AARP Life Re imagined – How to make changes transitions as a Baby Boomer

For many Boomers & Seniors life transitions are just a fact of life. Also, with life expediencies increasing, Boomers & Seniors are now working and contributing much longer than ever before.

Many Baby Boomers are not prepared for the new challenges of a fast-paced work environment. In this video, we showcase some great resources available to Baby Boomers looking to make personal or professional transitions in their lives.

When you should not take out a reverse mortgage

In the last two segments, we have discussed reasons why Boomers & Seniors would consider taking out income from their retirement early, and if this was a good idea.

We have also brought attention to alternatives to taking an money from your retirement fund early, such as taking out a Reverse Mortgage on your home.

In this video we highlight a clear example of when you should not take out a reverse mortgage. We use data provided by the consumer finance protection bureau to show you a clear example when you should not take out a reverse mortgage.

Salem Article
http://boomerincomeideas.apps-1and1.com/reverse-mortgages-salem-witch-hunts-mccarthy-hearings-cfpb

Link to CFPB Report:
http://files.consumerfinance.gov/f/documents/201708_cfpb_costs-and-risks-of-using-reverse-mortgage-to-delay-collecting-ss.pdf

The truth about becoming self employed!

In this video we wanted to showcase an amazing article written by Leah Hynes title “6 Life Lessons From an Exhausted Entrepreneur”. In this article she showcases the truth of what it is like to start a business. Boomer income ideas has interviewed many franchise owners, online business owners, and consultants, and they all confirm what Leah states in this article. To read the article, please visit https://hackernoon.com/6-life-lessons-from-an-exhausted-entrepreneur-9df799984034

To view Leah’s website directly, please visit
https://www.leahhynes.com/

Planning for retirement? Reverse mortgage VS Selling your home, Which is better?

In this podcast we discuss the a real situation of someone planning for retirement with limited access to funds.

We go over the pros and cons of selling your home or starting the process of a Reverse Mortgage. We break down some preconceived ideas that Boomers and Seniors have about Reverse Mortages that are simply not true.

In this podcast we also provide you some actual steps you can take to improve your current situation without having to get a part time job or take out a loan.

Stay tuned and leave a comment below with any suggestions you might have on this topic.

 

Are Reverse Mortgages Expensive – Why FHA is important to your Reverse Mortgage

What would you say if I asked you for a loan?

Before you answer let me first warn you by telling you a few facts:

  1. I’m not planning to make any payments on the loan for as long as I have the money.
  2. The interest on the loan will be added to the principal so the balance will grow every month.
  3. I intend to keep the loan outstanding until I either move out of my house or die. Since I don’t know when that will be, I don’t know when the loan will be paid off.
  4. I want to pay interest similar to what I would expect on a traditional mortgage. (As if I was making payments every month to pay down principal….)
  5. The loan will be a mortgage against my home. If the amount owed exceeds the value of my house, too bad. You only get what the house is sold for.

I’m pretty sure your answer to this question is:

“Are you nuts? Why would anyone in their right mind agree to a deal like that?”  

Guess what, banks feel the same way you do…

They wouldn’t make a loan based on those five factors either if they have to take the risk of not receiving full payment …. and risk is the key word here because banks hate and avoid it.

Enter the FHA.

Banks can be assured that they will get paid fully no matter what happens to the value of the house.

That’s because FHA is insuring the loan. 

This insurance is backed by the full faith and credit of the United State Government. This means that means the bank literally has no risk and therefore willing to make the loan.

That’s all really nice you might say…

… but isn’t the FHA insurance premium what makes a reverse mortgage so expensive? 

The answer is absolutely not.

In fact – it’s just the opposite.

Let me explain:

FHA protects you from the Risk Premium

It’s important to understand how banks set interest rates on a loan. 

Your mortgage interest rate is less than 5% while your credit card interest rate is north of 12%. That’s due to something called a “risk premium.”

It’s much riskier to lend you money to pay for clothing on a credit card than it is to lend against a secured asset like a house. If things get tight you’ll pay the mortgage before the credit card bill.

That risk of default is reflected in the 12%+ interest on the credit card. 

Now, you should also know that there are “non FHA” loans available on the market.  These are called “proprietary loans” and don’t follow the same restrictions of the FHA HECM loan.

Here’s the Difference:

Unfortunately, because of the lack of FHA insurance they usually have a much higher interest rate. Usually the interest on a proprietary loan is 3% to 4% higher than a HECM loan.

Let me show you how much not paying the FHA insurance premium and instead opting for the higher interest rate really costs:

FHA HCEM Reverse Mortgage vs. Proprietary Reverse Mortgage:

The graphs below demonstrate two scenarios.

The 1st represents a typical FHA insured HECM loan.

This is what a reverse mortgage was designed to do – maintain your equity. 

The HECM was designed with the assumption that on average a home would appreciate at a rate of 4% per year. The second assumption is that the interest rate on the loan would not exceed 6%.

As you can see in the 1st graph we look at a home with the following attributes:

  1. A present home value of $400,000.
  2. 4% annual appreciation growing the value to $600,000 in 10 years.
  3. 6% interest rate on the HECM reverse mortgage.
  4. Taking $250,000 in cash out of the equity.
  5. Leaving a balance of $150,000 equity left in the home after extracting the loan.

In the 2nd graph we have all of the same assumptions except that since this is a proprietary loan the interest rate has climbed to 9%.

 

 

So, with a FHA reverse mortgage,  after extracting $250,000 and leaving $150,000 equity in the home, 10 years later there is still about the same amount of equity left due to that relationship between and appreciation and interest rate.

On the other hand, without FHA,  we see that the increased interest rate completely consumed all of the remaining equity within that same 10 years.

So in other words eliminating the FHA upfront fee cost this home owner an extra $150,000.

More importantly, it also consumed their remaining equity and left them with nothing to fall back on….

The FHA HECM is safer.

Another statement regarding the FHA HECM reverse mortgage is that “it is safer for seniors.”

We’ll talk more about that in the next installment….

What options do you have to save for retirement at an older age?

In the video we go over a scenario in which a person of 55 years of age has not saved up enough to live comfortably through their retirement.

We talk with Dirk Cotton from the retirement cafe on what options do you have in order to meet your financial goals.

Should you invest in the stock market?
Should you get a reverse mortgage?

We also discuss easy steps you can take today that will help increase your monthly revenue and allow you to put more money towards your retirement savings.

 

Dirk Cotton is a retired executive of a Fortune 500 technology company. Since retiring in 2005, he has researched and published papers on retirement finance, spoken at retirement industry conferences and events, and regularly posted on retirement finance issues at his blog, The Retirement Cafe. He is currently a Thought Leader at APViewpoint, Advisor Perspectives’ online community of investment advisors and financial planners.

 

 

Want to learn more about The Retirement Cafe, fill out our brief form.

 

REVERSE MORTGAGE VS. SELLING HOME: WHICH IS BETTER?

A lot of folks who are at or near retirement need to access their home equity to do so comfortably.

Here’s the first question most people ask:

“Should  I do a reverse mortgage or sell my home?”

In some cases, the answer could be….

Why not do both?

Recently I spoke with Ron in San Jose, California about a reverse mortgage.

Ron is 65, his wife is close to the same age and both are very ready to retire.

Both have good jobs that will pay a pension and Ron estimates that their total combined retirement income will be about $4,000 per month.

After congratulating him on managing to assure an annual income of $50,000 per year he said…

“but there’s a problem…”

When $50,000 a year is not enough…

Ron and his wife own a home in San Jose with a value of $630,000 and they owe $501,000.

Their mortgage is $3,000 per month. As Ron put it,

“if I retire with that house payment I’ll be housebound ….there will be no money left to do anything…”

He said “if I could just eliminate my mortgage payment I’d have enough income to live very well.”

20% Equity is a bridge too far:

Ron’s neighbor just did a reverse mortgage and that neighbor was able to eliminate his monthly mortgage payment. Ron thought the same solution might work for him.

Unfortunately the situations were very different … while it worked for Ron’s neighbor (who had sufficient equity) it didn’t work for Ron.

Based on Ron’s current mortgage balance his home’s value would have to increase to more than $817,000 for him  to qualify for a reverse mortgage.

Let’s take a look at the loan calculator numbers…  

The following is a report of Ron’s actual situation when calculated by the IBIS Reverse Mortgage online Calculator.

Notice the number ($186,494.90) in red meaning that his equity is short by that amount.

I realize the rest of the numbers can be a little confusing without an explanation but the important point is to note that in this case, for Ron, a reverse mortgage is simply not an option.

The Ibis reverse mortgage calculator is a free online service and I chose it to create this sample because unlike the others you’re not required to enter all of your contact information in order to use it.

If you would like to find out how much of a reverse mortgage that you would qualify for while being assured that no sales rep is going to pester you after you’ve given your  basic information use this link:

Reverse Mortgage Calculator

http://rmc.ibisreverse.com/

So what’s Ron’s solution?

Here’s the dilemma:

Ron can’t qualify for a reverse mortgage on his current home, so he’s locked into that $3,000 mortgage payment unless he sells the house.

But if he sold the house and rented something in the same area his rent would be equal to or greater than his current mortgage payment.

Yes it’s true that he’d have $100,000 cash in his pocket from the sale proceeds after paying off the loan but with rent of $36,000 per year he’d only have three years before all of his equity was consumed.

Then what?

Ron and his wife are not from the San Jose area originally and really have no ties to that community.

They are willing to relocate to another area if that means they could live comfortably and have enough money to actually enjoy their retirement.

Which means… Ron has some options.

The Solution Could be Reverse Mortgage for Purchase

In a previous post I talked about using the HECM (aka reverse mortgage) for Purchase (or H4P) to afford a larger or more expensive home…

…but what about using the program to downsize?

Keep in mind Ron would have about $100,000 cash from the sale of his San Jose house.

That’s a great down payment on a $200,000 home and the second $100,000 could come from a reverse mortgage for purchase.

Ron and his wife can live in the home without a mortgage payment and will have the entire $4000 monthly retirement income to pay for expense and have enough left to really enjoy their retirement years.

That sounds fantastic, right?

Why… aren’t… more… people… doing… this?

Let’s take a look at a study of home buyer’s preference in financing a home purchase:

Only 3% of Seniors Plan to Buy Homes Using Reverse Mortgages

A majority of home buyers over 62 prefer to buy their home using a traditional forward mortgage rather than a reverse mortgage, according to the results from a new survey by the National Association of Home Builders (NAHB). Of 4,326 total responses garnered by NAHB, only 3% of buyers say they would use a reverse mortgage to pay for their new home, whereas 67% would likely use a traditional mortgage, whereas 28% would pay in all cash. Only 2% of buyers said they would use “other” forms of payment.

Really? Why?

The answer is simple.

There is a perception by both baby boomers and seniors alike that reverse mortgages are inherently bad.  Why is that?

People naturally feel skeptical about anything that they don’t fully understand and very few people understand a reverse mortgage.

On the other hand what most people believe they know about a reverse mortgage is usually wrong. 

For example, the majority of seniors believe that “the bank takes your house when you die” which has never been true. These preconceived ideas are very unfortunate because they keep many people who, (like Ron) could greatly benefit from embracing this vital tool.

Ok… but how is Ron going to replace his San Jose home with something comparable that he can buy without paying a mortgage?

Well…. he can MOVE...

Here are 10 locations that work:

The 10 Best Cities to Retire in the US

  1. Prescott, Arizona – Average Home Price: $256,400

If you love the outdoors and a vibrant cultural scene, you should consider retiring in Prescott, Arizona.  Located in the north of Arizona, this old mining town experiences a cooler summer than southern Arizona, helping you steer clear of sweltering summer temperatures.  A booming economy, rich history, and low housing prices make this place a real contender for retirement.

  1. Venice, Florida – Average Home Price: $210,000

Venice is a small retirement community found on the Gulf of Mexico in Florida.  Named after Venice, Italy, this community has many canals and rivers that run through it and has been designed with architectural influence from Italian renaissance.  Calm traffic and low prices mean peaceful retirement and it’s particularly well suited to slightly older retirees.  Parks, beaches, golf, tennis, and proximity to the beach will keep you busy, and proximity to nearby Sarasota will mean you have everything you need.

  1. St. Augustine, Florida – Average Home Price: $208,000

The historic community of St. Augustine, Florida, is a perfect retirement location for history buffs.  The local economy is driven by tourism, so if you’re keen to volunteer and stay an active part of your community, this might be the city for you.  On the north east coast of Florida, this city experiences cooler temperatures than other options in the state.

  1. Beaufort, South Carolina – Average Home Price: $156,700

The quaint, charming southern community of Beaufort, South Carolina, is a prime retirement spot.  This old river town offers plenty of golfing and fishing during the mild winters and hot summers. The military installations in the city solidify the economy and diversify the population – while Beaufort is home to a growing retirement community, there are lots of families here as well.

5. Myrtle Beach, South Carolina – Average Home Price: $207,141

Whatever you are looking for in your retirement locale, from downtown living to a planned community, Myrtle Beach has what you need.  Some of the highlights are the Grand Stand – a huge stretch of pristine sandy beach, trendy shopping and restaurants, low cost of living, great theater, excellent medical care, and enough golf courses to keep things exciting. All these reasons will make you love your retirement life in sunny Myrtle Beach.

  1. Abilene, Texas – Average Home Price: $244,295

If you’re looking for an affordable retirement, head to Abilene, Texas.  With cost of living over 10% below national average, this old railroad shipping town has a growing retirement community.  Year round warm weather and excellent recreational and social opportunities for senior citizens of Abilene will keep you entertained and in good company all year round.

  1. Austin, Texas – Average Home Price$255,000

This big city offers plenty of activities to keep the retiree busy and engaged.  Home to the University of Texas, this cultural hub boasts a terrific economy, warm weather, plenty of volunteering opportunities, open air art markets, galleries, museums, performing art theatres, low crime, and it’s the live music capital of the world.  With so much going on, this city would be best suited for energetic retirees who aren’t looking for too much peace and quiet!

  1. Boise, Idaho – Average Home Price$188,700

Boise, Idaho makes a great retirement destination for active adults.  Into biking?  This city was rated one of the best cities to live and ride.  Love the outdoors?  The mountains are at your doorstep, and the river offers whitewater adventures for the daredevil retirees out there.  In downtown Boise, there are many shopping, eating, and cultural opportunities.  Walking paths and low crime rates mean that you will feel confident stepping out into this great retirement city.

  1. Palm Springs, California – Average Home Price$337,500

Located in the Coachella Valley, Palm Springs is one of world’s most famous retirement communities.  The breath taking landscape and rich culture draw people from all around the globe to retire here.  Active retirees can enjoy the golf scene and the nearby Joshua Tree Park, and everyone can enjoy the 350 days of sunshine a year.  Watch out though – summers here are so hot you’ll have to retreat to the air conditioned indoors!

  1.  Salt Lake City, Utah – Average Home Price: $240,800

Nestled into the Wasatch Mountains of Utah and next to the Great Salt Lake, the beautiful Salt Lake City is a picturesque place to retire.  Perfect for the active adult, you can enjoy golf and winter sports galore.  Clean air, booming economy, plenty of volunteering opportunities, and an above average doctor per capita rate make this city a prime retirement spot!  Salt Lake experiences cold winters and hot, dry summers, so skip this city for retirement if you can’t take the cold!

Notice that these 10 cities represent every region of the country (other than Northeast) and provide every kind of topography, climate, and life style that you could ask for.

In other words, there is often no reason that you can’t have the kind of retirement that you’ve always dreamed of.

Right?

 

Should I take an early withdrawal from my Social Security Benefits?

Notes Section

In this interview we talk with Dirk Cotton, an award winning contributor of the www.theretirementcafe.com

We go into specific details and example of when you should take an early withdrawal from you Social Security Benefits, when you should take a delayed withdrawal from your Social Security Benefits, or should you retire at the legal age.

We go over all the pros and cons. Stay tune and if you need help with any financial planning & assistance, Get Started Today!

 

REVERSE MORTGAGE ALTERNATIVES

reverse mortgage alternatives

As I mentioned in a previous blog, today’s restrictions placed on the HECM reverse mortgage by HUD has eliminated a large number of potential borrowers from qualifying for enough proceeds to make reverse mortgage a viable option.

Reductions in the initial loan amount coupled with the newly enacted “financial assessment requirement” have leveled a one-two punch on seniors negating the program as a possible solution.

These new requirements were clearly an overreach by Congress and we can always expect Congress’s overreactions to increase restrictions on something that is beneficial to many.

The 4 Reverse Mortgage Alternatives

There are only 4 viable alternatives to a reverse mortgage

Many people look into reverse mortgages due to the fact that they cannot afford to maintain their home in addition to other living expenses (especially if they have increased exponentially due to health care needs).

If you are in a similar situation and have been denied a reverse mortgage, there are some reverse mortgage alternatives. To be exact and realistic, there are only 4 reverse mortgage options:

Ask Your Children For Help With Expenses

Should you ask your kids to help with bills?

Today, many seniors make deals with their kids to pay monthly expenses in exchange for the inheritance of the home later which can be viewed as an alternative “family financed reverse mortgage”.

Since transactions involving money and property between family can turn into a potential nightmare, there are several companies that specialize in managing the transaction so all parties are equally and legally protected.

These companies insure that family members have an unbiased third party arbiter in case one side fails to fulfill the agreement.

Sell And Move

Sell-home-and-move

Selling and moving is an option that is much easier said than done and it can actually be a very complicated process.

Some things to think about before selling and moving:

  • What if the house is not in good condition to attract a buyer?
  • What if the house needs a number of expensive repairs in order to make it ready for sale and you simply don’t have the money to bring it up to marketable standards?
  • Where do you go after you sell?

The thought of leaving the home that you’ve lived in for years along with your friends and community can be overwhelming. In fact, a survey of seniors shows that almost 90% of seniors want to stay in their homes until they die or are unable to care for themselves.

Sell The House And Move In With A Family Member

I Wish

This is usually the least desirable option as many seniors I’ve met over the years would rather live in a shelter than with their kids or other family members.

Those of us who have raised children have all used the phrase “as long as you’re under my roof you will live by my rules!” When a parent moves in with the child, that dynamic gets turned upside down and now they become subjected to the rules of the child’s home.

Leaving home and moving in with one of your children is a loss of independence and is generally not what most people want to do.

Sell Your Home And Stay With A Sale Leaseback

Stay-in-home-with-sale-leaseback

The final and often best reverse mortgage alternative is home sale leaseback. A sale leaseback allows you to liberate the equity in your home by selling it while still being able to stay in it by renting it back.

My company has created a simple program designed to help seniors stay in their homes while also providing a good business deal for our investors. You want to stay in your home and at this point it might not matter if the deed is in your name, just as long as it’s still your home!

Our investors want to invest in real estate and the best prospective property is one that already has a tenant who takes care of the property and has the means to pay rent on time. What better investment opportunity than one where the seller is also the tenant and has an emotional attachment to the property? We believe that this is the definition of a “win-win” transaction.

I’ll be discussing the details of this program in a later blog but for now if you’d like more information on home sale lease backs click the button in the picture below or call 800-407-5696 and I’ll personally discuss the details with you.

Learn about reverse mortgage options

Keep The Family Gathering Tradition Going

I’d like to talk to you frankly about a threat that millions of senior Americans and their families are facing today.

It’s a conundrum that threatens to disrupt our American way of life and dismantle the very customs and traditions that weave together the fabric of an American family.

Does your family center on Sunday dinners and holiday gatherings at Grandma’s house?

It’s the place where your entire family assembles.

It is where Uncle Bob subjects everyone to his current views on politics…

…where son Jeff and daughter Mary debate the pros and cons of allowing children access to the latest technologies…

… and where newlywed granddaughter Melissa announces that there will be a new addition to the family in 8 months.

In short, Grandma’s house is the platform where family happens.

Unfortunately for thousands of seniors today, maintaining the ability to provide the family this vital platform is jeopardized due to lack of finances.

Twenty years of economic turmoil began with two stock market collapses, then a great recession, and then ten years of close to zero interest earned on savings accounts has robbed seniors of the golden years they had planned for.

Help is on the way

 

If you find yourself among these seniors struggling to maintain your way of life, I have some good news.

You might be living in the solution to your financial issues.

You see…

liberating some of the equity in your home and turning it into cash could provide you the ability to maintain a life that you love.

Reverse Mortgages Work

 

Believe it or not, sometimes (not very often, but every once in a while….) Uncle Sam actually gets something right… 

Almost 30 years ago, a government insured program was created to help seniors pull out some of the built up equity in their homes through a loan without having to make a monthly payment.

The program is called a “Home Equity Conversion Mortgage” (commonly referred to as a “reverse mortgage”) and since its inception, millions of seniors have used the FHA guaranteed reverse mortgage to maintain their standard of living.

If you’re able to qualify for a reverse mortgage then it is absolutely your 1stoption.

As I mentioned in an earlier blog, we don’t originate reverse mortgage loans but we can point you in the right direction.

Is a Reverse Mortgage Your Only Option?

 

Nope.

In some cases, “It’s Still Your Home” could be the solution.

If you didn’t qualify for a reverse mortgage, chances are that you were advised to just sell your home and move.

I saw this happen regularly during the time I spent in the reverse mortgage industry.

But why should you move?

If the only option available is to sell the house, then why not rent it back after selling to an investor?

Why not stay in your home rather than looking for and renting another?

The title won’t be in your name anymore but It’s Still Your Home’s, and isn’t the main goal to remain in your home by any means possible? With our sale leaseback program, you can.

How Home Sale Leasebacks Work

The process is actually very simple:

  • First, we will come to an agreement on the price of your home and buy it.
  • We then rent your home back to you for as long as you’d like to stay in it.

That’s it, no hidden agenda, no empty promises and no scams. We have an entire program in place to help seniors like you stay in the home that you love.

To best explain the program I invite you to contact me at 800-407-5696 or click the picture below to fill out our contact form.

We’ll have a 10 minute conversation and I can tell you right then if the program will work for you or not.

If you are a candidate for the program, I’ll do everything in my power to help you maintain your American lifestyle by keeping you in your home.

 

REVERSE MORTGAGES, SALEM WITCH HUNTS, MCCARTHY HEARINGS AND THE CFPB

What do they all have in common?

  1. The Salem Witch Trials were a series of prosecutions of people accused of witchcraft.  This happened in colonial Massachusetts between February 1692 and May of that same year…
  2. In 1947, Joseph McCarthyand the UnAmerican Activities Committee held nine days of hearings.  These hearings alleged communist propaganda and influence in the Hollywood motion picture industry.
  3. In July 2010, Congress passed the  Wall Street Reform and Consumer Protection Act. President Obama signed it. The act created the Consumer Financial Protection Bureau. The CFPB consolidates most Federal consumer financial protection authority in one place.

Answers:

  1. All three resulted from hysteria within the general public. They followed some false concept that there was a clear and present danger to our way of life.
  2. All were the opportunity to gain power and prestige by a few shameless individuals.  The flames of fear associated with bad things proved too tempting to not take advantage of.

Pimps claiming to be righteous “Do-Gooders” pretend to protect us from “Evil-Doers.”

(Can you believe they actually use terms like that?)

Except for the the CFBP, (which hasn’t run its course yet but will…) all were all exposed in good time.

The general public always comes to its senses, but not until they “burn a few witches at the stake first…”

The government made the CFPB yet another watchdog agency to regulate  financial services.

 

The mission was to “protect” the general public. 

The “evil” financial institutions (including banks) will take advantage of us without them, right?

Two elected officials helped damage our banking structure. They decided that they should beat the demands for their heads on a stick by claiming to be our protectors.

Out came the widest, most costly smokescreen in the history of this country.  The CFBB was born of Dodd-Frank act.

What we need to look at right now is how the CFPB has damaged our financial institutions.

When we create a new bureaucracy it’s no small deal.

In fact since its creation in 2012 the CFPB has grown to over 1500 witch hunters.

1,500 people are looking for witches? 

They’ll find witches,  even if they don’t exist.  

In the 1600’s innocent people lived in fear of the witch hunters.  If you were under suspicion,  that made you guilty of crimes that didn’t actually exist.

In the 1950’s people shunned lifelong friends to avoid being a conspirator by association.  Today The CFPB has the mortgage banking industry in constant fear that it will turn its gun sights at them. 

Bankers are afraid of accusations of horrible acts.  The public makes assumptions based on a press release that they are under investigation.

This is what the Senate had to say about the CFPB:

CFPB: Unaccountable and Unrestrained

In May 2011 and February 2013, Senate Republicans wrote to President Obama calling for structural reforms to the CFPB. The bureau is far too insulated from congressional oversight of its actions and its budget, and its director has too few meaningful checks and balances on his power. The letters said that the Senate should not consider any nominee to be director of the CFPB until common-sense reforms are adopted:

What does all this have to do with Reverse Mortgages?

I mentioned in an earlier blog that I no longer do reverse mortgages.

I exited the business in 2008.

I could see the handwriting on the wall:

Mortgage banks were going to be set up to take the fall for the scandal which led to the “Great Recession.”

With that finger pointing there would be a truckload of extra bureaucratic nonsense. This nonsense would  burden the lending industry with extra costs.

These costs make originating loans too expensive to make a profit.

I’m not the only one to decide it wasn’t worth the hassle.

Before 2008 you could walk into any Bank of America or Wells Fargo and get a reverse mortgage.  Or you could use MetLife and get the benefit of their retirement planning advice too.

Unfortunately you didn’t have those options. These companies also decided it wasn’t worth the price to defend their intentions.

That’s a travesty.

Shame on your government. 

Their involvement brought credibility to the industry.

Instead, the CFPB says we need protection. Protection against some “unscrupulous” lenders.

Nothing could be farther from the truth!  

 I have known and worked with the companies and people in this industry since 2003. 

I’ve never met a scoundrel…

The people I know  care about doing what’s right for the client and do not need to cheat anyone.  Plenty of decent folk make a nice living helping you find the right solution.

They get a bum rap because of the witch hunters but I can assure you that you need not worry.

Any reverse mortgage company that you might choose to work with are licensed, ethical and most importantly, regulated by the institution that  counts, namely, the “FHA”.

These people are dedicate to providing a solution to your retirement challenges.

They don’t deserve the skepticism created by the CFPB. 

Don’t fall for the witch hunter’s fear tactics.

 

THE TOP 5 REVERSE MORTGAGE DISADVANTAGES

reverse-mortgage-disadvantages

Let’s look at the meaning of the word “mortgage.”

