tons of money, and it just doesn't close. Plus you have the relationship with whatever opdd.

Yes.

That will continue.

They will come in once. Yeah. Because somebody passes away or they move out. Like they. Some people say, you know what? Thank y' all for your services. You've trained my child or my person really well, and they're good. Now I want to take them back home. Right. So that's that service. When I say you can teach them how to tie the shoes, some of them family want them to learn something. They go home. So now you have this open bed. You want to fill it because you're going to be missing and money. Right. So then you fill that bed again. So you would. But OPWDD comes in once a year to make sure that those people are okay because of the money that you're.

Getting to audit or just. Just a check.

It's an audit. Right.

All your paperwork, all your stuff got to be right.

Right.

So you charge $3,000 to teach the person how to tie a shoe if they don't know how to tie a shoe.

No, but even if you don't know how to tie the shoe, you have to say the steps that you were showing and working with this person. Right.

Because even if the client.

Even if the client says, I refuse, I don't want to do it today. So you come to me and I. I don't want to do it. You have to put down the refuse. So when they come in and look, they want to see that the service was offered. There was a staff there to offer the service. And what did the person do if they refused? You still get the money.

So you log the hours.

You don't log the hour. You log the actual steps service. All right, so if I just say, pick this phone up, Charles, I want you to pick the phone up. Pick the phone up, and you pick the Phone up. Then I'd go into the computer, and then I say, charles, pick the phone up.

Okay.

And that's how you Bill.

We got three minutes left. Tell me. Tell the audience right now. I didn't even look at what you want to share. That's good. I like that, because that gets you to kind of talk freely, teach. Tell them what you want to share, what you would. What? Tell them what you think they should know. I got an audience from full of people that own homes, as you know, they own land, they're building, they own homes. They want to find out how they can make a ton of money from these things and just what it entails. But just tell them what you want them to know, because the audience is huge.

If you keep it eight people and under in a location, you don't have to get the fire sprinkler involved. You don't have to do that. If you have it seven. Right. You have to keep this number under eight. You don't have all of the communities and everybody. Excuse me. Involved. You can keep it. You can keep it small and quiet. Right. You also can get money for vans and cars. That's also another one that they do.

They'll give you money. So if you got to take. If you want to take the whole home shopping on Fridays or to church or to the park, that will justify you saying, hey, I need funding for vans.

Yes. That's also in your startup course, because in New York City, you cannot be without a vehicle. And some of them. The way. Remember when I said, put me in. Hello. He cannot get on the train. He can't get on the bus. Right?

Yeah.

So he would need.

Oh. So based on the needs of who. Who you take.

Absolutely.

Is what you can ask for funding for. So it kind of incentivizes you to not just pick the easiest, lightest people that are just gonna watch tv.

That's why I got put in a headlock. You want some of them that's a little.

You want somebody who's gonna put you in a well.

However, they do take medication. Right. It's. It's stuff out there to help give them support. That's not the first answer, but that is one of the pieces to their puzzle. A lot of them take stuff to keep themselves a little calm, and then.

You get paid for administering meds, for having staff to administer meds. That's a whole nother check.

Right. So you provide services.

A lot of services.

There's a lot of pieces to that.

All right, give me this answer in your Head, Just do quick math. What's the most amount of money a group home owner can make per person in one month? Include every service possible. One person, 7,500 for the bed.

I don't know, maybe six figures in one month, depending on what's going on with that person.

Did y' all hear that? How you scared? We only got, we. We got one minute left.

You have. So say if you're teaching them three or four services, right? And your billing is 200. So it's $214 per service. So say I'm teaching you three things. So I'm billing for those different three things every day. And yes, you have to do this every day.

So $600.

Right. And then your two. Yeah, then you two 50 at night for the person. And then any other little things that we do for the person. You're giving the person medication, you're cooking, you're making sure they eat. It's a lot going there. It's a lot. But the money don't look like one big check, right? Because you're going to get food stamps for the person, right? The SSI check or the ssd. All that stuff is coming into your. Right. The state is giving you money for this person. So all of this stuff is coming in there. And guess how much the person's personal allowance is for the month in New York city?

How much?