The word traces its history to old France.

The meaning of “mort” is “dead,” and the meaning of “gage” is “pledge.”

So, mortgage literally meant dead-pledge. To have a mortgage was to get a loan and promise to pay it back in within a specific period of time.

If it was paid back in full the pledge was considered dead.

dead-pledge

If it wasn’t paid back in full then the land securing the mortgage was seized and therefore the land was now dead to the borrower.

When you first took out the mortgage on your home you may remember the Truth In Lending Statement.

That statement showed that in 30 years you would pay for your home about three times over.

In other words if your beginning mortgage was $100,000 you would end up paying about $300,000 because of the interest.  You really didn’t notice this, however,  because you were making payments every month.

The loan balance was going down and would one day be zero. We call this “amortizing” or killing the loan slowly every month until it is completely dead.

Reverse Mortgage is an Oxymoron

The word mortgage literally means to kill off your pledge. The opposite of that (or reverse) would be to make your pledge more alive – which makes no sense–  but the term stuck anyway.

Since there is no payment being made, interest is being added to the loan every month and so the loan is actually growing.

Here are the top 5 reverse mortgage disadvantages:

With a Reverse Mortgage, Your Equity Stops Growing

reverse mortgage means your equity stops growing

The first  disadvantage of a reverse mortgage is that any future growth in the value of your home (or additional equity) will be eaten up by the interest accruing on the loan.

That doesn’t mean the loan will consume your remaining equity.  However, you really won’t benefit from new or additional equity. 

The value of your home grows over time, but so does the balance of the reverse mortgage.

(Note, in the blog labeled why FHA is important I show an example of how the growth in home value is expected to equal the growth in the loan.)

Reverse Mortgages Eliminate Future Borrowing Capabilities

Reverse-mortgage-loans-later

Once a reverse mortgage is recorded on your home it’s impossible to get an additional loan on the property.

For example, let’s assume that you’ve taken 60% of the equity out of your house with a reverse mortgage (leaving 40% still in place).

Now assume that you have an unusual  expense (say for a plumbing repair).

Often, some people will take out a short term home equity line of credit to pay these expenses.

No lender will loan behind a reverse mortgage because of the growing loan balance.

Here’s what this means:

 Once you get a reverse mortgage, you may no longer borrow against your home. It is important to be aware of this and to make sure you will have enough cash or credit available to be able to pay for future problems.

You Can Get Foreclosed With a Reverse Mortgage
Can you get forclosed with a reverse mortgage?

Most people think of foreclosure as an event that occurs when you don’t pay your mortgage.

Foreclosures can happen for other reasons too.

For most people, if your home has no mortgage, you are not obligated to maintain anything other than property taxes.

You can choose not to have homeowner’s insurance.

Nobody can force you to have it.

If your roof starts leaking, you can live in a wet house. (It’s your house….)

If you leave the house for more than a year (say, due to health problems) no one can make you have to sell it…

 …unless you have a reverse mortgage.

Once you get a reverse mortgage, you have new rules to comply with.

Specifically, you have to:

  1. Pay property taxes
  2. Maintain homeowners insurance
  3. Keep the home repaired to FHA standards
  4. You must not leave the house for more than 365 consecutive days

Any of the above not being met can lead to foreclosure.

You May Have Costs To Comply With FHA Requirements
reverse-mortgage-fha-requirements

Consider this:

Many seniors bought a homeowner’s insurance policy on their home 20+ years ago.

Imagine that amount was $25,000.  Now moving forward 30 years, the house is now worth $250,000.

The value grew by 10 times, but the coverage was never increased. This means the insurance premium stayed the same all that time.

Now, the loan will require a new policy for the actual home market value.

Ouch…

This means paying a lot more for insurance.

This one element has caused “sticker shock” for many seniors during the underwriting process.

A similar scenario happens when a FHA mandated repair to the property is a requirement to make the loan.

This can be a real problem for some people. If your home has been poorly maintained, you may have to fix some problems before you can be approved for a reverse mortgage.

The Future Equity Gains That You’ll Give Up.

future-equity-gains

No matter what the amount of the loan or the interest rate the fact is that the money taken now is a loan.

Since there is no payment being made, interest will make the loan grow. That is a direct cost against your future equity.

If the interest rate is low hopefully the equity remaining in the home after taking the loan will remain in place.  If the interest rate is high you could be in danger of giving all of the remaining and future equity to the lender.

Conclusion:

With all of these negative, are reverse mortgages still a good product?

The truth is, a reverse mortgage isn’t the right solution for everybody.

If you are considering a reverse mortgage, you need to work with someone who will have your best interests in mind.

 In fact, while we here at It’s Still Your Home don’t even sell reverse mortgages I write about reverse mortgages as an alternative.

This is because in many cases, you’d be better served with a reverse mortgage than with the products we can offer you.

I’ve worked with the very best professionals in the reverse mortgage business. When someone is better-suited to a reverse mortgage than to our products, we will refer you to someone who will treat you honestly and fairly.

With that in mind, if you’d like to investigate a reverse mortgage, click in the picture below to gain exclusive access to my hand-picked team of seasoned reverse mortgage pros.

Why Own A Fitness Center

So why own a fitness center?

Baby Boomers are going to be here for a while and many of them are still very active. The fitness industry is a stable industry so there is less risk when you look at owning a fitness center vs any other business opportunity or franchise.

Anytime Fitness Centers are

Low costs.

High potential.

Anytime Fitness is recognized as a top-ranked, low cost franchise across all industries.

 

Our Top 5 Income Opportunities… so far

We are celebrating our 26th video by posting a compilation of some of our more popular franchise opportunities chosen by you the viewers.

These are some of the top 5 franchises for Boomers & Seniors.
Cruise Planners
http://bit.ly/boomercruises

Huntington’s Learning Center
http://bit.ly/huntingtonboomer

Pedego Electric Bikes
http://bit.ly/pedigoboomers

Real Wealth Network
http://bit.ly/realwealthforboomers

Empire Flippers
http://bit.ly/boomerempireflippers

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth I thanks for
0:07
joining me on this segment of boomer
0:09
income ideas com we’ve got a special
0:10
segment setup for you today because
0:12
we’ve surpassed the milestone we’ve
0:15
actually completed over 30 episodes now
0:18
and the response from you the viewers
0:21
has been fantastic as a matter of fact
0:23
because of that we’ve decided to list
0:25
our top five episodes which is arrived
0:30
at by participation from you the viewers
0:32
along the way we’ve attempted to make
0:34
sure that we’ve had relevant and
0:36
informative information and shine any of
0:38
the so called snake oil sales people
0:41
that might have something that we
0:43
thought was not a tourist and ins unit
0:46
viewers have responded very positively
0:47
so with that in mind let’s get started
0:49
with the first of the top five to repeat
0:52
the ignition sequence we’ll start at
0:54
eight point nine seconds we’ll be
0:55
looking to lift off at zero
1:01
and the number five spot is a franchise
1:04
company that combines fun travel and
1:06
income it was founded by two women to
1:09
address the travel needs of a growing
1:10
baby boom generation
1:12
it’s called Cruise Planners so let’s
1:14
take a look at number five hey Vicky
1:16
thanks for joining me today thank you
1:18
for having me Danice is exciting well I
1:20
tell you I looked at your your franchise
1:23
site and and watch the videos especially
1:26
the videos of your last annual meeting I
1:29
wanted to buy a franchise just to go
1:30
join the party
1:31
yeah now when we do that final blast
1:37
humming a novel is already here
1:41
super stoked about 2017 with Cruise
1:44
Planners excellent head over the top I
1:47
mean I can’t believe all the new all the
1:48
new things coming out I mean outdid
1:51
yourselves again we do have fun and
1:57
that’s part of I think our culture which
1:58
is working for us now this is a business
2:00
that they actually do from their homes
2:02
right I mean nobody has a storefront
2:04
they don’t have the overhead of that and
2:05
so forth they’re literally doing this
2:07
from their homes we have a couple that
2:09
do have storefronts just because they
2:10
had another business perhaps an
2:11
insurance agency I think if we have one
2:13
and then a couple that just liked having
2:14
a storefront in some smaller towns but
2:18
they don’t need to have a storefront
2:18
absolutely so the overhead really is
2:20
their computer or tablet and a phone and
2:24
phone lines if you talk about doing
2:26
something that you love to do which is
2:28
travel and and make money at the same
2:31
time tell me about that you as a travel
2:35
agent are you getting discounts to
2:36
travel how are they just paying for
2:39
their travel by by being a franchisee
2:41
how is that worse it’s a little bit of
2:43
everything right you can buy your own
2:44
travel obviously and you’re feeding your
2:46
own business for saying you’re you get
2:48
to take off that Commission but
2:50
suppliers do offer discounted travel
2:52
agent rates or industry discounts or you
2:56
can go on familiar ization trips that
2:58
really it’s just a supplier invites you
3:00
on board because perhaps you’ve been
3:02
selling it a lot or you sell a
3:03
competitor and they want to woo you over
3:05
to sell their products so so you’re
3:08
really what you’re saying is that you
3:10
really have to make this kind of a part
3:13
of your culture as opposed to just a job
3:15
you you really have to embrace it and be
3:19
in it and really love it otherwise
3:21
you’re probably not going to do very
3:23
well yeah I would think I think that
3:25
would anything but I’m all of those
3:26
people that work hard and love it so but
3:29
I mean what’s not to love about travel
3:30
again my family comes from insurance and
3:33
accounting and I got out of that yeah I
3:34
got a dodge real quick when I was 18
3:36
years old I love my parents but not in
3:38
the not in the field a number of
3:40
horse-pond is a recent participant also
3:42
gaining a lot of attention because it
3:44
addresses a common theme that we hear
3:45
from a lot of baby boomers namely they
3:48
want something that is
3:49
meaningful and has a lot of purpose but
3:52
also combines income
3:53
nothing is more meaningful than crafting
3:56
the next generation of Americans to
3:58
compete in a global economy and
4:00
Huntington Learning Center does just
4:02
that so let’s take a look at number four
4:04
Huntington Learning Center I was a
4:07
chemical and biomedical engineer my
4:09
background was in English and
4:10
communications and a minor in politics I
4:12
was really really burnt out from my
4:14
corporate job before I became a
4:16
franchisee I was a career educator and I
4:19
wanted to do something that would really
4:21
make me happy when I was in eighth grade
4:23
my math grade started to lower so my
4:26
parents looked in connington to help me
4:28
we were looking for answers we were
4:30
looking for any sort of help that we get
4:32
after I went to Huntington I became an
4:35
honor student and it’s all awesome first
4:37
of all I do take a family because my
4:39
husband and I bought the business as a
4:41
family proven passionate and profitable
4:45
passion passion for the students is a
4:47
successful passion for me and continue
4:50
to make some of the best possible center
4:51
it can be this is really a proven
4:54
process where we’re changing life
4:56
there’s nothing better than that so
5:02
Darlene and Eileen thanks for joining me
5:03
today thanks for having us and you know
5:06
I think we’re going to have a great
5:07
conversation because I’m big fans of
5:09
yours it’s it’s rare to come across an
5:12
opportunity that can find a truly
5:15
meaningful environment with profit and
5:18
that’s exactly what you have at the
5:20
Huntington Learning Center so and you
5:23
know today we are a leader in the
5:25
tutoring and test prep business and that
5:28
business we deal with students from
5:30
kindergarten through grade 12 in basic
5:32
skills reading writing math study skills
5:35
we also deal with exam prep high school
5:40
entrance as well as SAT and a CT and we
5:44
get tremendous results with the students
5:46
that we work with I love your your motto
5:50
proven passionate and profitable again
5:53
tell me a little bit about that
5:54
philosophy I think what we do we’re very
5:58
passionate about it I say to franchisees
6:00
and prospective franchisees that
6:03
that I wouldn’t be doing this if I was
6:06
making a widget I’ll give you an example
6:08
I got an email yesterday from one of the
6:12
centers and it’s the time right now for
6:14
college acceptances and this young man
6:17
got into five of the colleges that he
6:19
applied to he did get a 35 when the apt
6:22
and he got a million dollars worth of
6:27
scholarships darling can you tell us a
6:30
little bit about the aspect of running
6:33
one of these centers or multiple centers
6:35
and then actually we’re going to talk
6:36
about franchisees in a minute
6:38
but kind of give us an overall outline
6:41
of how a center operates can you do that
6:43
for me part of running a business right
6:45
and being that center director is doing
6:48
the marketing you have to market the
6:50
brand people need to know who you are
6:51
you have to be Huntington in your
6:53
community so franchise owners are
6:56
marketing and as part of that is going
6:59
to school and talking to teachers and
7:02
guidance counselor’s in principled
7:03
letting them know the services we offer
7:05
for their students I took a look at a
7:08
video that highlighted Brian Redick one
7:11
of your franchisees and I was really
7:13
impressed with the fact of his
7:15
background and he came from a very
7:18
successful environment and decided to go
7:22
into this operation and this opportunity
7:24
I spent about 10 years working in
7:26
corporate America prior to opening the
7:28
Huntington Learning Center and if you
7:29
follow the system and work hard which is
7:32
the entrepreneurial part of it then you
7:34
can be successful if I had to say three
7:36
words for Huntington Learning Center I
7:37
would say profitability innovation and
7:40
impact you give me a profile of an ideal
7:44
candidate as a potential franchisee the
7:49
first thing that they need to well they
7:52
need to have the passion for this
7:53
business right they don’t need to be an
7:54
educator but they got a they have to
7:56
want to make the difference all of our
7:57
franchisees have what I kind of call the
7:59
do good bones they want to get back ok
8:01
so they want to get back they want to
8:03
make a difference and that is the first
8:05
thing that all of our prospects said Wes
8:06
Cowan down number 3 Pedigo bikes has
8:09
really hit a nerve with baby boomers the
8:11
theme of fun is so much a part of the
8:13
Pedigo experience that they’ve actually
8:15
copyrighted the term hello fun
8:17
let’s take a look at pedigo this boat
8:28
alone you need and out on the highway
8:34
looking for adventure then whatever
8:38
comes our way
8:39
[Music]
8:42
to me Wow
8:48
love
8:50
tell me why
8:52
[Music]
9:00
thanks thanks for joining me today
9:03
my pleasure you know it was it was
9:07
fascinating to actually get in touch
9:09
with you after I read the article in ink
9:12
magazine because as a baby boomer I know
9:16
that we kind of have this wave of
9:19
preferences that we followed throughout
9:21
our lives our 50s and 60s we went to
9:25
pedal power so you know some of us got
9:26
mountain bike some of us got street
9:28
bikes but we all got to know well I’m
9:31
typical a lot of people in our in our
9:33
age group where I get displaced by
9:34
corporate America and in that transition
9:37
period I lived at the beach and I had I
9:40
lived at the top of a hill and I loved
9:42
to ride my bike down at the beach but I
9:44
hated to ride up that hill at the end so
9:46
consequently the bikes did just as you
9:49
say they hung in the garage so then I’d
9:51
heard about electric bikes and I ordered
9:53
one online finally got it to work
9:55
determined that I was and they’ve got me
9:58
up the hill and I said oh my god this
9:59
was a revelation this is unbelievable
10:02
this is a bike with a small motor on it
10:04
that would get me up the hill I studied
10:06
your website and I got a real kick out
10:08
of seeing some of the testimonials from
10:11
your different customers especially
10:14
people like norm and Terri Rahman I
10:17
think it’s wrong yeah yeah Rock maker
10:19
that’s a rock maker yeah
10:26
we’ve always been very active and we
10:31
find certain things that we like to do
10:32
together and we love our petticoat and
10:36
neither one of us have any argument
10:38
about writing our pedigree together it’s
10:41
not a gang it’s a club and there’s quite
10:43
a few O’s and part of this whole social
10:45
thing is we have a lot of friends but
10:48
they also have a lot of friends and I
10:50
noticed that these are not franchisees
10:52
they’re dealers you don’t charge a
10:53
franchise fee tell me a little bit about
10:55
that we discovered that the rules for
10:57
franchise e are different than our
11:00
dealers are in that our dealers are
11:02
entrepreneurs and the franchise ORS and
11:05
the training of the franchisor says that
11:08
you want to get people who will do
11:09
everything you tell them to do right but
11:11
we don’t want to tell them what to do we
11:12
think it’s better that they do it that
11:14
we want to give them guidelines one but
11:15
we want to tell them what to do and the
11:17
main reason we didn’t do it is we didn’t
11:19
want to collect a franchise fee I
11:21
noticed that your your dealers actually
11:23
come from all walks of life I mean
11:24
everything from an ex-police officer to
11:27
an engineer to I know
11:31
one lady actually owned a laundromat or
11:34
something I mean yeah her husband owned
11:36
laundromat exactly I mean I don’t think
11:38
there’s any duplicated we have some
11:40
teachers I think there’s a few teachers
11:42
in the mix tell me a little bit about
11:44
the actual store setup and the the
11:47
capital cost required to actually set up
11:50
one of these stores I know that since
11:51
you don’t charge a franchise fee you do
11:54
have a minimum order of product that is
11:59
purchased and and then also obviously
12:01
the store tell me a little bit about
12:03
that well first of all we don’t have any
12:06
rules I’m like the guy that doesn’t want
12:08
if there’s a rule I’m going to figure
12:09
out how to break it so we don’t have any
12:10
rules we only have guidelines generally
12:12
speaking it cost between somewhere
12:14
between $75,000 $100,000 to open up a
12:17
Pedigo branded store and about half of
12:21
that is typically inventory once once
12:23
you’re up and running you put up a sign
12:26
how how do you drive traffic to that
12:29
especially that new location okay so
12:32
that’s kind of where we have the secret
12:34
sauce we’re very good at our goal is to
12:37
drive traffic
12:38
to the store their job is to get them on
12:40
a bike and get them to go for a ride
12:41
once they go for a ride and the longer
12:43
they take the ride the more likely they
12:44
are to buy the product it’s our policy
12:47
to do whatever it takes to make sure
12:49
that every single pedigo customer is
12:50
delighted with their bike the overall
12:52
experience I love this business because
12:55
all we sell is fun every hour of every
12:58
day somewhere on earth someone is
12:59
falling in love with a pedigo and
13:01
rediscovering a simple joy of riding a
13:03
bicycle and feels pretty good
13:06
number two is them surprise to me
13:08
because Kathy Becky and her team at row
13:11
wealth Network make the activity of
13:14
investing in real estate as easy as
13:16
buying a stock or a bond in fact working
13:18
with Kathy’s group on real estate is
13:21
like working with Warren Buffett on your
13:24
stock portfolio so with that in mind
13:26
let’s take a look at Kathy our purpose
13:32
is to help people create real wealth and
13:34
the way we see real wealth it’s where
13:36
people have the money and also the
13:37
freedom to live a life on their own
13:39
terms we believe the best way to create
13:41
this kind of passive income this ongoing
13:43
cash flow is to invest in assets that
13:46
generate that positive cash flow real
13:48
wealth Network simplifies the process of
13:50
buy-in whole 0 state and buy-and-hold
13:52
means simply owning property that pays
13:54
you monthly positive cash flow you don’t
13:56
have to work forever so hard you happy
13:58
and welcome to the show thank you thanks
14:00
for having me
14:01
can you get this kind of an overview of
14:03
real wealth Network what it was and what
14:06
your purpose is sure well we are 24,000
14:11
actually almost close to 25 thousand
14:13
members now and we are here to help
14:17
people understand market cycle give you
14:19
the education you need to be able to
14:21
succeed without having to spend all the
14:23
money you would hope to invest in real
14:25
estate on education but then once you’ve
14:28
got the education then is actually
14:29
finding the heels so we have team shut
14:33
up and all the best markets in the u.s.
14:35
in those areas we find teams who know
14:37
how to find the deals get them totally
14:39
renovated and rent ready have property
14:41
management in place to make for a what
14:43
we call a real turnkey rental property
14:47
yeah actually I was on your site
14:50
the other day and I saw I was looking at
14:52
Jacksonville and really interests in
14:53
Jacksonville personally yeah and I saw
14:56
that you still have homes that are 1500
15:00
square feet for $100,000 that’s just
15:02
incredible to me do it and then and
15:05
100,000 is a finished house I mean
15:07
that’s already renovated that’s not
15:09
buying a fixer-upper that you’re going
15:11
to go on and put 30 or 40 thousand
15:13
dollars in that’s move-in ready right
15:15
that’s right you got it yeah it’s
15:17
amazing I know you have a thing called
15:19
the Academy can you talk a little bit
15:21
about that yeah you know we’ve been
15:23
giving free education for for 13 years
15:26
tell me about the types of investments
15:29
that you have in other words I know we
15:32
were talking about the single-family
15:34
home in Jacksonville Florida where I’m
15:36
assuming you’d put me in contact with
15:39
you with your network representative
15:40
there and if I wanted to buy that it’s a
15:42
strip transaction and we’d like to start
15:45
people with single-family homes because
15:47
that’s that’s easy to understand
15:49
from there then I mean maybe maybe you
15:52
want to jump right into multifamily but
15:53
I gotta warn you everybody wants to be
15:56
in multifamily but there’s a lot to it
15:58
and there’s a lot of dollars chasing it
15:59
and cap rates are low and prices are
16:01
high and you know as a new investor I’d
16:03
be very careful so I think the key here
16:06
is that you have a variety of different
16:08
programs let’s let’s talk about what I
16:11
call the anatomy of the deal
16:13
what if we were talking about the
16:16
hundred thousand dollar property in
16:18
Jacksonville Florida and I said you know
16:21
I’d really like to do something about
16:24
that I probably want to move forward
16:26
with it what’s the what’s the next step
16:29
what happens you get assigned an
16:32
investment counselor who will walk you
16:34
through the process and kind of figure
16:36
out what you’re trying to achieve where
16:39
you are today what steps you need to
16:41
take to get there and how we can help
16:42
you do that yeah this is boomer income
16:45
ideas and say we’re talking about income
16:47
let’s just to kind of finish up the
16:50
anatomy of this transaction the bottom
16:52
line is what you know what kind of
16:53
income can we make from it so this
16:55
$100,000 property in Jacksonville
16:58
Florida after all expenses taxes
17:00
insurance property management fees
17:03
things like that what what can I expect
17:05
to net it just it depends if you
17:08
financed it or paid cash if you financed
17:10
it you’re always going to get a little
17:11
better return so I’m going to say
17:14
anywhere between eight and twelve
17:15
percent if you pay cash if you finance
17:18
it can be anywhere from twelve to twenty
17:21
five percent again depending on the area
17:23
what type of investor would real estate
17:26
not be the right choice for ya I think
17:29
it’s people who don’t get along with
17:31
people honestly I mean there’s there’s a
17:33
place for you to play in real estate but
17:35
but if you don’t have the ability to
17:40
treat your property managers well and
17:42
you’re ten as well if you just worry a
17:44
lot you’re you know it’s not going to be
17:46
a pleasant experience for you’re better
17:48
off doing like flips where you’re in and
17:50
out you don’t have to if you’re somebody
17:52
just starting out and you have no money
17:56
you’re just starting over maybe that
17:59
doesn’t mean you can’t play it just you
18:02
know come join the network it’s free
18:04
I’ve had people that have been a part of
18:06
our network for maybe seven years and
18:08
they just loved it they were obsessed
18:10
with it but they just weren’t ready to
18:12
do anything and all the sudden they
18:14
would come on into money now for our
18:17
number one in most popular episodes you
18:18
know unless you lived in a cave over the
18:21
last twenty years you know that the
18:23
Internet has transformed the way we live
18:25
today many people make a living offering
18:28
goods and services over the internet and
18:30
those businesses many of them are now
18:32
very established and profitable and for
18:35
sale the best place to find those
18:37
businesses are on Justin cooks Empire
18:40
flippers let’s take a look at number one
18:44
the five-step process for selling your
18:47
business with Empire flippers
18:50
the first step is finding out how much
18:52
your business is worth with our free
18:54
valuation tool the vetting process is
18:57
the second step in our process every
19:00
business that goes live on our
19:02
marketplace is first vetted to make sure
19:04
it is a legitimate business earning real
19:06
revenues if your business passes our
19:09
vetting you will move to our third step
19:12
which is having your business go live on
19:13
our marketplace with your business live
19:16
on our marketplace you will move the
19:19
step for the sales process your business
19:23
is sold this is really move to Step five
19:26
where we migrate your business to the
19:29
new owner this is an important process
19:31
to transferring the asset over to the
19:34
new owner
19:34
hi Justin thanks for joining us today
19:37
hey Dan thanks so much for having me on
19:39
I appreciate it before I get started in
19:41
other questions can you give us kind of
19:42
a little bit of background of Empire
19:44
flippers how you guys got started what
19:47
you do say I’m a partner to company
19:49
called Empire flippers at Empire
19:50
flippers calm and we help others buy
19:52
sell and invest in websites and online
19:55
businesses I saw something about you
19:57
just you’re an Inc I’m sixty we kind of
20:01
came into this world we were we were
20:04
given the the PC when we were in our
20:06
early 20s we were given two VCRs and
20:08
things like that but we didn’t grow up
20:10
with them so yeah you know so when we
20:13
talk about the online world for a lot of
20:16
this that’s like talking about
20:18
a moonshot so let me be just totally
20:20
clear I I wouldn’t say this is for
20:22
everyone so there are some either basic
20:25
skill sets you have to have or you have
20:27
to know how to find the people that have
20:29
those skill sets and so we’ve done
20:31
workshops here we’ve gone back to the US
20:32
and done a few workshops where we kind
20:34
of lay out the process for buying an
20:38
online business like some of the things
20:39
you need to look for and due diligence
20:40
you need to check in the business
20:42
because there are you know an inherent
20:44
risk specific risks for online
20:46
businesses that you wouldn’t have with a
20:47
laundromat for example so one of the
20:49
things that I really love about your
20:50
site is that you give a lot of
20:52
information you click on more
20:54
information about this particular
20:55
listing and even though you won’t give
20:57
the name of the actual business itself
20:59
you’ll show them you’ll show that the
21:01
graphs of the
21:03
the number of impressions or views over
21:05
a period of time the income that was
21:07
generated the gross profit that was
21:09
generated so you can really get a pretty
21:10
good feel and there’s a bunch of
21:12
different online models obviously share
21:14
you a link or give you a link to talk
21:16
about like the 11 different online
21:18
business models okay
21:19
Amazon affiliates one being Amazon FBA
21:21
one being Adsense it really goes into
21:24
depth about each one okay that that’d be
21:27
very helpful because that’s that’s
21:28
exactly what what I’m getting at what
21:31
are the different categories you know
21:33
some seem to be just totally virtual
21:34
what do I do
21:36
what’s the best opportunity for me to do
21:40
that and at what point do you do you
21:43
look at my background on my personality
21:45
and just say Dan this is not the right
21:47
thing for you there are limits right so
21:50
you have to be able to work with
21:52
WordPress and in general here’s what we
21:53
say that you have to you have to
21:55
understand WordPress you restrain
21:56
domains and hosting you have to have at
21:59
least understanding of the general types
22:01
of monetization and I’ll give you that
22:03
link with eleven different types so you
22:05
can you know give you kind of a basic
22:06
understanding so I wish I had better
22:08
news there I actually think no I think
22:10
there’s actually just and that’s exactly
22:13
what we want we don’t want the the sales
22:15
job the fluff and all that stuff we want
22:18
the real story so that you go into it
22:20
knowing what’s going on yeah man it
22:23
sounds great and the other thing I
22:24
mentioned to me JSON obviously Empire
22:26
flippers calm my Twitter account at
22:28
Empire lovers but if you’re considering
22:30
buying we put out a piece of content on
22:33
that I think that’s really helpful your
22:35
other guest ace Chapman and I we have a
22:37
podcast together on web equity show and
22:40
we made season two all about you know
22:42
from knowing nothing all the way through
22:45
negotiating the deal and what to do the
22:47
strategies for building it out after the
22:49
fact so it’s like a ten episode season
22:51
Justin thanks again thanks Dan have fun
22:55
man all right bye bye
22:57
lunch commits liftoff we have liftoff
23:00
with Apollo 14 three minutes past the
23:03
hour
23:06
the tower is play Houston is patrolling
23:11
2016 second stage of all program started
23:14
1422 prophesy to us
23:18
[Music]
23:31
you
23:33
[Music]

Planet Boomerville & Boomer Income Ideas.. Two sides to the same coin

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this is boomer income ideas dot-com
0:03
here’s your host Dan Farnsworth I’m
0:07
walking with this week’s segment of
0:08
boomer income ideas dot-com today we’re
0:11
not going to follow the usual format
0:14
instead of having an interview with
0:16
someone I want to talk about a subject i
0:18
think is a really pretty important
0:21
it’s especially important to me many of
0:23
you who read my blog in the past know
0:25
that I’m a real big proponent of using a
0:27
reverse mortgage to unlock dead equity
0:32
in your home so that you can redeploy
0:34
and do something else with that ability
0:38
is now under attack and the issue is
0:42
whether or not in the near future you’ll
0:45
actually have access to that program or
0:48
not
0:49
ironically in 1988 it was Republican
0:52
president that signed the law
0:53
authorizing FHA to bring the reverse
0:57
mortgage under its umbrella and sponsor
1:00
a government backing of that program
1:03
since then however Republicans in the
1:07
House have been very very adamant about
1:09
trying to do something to eliminate many
1:12
of the FHA programs reverse mortgage
1:15
among them now whether you actually
1:17
think that maybe you want to take
1:20
advantage of reverse mortgage or it’s
1:22
really not that important to you
1:24
that’s really kind of beside the point
1:25
right now the real issue is whether or
1:27
not it will be available to you and now
1:31
that but both the house and the
1:33
legislative the legislative and the
1:35
executive branch are both controlled by
1:38
a single party and i was curious to find
1:42
whether or not there was something that
1:44
kind of pointed to are indicated that
1:46
this program may be under attack and
1:49
actually i found exactly what i was
1:52
looking for on page 4 of the Republican
1:55
platform there is warning that
1:59
specifically talks about this in oneself
2:03
that says we must scale back to federal
2:05
role in the housing market promote
2:08
responsibility on the part of the
2:09
borrowers and lenders and avoid future
2:11
taxpayers
2:12
your bails now that sounds a pretty
2:15
sublime doesn’t it basically says
2:18
everybody needs to be responsible party
2:20
and that in doing so it will limit
2:22
taxpayers responsibility and bailing out
2:25
those that are less responsible but then
2:28
the law that goes on to say the Federal
2:30
Housing Administration which provides
2:32
taxpayer-backed guarantees in the
2:35
mortgage market quote should no longer
2:37
support high-income individuals well
2:40
high-income individuals are the people
2:42
that can afford to pay off their loans
2:44
it’s the low-income individuals that
2:46
have a more difficult time
2:48
so really what this is code its it goes
2:51
on and says and the published not be
2:54
financially exposed by risk taken by FHA
2:57
officials in other words this is code
2:59
for we don’t want to get the high income
3:02
individuals which means that low-income
3:04
individuals are already blocked so we
3:06
want to pretty much eliminate the
3:08
program now that in itself may or may
3:13
not be a problem for you but it is a
3:15
problem for me because I like to have
3:19
the option the opportunity to utilize
3:22
this vital program to unlock equity debt
3:26
equity in my principal residence if I
3:29
wish to and redeploy that in other areas
3:31
were i can draw income from now how do
3:36
you protect yourself against that well
3:37
here’s the deal
3:38
the reverse mortgage is currently a
3:40
program offered under FHA what you
3:43
qualify for that program it can’t be
3:46
taken away from you
3:47
so even if you don’t need the money
3:49
right now it might be a very good idea
3:50
to actually take out a line of credit
3:53
not use the money but simply have a line
3:56
of credit in place very much like a
3:58
HELOC that is they’re available to you
4:01
in the future should you decide to draw
4:03
the dealer’s once you actually take out
4:05
that line of credit
4:07
it’s there it’s locked in they can’t
4:09
take it away from you so even if they
4:11
eliminate the program in the future you
4:13
have your line of credit available to
4:16
you and incidentally one of the features
4:19
of the line of credit is that it grows
4:21
as you age and as the value of your
4:24
property increase
4:26
so you may take out a line of credit
4:28
right now that it gives you the ability
4:31
to access up to a hundred and thirty
4:33
thousand dollars for instance and in
4:36
five years that may grow to a hundred
4:37
and ninety thousand dollars without you
4:41
doing anything you don’t have to read
4:42
apply you don’t have to re-qualify
4:45
nothing takes place other than you
4:48
simply say okay I’m ready to start
4:49
drawing against this line now so the
4:51
main idea is whether or not you decide
4:53
that this is something that you want or
4:56
not for the future
4:58
why not protect yourself at least to
5:00
have the option of taking out this
5:03
reverse mortgage line of credit so that
5:06
it’s they’re available to shoot you
5:08
decide and should you choose to utilize
5:11
that benefit
5:13
thanks for watching and thanks again for
5:16
watching this segment I hope that it was
5:17
informative and helpful sure is
5:19
concerned about this as I am by the way
5:22
if you’d like to talk with the counselor
5:23
about your opportunity to take out a
5:26
reverse mortgage line of credit
5:28
I just go to our website fill out one of
5:30
the forms that allows us to contact you
5:33
will get you in touch with one of the
5:36
reps around the country that we network
5:38
with and we can get you information that
5:41
we think that you’ll find very
5:42
informative so thanks again we’ll see
5:44
you next week

 

Why Choose Huntingtons

BUSINESS MODEL

Join an industry leader for just over $100,000.

Benefit from 40 years of proven experience from the tutoring industry pioneer

Huntington Learning Center was founded in 1977 and began franchising in 1985. Today we operate nearly 300 centers in 39 states from coast to coast. We are recognized as a pioneer and leader in the franchise tutoring industry, providing quality instruction to tens of thousands of students through our national network of franchised and company-owned tutoring centers.

The founders, Dr. Raymond and Mrs. Eileen Huntington are still actively involved in the business, and our mission remains the same as in the year it started: “To Give Every Student The Best Education Possible.”

We take great pride in our reputation for quality tutoring, and in the trust and respect we have gained from parents and educators alike. We are “Your Tutoring Solution” for students in all grades and subjects.

Our tutoring services cover a wide range of academic levels:

Reading, Writing, Study Skills, Math, Phonics, Spelling, Vocabulary, and more for students in grades K-12.
Pre-algebra, Algebra, Geometry, Trigonometry, Pre-calculus, Calculus, Earth Science, Biology, Chemistry, Physics, and more for students in middle school through college.
SAT, ACT, PSAT/NMSQT, AP Exams, High School entrance exams, State Tests, SSAT, ISEE, COOP, GED, ASVAB, and more.

As a Huntington franchisee, you will inherit our reputation for excellence, and be recognized in your community as an industry pioneer and a premier brand of tutoring services.

 

A meaningful career opportunity and a great source of income

Notes Section

The need for professional tutoring services continues to grow.
The tutoring industry shows no signs of slowing down. As the sheer number of students continues to grow, so too does the number of concerned parents seeking tutoring for their children. According to the National Center for Education Statistics, today the U.S. has a total of 55 million students in public and private elementary and secondary schools, and the total number of students is projected to reach over 57 million by 2018.
In this interview we talk with Huntington Learning Center to see how Boomers & Seniors can obtain a meaningful career opportunity and a great source of income

Caring Transitions Website
http://bit.ly/huntingtonboomer

Facebook Page
https://www.facebook.com/boomerincomeideas

Transcript

:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth I’m welcome to
0:07
this segment of boomer income ideas calm
0:09
you know if you’ve been looking for
0:10
something that will combine truly
0:12
meaningful Civic contribution with
0:15
profit this might just be for you today
0:18
we’re going to be talking with Eileen
0:19
Huntington the CEO and co-founder of
0:23
Huntington Learning Center along with
0:25
Darlene during her vice-president
0:27
themselves and I think you’re going to
0:29
want to stay tuned for this I was a
0:34
chemical and biomedical engineer my
0:36
background was in English and
0:38
communications and a minor in politics I
0:39
was really really burnt out from my
0:41
corporate job before I became a
0:43
franchisee I was a career educator and I
0:47
wanted to be something that would really
0:48
make me happy when I was in eighth grade
0:50
my math grade started to lower so my
0:53
parents looked in Huntington to help me
0:55
we were looking for answers we were
0:57
looking for any sort of help that we can
0:59
get after I went to Huntington I became
1:02
an honor student and itself off first of
1:05
all I do think of family because my
1:06
husband and I bought the business as a
1:09
family proven passionate and profitable
1:12
passion passion for students accessible
1:15
passion for me to continue to make the
1:17
service
1:18
possible center it can be this is really
1:20
a proven process or we’re changing life
1:23
there’s nothing better than that
1:28
so Darlene and Eileen thanks for joining
1:30
me today thanks for having us and you
1:33
know I think we’re going to have a great
1:34
conversation because I’m big fans of
1:36
yours it’s it’s rare to come across an
1:39
opportunity that can find a truly
1:42
meaningful environment with profit and
1:45
that’s exactly what you have at the
1:47
Huntington Learning Center so thanks for
1:49
joining me and Eileen let’s start off
1:51
with you I know that you started you
1:54
co-founded this this company in 1977 and
1:57
give us a little bit of philosophy about
2:00
how you went about doing that or why you
2:03
went about doing that well in looking at
2:06
why we started I was working on the high
2:08
school level master’s degree 30 credits
2:11
on tenure rein was working in business
2:15
research and we decided to take our
2:17
future into our own hands so we said
2:20
well what would we be good at and I
2:22
really still have students that I was
2:24
working with you know we’re struggling
2:26
in study skills and reading and said we
2:30
maybe maybe we should do a learning fair
2:33
because that there’s none around so we
2:37
opened the the first Center Huntington
2:39
Learning Center back in 1977 so it’s a
2:43
40th anniversary so it’s really pretty
2:44
exciting
2:45
that all of a sudden it’s 40 years where
2:48
the years ago is unbelievable and you
2:51
know today we are a leader in the
2:54
tutoring and test prep business and that
2:57
business we deal with students from
2:58
kindergarten through grade 12 in basic
3:01
skills reading writing math study skills
3:04
we also deal with exam prep high school
3:08
entrance as well as SAT and a CT and we
3:13
get tremendous results with the students
3:15
that we work with excellent
3:18
Eileen didn’t you just win an award for
3:20
being in the top 25 entrepreneurial
3:23
women career and I think your daughter
3:25
Ann just won an award is that right
3:28
yeah she does she’s not for an award
3:30
also so it’s very is
3:32
you know it’s very exciting to see the
3:33
you know the awards we’re getting in the
3:36
recognition we’re getting out in the
3:37
marketplace I mean we were number six
3:40
six Erie on in the franchise five
3:43
hundred so we were really really excited
3:46
about that to see how we make a
3:50
difference in in in franchisees life and
3:53
Aaron sighs it’s a win-win parole
3:56
excellent Eileen Ally Lee Huntington and
4:03
started Huntington Learning Center well
4:10
we have centers throughout communities
4:12
and wall of our all of our centers are
4:14
involved directly in the community with
4:15
local schools and local community
4:17
organizations we donate scholarships to
4:20
the local schools we’re involved in
4:23
those organizations where we participate
4:25
in those organizations it’s really part
4:26
of the culture of Huntington Learning
4:28
Center is part of a culture of the
4:30
franchise organization to really be
4:32
involved in that community you know
4:38
we’re going to talk a little bit about
4:39
the business aspect of it but I want to
4:41
talk a little bit more about the
4:42
philosophy and I’ve got a personal story
4:44
that I’m going to share with you in a
4:46
couple of minutes but I love your your
4:48
motto proven passionate and profitable
4:51
again tell me a little bit about that
4:53
philosophy because you’ve been able to
4:55
kind of merge this idea of having
4:57
something that’s really meaningful and
4:58
when I say that when you’re when you’re
5:01
developing young minds to take them to
5:03
their fullest potential so that they can
5:05
actually compete in the future in a
5:07
global environment I think that’s just
5:10
as important as a strong military as far
5:12
as what we’re going to be needing in the
5:15
future for our future leaders in our
5:17
future generation so you’re you girls
5:20
are at the at the forefront of that and
5:22
I really respect that I couldn’t agree
5:25
with you more I think what we do we’re
5:28
very passionate about it I say to
5:30
franchisees and prospective franchisees
5:33
that I wouldn’t be doing this if I was
5:37
making a widget to see the the results
5:41
we get with students is unbelievable Dan
5:44
I’ll give you an example
5:45
I got an email yesterday from one of the
5:48
Centers and it’s the time right now for
5:51
college acceptances and this young man
5:54
got into five of the colleges that he
5:56
applied to he did get a 35 on the a CT
5:59
and he got a million dollars worth of
6:04
scholarships why his school gave him a
6:08
free ride well when you see that
6:12
happening you you just say look at the
6:15
difference we’re making in the child’s
6:17
life and in the family’s life and we get
6:20
hundreds of millions of dollars of
6:22
scholarships for kids each year on our
6:24
exam prep programs the results that we
6:27
get there are average essays SAT is over
6:31
200 points increase and our AC T is a
6:34
four point increase that’s average and
6:37
we’re to do a whole lot better than that
6:40
but that’s changing a child’s life a
6:42
family’s life and as you said it’s even
6:45
changing the nation’s life well I I can
6:47
attest then I’ll tell you a little bit
6:49
about my personal story I have two sons
6:51
one of them about the second grade had a
6:54
difficult time with both reading and
6:57
math and so we took him to a learning
7:01
center and that changed everything and
7:04
that young boy is now 40 incidentally he
7:08
has a very successful career as an
7:11
airline pilot captain with a major
7:13
airline and had it not been for that
7:16
chain you know in second grade rather
7:19
than announcing this is your captain
7:21
speaking he’d probably be saying would
7:23
you like fries with that meal I totally
7:26
get it
7:26
yeah that’s that to me is how important
7:29
this is we also feed in I gave an
7:31
example on the exam front side but to
7:33
your point second grade is critical if
7:37
you don’t solve the problem in second
7:39
grade when they’re learning to read and
7:41
giving them a good foundation life can
7:44
be really miserable for them in school
7:46
and in careers well I think let’s let’s
7:49
now talk about the business aspect of
7:51
this because this is really what we are
7:53
we’re a business show where we’re
7:55
dealing with spotlighting opportunity
7:59
for baby boomers people who are 50 to 70
8:01
we really want to make a change in their
8:04
career but also want to make a change in
8:06
how they impact people’s lives going
8:09
forward that’s really one of the number
8:10
one things that we come across with baby
8:13
boomers these days they typically don’t
8:15
just want a job anymore they’ve had that
8:17
for the last 40 years now they want
8:19
something that they can really sink
8:23
their teeth into enjoy doing and also
8:26
actually make money in it so darling can
8:29
you tell us a little bit about the
8:30
aspect of running one of these centers
8:34
or multiple centers and then actually
8:35
we’re going to talk about franchisees in
8:36
a minute but kind of give us an overall
8:39
outline of how a center operates can you
8:42
do that for me
8:43
sure so on a daily basis and the beauty
8:47
of this business is that we’re making a
8:49
difference in our franchisees see the
8:50
difference they’re making every day as
8:51
Eileen talked about but part of running
8:54
a business right and being that center
8:56
director is doing the marketing you have
8:59
to market the brand people need to know
9:00
who you are you have to be Huntington in
9:03
your community so franchise owners are
9:05
marketing and any part of that is going
9:08
to school and talking to teachers and
9:12
guidance counselors and principals
9:13
letting them know the services we offer
9:15
for their students it’s also about being
9:18
a business owner in your community in
9:20
part of the Chamber of Commerce I’m
9:22
working with other business owners in
9:24
your in your community it’s going to
9:27
local community events so you’re meeting
9:30
parents and students out where they are
9:32
and part of the daily routine is I’m
9:35
meeting with my staff on preparing for
9:37
the time the students are going to come
9:39
into the center making sure that the
9:41
students are making the progress in
9:42
their programs and I have to be coaching
9:45
we have a coaching team here and again
9:47
that helps our franchisees to prepare
9:49
for those complexes with mom and dad
9:51
because as a business owner and the
9:53
center director it’s my job to sit down
9:56
with mom and dad and talk about the
9:58
program that’s in this custom design for
10:01
their student and to enroll them in the
10:02
program so we do have to sell a program
10:05
to mom and dad so with that in mind you
10:10
mentioned going out and doing these
10:13
community
10:13
the events and so forth how do you
10:16
actually attract your students I mean
10:19
what I know it’s a number of things and
10:23
it’s probably very comprehensive but
10:25
what one of the number one ways that you
10:28
actually get the phone ringing or you
10:29
get people coming through the door
10:31
saying I need to use your services sure
10:34
it’s really a surround sound approach to
10:35
our harkening and the marketing plan is
10:38
something that the franchisee just has
10:39
to actually follow the planner to
10:41
implement it I’m going to say it’s from
10:43
broadcast banned from TV commercials
10:46
that are ready to direct mail that were
10:49
mailing out as very specific targeted
10:51
time like the time when a child is going
10:53
to take an SAT or a CT we know and make
10:56
the recommendation of watched emails we
10:58
know when report cards are coming home
11:00
we know when to attract them put things
11:02
in parent’s mailboxes it’s also again
11:05
personal face-to-face meetings with
11:07
parents and students out in the
11:09
community and events and if teacher
11:11
resolve we get a lot of referrals from
11:14
the school on whether it be the teachers
11:16
the guidance counselor’s and it’s a big
11:19
referral business so then once um once
11:21
you’ve gotten great results with your
11:23
student you’re going to tell other
11:24
people we have a big referral business
11:26
here at Huntington on and a lot of
11:28
repeat business
11:29
so families they come to us just like
11:31
you went to a center with your son who’s
11:34
in second grade kids who come to us the
11:36
second third and fourth they come back
11:38
to us when their students may be needing
11:40
help in algebra or geometry and then
11:42
they come back to us again when the
11:44
student needs to prep for the SAT or the
11:46
ACP right so Eileen when you started
11:49
this four years some years ago is this
11:52
what you expected I mean did you expect
11:54
it to grow into this large institution
11:56
or did you think that you’re basically
11:59
going to be opening up one shop and
12:01
helping local people I mean is is this
12:04
what you plan for or did it just happen
12:06
it’s not what we planned for
12:08
we opened London Life Center on and when
12:12
we open we open the center is back in
12:14
1977 we we did not expect the response
12:20
we got from parents at the time I didn’t
12:23
resign from my position because I didn’t
12:25
know if it’s going to work
12:26
not going to work and I will tell you
12:29
Dan by August we knew that that I could
12:32
resign from my position and today we
12:35
have 300 locations in 39 states and no
12:39
that was that was not the plan
12:41
and when you look at it from a business
12:43
point of view we are the number one
12:45
revenue producing tutoring franchise
12:48
today earning 63% more than our closest
12:52
competitor that’s amazing what do you
12:54
attribute that to
12:55
I entreat needed to result Darlene I’m
12:58
speaking of franchise years I took a
13:02
look at a video that highlighted Brian
13:04
Redick one of your franchisees and I was
13:07
really impressed with the fact of his
13:09
background and he came from a very
13:12
successful environment and decided to go
13:15
in this operation and this opportunity
13:18
can you talk a little bit about that
13:20
sure I mean our franchisees come from
13:22
really a wide pasteurizer background but
13:26
we do see a lot of folks who are coming
13:28
out of corporate America they’ve been
13:29
very successful in their previous life
13:31
um we do have educators who come to us
13:34
and we need to sometimes teach them the
13:36
business side of this of being a
13:38
franchisee they come with that passion
13:41
for education and for folks who are not
13:44
coming from the education background and
13:46
the majority of our franchisees don’t
13:48
come from that education my friend we
13:50
teach that so we give them all the all
13:52
they need to know in the education side
13:54
our programs are that strong that we
13:57
don’t need that education defensive line
13:59
is very typical of our franchisees he is
14:02
one of our multi unit operators here in
14:04
our system and I’m going to say this
14:06
about 25% of our system that are multi
14:08
no operators today I spent about 10
14:13
years working in corporate America prior
14:15
to opening onyx and Learning Center and
14:17
if you follow the system and work hard
14:20
which is the entrepreneurial part of it
14:21
then you can be successful if I had to
14:24
say three words for hunting
14:25
Center I would say profitability
14:26
innovation an impact I also notice that
14:39
Manhattan is your number one operator
14:42
they do about two million a year and
14:44
that didn’t surprise me at all because
14:46
obviously Manhattan is full of people
14:50
who are very prosperous and they want
14:53
their children to be very prosperous and
14:55
so they know that they need these types
14:58
of support services to get to that level
15:00
and that’s really I think one of the
15:02
biggest things that I want to get across
15:03
on this I personally think that anybody
15:05
who’s sending a child to public school
15:08
system and isn’t getting this kind of
15:10
supplemental education along with that
15:13
is doing their child a disservice
15:15
because it’s really really necessary
15:18
especially with large classrooms and
15:20
things like that these days but then
15:22
going back to even the comment about
15:24
Manhattan you know we see very very
15:28
successful centers and they could be in
15:32
a southern state they can be in New York
15:34
they can be in Texas they can be in
15:36
California the location itself doesn’t
15:39
really make a difference it’s about the
15:42
operator and it’s about them getting out
15:44
in that community getting the word out
15:46
and marketing so it’s not necessarily
15:49
demographic base for us on that New York
15:52
have a higher you know family income
15:53
then Nashville or Alabama Birmingham
15:57
Alabama it doesn’t matter about the
15:59
operator we see that on every community
16:03
has parents who are very concerned about
16:05
their children and they are willing to
16:08
make sure that child gets what they need
16:11
to be successful yep so can you give me
16:16
a profile of an ideal candidate as a
16:21
potential franchisee the first thing
16:25
that they need to well they need to have
16:28
the passion for this business right they
16:29
don’t need to be an educator but they
16:30
gotta they have to want to make the
16:32
difference all of our franchisees have
16:33
all I kind of call the do good bones
16:35
they want to get back okay so they want
16:38
to give that they’ve won
16:39
maybe differences that is the first
16:40
thing that all of our prospects Cyclops
16:41
and that’s for a single franchisee say
16:43
they love the business um then we look
16:47
at folks who have degrees all of our
16:49
franchisees are educated folks they all
16:51
have at least a bachelor’s degree or
16:52
higher they’ve been successful in the
16:54
prior life in fact we have many
16:57
franchisees I think this is a family
16:58
unit and we see very quite often we see
17:02
a parent-child relationship coming in
17:04
and doing this franchise together or we
17:07
see deep tear into it as a business and
17:10
then their children come into the
17:11
business after their children have grown
17:13
so we just see that we really are a
17:16
family friendly business or and its
17:20
really nice to see franchisees passing
17:23
it to the next generation and we’re very
17:25
very excited here on the same the same
17:28
way and this year we were recognized as
17:31
the top franchise for women by the
17:32
franchise Business Review so our
17:34
demographic of our franchisees has
17:36
changed 30 years to where we have a lot
17:38
more women running our centers and being
17:40
a risk business as well now you over the
17:43
years have encountered a lot of
17:46
franchise personalities we just talked
17:48
about the ideal candidate tell me who’s
17:51
not a good candidate give me a profile
17:53
of someone who would not really be a
17:55
good fit for this business first of all
17:58
I think in being a good fit to this
18:00
business and this is any franchise
18:02
organization at all you really have to
18:05
follow a system if you are the type of
18:06
person you can follow assistance don’t
18:09
do franchising right can’t be a maverick
18:11
and say you know I know more I’m going
18:13
to go do this I’m going to go do that
18:14
know if you follow the system it works
18:18
and that’s that’s the biggest thing you
18:21
know I say to franchisees who are
18:23
considering our business the cookie
18:26
cutter is there we know what works we
18:29
know what works in curriculum so even an
18:32
educator who comes in you need to follow
18:34
our system don’t stay I think this piece
18:36
of curriculum would be great we have an
18:38
education development department that
18:40
evaluates the curriculum that we use so
18:43
we can get the results that we want with
18:45
children that’s that’s the key thing is
18:48
getting results so following the system
18:51
really is important
18:52
the other thing is this is an
18:54
owner/operator for the first year you
18:57
really have to learn this business if
18:58
you’re thinking of taking this business
19:01
and saying I just want an investment I
19:02
want to be passable in it
19:04
we don’t want you we don’t want you we
19:07
want people who are going to work at
19:09
this learn it that’s not to say that
19:12
after you get the business running and
19:14
you put staff in the air that you’re
19:17
working as hard as you work um that’s
19:20
not the case because we have franchisees
19:22
as Charlie mentioned this week we met
19:24
with franchisees here at Horry Dell and
19:26
the people we met with you know a lot of
19:29
them I’m working I’m going to say 15 20
19:32
hours a week on and they’re able to do
19:35
that because they have trained staff who
19:37
they manage but this is not you know let
19:41
me just have a pass today sure now these
19:44
this is the final questions that I
19:46
always like to ask because it gives you
19:48
an opportunity to really kind of focus
19:50
in on the pros and the cons okay can you
19:53
ladies give me three pros of actually
19:56
operating a Huntington Learning Center
19:58
and three cons that someone might want
20:00
to consider before they move forward
20:03
with this I think I think when we look
20:06
at new and cons when are they wanted
20:09
let’s look at pros one of the pros okay
20:12
and looking at this is first of all it’s
20:13
a great industry okay it’s a fabulous
20:16
industry there’s a great need for
20:18
tutoring that we just talked about it’s
20:21
a four point three billion dollar
20:22
industry also its financially and
20:25
personally rewarding for franchisees
20:28
franchisees will say to us okay this is
20:30
the best decision I made I think about
20:33
what I do I’m making money at what I’m
20:36
doing um and another pro would be we’ve
20:39
been doing it for 40 years we know what
20:41
we’re doing okay but exclude us a
20:44
seasons management team it’s a
20:45
family-owned business we put the
20:48
students first and when you put the
20:51
students first everything falls into
20:53
place and that’s the key thing because
20:56
you need to get results with the kids
20:58
you have in our program gets results so
21:01
that’s what I would say is is let’s say
21:02
3 3 3 crushed and I would ask that last
21:05
one
21:06
is that we operate 35 company units or
21:09
here in the metro area so it’s not that
21:11
we ran it in the past you want it every
21:14
day with the same sisters the same
21:16
procedures that are franchisees use so
21:18
we’re in their shoes every single day so
21:21
I guess that can be summed up with your
21:22
model of proven passionate and
21:24
profitable I mean those are the three
21:25
EPs so that’s very good
21:27
how about a couple of cons you don’t
21:29
have to do three just I just got a
21:34
balances out okay I think we mentioned
21:38
this I think franchising is not for
21:40
everyone you have to be able to follow a
21:41
system some people just can’t do that
21:44
and we’ve seen that um where you know
21:48
they come in and franchisees won’t want
21:50
to change things we get results and we
21:54
see that with our folks so I would say
21:56
that would would be one of the areas on
21:59
and you need to be a fit um you know a
22:03
business percentage is you mentioned one
22:05
of our franchisees Brian Riddick
22:07
a business person can come in here and
22:10
learn the education part of it um you
22:13
don’t know you don’t need to know how do
22:16
I design a program for a child you’ve
22:17
already done that
22:18
orgy we evaluate a child and we know the
22:22
results we come down a computer this is
22:25
how you design the program so we know
22:27
we’re going to get results on an
22:29
educator who’s coming in needs to it
22:31
needs to know the business type these
22:33
men and just saying I just want to be an
22:35
educator and not understand that this is
22:37
a business well ladies I think this has
22:39
been a great conversation as I mentioned
22:41
to you a big fan of yours and we’re
22:43
going to be putting your information in
22:45
our notes section so that our viewers
22:47
can contact you directly and I hope that
22:49
we’re sending you quite a few as a
22:51
matter of fact and I just want to thank
22:52
you again for being on the show thank
22:55
you
22:56
thanks for having us
22:57
[Music]
23:08
you
23:09
[Music]

How to prepare & handle a career transition emergency. (Think like a Pilot)

Notes Section

In the video I use real-life example of how I dealt with a career crisis. I enjoy using metaphors when teaching, and in this video, I use the example of a Pilot losing its engines and making quick decisions in order to safely land.