$200 for the month. So out of all that money that the person is getting coming in from the state in the city and the Medicaid, you only have to give them 200.

And all of this is billed through Medicaid.

I know, it's different.

You have different agencies.

No. You have different funding sources.

Okay, all right, I'm going to put this out there. Look, comment the word property, get into the five day challenge. I'm going to ask Rachel right there, right now, right now. Asking Rachel this right now. If you are in the five day challenge, property to passive income. Right. I'm asking Rachel right now if collectively we put together enough money for like four houses, four, three bedroom houses, will you act as a liaison and help us put them together and get them open?

Yes, I will help you.

You heard it here first. Let's go, Rachel. Are you ready to make some money, Rachel, or you just. No. So you know what? You don't have to charge us.

No, I charge them. They have to pay me to do this stuff. Well, no, it's my salary.

All right, so could we pay you a comparable salary and you act as the liaison? Correct. Can we do it on paper or you just want to do it off, like side hustle?

I could work on paper, but you can.

Do you think it'll be a conflict of interest being at your work? Are there private agencies?

They're not for profit. That's what they. All right, under. But we'll have.

Yes. We're not going to do this on camera, but y' all heard the answer. Could you. Could you put together, like, a little 10 step just based off of what we talked about? Just like a ten step workbook that people can follow to learn how to open one?

Yes, I can. And I can also give you. I have it already. It's in my phone. I have the paper of all the books and stuff that you're going to need in the house if you get certified by opwdd, what they're going to come in and what they're going to look for.

But you can help and say, hey, they're going to look at this. This.

Absolutely.

All right, we're going to try to put this together for the first time ever, ever, ever, ever. I don't partner with anybody. I don't partner just because, like, my position, if something goes wrong, they're gonna blame me and kick my butt. There is so much money involved.

It is. It's a lot.

I'm gonna make y' all sign a waiver. How much? I know how. We know how to get the houses. That's for sure. 100%. We know how to get the properties. All right, we gonna talk offline. Let me put this stuff together for this challenge. Thank you so much, Rachel, our consultant, for coming. I don't think this is a very niche crowd. I don't think mega millionaire agency owners are gonna watch this. You're not gonna get in trouble, correct? If you think it's gonna come back, then we could blur your face.

Right?

But by that time, you're gonna be our consultant making double, doing the same, whatever work. The same impactful work. If you get fired, I got a job for you. I will pay you the same, okay? I promise. I promise I will pay you the same.

All right? Y' all hear that? As long as recorded.

Yes, I always make good on my promises. All right, look, we gotta wrap up because. Rachel. Rachel. Got to get back to the group home.

No, I'm actually going home, but yes, I do.

Do you make your own hours?

I could come in when I want to, but I don't make my own hours. I'm supposed to work from 9 to 5, but I've been there so long.

Like, they just know you're gonna get the job done.

Yes. Correct.

Damn. All right, well, thank you guys for tuning into this episode of the Land bank show. Like, follow, subscribe, hop into the five day challenge. We may have a new speaker. I don't know. I gotta ask. But even if she don't speak, we got a new partner. Everybody in the Land bank team. Like, I think this is our turn. I think this is the big one. I don't know how I'm gonna set it up. I don't know what my role is going to be. We gonna do something though, because this information is too crazy not to try. There's no way I could sit here and get this information to not do it. So. Looking forward to it until the next episode. Guys, let's go. I'll see you soon. For all of my auction people. I'll see y' all on Friday. We turning up. We going crazy now. So I got 200 people properties and we going to the auction to actually get them, pay for them, get the. The receipts and everything and wait for the deeds. So we got 200 people that know exactly how to open up group homes now because of you. Thank you, thank you, thank you. Round of applause. I appreciate you. Thank you for our friendship for over 20 years. Even though you just disappeared for like 8. But whatever. It is what it is. It is what it is. But you came back.

I was working.

Work. You was working opening all those group homes. It is what it. All right, thank you guys. We'll see y' all next week. Thank you.

Thank you for listening to the Lightning show with Charles Noonan. Please leave a review for this podcast and give it five stars. Also follow on Instagram @charlesj.noonan and share with others as we want to share these unique strategies with developers across the world.