Transcript

:00
[Music]
0:16
right now
0:23
[Music]
0:26
hi and thanks for joining me today this
0:29
segment is titled common manage an
0:31
unexpected career transition and
0:33
planning helps to illuminate fear I like
0:36
to use metaphors in commenting on a
0:39
topic and an airplane that loses its
0:41
engines before reaching its destination
0:42
it’s a very good metaphor for a baby
0:45
boomer living a long-held career before
0:47
being ready to retire comfortably I can
0:50
honestly say I resemble that scenario
0:52
you see for a number of years I had a
0:54
very successful business that kicked off
0:56
a lot of cash flow and I could imagine
0:58
the day I would retire and just collect
1:00
checks and take him to the back in the
1:02
mean time I was so bored out of my mind
1:04
and I remember thinking the best thing
1:06
that could happen to me is to lose my
1:08
automatic base because it would force me
1:10
to take action and that actually would
1:12
be in a different direction well the
1:14
phrase be careful what you wish for
1:16
because it just might happen is exactly
1:19
what happened within a very short span
1:20
of time my business crashed and like a
1:23
pilot experiencing engine trouble I went
1:25
into automatic mode staying with the
1:27
metaphor of handling of flying emergency
1:30
let’s relate that process to managing a
1:32
career event there are four main steps
1:34
to take let’s look at each in both
1:36
scenarios number one as soon as the
1:39
emergency is identified trim the plan to
1:41
maximize the glide so it can travel the
1:43
farthest distance without power
1:45
translation cut all unnecessary expenses
1:48
and limit the cash burn to as little as
1:51
possible many people make the mistake of
1:53
trying to maintain the current lifestyle
1:55
and assume that the emergency is going
1:57
to be temporary that can be catastrophic
1:59
number two look for the closest safe
2:02
landing spot translation look for the
2:04
next thing you’d like to do and point
2:06
yourself in that direction you can use
2:08
boomerang Cal ideas calm as a great
2:10
resource to help identify that direction
2:21
like what’s going on with you dad that
2:24
makes you think that you wanted to
2:26
something different EHR me that well
2:28
actually I’ve already done I’ve already
2:30
started that I’ve made that transition
2:31
into doing exactly this what I’m doing
2:34
now for years I was in a sales industry
2:38
and my last business that I was actively
2:42
involved in was a advertising type of
2:46
business we did a lot of lead generation
2:47
and things like that
2:49
it was very financially rewarding for
2:52
quite a while
2:53
I never really liked it I was actually
2:55
kind of hated it tell me can you show me
2:58
the pieces of it they do light and the
3:00
pieces that you didn’t like sure I loved
3:03
the presentations I loved actually
3:06
getting on whether it was onstage in
3:08
front of one person or it was onstage in
3:10
front of a group so if you couldn’t talk
3:14
about it in sales Jones what was it
3:16
about making the presentation doing on
3:18
stage and getting that outcome what
3:21
might you in what other area of your
3:24
life might you get those rewards or
3:26
those feelings or that sense of
3:28
accomplishment that has been nothing to
3:30
do selves in any aspect of your life
3:32
being a teacher number three
3:34
break out the emergency equipment and
3:36
rations to survive on translation
3:38
liquefy equities and turn them into cash
3:40
with the plan of how long that cash to
3:42
last again you can use boomer income
3:45
ideas calm as a resource to identify
3:47
method to liquefy that cash we did a
3:59
food truck was a hamburger truck and we
4:03
financed the truck and it came back a
4:05
little over a year later to finance a
4:07
second truck and in this case he was
4:09
making revenues of about twenty five
4:12
thousand dollars a month his costs were
4:17
coming in at about $8,000 a month and so
4:21
he’s taking home $16,000 a month profit
4:25
that he and his wife were living on
4:28
running just basically a mom-and-pop
4:30
hamburger truck number for once down on
4:33
the ground immediately
4:34
get busy working on the Survival Plan
4:36
translation don’t hesitate move forward
4:39
with the plan immediately and stay on
4:41
target and on budget
4:42
procrastination cost time and time is
4:45
money in my case my planning may declare
4:48
that I would need about two years
4:49
without an income
4:50
additionally the project would require
4:53
an investment of capital fortunately I
4:55
had plenty of equity in my real estate
4:57
including my California home that I
4:58
could liberate which would provide the
5:00
means to achieve my goals and that’s
5:02
exactly what I did
5:03
selling my home in California moving to
5:06
Florida reducing my California living
5:08
expenses to Florida living expenses and
5:11
redeploying my equity into redirecting
5:14
my life has been the best thing that
5:15
I’ve done for me the answer was selling
5:18
my house in California if I had been
5:20
over 62 the answer might have been a
5:22
reverse mortgage
5:23
either way the repite unlocking the door
5:25
to my opportunity was the liberation of
5:27
my equities now what’s your plan I hope
5:30
this was helpful we’ll see you next week
5:59
[Music]
6:12
you
6:14
[Music]

Reverse Mortgage vs. HELOC: Which is Better?

REVERSE MORTGAGE VS. HELOC: WHICH IS BETTER?

HECM-Reverse Mortgages and Home Equity Lines of Credit (HELOCs) are both liens against your home.

When I did reverse mortgages I can’t tell you how many times I spoke to a homeowner who told me that “their home was free and clear.” Then I’d find out that there was a $50,000 HELOC lien on it.

When asked to explain why that wasn’t disclosed the answer was usually, “I thought it was like a credit card and didn’t count against my home’s equity.”

That reduction in equity usually eliminated their ability to qualify for a reverse mortgage.

Your Friends May Have No Idea What They’re Talking About

(Even professionals like lawyers and accountants…)

 

Here’s an example:

One time a lawyer called me.

He was calling on behalf of a friend in a tight spot. He made it clear that he was not representing this friend as his attorney.

I thought that was strange…

I mean…

What difference did it make?

I finally beat the truth out of him.

Two years prior he told his friend to do a HELOC instead of a reverse mortgage.

 

That HELOC had a monthly payment. The payment was manageable at first.

However, most HELOCs have variable interest rates. That means the payment can go up.

The payment had risen in this case and was now gobbling up a large chunk of the friend’s budget.

It was so bad that the friend was now close to losing his home.

The attorney was frantic –  the action taken was on his advice so he felt deeply responsible.

There was enough equity left (luckily) that we were able to take out the HELOC with the proceeds from a reverse mortgage and eliminate the payments.

Our homeowner still lives in that home today. 

When is a HELOC better than a Reverse Mortgage Line of credit?

In total fairness…

I really don’t like HELOC’s because I think they’re dangerous.

Before I get to that however, let me first give you a list of reasons that one informative website lists for doing a HELOC rather than opting for a reverse mortgage.

Here’s the list:

  • For shorter term loans of less than 5 years, HELOCs are more simple with lower associated costs and faster turnaround times. Reverse mortgages have higher closing costs. Costs with a HELOC are low upfront and accumulate over the life of the loan.
  • As assurance against unforeseen emergencies.  While reverse mortgages can be taken as a line of credit, HELOCs are significantly less expensive to do so.
  • If the future is uncertain and the senior has possible large life changes within a few years, HELOCs can offer greater flexibility than a reverse mortgage.
  • With mixed age couples; to prevent a reverse mortgage from coming due when one spouse passes away, couples will include both partners as borrowers. This means that both borrowers must be older than 62. Married couples that have large age differences might be in a situation where one spouse is old enough and the other is not. A HELOC may provide a short term solution until the younger of the spouses reaches the age of 62.
  • The amount of money a senior can borrow in a reverse mortgage is calculated on many factors including the age of the youngest borrower. For borrowers near the minimum age of 62 or for couples with large age differences, the amount that can be borrowed may be too low due to younger age of one spouse. Therefore HELOCs may provide additional borrowing power to a couple.
  • For some tax reasons with a HELOC, monthly interest payments are tax deductible in the year they are paid. With a reverse mortgage interest is not paid until the house is sold or the owner passes away. For some seniors, usually those with higher incomes, it may be better financially to have the loan’s interest payments deducted annually.

Now, let’s look at the other side…

Bad things happen

– Remember the crash of 2008?

…or 2000?

…or 1989?

…or 1978?

… or (well, you get the idea, right?)

If you’re old enough to get a reverse mortgage, you’re old enough to know the economy seems to tank once every 10 years or so.

The truth is, most of the worst losses come from investors who don’t have the staying power (liquid funds) to last through the turnaround.

Now, imagine how things would change if those investors had a reserve line of credit so they wouldn’t have to sell at a loss.

I know what you’re thinking…

Isn’t that what a HELOC is for?

Well…

Back in 2008, many banks froze or revoked homeowner’s credit lines. Ironically, that was when they needed them the most.

Now… that wouldn’t happen with a reverse mortgage, because once the line of credit is granted it is guaranteed by the government.

A Reverse Mortgage Line of Credit Has No Payments

Now, considering 2008 again, consider being one of the “lucky ones.”

That means your HELOC stayed in place during the downturn.

It also means that drawing against that credit results in higher monthly payments.

Those payments would be against a house that is likely underwater.

Wouldn’t it be better to have a reverse mortgage line of credit (with no payments?)

 

Remember:

If you don’t pay off the HELOC or can no longer afford the monthly payments your home can be foreclosed.

Here’s the truth:

Most people use a line of credit to cover surprises. We also expect to pay it off relatively quickly.

That’s also the reason most people have credit cards.

A funny thing though…

A huge percentage of Americans end up carrying a balance on their credit cards.

If that’s sounds like you, you can probably also expect to be carrying a balance on a home equity line.

Did you know that most HELOC’s have a time limit? After that they become “fully amortizing” loans.

This means your minimum payment can skyrocket overnight.

Sounds pretty dangerous, right?

Even worse:

Most HELOCs have no interest rate cap. That means that if interest rates go up, so does your payment.

Remember, that’s not a risk with a reverse mortgage. Since reverse mortgages do not have any payment requirement, rising rates are not a problem.

Also, since reverse mortgages are regulated by HUD, even the variable programs have strict limits on how often and by how much interest rates can be adjusted.

Your Available line of credit grows each year with a HECM

One last (but huge) advantage of a HECM credit line is that your borrowing power isn’t fixed.

Your available credit rises every year automatically. The amount the credit line goes up by is about the same as the interest rate.

For example… imagine a HECM saver for $131,029. If mortgage rates plus insurance stay at today’s 4.07 percent rate, the limit would rise to $196,710 in ten years.

In fact, the higher rates go, the more you can borrow.

The whole point is that smart planning can help you weather inevitable downturns.

This is why you might consider a reverse mortgage line of credit…

…even if you’re only 62…

…and even if you don’t need the money right now.

In fact, my opinion is that you should especially consider it before you actually need the money.

Remember… interest rates will never be lower than they are right now. The lower the rates… the more you can qualify for with a reverse mortgage.

If interest rates rise… you won’t be able to borrow nearly as much.

Conclusion

A reverse mortgage line of credit is virtually always better than a home equity line of credit.

If you’re over 62 and are considering home equity options, you should strongly consider the HECM line of credit.

Starting a caring transition franchise

Starting a caring transition franchise

Success with a Caring Transition Franchise

Starting a caring transition franchise

The world’s elderly population is growing, and people are living longer lives than ever before. At the same time, many seniors see their children and grandchildren consumed by busy schedules, long commutes, and their own day-to-day stresses. All these things mean that more and more, people need help with major lifestyle changes. That’s where Caring Transitions comes in.

Starting a caring transition franchise

Caring Transitions is a low-cost, home-based franchise that allows you to help older adults and their families with major transitions. Rather than concentrate on one service, we focus on the full needs of our clients in this time of transition. By meeting all of their needs we exceed their expectations while maximizing revenue for our franchisees.

Starting a caring transition franchise

Caring Transitions is the only national organization providing a comprehensive total solution for our clients:

  • Senior moving & transition services
  • Downsizing
  • Clean-out services
  • Household liquidations
  • Estate sale management

In addition to building your business, you’ll end each day with the knowledge that your efforts changed someone’s life for the better.

Starting a caring transition franchise

Caring Transitions isn’t a new company and we’re not cashing in on any short-term trends or fads. The way we live has changed, and senior assistance is something people will continue to need for decades to come.

Starting a caring transition franchise

Why A Caring Transition Franchise

Starting a caring transition franchise

It’s not enough to have a solid business model and strong market demand for your services. Those things are essential, but without a strong support team and proven systems, building your business is an uphill battle.

Caring Transitions has more than 20 years of franchising experience, and we put that experience to work to help our franchisees succeed.

Starting a caring transition franchise

Each of our franchisees will benefit from the following:

  1. Financing options available to get you started
  2. Large, exclusive and protected territories
  3. A well-regarded brand consistently earning top honors in franchise satisfaction
  4. A variety of online and offline marketing materials personalized for your local needs
  5. Lead referral systems to ensure you reach new customers

Additionally, our world-class, comprehensive franchisee training program includes:

  • Jumpstart 1 information to understand the business
  • Jumpstart 2 with proprietary information to prepare for on-site training
  • On-site training with the home office team
  • Field training with an existing franchisee

Our goal is to train you for a business that will last for years and years, and our existing franchisees are proof that the system works.

https://www.facebook.com/boomerincomeideas/

Starting a caring transition franchise

 

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME – WITHOUT EATING YOUR EQUITY

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME – WITHOUT EATING YOUR EQUITY

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME

if you were fighting a war and had a tank…

…would you use it…

…or would you keep it away from the battle? 

Maybe the rest of your arsenal would be strong enough on its own to win the war?

Now… if you would keep it in reserve for a time…

You’d be slugging out a long war.

Totally unpleasant.

Potentially fatal.

The military would call this a tactical error…

The tank is a part of the arsenal and should be deployed as a part of a larger strategy.

Why am I talking about Tanks and Battles?

 

It’s just like not using your home in your retirement strategy.

Home equity is about 2/3rds of Boomers’ assets.

Most Boomers refuse to deploy it in their retirement strategy.

Sooo…

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME

Most home equity is just “dead money” – kept to the side while we slug it out in the battle to achieve a victorious retirement.

In life I would call that a tactical error…

Common Sense:

You may be thinking:

“My home is the safety boat.

 It’s a sacred investment. Only used as a last resort.” 

You dreamt of living through old age with no mortgage payment.  Tapping the equity might jeopardize that security, right?

Here’s a wild question:

What if you could “re-deploy” some of that equity?

And do it without the fear of making a mortgage payment or reducing your current equity?

And, let’s imagine you could yield an extra 34% in income from your nest egg?

First though… I’ll tell you a secret…

Even those of us who think we have saved enough probably haven’t.

Let’s look at the numbers.

More than 50% of Boomers have Zero Nest Egg

 

A study released last year by the Government Accountability Office (GAO) gave more detail than any other source I’ve found about the financial situation of today’s retired population.

Specifically, the GAO provided details on people ages 65 to 74.

52% of households in this group have absolutely no retirement savings whatsoever.

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME
That’s not to say that they don’t have any assets or income:

  • 77% own their homes
  • 36% have paid off their mortgages
  • 49% have some sort of defined benefit (i.e.. pension plan)
  • Almost all receive some sort of Social Security payment

What about the other 48% who do have savings?

It’s a mixed bag.

The median household among this group has $148,000 saved — enough to provide about $6,000 a year in income to those following the 4% rule.

But they also have a median net worth of almost $600,000.

95% own their homes (and 51% have paid it off), and 58% have some sort of defined benefit plan. And again, the vast majority also collect Social Security.

Here’s the shocker:

Only the top 12% of all retirees in this age rangecan count on a minimum of $16,000 in income each year from their nest eggs.

Now, add in pensions, Social Security and other common sources, and their incomes could easily add up to more than $35,000 per year.

That’s an amount you could manage on if you own your home outright.

Just barely though.

After taxes, insurance, maintenance and day to day living expenses, $35k a year is far less than would make life comfortable.

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME
Let’s break down the source of income for the two groups:

The GAO offered an even clearer visualization as to how where the money’s coming from to allow these groups to afford their respective lifestyles.

The answer: It certainly isn’t coming from their nest eggs…

 

Social security provides a huge portion of retirement income.

Overall, it provides a whopping 44% of all income for those aged 65 to 74.

Even among those who have built up their nest eggs, that savings provides just 9% of their retirement income.

How to add $12,000 to your current $35,000 income:

 

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME
You might think that I’m suggesting you take out a reverse mortgage to play the stock market.

That would be stupid.

 

Playing the stocks is like going to Rick’s American Café and Casino.

While most of us are being entertained out front the real action is in the back room (and we’re not invited).

The suckers listen to the piano player pay the bills while the exclusive few in the back win in a rigged game… (think Captain Louis Renault).

I like simple solutions…

I don’t know about you…

… but whenever I listen to a certified financial planner they lose me as soon as they start talking about “investment goals”, “tolerance to risk” and returns that are calculated based on being in a “40% tax bracket.”

  1. My investment goals are to make as much money as possible (how do you like them apples?)
  2. I’m 60 years old. My risk tolerance is zero.
  3. I don’t know a single person who pays 40% on their taxes.

These questions are just lame, right?

Who’s going to say that my goal is to have an income of $10,000 per month in my retirement – so don’t show me anything that would result in $15,000???

Or that my risk tolerance is that I have no tolerance so that leaves only government bonds earning 1.2% as an option.

Real Estate was your best investment years ago and it still is:

 

 

Investing in real estate has what Warren Buffet calls “intrinsic value.” That means its value is more than just the thing that you see – it’s also what it does or what it provides.

People will always need a place to live.

For many of the younger generation buying that living space is now out of reach so they have no choice but to rent.  Providing that rental space can be a great source of passive income as long as it’s done right.

Here are several rules that I follow in my personal investment strategy:

  1. Always target the middle to lower end of the economic scale when thinking about whom to rent your property to. This group will be long term tenants since they will never save enough money to buy a house and usually pay rent on time.
  1. The rule of thumb for purchase price verses monthly rent is a 1% factor. In other words, if a 3 bedroom condo will rent for $1,700 per month you can pay $170,000.  I’ll show you why in the example below.
  1. Always pay cash. In the example below I’ll show you what my own property is making and will continue making as long as rents stay where they are now.  However, what happens if the economy tanks and I need to lower rent?  Since the property is owned no debt I could slash the rents and wait for the market to come back without the risk of losing the property to foreclosure.  That’s why a reverse mortgage is so important.  It will allow you to turn your current equity into cash without a mortgage payment.  That cash is what is used to purchase the investment property of cash.
    1. Fix everything to new condition when you buy a property and never worry about the usual ongoing service problem that we all hear about. In the example property (which was a total re-hab) everything that could break or cause a problem later was replaced before it was placed on the rental market.  I hate problem calls don’t you?

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME

  1. Hire a good real estate firm to find, screen draw up the lease for your tenant. There is a saying in the legal profession that an attorney who represents themselves in court has a fool for a client.  The same thing can be said for a property owner that leases their own property.  Having a bad tenant can be a nightmare and it’s too easy to be played by a good con artist.  People who lease properties for a living are very good at identifying and screening these cons out.  Don’t skip this step because it will cost you in the long run.

Now let’s take a look at a real example:

 

 

This is a property that I own.

As you can see, the total investment was $170,000 resulting in an income stream of just a little over $1000 per month or a 7.1% return on my investment.

I point this out just to show you that I’m not making this stuff up as a hypothetical like most of the other sites that you might look at.

Instead, I’ll show you the real deal….

So let’s tie this all together:

At the beginning of this article I suggest that your home can increase your monthly income by 34%.

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME
Since the average retirement income is about $35,000 per year if you could increase your income to $47,000 that would be a 34% increase in the cash in your pocket.  If you own a home that’s valued at between $300,000 and $350,000 and it’s paid for you could conceivably liberate $170,000 of that equity from a reverse mortgage without adding a mortgage.

But wait a minute.

How does this not reduce your equity?

Doesn’t the reverse mortgage reduce the equity in your home because the mortgage is growing?

Consider that you just added an additional property that will also grow in equity. This will offset the reduction.

The bottom line is that this scenario can put an additional $1000 per month in your pocket.

What kind of difference would that make in your retirement life?

REVERSE MORTGAGES CAN BOOST RETIREMENT INCOME

Re Deploy Your Assets To Live The Third Chapter To The Fullest

Notes Section

In this segment I show you how you can use a Reverse Mortgage to assist during the third chapter of your life.

Use the Reverse Mortgage to start a new business or help you during a career change.

I challenge the misconceptions that many baby boomers, seniors, & individuals are close to retirement have about how a Reverse Mortgage can help them.

 

Transcript

0:07
[Music]
0:20
hi welcome to this episode of boomer
0:22
income ideas calm we’re gonna switch
0:24
gears a little bit today and instead of
0:26
interviewing someone we’re going to talk
0:28
about an idea that I think is pretty
0:30
critical it’s called redeploying of
0:32
assets but before we get into that let’s
0:35
talk a little bit about preconceived
0:36
ideas and how they can stop us from
0:38
moving forward and achieving our goal
0:40
let me demonstrate compris ways that
0:42
preconceived ideas can be I’m going to
0:44
give you a little quiz if I asked you
0:46
what color a stop sign is what would you
0:49
say about this if you said red you’d be
0:54
right now what color’s the yield sign
0:57
I’ll bet you say yellow and in fact four
1:01
years ago the government decided and
1:03
dictated that all yield signs must be
1:06
red and white just like a stop sign
1:08
we’ve driven by them every day for the
1:10
last 40 years and we never noticed we
1:13
think they look like this why probably
1:17
because that’s what we exposed to when
1:19
we were very young now let’s look at
1:21
another program that you might also have
1:23
a preconceived idea about which is
1:24
probably just as incorrect the program
1:26
that i’m referring to is the reverse
1:28
mortgage program and it’s most likely
1:29
the most misunderstood government
1:32
program available today me back to my
1:34
quiz if i asked you what you knew about
1:36
reverse mortgages here are the top 4
1:39
answers that i usually get first the
1:43
bank takes my house when I die number
1:48
two you can stay in the house but you no
1:51
longer own it number three loan leads
1:56
all equity and before krina by liberals
2:01
and government and the government loses
2:02
my wrong wrong wrong and wrong now let’s
2:05
take a look at number one bank takes
2:07
your house this is an FHA back lung just
2:10
like the FHA loan you may have used when
2:12
you first purchased your own the
2:14
government ensures the loan it does not
2:16
lend you money the loan is simple a
2:17
mortgage against your house you remain
2:19
on title and when you know on to live in
2:21
the house the longest paid back let’s
2:24
look at number two then home but you no
2:26
longer own it it’s actually the same
2:27
answer is number one you remain on type
2:29
it’s your home how about number three
2:30
the long needs all
2:32
the equity because the loan doesn’t
2:34
require a payment so it must eat up all
2:35
here quick see quite the opposite is
2:37
true let’s look at this chart and see a
2:39
typical transaction as you can see this
2:42
is a home that has a starting value of
2:45
about four hundred thousand dollars the
2:48
borrower is going to take out two
2:49
hundred thousand dollars in alone and
2:52
he’s going to have two hundred thousand
2:53
dollars remaining in equity in the house
2:55
now the laws are designed so that the
2:59
increasing value of the home basically
3:02
offsets the increasing loan amount so in
3:06
this case over ten years with a
3:08
historical appreciation value of the
3:10
home at four percent in an interest rate
3:13
on a loan in six percent the home is
3:16
going to grow from four thousand to
3:18
about six hundred thousand ten years the
3:22
loan is going to grow from 200,000 to
3:24
about four hundred thousand in 10 years
3:26
and your existing two hundred thousand
3:29
dollars in equity is remaining plus two
3:31
hundred thousand dollars in cash that
3:33
you’ve taken out is also regaining now
3:36
let’s talk about the best feature of
3:37
this particular law if you decide that
3:39
you don’t want the loan to go negative
3:41
because you are able to make payments
3:44
fine go ahead and make the valence and
3:47
instead of negatively advertising the
3:51
loan is going to be amortized just like
3:54
a regular loan creating all of this
3:59
inequity this is the ultimate ticket a
4:02
long you can choose to pay nothing you
4:04
can choose to pay interest only or you
4:06
can choose to pay a fully amortized
4:08
amount it’s entirely up to you which is
4:11
very different than a home equity line
4:14
of credit we’ll get to question number
4:16
four and then but before we do you might
4:19
be asking yourself why am I telling you
4:21
all this well because in our weekly
4:23
segments we talk a lot about
4:25
opportunities to enhance our life and
4:27
most of these require some kind of
4:30
investment in order to get to that point
4:32
the dead equity in your home may be one
4:35
of those assets now don’t get me wrong
4:36
I’m not advising that you do nothing
4:39
more than consume the cash instead let’s
4:41
look at three scenarios or it makes
4:43
great sense number one
4:45
change of career the rule of thumb is
4:48
about two years whether you’re building
4:50
a new business you’re going back to
4:52
school to retrain or you’re somehow
4:53
changing your lifestyle you’re going to
4:56
have a disruption of income for about
4:59
two years a reverse mortgage can be a
5:01
perfect opportunity to supplement that
5:04
income number to use the money to invest
5:06
in a business opportunity the most
5:08
important element about this particular
5:09
loan is that there is no payment
5:11
required and one of the things that you
5:13
certainly don’t want to do in opening up
5:15
new business is start off with no cash
5:17
flow coming in and have a debt service
5:19
going out and lastly let’s talk about
5:22
one that’s most interesting to me
5:25
purchasing of income property now let’s
5:28
take a look at one of my particular
5:29
properties in this scenario if I take a
5:32
hundred and seventy thousand out of my
5:35
existing home in a reverse mortgage and
5:37
I purchased another property with that
5:39
now I have two properties so i have to
5:41
equity producing properties this happens
5:45
to actually be one of my properties so
5:46
let’s talk about the scenario in this
5:48
case i purchased the property for 170
5:51
thousand dollars i have a rental income
5:54
of seventeen hundred dollars a month and
5:56
i have expenses HOA property taxes
6:00
insurance maintenance etc of about six
6:03
hundred and eighty dollars a month which
6:06
means that i have a cash flow positive
6:08
cash flow of a thousand twenty dollars a
6:10
month now the great thing about this is
6:12
that i have no debt service on my
6:14
existing property yet even though i have
6:18
no debt service i have monthly expenses
6:20
I’ve got taxes insurance maintenance and
6:22
so forth on my existing property which
6:24
happens to be about a thousand dollars a
6:26
month so in this scenario by taking
6:29
equity buying another property turning
6:31
it into cash flow positive cash flow I
6:34
just allowed myself to live totally free
6:37
in my existing property
6:39
[Music]
6:46
I’ve seen blue and I think to myself
6:57
right on how fantastic is that that’s
7:04
what in this case redeploying my assets
7:06
means to me now for question number four
7:09
I’ll bet it will surprise you to learn
7:11
that it was ronald reagan in nineteen
7:12
eighty eight that signed into law the
7:14
ability for FHA to put the reverse
7:17
mortgage program under its umbrella it
7:19
was done mainly because it was
7:21
understood that baby boomers have about
7:23
three quarters of their net worth tied
7:25
up in the dead equity in their homes and
7:28
unless the government came up with some
7:30
kind of opportunity for people to
7:31
release and liberate solve that equity
7:34
social programs would probably expand
7:37
and they didn’t want that to happen
7:38
that’s why I believe that utilizing a
7:42
reverse mortgage can be in many cases a
7:45
great way to redeploy your assets and
7:47
turn it into cash flow rather than just
7:51
sitting there hope you enjoy the second
7:52
[Music]
8:06
you
8:08
[Music]

Build a fulfilling future helping others: A Caring Transitions Franchise

Notes Section

In this interview, we talk with Caring Transitions about how you can invest in a business that makes a huge impact in people’s lives.

Many of us, myself includes, struggle in helping our loved elders transition from their home to a facility that can better assist them.

We analyze a day an in the life of a Caring Transitions Franchise owner and what type of income you could expect to generate if you decide to invest

Caring Transitions Website
http://bit.ly/caringtransitionsboomers

 

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth hey and welcome
0:07
to this episode of boomer income ideas
0:09
calm you know if you’re the type of
0:10
person who actually enjoy working with
0:12
seniors and their families on their
0:14
final transitions this might be the
0:16
right business for you we’re going to be
0:17
talking with Chris seaman the president
0:19
of caring transitions and I think you’re
0:22
going to enjoy this so stay tuned
0:23
relocating and downsizing a home or
0:26
business can be stressful for you your
0:28
family and loved ones whether you are
0:31
moving to a smaller home as an empty
0:33
nester an older adult in need of
0:35
assistance or due to divorce the process
0:38
is often overwhelming caring transitions
0:41
is a comprehensive service providing
0:44
professional assistance before during
0:46
and after the move stop downsizing and
0:50
start right-sizing with caring
0:52
transitions today hey Chris thanks for
0:55
joining me today hey thanks for inviting
0:56
me dan you know it was interesting when
0:59
I when I came across this opportunity
1:01
because as someone who has had personal
1:04
experience with a parent that moved from
1:07
her home to a care facility and having
1:10
to deal with that entire drama really
1:13
this franchise just seemed to make a lot
1:16
of sense so can you tell me a little bit
1:18
about carrying transitions what you guys
1:20
do and how you guys got started yeah
1:22
sure well you know kind of go back to
1:24
how we started where this is our 10th
1:26
anniversary so we’re pretty excited that
1:28
we’ve been going for now 10 years in the
1:29
senior moving in a liquidation service
1:33
industry but how we kind of got started
1:35
is we’re part of a franchise
1:36
organization called strategic
1:38
franchising and our first franchise that
1:41
we really launched was this was a
1:42
company called home helpers which was an
1:44
in-home companion care franchise good
1:46
and what we found out is when you get in
1:49
that relationship where someone needs
1:50
that kind of care in the home you know
1:53
the outcome is eventually someone’s
1:54
going to need to move into more you know
1:57
professional care into like a you know a
2:00
continued care environment a retirement
2:01
community and you know that you’re going
2:03
to have to move out at home at some
2:04
point and what we would see when our
2:06
relationship would end at that point
2:08
that you saw that the family was
2:10
hyper-focused and all the stuff in the
2:12
house and not
2:13
mom who just had to move out of her home
2:15
of 40 years and is now living in a care
2:16
facility and it’s very stressful to the
2:19
family and we saw a great opportunity we
2:22
could help families in its later life
2:23
transition make things better for the
2:25
senior and we did so by offering
2:26
relocation services right-sizing
2:29
services and then really liquidation
2:32
services whether a physical estate sale
2:33
are on we have an online auction website
2:36
when that makes more sense for our
2:37
clients I got to tell you again with my
2:40
personal experience I was fortunate in
2:42
that I have two sisters that lived in
2:44
the same town as my mother and if that
2:47
had not been the case we would have
2:49
absolutely needed this type of service
2:51
because it took them six months to go
2:54
through my mother’s home and you know
2:56
straighten everything out and figure out
2:59
how we’re going to get her into another
3:01
facility and then make sure that she has
3:03
enough things of her past in that new
3:06
new facility so she’s she’s happy and if
3:09
again if they hadn’t been in that same
3:12
area I can’t imagine that happening so I
3:16
can definitely understand that let’s
3:18
talk a little bit about the actual
3:20
method in which your franchisees go
3:24
about this are they primarily introduced
3:26
to these new clients from the in-home
3:31
care or do they also have other
3:33
activities that put them in touch with
3:34
people who need this kind of service
3:36
well in Prior three major way that we
3:38
get clients is we go out and meet with
3:40
all the senior communities in the area
3:42
and then we just strike up a
3:44
relationship with them because a lot of
3:45
times when people make this move they’re
3:48
ready to they have to because they’re
3:50
physically in the position where it’s
3:52
necessary for them to move out of the
3:53
family home and so we get those
3:55
referrals back so our owners will go out
3:57
and talk to the senior communities and
3:59
then real estate offices the realtor’s
4:01
and then we do have a web presence
4:03
obviously for people who are on a state
4:05
can help search to help their parents
4:07
out what they need to go through this
4:08
transition okay that sounds a pretty
4:11
efficient let’s talk a little bit about
4:12
again from my personal experience I know
4:15
that in going through this is drama that
4:17
I was talking about my sisters and I
4:20
never fought in our entire lives until
4:24
this took place I mean this is
4:26
such a life-altering situation I’m just
4:30
talking about who’s going to be
4:32
responsible for what and who gets their
4:34
feelings hurt because they think that
4:36
they’re being taken advantage of because
4:37
the other sibling isn’t stepping up like
4:39
they think they should and that kind of
4:41
thing can you talk a little bit about
4:42
how your franchisees kind of mitigate
4:45
that family drama yeah definitely dan we
4:48
put everybody through training on how to
4:50
work through that scenario and one of
4:52
the advantages that we have is because
4:54
of what we do is we’re a third party
4:56
frankly and what we do is we focus on
4:58
what is the best solution for the moving
5:01
parent and how can we really mitigate
5:06
all those issues by just removing them
5:08
from the table frankly and you know
5:10
whether it comes to the possessions we
5:11
we really don’t care what they keep and
5:13
what they what they decide to donate or
5:16
sell or whatever else they do with the
5:18
items and so since we don’t have a
5:20
really anything in that particular fight
5:22
it diffuses all of that you know and
5:24
that’s the things that caring
5:25
transitions can work out with you
5:26
because the things are going to take the
5:28
family like you said took your sister
5:29
six months it takes us two to three
5:32
weeks to do that complete project from
5:34
front to back can you give me just kind
5:37
of a day in the life of a franchisee you
5:40
know how do they go about spending their
5:41
day well you’re going to start you know
5:43
primarily mapping out where their
5:45
projects are for the morning they’re
5:47
going to meet their teams at the clients
5:49
residence get that started off get them
5:52
lined up with what projects they’re
5:53
going to work on for that day their
5:56
staff all shows up at not the Home
5:59
Office but they show up actually the
6:00
client’s home so your first meeting in
6:02
the morning to the clients home you’re
6:04
then going to go out and meet with local
6:06
people in the community your networking
6:08
groups and then well is going to visit
6:10
some of the assisted living communities
6:11
in those type of areas in your area and
6:13
then in the afternoon they will go visit
6:16
potential clients and give what we call
6:19
our free in-home consultation where we
6:21
walk through the home they have software
6:23
that they then can plug all the numbers
6:25
in to get an effective proposal back to
6:28
the client based on what their clients
6:30
objective is and then we end back up at
6:32
the job site to supervise and wrap up
6:35
everything that needs to happen so
6:38
whether it’s a move or
6:39
liquidation that all the goals and you
6:43
control your expenses and get your labor
6:45
done and get the clients satisfied to
6:47
their next stage of their life okay
6:48
that’s real real quick snapshot it I got
6:51
and you you mentioned teams this is a
6:54
home-based franchise is that right most
6:56
of the crazies work work their business
6:59
from their home so tell me about the
7:01
team Brittany’s are these direct
7:02
employees or are these 1099 people that
7:05
are contractors how do you have a team
7:09
one team member for each client or do
7:12
you have a team member dealing with a
7:14
number of clients how does that work
7:16
well we work all of our employees have
7:18
to be direct hires because of the
7:21
insurance needs and also the fact we’re
7:23
protecting a senior and the seniors
7:25
possessions so everyone has to be bonded
7:27
and insured and they all have to work
7:28
directly for the caring transitions
7:29
franchise owner the majority of our
7:32
employees are part-time on demand
7:34
they’re there people who are just
7:35
looking to do something and give back a
7:37
little bit and have some fun and be out
7:38
in the community and what we do is we
7:41
organize our teams by services not
7:43
necessarily by clients so we have
7:45
usually a liquidation team and what we
7:48
would have a relocation move team that
7:50
would do this decluttering sorting and
7:52
organizing okay so yeah I know you’ve
7:55
got these bullet points of senior moving
7:57
moving in transition to downsize and
8:00
clean out services household
8:01
liquidations estate sale and management
8:04
and auction services so I know that’s a
8:06
lot of the mouth full of things to go
8:09
through all of these things I imagine
8:11
are all apart is that correct yeah what
8:14
we do is we walk into the client we’re
8:16
really talking to them about what do
8:17
they need they might have called us for
8:19
an estate sale they might have called us
8:21
for a move but it’s really not so we
8:23
determine what it is that they actually
8:25
need and then we just provide whatever
8:27
service that it’s we customize the
8:29
services to exact needs when you’re
8:32
dealing with these so temporary workers
8:34
and they’re actually on your payroll I
8:36
would imagine that you need to have a
8:37
pretty large supply of them because
8:39
since this isn’t their full-time job you
8:42
might have to go through two or three
8:44
people in order to get someone actually
8:46
placed on that particular site is that
8:48
correct usually we have we have pretty
8:51
good sized teams you know an average
8:52
work
8:53
is going to be free to poor people we
8:55
might have 20 24 people in our database
8:57
that we contact and we have a vendor
9:00
software that you can just send up
9:02
notifications it will happen on their
9:03
phone so you get almost immediate
9:05
response they’re available so how do you
9:06
go about or how does the franchiser you
9:08
go about getting this team in place
9:10
that’s actually one of our easier things
9:13
because the types of services we do we
9:14
do get a lot of people who respond to
9:16
this because you know yet stay-at-home
9:18
moms retirees all sorts of different
9:20
people who want to work in this type of
9:21
segment getting people’s actually what’s
9:24
surprising to me was actually real to
9:25
leaving really huh that I always find it
9:29
difficult to find people so that maybe
9:32
they just don’t work with me I don’t
9:33
know that could have something to do a
9:35
much easier time yeah let’s talk a
9:39
little bit about the actual business
9:41
itself what is it what is it cost for a
9:44
franchisee to actually get in business I
9:47
mean from from the time that they say
9:49
yeah I’m ready to pull the trigger on
9:50
this I’d like to go forward with this
9:52
for the time that they’re actually
9:54
operating and starting to generate cash
9:56
flow what can they expect as a
9:58
capitalization cost for start-up for a
10:01
franchisee prospect who comes into the
10:04
pipeline it usually takes about 45 days
10:07
for them to go through our process if we
10:10
call it a mutual evaluation process so
10:11
they can see if this is a really good
10:13
fit for them and we can see if it’s a
10:14
good fit for us and the 45 days we then
10:17
have a 21-day pre training program which
10:20
is just continual education so that when
10:23
they come to the training week which is
10:24
a week long and then we actually then
10:26
send them out into the field to train
10:28
with a per week with an existing
10:30
franchise owner so what you’re looking
10:32
at that is after you place you know you
10:34
decide to make the decision to go
10:36
forward it’s about five weeks until
10:38
you’re actually open in the field all
10:41
right most of these i’m i’m assuming are
10:43
pretty much operated by a
10:45
husband-and-wife team is that correct
10:47
well we have a lot of singles but we
10:49
also have a lot of husband and wives
10:50
it’s a you know you tend to when you
10:52
have the husband and wife it’s kind of
10:54
nice because they tend to complement
10:55
each other when you win it by yourself
10:58
usually you need to hire a little bit
10:59
more so you have people complimenting
11:01
you know whatever skill set that you
11:03
maybe don’t want to focus on
11:05
we launched much more quickly even than
11:12
we had originally anticipated and I
11:13
think a lot of that was just because of
11:15
the quality of corporate support and the
11:18
corporate systems and the on-site
11:20
training programs that that were offered
11:24
and yes so far it’s just been a
11:28
whirlwind of fun the field training that
11:31
we attended with just awesome I mean
11:33
literally you know it’s kind of like on
11:36
the job training and really gave us a
11:38
great perspective in terms of what we’re
11:41
seeing we’re going to see as we get into
11:43
it now or so and and really allow us to
11:46
feel like we’ve got the confidence that
11:48
we can go out have a good time with it
11:50
and still be very successful and is this
11:55
a 825 type of business opportunity or is
11:59
this a seven day a week you know 24 hour
12:02
a day opportunity how does this out of
12:04
this business actually run well you look
12:07
at most of what we’re doing we do our
12:08
moves monday through friday online
12:10
auctions can be whenever you want them
12:12
because that’s the beauty of the online
12:14
physical estate sales tend to be on
12:16
Saturdays because that’s when the
12:17
majority of the audience is out there
12:19
shopping so what you look at is it can
12:22
be potentially six days a week if you
12:25
really want to you know do all but
12:27
that’s what we try to educate them as
12:29
you know hiring staff to give yourself
12:30
the flexibility so you’re not working
12:32
every single day of the week but you
12:34
know as you build up you might be
12:35
working a little bit more like you doing
12:36
a lot of new businesses and it just
12:40
really depends on you and what you have
12:41
on the schedule the more you put into it
12:43
we initially obviously the quicker
12:44
you’re going to get to your success
12:45
goals history and beauty of unique
12:52
antique or vintage finds cannot be
12:55
underestimated but traveling from a
12:57
state sale to a state sale in order to
12:59
find a diamond in the rough can be
13:01
exhausting CT online auctions com puts
13:04
rare and unique estate sale finds along
13:07
with everyday household goods at your
13:09
fingertips in the comfort of your own
13:11
home and on the go with your mobile
13:13
phone easily browse or search items from
13:15
across the country or in your local area
13:18
numerous photos review product
13:20
description and easily place bids place
13:23
your maximum bid sit back and relax
13:25
while our site places bids for you in
13:28
increments over competing bids receive
13:31
bid and outfit notifications via email
13:33
and easily keep track of items in your
13:35
very own watching fitting one and not
13:38
one page so who is an ideal candidate
13:42
what kind of personality profile and
13:44
who’s not really a good candidate for
13:46
this kind of business well you know you
13:49
look at that and I mean the best
13:50
candidates are someone who obviously
13:51
enjoy interacting with seniors because
13:53
that is you know probably eighty percent
13:55
of our businesses of a senior focus so
13:58
it you know we do have a technology side
14:00
to our business you know with the online
14:01
auctions you know are estimating
14:03
software all these other pieces that go
14:05
into the business but if your
14:07
hundred-percent technology driven and
14:09
you’re not good with people or you don’t
14:11
it really more accurately you don’t
14:13
enjoy people you know it’s going to be a
14:15
difficult business for you frankly I
14:16
guess that really my biggest question is
14:19
just verifying that this is truly a
14:22
business that someone can grow to
14:24
something more than just a kind of a
14:26
part-time supplemental income type of
14:28
situation this is really something that
14:30
you can grow into a real business that
14:33
is generating a substantial income that
14:35
someone can actually exist on correct
14:38
correct do exactly one of the things
14:41
i’ve been here since 2012 and one of the
14:44
reasons I’m here is to make sure that it
14:46
is professional business opportunity for
14:48
people and we no longer are interested
14:51
in somebody’s looking for a part-time
14:53
you know it could be supplemental income
14:54
if you want it but that doesn’t fit with
14:55
what we’re looking for is an
14:57
organization and it doesn’t fit with our
14:58
other franchisees across the country who
15:01
needs you to be fully engaged in one
15:03
hundred percent into this being a
15:04
business because one of the key things
15:06
that will do is you know someone might
15:08
be living in Florida today but they need
15:10
to go back home to you know Michigan or
15:12
wherever in order to have that carrying
15:16
transition service on both sides and
15:18
have a professional person who’s
15:19
available the to do this is critical to
15:22
a success of both our local franchise
15:24
systems and our national system as a
15:26
whole so it’s a full-time business it’s
15:28
designed to drive a full time income and
15:30
it’s
15:31
time for you to support yourself and
15:32
your family can you give me three pros
15:35
of actually operating this business and
15:37
possibly three cons of operating the
15:39
business well I think you look at you
15:42
know some of the pros to run in the
15:43
business I mean one you have a growth
15:45
market it’s pretty crazy if you look at
15:47
like the US Census Bureau says he’s
15:49
almost twenty percent of the population
15:50
will be 65 and older by the year twenty
15:52
thirty and we’re roughly about thirteen
15:54
percent right now in the last census so
15:57
the other thing is you know the
15:59
advantage we have is because we are home
16:01
based we’re not an advertising based
16:03
model where a personal relationship
16:04
networking based model we’re relatively
16:07
local capital there’s not a lot of
16:08
reoccurring expenses once you have your
16:11
insurances and since your staff is on
16:13
demand that you’re only paying labor
16:15
when you’re actually building clients so
16:17
you’re able to do this in a relatively
16:19
cost-effective manner and then for most
16:22
of our franchisees frankly you know why
16:23
they got interested in this was really
16:25
the personal rewards of this business
16:26
you know get your clients who’s
16:28
terrified of this move and you know at
16:30
the end of the move you get a huge hug
16:32
and a smile and you also got paid for
16:35
any provided employment in your
16:36
community that’s probably the biggest
16:38
Pro that our franchisees would name if
16:41
you ask them directly now on the con
16:43
side you know there’s a couple things
16:44
about our business which are great but
16:46
also if you look at it it could be a
16:48
negative to you one we offer multiple
16:51
services which is wonderful because you
16:54
were able to go into your clients and
16:55
you’re able to really structure a
16:57
tailored fit custom solution to what
16:59
they need but if your only focus on one
17:02
service line life tends to be easier you
17:05
know you know exactly what you’re going
17:07
to do how are you going to do it and
17:08
it’s a very much much much more of a
17:10
cookie cutter business and you don’t
17:12
have to be able to fluctuate and go back
17:14
and forth between the soft skills to the
17:16
technology skills so the other thing I
17:19
always like to talk about is you know
17:21
being a social brand meaning you have to
17:24
enjoy being out with people and having
17:26
conversations that if you don’t that can
17:28
be definitely a con for you and then the
17:31
third thing I like to talk about is that
17:33
as a home-based business you know you’re
17:36
going out you know you’re not going to
17:38
be able to just say hey it’s a little
17:39
slow i’m going to throw out some flyers
17:41
today and then people are going to start
17:42
calling me no one’s going to walk by
17:44
your sign
17:45
and walk in your house and want to do
17:47
business with you you to engage business
17:49
it’s not an office business and you have
17:52
to be out in the community in order to
17:54
be successful at it it’s not just your
17:56
first six months of being open it’s the
17:58
entire time you own the business jet to
18:00
continually be engaged in your community
18:02
well Chris I think this has been a great
18:04
conversation I’m really happy to see you
18:08
guys in in place out there because I
18:10
think that your service is extremely
18:12
important we’re going to be putting your
18:14
information your website and phone
18:16
number and so forth in our notes section
18:17
so our viewers can get in touch with you
18:20
directly and I think that this is what I
18:22
call a twofer because I think that there
18:24
will be people who are interested in
18:26
looking at a franchise opportunity but
18:29
there’s also going to be a lot of our
18:30
viewers who are looking at this thing
18:31
hey I I resembled that conversation I’m
18:34
in that mode right now I’ve got to deal
18:37
with my parent and I need someone to
18:39
help me do that so hopefully we’ll be
18:41
sending you some you know some prospects
18:44
in that light as well but thank you very
18:46
much for joining me today and I’ll look
18:48
forward to working with you in the
18:50
future it sounds great and thank you for
18:53
having me it was a great conversation I
18:55
join it great
18:56
[Music]
19:09
you
19:12
[Music]

 

Learn how to invest in Mobile Homes: Affordable Housing with amazing earning potential

Notes Section

In this interview we talk with Kevin Bupp, owner & co founder of the Mobile Home Park Academy.

We discuss the lack of Affordable Housing, amazing earning potential that this can provide, & support of the MHP team.

To learn more about the Mobile Home Park Academy click
http://bit.ly/mobilehomeboomer

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth thanks for
0:07
joining me on this segment of Goomer
0:08
income ideas com you know business 101
0:10
tells us that if you control a commodity
0:13
in limited supply you have a sure path
0:16
to wealth one of the largest shortages
0:19
that our population or large segment of
0:22
our population is experiencing is
0:23
affordable housing and Kevin bump of
0:27
sunrise capital has found a unique niche
0:30
that satisfies that demand so stay tuned
0:33
changes Smosh see those Glenn big things
0:42
no phone no food no pen ain’t got no
0:48
sick read 72 hours of bushes e vaselines
1:00
king of the road hey Kevin thanks for
1:05
joining me today dan thanks for having
1:07
me I’m super excited to be here you know
1:09
I was excited to have you on the show
1:11
you know we’ve had a number of different
1:13
types of real estate investment
1:15
opportunities that we’ve spotlighted on
1:18
the show in the past but you have a
1:20
really unique niche that you’re going
1:22
after that I really want to kind of
1:24
focus in on which is the mobile home
1:27
park investment opportunity so i know
1:30
that you in the past have dealt with
1:32
everything from investing in
1:34
single-family homes to apartment
1:35
complexes you name it and you really
1:38
focused in on this niche so can you tell
1:40
me a little bit about why that is sure
1:43
sure absolutely well as you mentioned i
1:46
I’ve invested in pretty much everything
1:48
there is i mean i guess not everything
1:49
but a wide array of different asset
1:53
types and i was introduced to mobile
1:56
home parks about i guess a little over
1:58
five years ago was introduced at that
2:00
point time to someone that was in a
2:02
mobile home park space by a mutual
2:04
friend and had lunch with this
2:06
individuals and they’re just really
2:08
there’s a few things that really piqued
2:10
my interest during that meeting dan
2:13
a couple of the big items were the
2:15
expected returns that he had mentioned
2:18
when you kind of compare to apples to
2:19
apples and he was comparing it to
2:21
apartment buildings he was kind of
2:22
saying you know comparing apples to
2:24
apples my experiences that you should be
2:25
able to expect about a one two three
2:28
point yield premium as far as returns
2:30
are concerned you know if he compared
2:32
the same market same asset quality from
2:35
a mobile home park to an apartment
2:37
building so that was very attractive
2:38
than me a couple of things that he
2:39
mentioned that piqued my interest were
2:41
the fact that it was the only asset that
2:44
had a declining supply I mean so I had
2:47
the mission supply meaning they’re not
2:48
being built anymore they’re getting torn
2:50
down or shut down faster than their
2:52
being built so which to me immediately
2:54
means barrier to entry right and so
2:56
there’s there’s no more being built I
2:58
don’t have to worry about a competitor
2:59
moving in down the road and then one of
3:02
the other big points dan was a that
3:04
piqued my interest was that these things
3:06
are real expensive to move these mobile
3:07
homes and so what that means is you’ve
3:11
got a lot less turnover you know the
3:14
thing is if you listen to any of the
3:17
real estate pundants they’ll tell you
3:20
you know focus on trying to figure out
3:22
how to get into affordable housing and
3:24
you’ll have a golden niche market and
3:26
you really just kind of nailed that
3:29
market yeah you know we know that
3:31
there’s an ever-growing well at least if
3:33
you pay attention to the news and you
3:34
read newspaper and such and you should
3:37
know that there’s an ever-growing demand
3:39
for affordable housing and we’re not
3:41
meeting that we’re not meeting that
3:42
demand with the supply that’s coming
3:43
onto the market place and so the mobile
3:46
home park space really it really caters
3:48
to that niche and it caters to it in a
3:50
very unique way because there’s really
3:53
no cheaper place that you can live and
3:56
that you can also at the same time have
3:58
the opportunity to own your own home I
4:00
mean it offers that low and income
4:03
bracket the ability to be a homeowner
4:05
but also lived cheaper than anywhere
4:07
else and I mean our average rents tanner
4:10
you know if you look across the board of
4:12
our parks Harvard rents about three
4:14
hours a month and that’s assuming that
4:15
the tenant owns their own trailer
4:17
[Music]
4:26
you you’ve been at this for a while and
4:29
I understand you have about 15 million
4:31
dollars in total investment right now
4:34
and you’re returning about thirty
4:37
percent of year is that correct yeah
4:39
well you know the thirty percent a year
4:40
that’s we have a portfolio at this
4:42
moment in time that if you really looked
4:44
at it across the board I mean our
4:45
returns are very significant nay they
4:47
exceed thirty percent we’ve got some
4:50
parks I’d say about our most
4:51
conservative park that we have known to
4:52
date the park in Kentucky and that one’s
4:54
just a with a very easy park all tenant
4:56
owned homes it’s a it’s about as simple
4:59
as they come that one we’re just pushing
5:02
over about twenty percent annualized
5:03
cash and cash returns on but we have a
5:05
few parks that they’re they’re not the
5:09
norm but we have a few parks that are
5:10
pushing seventy to a hundred percent
5:11
yearly cash-on-cash burns I mean they’re
5:14
just they’re kicking butt so what you’re
5:17
that thirty percent I don’t want people
5:18
to think that’s the norm I mean so
5:20
there’s a disclaimer that goes along
5:21
with that I wouldn’t say that you should
5:23
get into this business expecting that
5:24
whatever parking by you’re going to be
5:26
able to achieve thirty percent
5:28
annualized returns on your money it’s
5:29
just it’s that they’re out there trust
5:32
me they’re out there and they’re it’s
5:33
not just a needle in the haystack
5:34
they’re definitely out there but a lot
5:35
of parks we purchased and that are
5:37
achieving those types of results are are
5:39
they were initially distressed plays
5:41
that had a ton of upside and we like
5:43
those types of deals because there’s
5:45
they can be a very hairy type of deal
5:46
but there’s a lot of opportunity reward
5:48
on the back end so some people don’t
5:50
like that type of investment we love it
5:52
and we’re really good at it so that’s
5:54
that’s why we’re able to achieve those
5:55
types of high returns you know I’m from
5:58
California and I’ve always liked the
6:02
idea personally of investing in mobile
6:05
home parks but out in California their
6:06
multi multi million dollar investment so
6:09
a smaller investor really doesn’t have
6:11
an opportunity to play in that game in
6:14
your environment it’s a very different
6:16
story you go after much smaller parks in
6:18
many cases that that even an individual
6:21
can realistically go out and purchase
6:23
that Park is that correct yeah that’s
6:25
correct I’m you know we’re not opposed
6:27
to buying larger parks a just I guess
6:29
we’ve kind of fallen into this unique
6:31
niche and just where we are our average
6:33
size on the small end that we purchased
6:36
a day at least we do have a few smaller
6:37
parks but the
6:39
we’re looking forward today’s about 50
6:41
spaces minimum and you know we’ll buy it
6:45
there’s no like cap on the size of a
6:47
park that will purchase but to date the
6:49
largest park we have is just over 200
6:50
spaces in size but the average I’d say
6:53
if you really look across the board of
6:54
what we’re looking at what we have in
6:55
contract today what we currently own
6:57
it’s going to hover like in between the
7:00
80 and 100 space marks so let’s talk a
7:03
little bit about ownership you have
7:05
pretty much covered that niche as well
7:08
because you have an investment
7:10
opportunity so individual investors who
7:12
really just want a a very passive
7:14
investment they invest their money and
7:16
they just wait for a dividend check to
7:18
come in you have that available through
7:21
your sunrise capital investors and then
7:24
you also train people or teach people
7:27
how to actually go out and invest in
7:31
these parks individually through the
7:33
mobile home park academy is that correct
7:35
that’s correct so let’s start a little
7:37
bit about sunrise capital first and then
7:39
we’ll talk about the the Academy if an
7:42
investor wants to get involved in you
7:45
know in one of these types of
7:46
investments what’s the minimum capital
7:48
requirement what can you expect as far
7:50
as the structure of the return on his
7:53
investment meaning does he start
7:54
receiving cash flow immediately are the
7:56
parks already in place that he’s
7:57
investing in ered because he’s put money
7:59
into an escrow account and wait for you
8:01
to go find a park and gather number of
8:04
investors together and then the dividend
8:06
check starts to answer the first
8:09
question I think I guess one of the
8:11
questions is number one you have to be
8:12
accredited and so it’s set up as a
8:13
regulation d 506 C offering so all the
8:16
investors have to be accredited the
8:19
minimum investment of my $100,000 and
8:22
right now we have it set up to where
8:25
escrow breaks meaning like escrow it
8:28
will become an act of fun and a hunt
8:30
$50,000 and we’re actually putting that
8:31
much money are so we’re putting more
8:33
than that ourselves so we’re actually
8:34
going to be breaking escrow with the
8:37
money that we’re putting into the fund
8:38
meaning that whatever investor money
8:40
goes into that fond it wont to sit there
8:42
idle waiting I mean if there’s no
8:44
there’s no parks in there right now we
8:46
have multiple in contract and there will
8:47
be a few in there in the next month or
8:49
two but the preferred returns of eight
8:52
percent start accruing
8:53
feeling and so they’re also they might
8:56
not be shouted neatly but they will
8:57
start accruing immediately let me stop
8:59
you there a minute because I think this
9:00
is really important you have a preferred
9:02
return of eight percent a year anything
9:04
that that the investors get eight
9:06
percent per year before anything was
9:09
distributed beyond that correct that’s
9:11
right yeah so basically how it goes is
9:13
you know operational expenses debt
9:17
service and then before any cash flow
9:19
gets distributed basically that
9:20
investors get their eight percent and
9:21
then we have a one-percent asset
9:23
management fee and then after the eight
9:25
percent and one percent asset management
9:26
feed to us the remaining gets split
9:28
fifty-fifty so yeah so basically the
9:32
investors get any of the cat eight
9:34
percent of the cash flow prior to
9:36
anything getting distribute to us for an
9:38
asset management fee and prior to any
9:40
cash flows excess cash flows getting
9:42
distributed and again your your
9:45
estimation in the overall yield is
9:47
somewhere around twenty percent so
9:49
they’ve got ya gunz race percent locked
9:51
in but and everything is kind of
9:52
floating beyond that but you’re you’re
9:54
estimating somewhere around at twenty
9:56
percent rate I mean as with any of these
9:59
investments I just want to put this
10:00
claim out there there’s no guarantee
10:01
whatsoever remain said that’s that’s the
10:04
worst case there there’s no guarantee is
10:05
that you know even the eight percent not
10:07
a it’s not a guarantee but again the
10:10
investments that we are comfortable
10:11
purchasing that’s that’s kind of in our
10:13
wheelhouse the thing is our portfolio
10:15
now we will have no issue meeting that
10:17
number but again there is no guarantee
10:18
so just to kind of clarify what our
10:21
projections are this fund our
10:23
projections are a 12-percent annualized
10:25
cash on cash return with a blended
10:27
return over the life of the investment
10:29
of twenty percent a year and so that
10:32
would factor in principle pay downs
10:34
appreciation and also profit on the back
10:36
end when the assets are sold you say the
10:39
life of this investment is there a
10:41
specific exit strategy a holding time
10:44
you know where we’re we’re long-term
10:46
investor Dan and there’s reasons behind
10:49
that you know with these types and
10:52
investments we don’t have to exit out of
10:54
it like an apartment complex a lot of
10:56
those investments you see there 325 your
10:57
horizons and I feel like they have to
10:59
exit out because they’re pushing rents
11:01
and they have to exit out in order to
11:03
get the returns that their investors are
11:04
looking forward it’s the annualized
11:05
returns are
11:06
they’re not all that significant in our
11:08
case we can typically hold these lot
11:10
longer and we like to because they
11:12
produce a lot a lot more cash flow and
11:15
we can get the investors as returns a
11:16
need without having to exit out of it in
11:18
a shorter period of time and so we’re a
11:20
10 year this is a 10 year investment and
11:23
we say that on or about the 10-year mark
11:26
will be looking to this divested these
11:28
assets what about liquidity if if you
11:31
have an investor that’s jumping in with
11:33
100,000 and this is a 10-year plan but
11:38
this investor wants to liquidate in two
11:41
years and go on to something else what’s
11:43
the possibility or the opportunity for
11:45
that there’s not an opportunity to do
11:47
that after the five-year mark we do have
11:49
the ability to do that but not not
11:50
before then and we really if anyone has
11:53
an idea that they’re really looking for
11:55
something to where they have they can
11:56
have more momentum with their money more
11:57
flexibility we’re not the right fit for
11:59
them right when I right said okay got it
12:01
well now let’s talk about how someone
12:03
who doesn’t want to go through the
12:05
hassle of being an accredited investor
12:07
can go do what he needs to do on his own
12:09
and go buy a park on his own and you
12:15
know through financing or whatever by
12:16
learning how to do that with you and the
12:19
mobile home park academy tell me a
12:21
little bit about that I know that that’s
12:22
a project that you’ve had that you’ve
12:25
been working on for what a year now or
12:28
maybe about a year and at the idea
12:30
actually came to me probably a little
12:31
over two years ago but we really put our
12:33
notes the grindstone about a year and a
12:35
half ago and so it’s been a it’s been a
12:36
real labor of love for us we’ve spent a
12:38
lot of time welcome to the mobile home
12:39
park academy my name is Kevin buff and I
12:41
want to welcome you to the premier
12:43
educational source for everything in
12:45
anything related to the highly lucrative
12:47
niche a mobile home park investing not a
12:49
day goes by where I don’t receive an
12:51
email or a phone call from a listener
12:53
and they say Kevin can you please put
12:55
that information that you talk about
12:56
into an easy to implement systematize
12:59
formula well after more than a year and
13:02
a half of me and my partner Charles V
13:03
Hart grinding away in the lab working
13:06
countless hours are developed a very
13:07
best mobile home park training system
13:09
around I’m excited to say we have what
13:12
you’ve been waiting for you essentially
13:13
we’ve done dads we’ve taken our internal
13:16
systems and processes that we really
13:18
pride ourselves on
13:19
and we’ve converted them in a manner
13:21
that allows others to learn from them I
13:23
mean we put them into it easy to follow
13:25
training video series to wear those that
13:29
have an interest in learning this
13:30
business can literally learn
13:31
step-by-step exactly what we do I mean
13:33
it’s literally our internal operations
13:34
turned inside out is the best way to put
13:36
it it’s a 90-day step-by-step intensive
13:39
training program that literally teaches
13:41
you a dizzy everything from market
13:43
analysis to building an off-market
13:45
database how to market to that database
13:47
had negotiate with with with owners
13:50
directly all the way to raising private
13:53
capital you know if you don’t have my to
13:55
yourself putting together financing for
13:56
these deals all the way to the
13:58
operational sides and once you close on
14:00
it how do you run these things how do
14:01
you how do you find new management how
14:02
do you train the managers how do you put
14:04
a sale system in place if you’re trying
14:06
to sell new homes like like I mentioned
14:07
we bring a lot of new homes so you have
14:09
to have a good structured sales program
14:11
in place so it’s really an A to Z
14:13
program it’s 90 days hi everyone my name
14:23
is Mark Richert and I am with rickard
14:25
Property Group you know my family’s been
14:28
in the mobile home park industry for
14:29
over 50 years my father taught me
14:32
something really important to be a
14:34
lifelong learner and as a fellow Park
14:37
investor I’ve gotten to know Kevin and
14:39
Charles and learned so much from them
14:41
their podcasts and through their Academy
14:43
if you’re looking to break into this
14:45
industry just starting out you don’t
14:49
want to buy the wrong investment you
14:50
need to listen to what Charles and Kevin
14:52
have to say until next time talk to you
14:55
later and 310 so there’s prob about now
14:58
there’s about 60 hours worth of training
14:59
videos in there we keep adding to it and
15:01
so it’s stuff it’s a very hands-on
15:04
process and it really is everything that
15:07
someone needs to know to learn to get
15:09
into this business and so is this a
15:11
structured curriculum that takes 90 days
15:13
and you do this every 90 days or can
15:16
anybody just join in at any time and
15:20
they don’t need to wait that that you
15:22
know the semester period we had decided
15:24
that we would just allow people to get
15:26
in at any given point in time and so
15:28
there’s there’s multiple people that are
15:30
in different stages of the program you
15:32
weekly group coaching calls and so some
15:34
of those some of the questions that
15:35
might be asking the call might not be
15:37
necessarily relevant to the part that
15:38
you’re in but they will be at some point
15:39
in time so we record all those calls and
15:41
so I we haven’t we’ve actually found it
15:43
to be very productive to have people in
15:46
different parts of the the program the
15:48
same time because now those students
15:49
that are further had can actually assist
15:52
and answer questions for those that are
15:53
going to be just getting started well
15:55
and conversely if I understand correctly
15:57
because the the opposite is true in that
15:59
when you set this up it was originally
16:01
designed for deal flow to come to you in
16:04
other words you’ve got these people
16:05
coming out of the Academy they’re out
16:07
there finding opportunities and once
16:10
they find an opportunity maybe they wrap
16:12
it up in a contract and then they need
16:14
to go find financing and they want to
16:17
come to you to help with that financing
16:19
and so at that point it’s their deal but
16:23
you’re in if you come into that deal
16:25
you’re in as a as a partner investor and
16:28
expert at the same time as all right
16:31
that’s correct yeah I mean that was the
16:32
original idea the the Academy I think
16:34
it’s morphed into something bigger than
16:35
that but yeah that still is the one of
16:38
the underlying reasons that we put it
16:40
together and obviously we can ever we
16:42
can never force anybody to say hey
16:44
partner with us you need to bring your
16:45
deal to us I mean that is not the plan
16:47
whatsoever if they wanted to do it on
16:48
their own raise the capital by
16:50
themselves your financing and just run
16:52
the show they have the right to do that
16:54
but we make our we make it known that
16:56
we’re here we’re available and we have
16:59
capital and we have the expertise I know
17:01
personally if I was going to go out even
17:03
if I went through the Academy and I was
17:04
going to go out and and buy something
17:06
and I thought now let’s say I’ve never
17:08
operated a park before I’ve gone through
17:10
the Academy so I’ve got some training
17:12
I’m going to buy this and I’ve got two
17:14
choices I can do everything on my own
17:16
going forward and hopefully I do the
17:18
right thing or i can bring kevin bump
17:20
and his partner in who have a long track
17:23
record of doing this accessory let me
17:25
think about this for a minute passed a
17:27
no brainer yeah no I mean it really is
17:30
it Dan when I got into this business I
17:32
didn’t mention this part of the story
17:33
but you know I had experienced owning
17:36
other types of assets and so I had an
17:38
experience I had experience being a
17:39
landlord had experience building a
17:41
management company had experience with
17:42
acquisitions experience with financing
17:45
and raising capital
17:46
I didn’t have experience with mobile
17:47
home parks and there’s some uniqueness
17:49
that exists in mobile home parks that
17:53
might not exist in other asset types
17:54
Nielsen’s I see people buying parks at
17:56
the day either overpaying for or they’re
17:59
evaluating wrong or just have they have
18:02
infrastructure challenges that aren’t
18:05
easy wants to overcome and people aren’t
18:08
aware of it they get into them and they
18:09
you know either they struggle they don’t
18:11
you get the returns are looking for and
18:12
you don’t have much of an exit and it’s
18:14
just there’s no need to there’s no need
18:17
to do that there’s plenty now with our
18:18
education there’s other education out
18:20
there there’s no need to go out of the
18:22
loan there’s people like me they’re
18:23
interested in partnering with others
18:24
that don’t have the experience so yeah I
18:26
think it’s a smart thing to do I do to
18:28
it overall whether it’s whether it’s
18:31
investing through you or investing
18:33
directly after going through your
18:36
Academy and things along those lines can
18:38
you give me three pros and three cons of
18:40
actually investing in mobile home parks
18:44
yeah so pros I mean three pros would be
18:47
the I guess the first three things I
18:48
said piqued my interest about the asset
18:50
class and that’s superior returns
18:51
barrier to entry because they’re not
18:54
being built anymore I mean it’s a
18:56
diminishing supply and then the other
18:58
low turnover lower much lower turnover
19:00
and ease of which means he’s a
19:02
management compared two apartment
19:04
buildings or anything like that because
19:05
you don’t have people that can just pack
19:07
up their bags and leave it’s very costly
19:09
move those home so those are there’s
19:10
many more pros but those are like the
19:11
three big ones that just really stick
19:13
out my mind and now that the negatives i
19:15
would say are big one being
19:18
infrastructure not not understanding
19:20
exactly what the infrastructure is made
19:22
up of in a mobile home park like I
19:24
mentioned private utilities another
19:26
negative of this business is unlike
19:28
apartment buildings or other commercial
19:30
asset types to where there’s third-party
19:32
professional management companies
19:33
available and that’s a very common
19:35
strategy those that by larger apartment
19:36
buildings or those that are buying
19:38
shopping centers they typically the
19:40
investors aren’t normally managing them
19:42
themselves they bring a third-party
19:44
professional management company in that
19:45
will do the job way better than they
19:47
might do it and so they can offload that
19:49
to someone else and that’s got the
19:50
infrastructure that’s got the expertise
19:52
in the mobile home park space there are
19:55
a few third-party management countries
19:57
out there but it’s not the norm even the
19:59
biggest operator
20:00
they go vertical their management and
20:01
that means that you’ve gotta build a
20:02
management infrastructure which is just
20:05
another business I mean so you’ve got
20:06
essentially two businesses in one and
20:09
that could be a that could be hanging up
20:10
for a lot of people you know if they’re
20:12
not they’re not organized and they don’t
20:14
have the expertise to build that
20:15
vertical management infrastructure then
20:17
they are going to be challenged with
20:19
that asset type and I say the third big
20:21
negative of mobile home parks is the
20:24
ability to get bank financing
20:26
multi-family is kind of flavor of the
20:29
day as far as departments are concerned
20:31
you can probably pre-much go to any
20:32
local bank or regional or national bank
20:34
and show them a decent multifamily deal
20:37
and they’ll be clamoring to lend on it
20:39
mobile home parks half the time they’re
20:41
running the other direction you know
20:43
they just they don’t in most time it’s
20:45
because they don’t understand the asset
20:46
type and so there’s plenty of financing
20:48
out there for it but you got to dig a
20:50
little deeper okay I think this has been
20:52
a great conversation I’ve learned a lot
20:54
and we’re going to be putting your
20:56
information your website and your phone
20:59
number and so forth in our notes section
21:00
so that the viewers can contact you
21:02
directly which I really encourage them
21:04
to do especially to check into the
21:06
mobile home park academy and I want to
21:08
thank you very much for joining me today
21:10
and I’m going to look forward to coming
21:12
out to the west coast of Florida and
21:15
we’ll go out and have a beer and talk
21:16
about mobile home parks that sounds like
21:18
a plan dan I really appreciate you
21:19
having me on the show it’s been a lot of
21:20
fun

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Notes Section

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Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth thanks for
0:07
joining me on this episode of boomer
0:08
income ideas com you know we get a
0:10
chance to talk about a lot of really
0:12
cool ideas on this show but I get it
0:16
especially excited when I come across an
0:18
opportunity that’s also fun to operate
0:21
and we found exactly that we’re gonna be
0:24
talking to done d Constanzo pedigo
0:27
electric bikes which i actually believe
0:29
is going to be the next must-have item
0:31
so make sure you stay tuned alone and on
0:46
the highway looking for adventure then
0:52
whatever comes our way
0:54
[Music]
0:56
but to me Wow
1:02
tell me why
1:07
[Music]
1:11
thanks for joining me today my pleasure
1:18
you know it was it was fascinating to
1:22
actually get in touch with you after I
1:24
read the article in inked magazine
1:27
because as a baby boomer I know that we
1:31
kind of have this wave of preferences
1:34
that we followed throughout our lives
1:36
and by that what I mean is you know in
1:38
our 30s and 40s we all were khaki pants
1:42
blue blazers and drove BMWs and then
1:44
following that in our 40s and 50s we
1:47
traded that in for harley-davidson in a
1:49
black leather jacket and in our 50s and
1:52
60s we went to pedal power so you know
1:55
some of us got mountain bike some of the
1:56
scott street bikes but we all got you
1:58
know in spandex and helmets and got out
2:01
on the road someplace and that lasted
2:03
until about 60 and then most of us have
2:05
our bikes hanging in the garage
2:06
someplace but we always loved that pedal
2:09
power idea and you you kind of took it
2:13
to the next level by giving an electric
2:16
assist and i think personally i think
2:18
that that is really the next big thing
2:21
that we’re all going to have to have and
2:24
so that’s why i’m excited to have you on
2:26
the show today can you tell me a little
2:27
bit about how you got to this point i
2:29
know you’re you’re from the corporate
2:31
world and somehow you started making
2:34
electric bicycles tell me a little bit
2:35
about that well I’m typical a lot of
2:38
people in our in our age group where I
2:40
get displaced by corporate America and
2:42
in that transition period I i lived at
2:46
the beach and i had i lived at the top
2:48
of a hill and I love to ride my bike
2:50
down at the beach but I hated it right
2:52
up that hill at the end so consequently
2:54
the bikes did just as you say they hung
2:56
in the garage and every time I went out
2:58
to the garage I look at the bike side
3:00
look at my car and think about the hill
3:02
and I would choose the car so then I
3:05
heard about electric bikes and I ordered
3:06
one online and it took two or three
3:08
months to get it came and it was in
3:10
pieces and I spent two or three months
3:11
putting it together struggling with the
3:14
company that sent it to me to get it to
3:15
work finally got it to work determined
3:17
that I was and it got me up the hill and
3:20
I said oh my god this was a revelation
3:22
was
3:23
this is unbelievable this is a bike with
3:26
a small motor on it that would get me up
3:27
the hill now that particular model this
3:29
was back in two thousand six it was
3:31
clunky it was noisy was heavy it was
3:33
poor quality but the magic was a
3:36
government feeling right away I got I
3:37
got the impression I thought this is
3:39
like a magic carpet ride it can carry me
3:41
up so from then I bought seven more
3:43
electric bikes anywhere I could find
3:45
them well have struggled to find a place
3:47
to get him and all my friends came over
3:49
we all go riding bike so we get back
3:50
into by cycling together so at that time
3:52
I look at the market and I looked at how
3:55
fragmented it was and then i read online
3:57
it’s a guy that i bought one of the
3:59
bikes in was in new york city and he
4:01
stated it his largest customer base was
4:03
in California I said well that’s an
4:05
opportunity for ever seen one a guy
4:07
selling electric bikes in New York City
4:08
biggest market is California I think
4:11
there’s time for a store here as a hobby
4:13
I opened up a retail store just to test
4:16
the market okay and I carried everything
4:17
electric I carried golf carts like
4:19
Hummer and Escalade golf carts I
4:21
Electric skateboards electric bikes I
4:24
even had an electric car and I learned
4:27
really quickly that the real fun was the
4:29
electric bike because everybody got it
4:31
once they get on it they put a big smile
4:33
on their face and that that’s what began
4:36
it back in two thousand seven
4:38
interesting you know I I studied your
4:42
website and I got a real kick out of
4:44
seeing some of the testimonials from
4:46
your different customers especially
4:49
people like Norman Terry rock I think
4:52
it’s wrong yeah yeah Iraq maker that’s a
4:55
rock maker yeah you know they just are
4:57
just a testament to exactly what you’re
5:00
talking about but the thing that I
5:01
really found fascinating was that we’re
5:03
all babe they’re all baby boomers I mean
5:05
all of all of the the buyers of these
5:07
quote at least the market that I’m
5:10
seeing is that baby boomer generation
5:13
just like you and me who still want to
5:16
stay active but all of us have that same
5:18
kind of the same kind of problem
5:29
we’ve always been very active and we
5:34
find certain things that we like to do
5:36
together and we love our petticoat and
5:39
neither one of us have any argument
5:42
about writing our pedigo together it’s
5:44
not a gang it’s a club and there’s quite
5:47
a few O’s and part of this whole social
5:49
thing is we have a lot of friends but
5:51
they also have a lot of friends so all
5:54
of a sudden people are bringing friends
5:56
that we’ve never seen before so because
5:59
more of a family and with as far as
6:02
we’re concerned the more people the
6:04
better we are and the more last we have
6:06
and the more fun we had tell me a little
6:11
bit about how you got started in putting
6:15
together these dealerships I mean you
6:17
guys have really exploded and in the
6:20
last four years with what I think you
6:22
have 70 dealerships around the country
6:24
right now yeah in the US we have coming
6:27
zooming in on about 70 I think and we
6:31
have about a hundred total because we’ve
6:32
got them in other parts of the world as
6:34
well but here in the US it’s really
6:36
taken off and I think it’s most of its
6:39
come organically believe it or not it
6:40
wasn’t because we hit this big marketing
6:42
campaign to get dealers it starts with
6:45
them riding the bike when they when they
6:47
inquire to become a dealer the first
6:48
question we asked do you own a pedagogue
6:51
and if they own a pet ago they go right
6:52
to the top of the list because right
6:54
away we know they get it if they don’t
6:56
and they haven’t ridden the bike they
6:57
haven’t experienced it it’s very
6:59
difficult for us to to communicate with
7:02
them exactly how much fun the bikes are
7:03
and then typically that our dealer
7:06
prospects call or other dealers on the
7:08
phone and they become our best sales
7:10
people because they tell everybody how
7:11
much fun they’re having and at the end
7:13
of the day if it’s fun you’re going to
7:15
enjoyed you’re going to do much better
7:16
now you know I noticed that’s kind of
7:18
your slogan isn’t and hello fun yeah we
7:20
actually trademark pillows digit yeah
7:22
okay and that’s it’s such a dominant
7:24
part of the whole culture I can I can
7:26
really see throughout well throughout
7:28
your product information on the site and
7:31
your dealers and your customers and so
7:33
forth there’s just this fun component
7:35
all the way through
7:37
tena koe electric bikes is different
7:46
because we put people first the most
7:48
important part of every pedigo isn’t
7:51
some high-tech gadget or fancy bicycle
7:53
component it’s the person writing and I
7:55
notice that these are not franchisees
7:57
their dealers you don’t charge a
7:59
franchise fee tell me a little bit about
8:01
that well we spent a lot of time
8:02
everyone told us we need to be a friend
8:04
we should franchise this business so in
8:05
the beginning when we had about a few
8:08
dealers I approached the franchise
8:11
people and so what I go what do you
8:12
think and they said well you need to
8:13
have at least 10 or 15 operations until
8:15
your franchise you got to prove the
8:17
concept so fun so the next thing you
8:19
know we’ve got 35 40 frames i think i’ll
8:22
go back to the franchise people say so
8:23
what do you think they should where you
8:25
been you should have started franchising
8:29
when you had 10 or 15 yeah why are you
8:31
waiting till four th so it’ll be honest
8:33
with you kind of ran away from us and
8:34
it’s going so well we didn’t see any
8:36
different shape yeah we discovered that
8:38
the rules for franchise e are different
8:42
than our dealers are in that our dealers
8:43
are entrepreneurs and the franchise ores
8:46
and the training of the franchisor says
8:49
that you want to get people who will do
8:51
everything you tell them to do right
8:52
well we don’t want to tell them what to
8:54
do we think it’s better that they do
8:55
with that we want to give them
8:56
guidelines running but we want to tell
8:58
me what to do and the main reason we
8:59
didn’t do it is we didn’t want to
9:01
collect a franchise fee and the reason
9:03
we want to take a franchise fee because
9:04
it doesn’t matter what I take one
9:06
percent or ten percent or fifteen
9:08
percent it creates an antagonistic
9:10
relationship I called unholy alliance
9:13
between the franchisee and the
9:15
franchisor and I didn’t want it went to
9:18
do that I didn’t want to create that
9:19
relationship we’re collecting any money
9:20
so unlike franchise sores we give
9:23
everything away for free we print their
9:25
business cards when we print the row
9:27
shores for them we don’t charge them for
9:28
anything well they want to put a sign on
9:30
the building will even help pay for the
9:33
sign rather than let them pay for we’ll
9:35
go halves with them on the sign because
9:37
it’s promoting them and promoting our
9:38
branch so in essence we decided we
9:41
wanted to be partners with our dealers
9:42
rather than have any
9:44
take those other antagonistic
9:45
relationship yeah I noticed that your
9:48
your dealers actually come from all
9:50
walks of life I mean everything from an
9:52
ex-police officer to an engineer to I
9:56
know one lady actually own the
9:59
laundromat or something I mean yeah they
10:01
heard her husband on laundromat exactly
10:03
i mean i don’t think there’s any
10:05
duplicated we have some teachers i think
10:07
there’s a few teachers in the mix we
10:09
have some we have a few that have been
10:11
entrepreneurs in the past but ninety
10:13
percent of our dealers have never been
10:14
in business for themselves so we help
10:15
them with every facet of we help we set
10:18
up for social media forum we provide on
10:20
the website we provide in business cards
10:22
we want them to be able to spend every
10:23
day in their store talking to customers
10:26
on and fun I’ve never met a kid I’ve
10:29
never been an adult I’ve never met an 80
10:30
year old person if I said hey you want
10:32
to go have some fun no no what it
10:36
doesn’t happen tell me a little bit
10:38
about the actual store set up and the
10:41
the capital costs required to actually
10:44
set up one of these stores I know that
10:46
since you don’t charge a franchise fee
10:48
you do have a minimum order of product
10:53
that is purchased and and then also
10:55
obviously the store tell me a little bit
10:58
about that well first of all we don’t
11:00
have any rules I’m like the guy that
11:02
does one if there’s a rule i’m going to
11:03
figure out how to break it so we don’t
11:05
have any rules really have guidelines
11:06
and there’s no minimum purchase
11:07
requirement but we do require an opening
11:11
order of size to fit the market that
11:14
they’re in so if they’re in a small town
11:15
like bloomington indiana it wouldn’t be
11:18
the same thing and opening up in chicago
11:19
illinois to have that territory so we
11:22
grant a license agreement to our dealers
11:24
in exchange for a mutual loyalty so dan
11:28
if you said you wanted open one up in
11:29
you say you’re in fort lauderdale no
11:31
actually on palm beach i’m right down
11:33
i’m sorry here in Pompeii daughter
11:34
sprint from your adrenal bitch okay so
11:37
let’s take juno beach is a good example
11:39
she was a customer in Sacramento and she
11:42
wanted to move back to Florida and she
11:44
moved to Florida said I want to open
11:45
juno beach so we went down and helped
11:47
her pick their selection i went there
11:49
and visited her her location myself
11:52
sometimes i go sometime one of my team
11:54
members go but in this case I went we
11:56
looked at all the different sites you
11:57
wanted
11:58
and we at a particular location she was
12:01
in favor of it she did go sit a
12:02
favorable lease and we’re with her the
12:04
whole way because we want these
12:06
entrepreneurs to learn how to become an
12:08
entrepreneur and we will them every step
12:09
of the way including down to the lease
12:11
negotiation once they’ve selected a
12:13
location we grant them a license so the
12:16
first investment they after me is really
12:18
in signing a lease the second big
12:20
expense would be the inventory and the
12:23
stores can open up with anywhere between
12:24
twenty thousand dollars and fifty
12:26
thousand dollars worth of inventory
12:28
usually not much less than that and
12:30
seldom more than that depending on the
12:32
scale to market so that’s the next
12:33
biggest investment by the way they’re
12:35
buying at wholesale so if they decided
12:37
two months after they open the business
12:39
they wanted to get out they can
12:40
typically sell off the inventory and get
12:42
their investment back so it’s not a
12:43
risky part of the investment right then
12:45
and after that the third component is
12:47
the the general things you have starting
12:50
up any retail store you need a computer
12:52
in a countertop you need some store
12:54
fixtures fortunately for us our store
12:56
fixtures are minimal because the bikes
12:58
are in essence the the fixtures
13:00
generally speaking it costs between
13:02
somewhere between seventy-five thousand
13:04
dollars on a hundred thousand dollars to
13:05
open up a pedigo branded store and about
13:09
half of that is typically inventory once
13:11
once you’re up and running you put up a
13:14
sign how how do you drive traffic to
13:17
that especially that new location okay
13:20
so that’s kind of where we have the
13:22
secret sauce we’re very good at when our
13:26
store opened up in Boston open the door
13:28
and income first customers and so we’re
13:30
here to buy to pedigo interceptor model
13:33
bikes and the guys conflicted now
13:36
wedding okay see goods well let’s go for
13:38
a test ride the customer should know
13:39
where they need to go for tests right
13:41
we’re just here to buy two bikes now
13:42
he’s really conflicted okay because we
13:44
drilled in how important is to take the
13:45
customer a test drive right and the
13:47
customer said well I don’t need to take
13:50
a test right because I rented them when
13:51
I was at your location in Coronado and
13:53
over the weekend I mean over the summer
13:55
time and I’ve been waiting for you to
13:56
open because i want to buy here so a lot
13:59
of our secret sauce is having these
14:00
rental operations all over the world so
14:02
the first thing we’re trying to do is
14:04
get him to try the other thing is we’re
14:06
very aggressive online our goal is to
14:08
drive traffic to the store their job is
14:10
to get them on a bike and get them to
14:11
for ride once they go for a ride and the
14:13
longer they take the ride the more
14:14
likely they are to buy the product it’s
14:17
our policy to do whatever it takes to
14:19
make sure that every single pedigo
14:21
customers delighted with their bikes and
14:22
the overall experience I love this
14:25
business because always sell is fun
14:26
every hour of every day somewhere on
14:29
earth someone is falling in love with a
14:31
pet ago and rediscovering the simple joy
14:33
of riding a bicycle and feels pretty
14:36
good I think that this really sound like
14:40
a fun business but tell me a little bit
14:43
about it as a business and by that what
14:46
I mean what can an average store expect
14:48
to gross many net I mean it highs lows
14:53
what are the ranges and by what I’m
14:56
really trying to drive through to is
14:57
that you know a lot of businesses that
15:00
we baby boomers kind of seek out and
15:03
shoes are things that we’re really not
15:06
that concern about the money we really
15:08
want to just kind of do it as a hobby
15:09
and if it pays some money as well it’s
15:11
good too but is this or is this a real
15:13
business that someone that really needs
15:16
to make a decent income can count on
15:18
this store to do that first of all it’s
15:20
a relatively small investment I mean
15:22
fifty to a hundred thousand dollars is
15:23
not a lot of money to start a business
15:24
today if you start a franchise they’re
15:26
going to get a minimum of a
15:27
twenty-five-thousand-dollar franchise
15:28
fee which you really get a little or
15:30
nothing for that so it’s a relatively
15:32
small start-up but the most important
15:34
part about it is it’s an owner-operator
15:36
business almost every location we have
15:38
and successful locations operated our
15:40
biggest our largest and most successful
15:42
dealers in irvine california an on
15:45
coastal city and his wife isn’t does the
15:48
books Bob and his son work in the
15:50
business and they’ve done very very well
15:51
I don’t know exactly how much they’ve
15:53
made but they’ve made their making a lot
15:54
of money anyway but if you ask me
15:56
arranged in the first year I think every
15:59
single store that we’ve opened up is at
16:00
least broken even in the first year I
16:02
don’t know any of it lost any money and
16:04
then the second third and fourth years
16:05
when they start making money and
16:07
reasonably you can expect to make fifty
16:09
to a hundred thousand dollars a year as
16:10
an owner operator and if you own
16:12
multiple stores that we’ve got dealers
16:13
now doing that you have a really a
16:16
pretty wide variety of bikes
16:18
incidentally the latches my my favorite
16:23
of your models because I used to
16:24
to do a lot of sailing and you know
16:27
being able to fold up a bike and put it
16:29
on the boat and take it with you
16:30
everybody used to do that with full up
16:32
bikes anyway but they didn’t get used a
16:34
lot because it was you had a pendulum
16:36
but the idea that you could actually
16:37
pull this thing up and take it with you
16:39
go from you know take a trip from here
16:42
down to Key West more your boat get on
16:45
your your pedigo and go riding around
16:48
Key West is pretty attractive to me the
16:56
pedicle latch is an electric folding
16:58
bike like no other it rides like a dream
17:00
and easily fold in about 30 seconds once
17:03
it’s folded a special ball and socket
17:05
fold everything together so it’s easy to
17:07
carry it can be supported by the seat
17:09
post or tipped over to rest on pads
17:11
attached to the rear rack discover for
17:13
yourself all the joy of riding a pedigo
17:15
electric light hello fun so tell me why
17:22
so many mop you know it’s just like a
17:25
knock are not every carpets whether you
17:27
go to a Chevy dealer or a toyota dealer
17:30
they’ve got a different mother they’ve
17:31
got a subcompact all the way up to a you
17:33
know a full-size luxury car we need to
17:35
do the same thing in our category and
17:37
the more bikes we have the more people
17:40
we attracted a bike so the style of the
17:42
bike doesn’t become the objection right
17:44
my concern is how long the battery lasts
17:46
so that I can you know I don’t run out
17:50
of battery power before I make it back
17:52
to wherever I’m trying to get to so we
17:54
have all the questions and here they are
17:56
right here dunno if you could see that
17:58
or not basically how fast how far how
18:02
long did charge and what about exercise
18:05
those are the four key questions that we
18:07
recognize that people ask as they go
18:10
along and the reality of it is the
18:12
timing is everything these lithium
18:15
batteries that have come out in the last
18:16
two years of phenomenon they’ll go
18:18
further than you want to go I mean you
18:20
take our long-range batter it’ll take
18:22
you 50 miles without you pedal yeah 50
18:25
miles is a long way right and that’s
18:27
without pedaling if you had some any
18:28
element of human power to it can take
18:31
you a hundred miles you can still have
18:33
after charge left yeah give me three
18:37
images are three pros that you see about
18:39
actually owning and operating a pedigo
18:42
dealership and maybe three cons so the
18:47
three real key advantages to us over
18:50
some other business opportunities to
18:52
people might consider is number one it’s
18:53
a relatively small investment number two
18:56
it’s a quick start-up if you can find a
18:58
place the biggest challenge we have is
19:00
finding a place a suitable place to open
19:03
up and that’s a huge part workers the
19:04
right location is critical to success we
19:06
spend more time on that than anything
19:08
else and then the third thing is there’s
19:09
no franchise fees any money you put in
19:11
you’re putting into your own business so
19:12
we’re not going to tell you what to do
19:14
we’re not going to dictate to you and
19:15
you’re not going to pay us to have you
19:17
do that as far as negatives it’s like
19:19
any other small business you’ve got to
19:21
put it you put in what you get out there
19:22
so the key things are to have good
19:24
community involvement make sure you know
19:26
your mayor and your city council and get
19:29
involved in activity so you’ve got to
19:30
spend time in weekends doing events
19:32
chatting up people giving test rides on
19:36
the bikes you it’s a retail store so
19:38
you’ve got to put in retail store hours
19:40
and it’s six or seven days a week the
19:42
other negative is there is some
19:43
mechanical ability that you need to make
19:45
sure you can fix the bikes and assemble
19:47
them and and and take care of them but
19:50
that’s something you can hire so you
19:52
know and they’ve got to make some
19:53
investment of time more than money once
19:55
they’re up in operating they can become
19:57
cash flow positive very quickly once
19:59
they start selling bikes because we’ve
20:00
got a good healthy margin and we’ve got
20:02
very little competition in fact we have
20:04
no competition in in electric bike
20:07
stores I think this is truly the next
20:10
big item that we’re all going to want to
20:13
have to have and I think you’re at the
20:15
very forefront of that wave and with a
20:17
product that you have which is
20:18
outstanding it’s just you know all the
20:21
signs point up for you so I want to
20:23
thank you for being on the show we’re
20:25
going to be putting your information in
20:27
our notes section so our viewers can
20:29
reach you directly and at the same time
20:32
I want to basically reserve the ability
20:35
to come out to California and maybe
20:37
we’ll go on a ride together I would love
20:39
that in fact better still I might come
20:40
and go for ride with you we might mean
20:42
to the Juno Beach store and you can show
20:43
me around there perfect let’s do it

What is your personality type?

The purpose of the Myers-Briggs Type Indicator® (MBTI®) personality inventory is to make the theory of psychological types described by C. G. Jung understandable and useful in people’s lives. The essence of the theory is that much seemingly random variation in the behavior is actually quite orderly and consistent, being due to basic differences in the ways individuals prefer to use their perception and judgment.

Take the test here

 

“Perception involves all the ways of becoming aware of things, people, happenings, or ideas. Judgment involves all the ways of coming to conclusions about what has been perceived. If people differ systematically in what they perceive and in how they reach conclusions, then it is only reasonable for them to differ correspondingly in their interests, reactions, values, motivations, and skills.”

These tests are typically taken before an interview in a corporate setting where you are trying to portray a side of you that you think we will land you the job! That is where the problem is however, as I mentioned in my interview with DR. Sharon Livingston, I received a personality type that was not true. The test was accurately picking up what I wanted it to pick up. This is why I am including a version of this test which you can take from a the comfort of your home to give you a better idea of who you are. This might help you as you determine what your next steps are in this third chapter of your life.

 

Take the test here

 

 

What is your personality type?

What is a Service everybody needs? Answer, automotive care! Why not capitalize on the demand?

Notes Section

In this interview we talk with Jim Alley an owner of a Meineke franchise, who shares with us how profitable this opportunity is.
http://bit.ly/meinekeboomer

Transcript

0:00
this is boomer income ideas calm and
0:03
your host Dan Farnsworth if you thought
0:07
that anything related to automotive
0:08
repair would not be anything that you
0:10
were actually interested in today you
0:12
might just change your mind we’re going
0:14
to be talking with Jim Ali he’s a recent
0:16
meineke automotive care franchisee in
0:19
Arkansas and he’s got a pretty
0:21
compelling story so staying
0:27
[Music]
0:38
[Music]
0:50
[Music]
0:53
but your action join me today hey dance
0:57
thanks appreciate you having me on today
0:58
you know I was I was really interested
1:01
when I when I came across this
1:03
opportunity to talk to you because quite
1:05
honestly I really hadn’t thought about
1:07
car care as being something that the
1:10
normal baby boomer would be looking at I
1:12
think in terms of you know man date a
1:14
guy 20 maximum 30 and was thinking I
1:17
still got a lot of time left but i can
1:18
turn wrenches and things so i’ll look in
1:21
the car kit I’ve done but that’s not
1:22
true story so can you tell us a little
1:24
bit about your story and how you how you
1:27
became a minor key a franchisee yeah
1:30
sure damn so yeah I didn’t even think
1:32
I’d be sitting here talking about you
1:34
know car care whatsoever especially if
1:36
you’d asked me that even as early as
1:37
five years ago okay my journey really
1:40
began in the telecommunications industry
1:42
about 25 30 years ago almost and and I
1:45
started out hitting the streets as a
1:48
beeper salesman so that tells you a
1:49
little bit about all night and we start
1:51
referencing beepers right remember those
1:52
do you remember those nothing’s exactly
1:55
did a number of different things from
1:57
regional account management to actual
1:59
vice president general manager of some
2:01
of the national accounts out there that
2:03
you would very much recognize the the
2:05
t-mobile’s the crickets the US cellular
2:08
the sprint the t-mobile the verizons of
2:11
the world so that that opportunity ended
2:15
by itself is a lot of why I’m here today
2:18
and I didn’t really realize this until
2:19
it became a franchisee and what I mean
2:22
by that is the breadth and knowledge and
2:24
that I had gained over a course of those
2:27
years were skills that I thought had
2:30
pigeon-holed me into telecommunications
2:32
I mean Here I am a telecommunications
2:34
corporate guru for for all these years
2:36
and it’s like oh now of a sudden there’s
2:39
a change and we’ll get into the change
2:40
here in just a little bit but it’s like
2:42
now what do I do well little did I
2:44
realize until I embarked on this journey
2:46
how many of those skills were really
2:49
transferable it didn’t matter whether it
2:51
was cell phones or if it was auto care
2:54
the skill sets that you learn over the
2:56
course of those times as all baby
2:58
boomers who are
2:58
are transferable and I didn’t realize it
3:02
again until just the execution and
3:05
getting my hands dirty and jumping into
3:07
this thing of how much that part late
3:09
and that so that’s nothing i really want
3:10
to kind of harp on is that is that
3:13
people need to recognize that and and
3:15
what that message come across loud and
3:17
clear because i didn’t see it until
3:19
after the fact i know beforehand it
3:22
would have taken some of the fear away
3:23
you know and and made that transition
3:26
even a little bit easier found an
3:37
insurance agency for 12 years my second
3:40
career as I was a Lutheran pastor I was
3:42
a business Roger for five years and I
3:44
sailed the world on a sailboat for three
3:46
years I was a welder fitter for
3:48
automation company I was a professional
3:51
hockey player I was in geological
3:54
engineer and I was a high school teacher
3:58
but I knew absolutely nothing about cars
4:03
I was like the kids of another way you
4:05
can all in hand with those houses are
4:07
angry name it’s also next different and
4:10
business basically runs the same way so
4:12
that’s exactly definitely understand it
4:15
so tell me a little bit about your
4:17
transition to my knee why did you choose
4:19
car care I’m going from
4:21
telecommunications into the Carter well
4:23
no question it took some research to get
4:26
into that to get to the final point but
4:28
I think one was was an evaluation period
4:30
okay I had a you know sometime after the
4:34
motorola layoffs I became the statistic
4:36
there okay they gave me a great package
4:38
everything worked out fine but I had a
4:39
little bit of time to evaluate what I
4:41
wanted to do first I think we need that
4:43
before we say why meineke why
4:45
franchising see franchising allowed me
4:48
the opportunity to take a proven system
4:50
I didn’t have to go in and create the
4:52
point of sale I didn’t have to go ahead
4:53
and create process I didn’t have to go
4:55
in and create brands so those things
4:57
were already there that are huge things
4:59
when starting up a new business well as
5:01
a baby boomer I thought do I want to go
5:03
through all of those growing pains or do
5:06
I want to take what’s already
5:07
invented and just continue to extend
5:10
that out into my own brand and so I
5:13
really when choosing a franchise that
5:15
became it became you know paralyzed that
5:18
I a I get into franchising but be now
5:20
why meineke why automotive to really
5:23
kind of answer your question you know I
5:26
boy in this particular industry part of
5:29
the reason I’m here is because I was a
5:31
consumer again the automobile industry
5:33
it often often asked myself the question
5:35
if I had to go get a root canal or get
5:38
my car serviced which would i do and i
5:40
would probably would have chosen root
5:42
canal more often because it’s not
5:44
necessarily an industry plague was known
5:46
for its customer service i mean we’ve
5:48
all been there right you walk in it’s
5:50
like how are they going to take me today
5:51
i just want to give you my wallet and
5:53
start this thing off from the beginning
5:55
and and and I thought man this is an
5:58
industry where I can I I can take a
6:02
national brand like meineke okay a
6:04
well-known brand and move it into a
6:07
marketplace and moving into this
6:09
industry and be able to my own stamp on
6:11
it maybe we’ve been open nine months now
6:13
fifty percent of our business is return
6:16
customers that tells you why we’re doing
6:18
you know that we’re doing the right
6:19
things so so that’s why franchising and
6:22
as a franchise owner I can bring that
6:25
TLC to the forefront of our customers
6:29
out there and and so far it’s proving
6:31
financially very rewarding got it that
6:36
is wealthy
6:39
way in a prayer down hey there my name
6:47
is Dave schaeffer’s and I’m the senior
6:48
vice president of franchise development
6:49
from meineke car care centers if
6:52
lifestyle and incredible income
6:53
potential is important to you then I
6:55
encourage you to explore the meineke
6:57
opportunity no automotive background no
7:00
problem over the last 40 years meineke
7:02
franchisees have dominated this 320
7:05
billion-dollar industry at meineke we
7:07
offer great hours incredible earning
7:09
potential and our franchising is benefit
7:11
from the support and recognition of a
7:13
national brand if you’re ready to make a
7:14
change in your life and your income and
7:16
we encourage you to learn more about the
7:18
minor key franchise opportunity all
7:23
right I can understand it it was
7:25
interesting to me because you know we’re
7:27
all victims of a preconceived ideas and
7:30
30 years ago meineke was meineke muffler
7:33
bring them so all I thought about when I
7:35
heard my Nicki was you know he’s not
7:37
with me yes but actually you’re the
7:40
total car care now correct total car
7:43
care that the industry had to go that
7:45
way if you think about a midas was
7:46
always breast firestone was always tired
7:48
but the entire industry had to make the
7:51
shift as cars changed okay you know we
7:54
had to have our brand had to change our
7:57
product offering had to change and so we
7:59
truly are total car care tell me a
8:01
little bit about how you get the message
8:04
out and the public that you guys are not
8:08
the typical grease monkey shop where you
8:11
you know you hope you pull on the guy
8:13
comes out from underneath the car and
8:14
james are all greasy he wipes them off
8:16
you shakes your hand so they’ll grant
8:18
you know what what do i need to do for
8:20
you to get as much money out of you as a
8:22
possible kins dick I think an x value
8:24
how do you get how do you get the word
8:26
across the public that you are I’m a
8:29
professional outfit that really takes
8:31
into consideration making sure that
8:34
they’re getting the right throws for the
8:35
right thing on their car that’s really a
8:38
great question and you know oftentimes
8:40
people say it begins at the time you
8:43
enter the door and it does but there is
8:45
the how do we create the awareness fact
8:48
too okay and I think that’s what you’re
8:50
you’re kind of asking there is how do
8:54
you change the conception to the public
8:55
out there well they’ve never been here
8:58
they don’t know so we’re in the process
9:00
of engaging in a huge social media
9:03
campaign and we just want this not that
9:06
long ago we’re utilizing the power of
9:08
Facebook in the power of Google when
9:10
Yelp and all the and YouTube and all the
9:13
all the social media aspects of it and
9:15
and this is again something I guess I’ve
9:17
encouraged to baby boomers to do is that
9:19
if you’re not familiar with it get real
9:21
folks get familiar with it because this
9:24
is how things are marketed today and
9:27
when you’re looking at the people who
9:28
are driving vehicles in this particular
9:30
industry is people who are using social
9:31
media so you get you get engaged with
9:34
them and so we we literally have again
9:37
embarked on this social media campaign
9:39
where we’re putting videos out we’re
9:41
putting do-it-yourself tips out we’re
9:43
putting through it both questions we’re
9:45
putting testimonials out there we’re
9:47
letting people know who our technicians
9:49
are we’re bringing the camera into the
9:51
garage so that they can see what’s going
9:53
on we bring the camera into the lobby
9:55
and and so when they do get here they
9:57
already have a familiarity with who we
10:00
are and that really bridges the gap and
10:02
then of course once they’re here we want
10:04
to make sure they have that great
10:05
experience and then it begins with the
10:08
door swing when they come in what do
10:10
they see they’re greeted with one of the
10:12
most pristine lobbies you’ve ever seen
10:14
it is not your grease monkey garage okay
10:16
and whatsoever there’s a hospitality
10:18
center there’s free Wi-Fi it’s a lounge
10:21
light it’s a coffee shop car shop rolled
10:24
into one it’s kind of like where
10:25
everybody knows your name you know so
10:28
now let me ask you the big question yeah
10:30
as a franchisee do you need to be able
10:33
to work on cars of salt or if you just
10:35
concentrate on running the business and
10:37
you have a team of people doing that for
10:39
you well there’s different models for
10:41
different folks and I’ll tell you what a
10:42
hold of my handing see there’s not a lot
10:44
of grease on them okay I do not
10:46
personally go out there and change the
10:48
oil filters if we do we’re in trouble
10:50
I’ll just say that right
10:51
but I tell you what I know how to run a
10:53
business and I know how to hire a team
10:55
and I’ve got the most phenomenal team
10:57
out there with ase certified technician
10:58
that are very capable of doing that
11:01
there’s no question about the product
11:03
that we offer is an extension of the
11:05
mechanics that we have in the garage and
11:07
I just mechanics with cars away are
11:09
today their technicians okay and so I’m
11:12
responsible brought it for really
11:14
running the business making sure that we
11:16
manage everything from the sales
11:18
marketing advertising the financials the
11:20
labor pool and and and the customer
11:23
service interaction you’ll see me while
11:25
you may not see me in the garage you
11:26
will see me in the lobby and I will be
11:28
interacting with all my customers out
11:30
there and if I’m not in the lobby around
11:32
the community and I’m going to chamber
11:34
events and I’m out there working with
11:35
the different leads groups out there and
11:37
working sleep services so there’s a you
11:40
know there’s a very active role for even
11:42
that it that owner out there and then
11:44
when I’m not doing that hey I’m looking
11:45
at location number two like I said we’re
11:47
about ready to finalize that up and get
11:49
that going by May first band here we are
11:51
the end of februari you know it we’re
11:55
going to be doing this by may one and
11:57
looking at stores three four and five so
11:59
plenty of plenty of plenty of things to
12:01
do even outside the garage Stan yeah I
12:04
think that’s great actually now that you
12:06
brought that up that’s the reason is
12:07
among my next question in looking
12:10
through the franchise information your
12:13
company has a number of offerings and so
12:15
you have a number of dimensions that you
12:17
can go you can you can stay with a
12:19
single store you can expand multiple
12:22
meineke shops or you can do a minor key
12:25
and on Mako or meineke and with an
12:29
economy moving to Yemen the violin sure
12:32
sure you have you have three or four on
12:34
a different offer and I’ll be in the car
12:37
care which are all different directions
12:39
that you can go into are you going to
12:43
stay just with meineke are you going to
12:45
branch out into these other these other
12:47
opportunities as well well I think the
12:50
burning still add on that I think that
12:51
if I continue to look for new
12:53
opportunities and we’ve looked at some
12:56
combined locations of meineke and Mako
12:58
together I mean after all we are under
13:01
the drill
13:01
brands umbrella car companies like you
13:04
discuss the bear okay and if there are
13:06
synergies to be gained across both the
13:08
consumer as well as flea business let’s
13:10
definitely take advantage of them I
13:12
think right now if you look at dynamics
13:14
of this particular market you’ll see
13:16
that it may be more of a co marketing or
13:18
a relationship type of in exchange to
13:23
take takes place somebody comes into my
13:25
meineke needs body work hey let’s shift
13:27
them over to Mako if they if they’re
13:29
over Mako and they need car maintenance
13:30
and repair let’s shift them over to
13:32
meineke unless I came across it was kind
13:34
of interesting to me I assumed that as
13:37
cars are getting more and more
13:38
complicated people are taking their cars
13:40
back to the dealership as opposed to a
13:42
third party like Monica the indication
13:45
is that only what thirty-five thirty-six
13:47
percent of the people driving cars
13:48
actually take them to a dealer most
13:51
people over seventy percent actually do
13:54
business with someone like lyrics all
13:56
right that’s correct that’s correct i
13:58
named a dealership they’re getting more
14:00
creative to you know you won’t it’s not
14:02
uncommon to see buy a car here and get a
14:04
lifetime of oil changes for note for no
14:07
charge well there’s obviously a charge
14:09
behind that right that the idea is to
14:11
get the car back into the dealership so
14:13
that they can get the service work well
14:15
the reality is we all know taking your
14:17
car to a dealership there are inflated
14:19
labor rates for reasons I mean they’ve
14:21
got beautiful shops beautiful facilities
14:23
you got to keep the lights on so you’re
14:24
going to pay more for that you find a
14:26
value play like like meineke you know we
14:29
focus that like I say on value integrity
14:32
and Trust but within that value play is
14:34
also the quality play we’re able to keep
14:37
our labor rates down because we’re not
14:39
in dealership yet at the same time we’re
14:42
able to offer those ase-certified
14:43
technicians in here so you’re getting
14:45
that quality work at a lesser price but
14:48
yet the exact same work is being done
14:50
you know yeah dealerships and then you
14:52
have the my keys of the world minuses
14:54
firestones good years etc okay then you
14:57
got your independence out there and as
14:59
cars become more complicated you’re
15:01
seeing less and less independence
15:03
because they can’t keep up with the
15:04
technology my key is on the forefront of
15:06
technology getting a car surgical
15:09
meineke smart save
15:11
time by booking an appointment online
15:13
even smarter thanks to them I makea
15:15
dealing with car maintenance repairs and
15:18
all the little things just got easier
15:20
you can save each vehicle in your
15:22
household with the my cars feature and
15:24
get reminders for when each vehicle is
15:26
due for service the app also saves you
15:28
time with easy appointment scheduling
15:30
automatically syncing all your vehicle
15:33
information with your local meineke so
15:35
we’re ready and waiting when you arrive
15:36
meineke on with life not only do we have
15:40
the latest computer diagnostic equipment
15:42
that’s in the garage out there who were
15:44
doing things to extend out to the
15:45
customer things like auto vitals where
15:47
we can send snapshots and communication
15:50
and videos to the consumer if they’re if
15:52
they bring their car in they drop it off
15:54
in two lengthy repair and the typical
15:57
transaction they pick up the phone and
15:59
they call you and say what’s the status
16:01
of my car they don’t see if they’ve
16:03
never seen it well with auto vital
16:04
you’re able to bring the garage
16:06
experience to them while they’re out
16:07
remote and that that really helps the
16:10
customer be educated and feel good about
16:13
what’s taking place when the car out
16:14
with their car out there
16:17
Debbie drops off her vehicle Joe shop
16:20
uses the EIS so the inspection process
16:22
is quick and easy after the inspection
16:26
is done bill creates an estimate based
16:28
on Sam’s recommendations is any emails
16:30
Debbie her inspection results complete
16:31
with pictures and videos so Debbie
16:38
educates herself on the work to be done
16:39
and watches the service recommendation
16:41
video is still included on the
16:42
inspection report all this information
16:45
makes perfect sense so she proves that
16:47
work to be done later that day debbie
16:50
receives a text from a shop that our
16:51
cars ready to be picked up and realizes
16:53
that the process couldn’t have gone to
16:54
another mine he is very upfront with
17:00
with their financials and that was a big
17:03
decision a big part of my decision as to
17:05
why I chose my key because they were up
17:07
front I’ve been at it for just a little
17:09
over nine months I’m actually a little
17:11
bit ahead of my business plan because
17:13
they’ve been there to support me through
17:15
the marketing efforts that we’ve done
17:16
and a host of different things and you
17:20
know we talked about social media but
17:21
but again behind the scenes they do some
17:23
phenomenal things with ecrm and direct
17:26
mail pieces and a great marketing
17:28
program behind it and all of those are
17:31
needed elements of the recipe for
17:35
success out there and I can say if i go
17:37
to look at my bottom line and hold it my
17:38
bottom line here what meineke told me
17:41
was was pretty spot on what one last
17:44
question that I always have people who
17:46
is not a good candidate for this
17:48
particular type of franchise I mean you
17:50
you seem to have found your niche who’s
17:55
the guy that’s just not the right guy
17:56
for somebody hire let me get into a
17:58
franchise that that has an attitude of
18:01
hey I just want to back the wheelbarrow
18:03
up to the shake and roll it on down to
18:05
the bank there hey a lot of guys get
18:08
into franchises a negative other hand
18:09
goes up there i’m learning to process
18:12
but i don’t you cloud one so that’s
18:15
right boy it you know and get hands-on
18:18
ok good don’t there’s no get rich video
18:21
quick schemes out there their professed
18:23
all over the place franchising is not
18:25
that world you need to be able to roll
18:27
your sleeves up get involved in it
18:29
the guy who’s just looking at you know
18:32
that in and out or to be an absentee
18:34
owner from the beginning you know
18:35
there’s plenty of absentee owner
18:37
franchises I meineke candy don’t get me
18:40
wrong meineke very much candy but I
18:42
think when you really get this thing up
18:44
and off the ground you need to roll your
18:46
sleeves up I don’t need you got to be
18:48
on-site folks good well Jim I think this
18:52
has been a great conversation as a
18:53
fellow baby boomer I’m always fascinated
18:56
to find some guy who is around my age
18:59
and still has that driving that passion
19:01
to to swing for the fences and just like
19:04
you you know I think a lot of us have
19:06
that that time frame where we say okay
19:08
we’ve got this this much left in us
19:10
we’re going to we’re going to get
19:11
playing this to the end and then go from
19:13
there so I really really appreciate that
19:15
entity I know as a individual owner the
19:20
audience that is launching this is
19:22
really appreciating the fact also that
19:24
you’ve been talking a real guy who’s out
19:26
there in the in the transfer student so
19:29
I appreciate that and we’re going to
19:31
we’re going to put the meineke
19:33
information in our notes improve our
19:35
notes section so that day our viewers
19:37
can get directly in touch with the
19:38
corporate office and that kind of thing
19:39
but add your thank you again for joining
19:41
me today again thanks for having me in
19:43
vegetable up to you
19:45
[Music]

How to apply your skill set to a new occupation

Notes Section

For many Boomers & Seniors, career transitions, some forced, and others voluntary, can be a frightening experience; especially when coming from a corporate environment.

This video is intended to showcase how to apply your skill set to a new occupation in an entrepreneurial environment.

We talk with Vicki R. McCullough owner of Sequitur Marketing. She is a great example of someone who enjoyed her time in the corporate environment, but was forced to make a transition.

You can visit her site here: http://bit.ly/sequiturboomer

 

No Need To Demolish Your Tile, Just Re-style it!

Last week we interviewed Tom Lindberg, CEO of Sir Grout Franchise LLC. At Boomer Income Ideas, we try to interview guests that can offer our audience some new and fresh ideas for generating income. Let’s face it though, many of us are not in our 30’s anymore, and we might not have the same energy that we used to. The idea of going out, knocking on doors, cold calling, attempting to generate your own appointments, and then trying to close those deals on your own, may not sound as appealing as it once did. So this is why we were excited to get to know more about the unique aspects that Sir Grout can offer to make the process of running a successful, and, more importantly, a profitable business, an enjoyable experience.

In this article we want to highlight two of the unique aspects of Sir Grout, but we are going to be focusing primarily on one.

Our Honorable Mention

Sir Grout has built into their franchise model, a call center that can help schedule appointments for you! They have dedicated a lot of time & effort to ensure that new customer calls are answered as quickly as possible. This greatly reduces the need of having to go out and generate your own leads.

So leads and appointments are great, but what will help you close the deal? What will help separate you from other potential bidders, and make the selling process much easier?

This is where their Thin Tile product line comes in.

What is Thin Tile?

Thin Tile is a high quality, kiln fired porcelain that has been very popular in Europe for its durability and modern design. Compressed at thousands of pounds per square inch, this super thin porcelain tile is extremely durable, and can be applied quickly over preexisting tile! Installed with a patented, waterproof and mold-proof barrier between the new and old tile,

Thin Tile provides a seamless redesign to your current home appearance, allowing you to modernize without paying the price of a bathroom remodel or dealing with the nasty consequences of demolition and reconstruction.

Standard tile is anywhere from 3/8″ to 1/2″ – that’s very thick! Thin tile’s superior quality and

 

 

Imagine telling your potential customer, “there is no need to demolish your bathroom”,  “this will cut your costs in half”! Sir Grout mentions in their video that their close percentage is 50%, and if you pair that with their call center, there is no reason that you will not be successful should you choose to own & operate a Sir Grout franchise.

 

 

Visit http://www.sirgrout.com for more information and if you would like to view our interview Click Here.

How to produce lines of happy customers by providing a treat everybody loves!

Starting a business where people stand in line to pay you

Profits are popping and smiles created at Doc Popcorn.

In this interview we talk with the founders of DocPopcorn Rob and Renee.  As the largest franchised retailer of fresh-popped popcorn in the country,  they created an affordable, fun and simple business model we think every Boomer & Senior should see this video if they are interested in exploring potential franchise opportunities.

Visit their website for more information: http://bit.ly/popcornboomerincomeideas

Transcript

0:00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth trying to show
0:07
you the income opportunity that very
0:09
simple to operate and people staying on
0:12
the line to pay you money when you be
0:14
interested well if you are
0:15
stay tuned today we’re going to be
0:16
talking to Robin a Israel of dot popcorn Starting a business where people stand in line to pay you
0:20
and they have a really unique concept so
0:23
let’s take a look at this hour
0:27
y’all let me like to eat a lot on the
0:29
show and this hour celebrating national
0:32
snack months we’ve got popcorn ice cream
0:35
with the camera software and ice cream
0:37
come by
0:38
yes I see enough and fast food we’re
0:40
Starting a business where people stand in line to pay you
going to be eating all the goddamn
0:40
parking ships for me tonight thanks for
0:45
joining me to their good morning morning
0:47
to be here and I was really excited to
0:50
Starting a business where people stand in line to pay you
have you guys on the show especially
0:52
after i saw some of the interviews with
0:54
your franchisee because you can tell a
0:56
lot about the company just by watching
0:59
the franchisees and seeing how they
1:01
react so we’re going to talk a lot more
1:03
about that later on but can you kind of Starting a business where people stand in line to pay you
1:05
give me a little bit of a background
1:06
about what dot popcorn is and how you
1:11
guys got into this so I’ll start again
1:14
in reno fill in but thank you for having
1:16
us again and i’m in it you know at the
1:19
highest level were smile creation
1:21
company and that’s really what we do and
1:23
who we are we we started a business with
1:25
the idea that there’s a need for a
1:28
better for you
1:29
fantastic snack on it should be
1:31
everywhere and and that’s kind of that’s
1:34
been our goal and that’s really what we
1:36
created over the last 13 years we call
1:39
this 13 years to an overnight success
1:42
damn so it’s where it’s been it’s been
1:44
it’s been a fun ride and I know that
1:46
Starting a business where people stand in line to pay you
love you have a retail background and
1:48
now you have strategic planning
1:50
background the right answer and somehow
1:53
you guys just all the throws that you
1:55
know what popcorn is that ok
1:57
yeah I mean you know as you said I mean
1:59
I was a
1:59
and I’m apparel guy from Manhattan I’m i
2:03
sold that business in 1996 on and then
2:06
retail and ryan you were able to
2:08
transfer your skills to this white this
2:11
was we we
2:12
I worked with all the major retailers
2:13
and then Renee’s a fortune 500 marketer
2:16
and we were dating at the time and we
2:17
saw this great opportunity and popcorn
2:19
and brought together now you’ve done
2:22
this through franchising I’m just kind
2:24
of curious why go that route of the
2:26
poster just trying to put in the retail
2:28
everywhere
2:29
um you know that’s been really
2:31
interesting question and that was
2:32
actually a turning point for us you know
2:34
we were building our own location all Starting a business where people stand in line to pay you
2:36
different models we had on carbon
2:38
stadiums we had tea ops and inline
2:41
locations and shopping malls and we
2:43
looked around and said you know we’d
2:44
like to you know how other people
2:46
benefit from our business and Robin
2:49
idols being entrepreneurial and really
2:51
enjoying coaching other folks that want
2:53
to be entrepreneurial we really love the
2:55
idea of helping others who may be wanted
2:58
Starting a business where people stand in line to pay you
to do something different you know who
3:00
might be working in corporate America or
3:02
might be working on for somebody else
3:04
you know how do I get in business for
3:06
myself and be able to use our concept to
3:09
do that I’m really excited up to be able
3:12
to coach people to be in business for
3:14
themselves and you know also we really
3:17
like the idea that the popcorn doc
3:20
hopper is a fresh pops product as a way
3:22
to engage with a customer experience we
3:26
really felt that the fresh part of the
3:28
product with was really important for
3:31
the business side to do it now one of
3:34
the things I really was impressed with
3:36
with those particular profile is that
3:39
you can scale from just a single cart up
3:42
to an actual retail location if you wish
3:45
and you can do anything in between
3:47
can you talk a little bit about that
3:48
yeah so really there’s three mean
3:50
business models and it is you mentioned
3:52
and there’s the cart which is a mobile Starting a business where people stand in line to pay you
3:54
unit rashly now God restores
3:57
experimenting with trucks as well I mean
3:59
one so we can talk a little bit about
4:00
that too hot chocolate Bob top truck so
4:03
we have so we we have we have top kiosk
4:06
top cards
4:07
Topshop’s and a top truck the top card
4:11
the mobile unit that can be brought into
4:12
there’s a festival high-traffic venues Starting a business where people stand in line to pay you
4:15
we can do it at farmer’s markets on and
4:18
so that’s a literally put that down on a
4:21
trailer and off you go on and so that’s
4:23
one of the models the kiosks model
4:25
generally in the end the topshop model
4:27
in line models those are traditionally
4:29
done hydraulic venues like balls
4:32
yeah and if I may add you know what’s
4:33
really interesting is these are his top
4:35
Starting a business where people stand in line to pay you
court is now wholly owned subsidiary of
4:38
a company called different dots like a
4:41
lot of people might know and so I’m with
4:44
that we have an amazing opportunity for
4:46
folks as well I’m to co-brand with
4:49
different documents so now you know
4:51
you’re not only offering doc popcorn but
4:54
you also can offer different dots which
4:56
I’m gonna hold the product offering
4:58
helps with I’m you know we have a great
5:00
gift business in in this in the fourth
5:03
quarter of the year without you know
5:07
beautifully branded doc popcorn tins
5:09
that are great gift item we’re dippin
5:12
dots and ice cream you know they’re much
5:14
more on carry through in the summertime
5:16
you don’t even allottees are different
5:19
to you you kind of even out the sale
5:21
process because you’ve got ice cream and
5:23
talk when cells fantastically all year
5:25
round but there’s a spike in the winter
5:27
and obviously yeah that’s when ice cream
5:30
sales fall off a bit so it’s a great
5:32
complimentary brand in those stores that
5:34
we’ve been opening now those cobra and
5:35
stores with dipping dots and awkward and Starting a business where people stand in line to pay you
5:37
then have been doing fantastically well
5:39
the thoughts that occurred to me
5:41
especially being a Boomer myself and
5:43
knowing my limitations on my level of
5:46
excitement interest and threshold of
5:50
pain knowing that I was I would not be a
5:53
candidate for instance to go open up a
5:54
hamburger store that’s gonna you know
5:56
take 20 hours a day to operate and all
5:59
of that
6:00
this seemed like something that is kind
6:02
of the event type of situation where you
6:05
could go down to the farmers market sell
6:08
popcorn their generate that client and
6:11
then continue to sell them on an ongoing
6:13
basis online and I notice that you have
6:15
Starting a business where people stand in line to pay you
an online presence all right yeah yeah
6:17
you that there’s an opportunity for that
6:19
there’s an opportunity for everything
6:21
also when we call for
6:22
chais these proprietors by the way top
6:24
riders right and so yes you can build
6:27
those relationships you can service
6:29
those customers directly and so I’m i
6:32
wanna have fun I want to be in a playful Starting a business where people stand in line to pay you
6:34
environment i want to go where I want to
6:35
go and you can keep this business where
6:37
you want to go all right if you want to
6:39
be in the sport world you can take this
6:42
into the sporting venues and be a
6:43
football games and be out baseball games
6:46
and and be doing business there and then
6:48
and then the other part of that I think
6:50
it’s important i’m particularly for our
6:52
folks on our level focuses its on you
6:55
can bring children into this business
6:56
and they get it it’s very it’s it’s it’s
6:59
a great businessman our kids on we have
7:01
younger kids but they love this business
7:03
they love you being a part of the deal
7:06
of sampling they understand it obviously
7:08
immediately this is not nuclear fusion
7:10
this popcorn and so so grandkids
7:13
particularly can get involved in our Starting a business where people stand in line to pay you
7:15
constituents can teach kids business in
7:18
this business which is a really
7:20
fantastic piece as well
7:21
yeah a lot of our franchise owners are
7:23
couples and families and really operates
7:27
the CI the business together and it’s
7:29
really fun
7:30
yeah and speaking of that you just
7:32
brought up but two and two situations
7:34
that I wanted to kind of focus in on one
7:37
was a franchisee of yours whose name is
7:39
Jeff push push matters is that you’re
7:41
pushing happen as it and the when you’re
7:43
still located we are employees because
7:46
he works with his tea sign right and
7:49
that’s been watching his his youtube
7:52
video a couple of things really kind of
7:55
struck me the forces that he was working
7:57
with his son
7:58
yeah so is a family environment the
8:00
second was I got the impression that he Starting a business where people stand in line to pay you
8:02
was probably somebody who came from
8:04
corporate America where he said the
8:06
office and look at four walls for the
8:08
last 30 years and now when he was doing
8:10
this interview he was in front of the
8:12
beach so we he in fact he mentioned that
8:15
he got to look at the beach all day long
8:33
well it was a process of elimination I
8:36
had worked with
8:38
a local coach of you will and he had
8:44
given me choices of about four
8:46
difference
8:48
franchise
8:50
to which we eliminated all four of them
8:52
and then he brought this upon me and I
8:55
guess like everybody three actually
8:56
don’t laugh but you know pop 20 giving
8:58
me and then you know you think about you
9:01
say wow have fun yeah as a proprietor of
9:08
the best part of the day is both depends
9:11
on where I am but you know for obvious
9:13
reasons and asbury park with we’re
9:15
looking at the ocean
9:16
and
9:18
a perfect day like today it’s pretty
9:21
cool if you enjoy mingling with the
9:26
people and hi i am usually doing that
9:30
when we are busy as my i’m working with
9:35
two boys and send my son and they
9:38
usually throw me out
9:39
if we’re busy on out i’m just talking to
9:42
people and that a good part of driving
9:45
on the jersey shore now he left he was
9:47
actually he was working in a corporate
9:50
furniture sales and when we met you he
9:54
was that business has been marginalized
9:56
and he was he was really ready for a
9:58
change and any keep done a fantastic job
10:01
and you want to team up with his sons on
10:04
and he was having some less transitions
10:05
and and and this became a really Starting a business where people stand in line to pay you
10:07
wonderful opportunity for him to make
10:09
smiles have fun and and be with his sons
10:12
and business and then ending by the
10:14
beach was as you said yeah I know well
10:16
and let you know by the way they’ve
10:18
grown that businessman he became a
10:20
proprietor in 2010 and he now has three
10:24
locations and he has his pop-up card
10:27
that he could do events with but he has
10:29
a pop kiosk in the mall in New Jersey
10:32
and he has an inline skates on a pop-up
10:35
shop in entomology jerseys with a couple
10:37
other comments that he made that really
10:39
impressed me one was that when it gets
10:41
busy with kids kind of kick him out of
10:43
the business itself he goes on the run
10:46
from talk to people and it just looks
10:47
like he’s having a blast doing it
10:49
yeah and again it is getting back to
10:52
that that kind of comfort level where he
10:55
looks like he’s very comfortable and we
10:57
talked a little bit before the show
10:58
about how over the years I’ve I dealt
11:01
with franchisees you try to look like
11:02
the relax but they’re really not because
11:04
i’m a tremendous amount of pressure your
11:07
franchisees just look like they’re
11:08
they’re very comfortable they’re not
11:10
they’re not worried about anything and I
11:12
think a lot of that has to do with when
11:14
you look at you when you kind of pan out
11:15
from the camera you see the line of
11:17
people lined up to pay money right and
11:20
you know that’s that’s a goal or dream
11:22
of a lot of ours that we have always
11:24
wanted to have that that opportunity
11:26
where people stand in line to pay us
11:27
money for our marketing is has been done
11:31
a lot for us then is it is again it’s a
11:34
aromatic on we built a business around
11:36
aroma to so we attract folks with their
11:41
with their noses in their in their state
11:43
especially now we can be nuts to there’s
11:45
a whole show involved so when you’re in
11:48
a business that has a culture of giving
11:49
and sharing and making smiles it’s
11:51
easier to steal
11:52
relax and have fun you know that’s
11:54
really what we do on and so and the
11:56
product really speaks for itself we we
11:58
train our party we talk about think
12:00
about when you eat popcorn right it’s
12:02
with family it’s sharing its at the
12:04
movies that great events with your with
12:07
your grandparents with your dad with
12:08
your mom
12:09
that’s doesn’t experience that visceral Starting a business where people stand in line to pay you
12:11
that you should let you share that are
12:13
in your heart so will your customers are
12:15
coming to think about
12:16
wow I was with my dad in coney island or
12:18
I was I had this great experience with
12:20
my son and my daughter and those are the
12:22
folks that are coming so all you need to
12:24
do is not mess that energy up and make
12:26
continue with the smile you know I agree
12:29
without actually a little better fucking
12:32
when I was a kid we used to go to my
12:35
dad’s house and she would make caramel
12:37
corn and that was always a special treat
12:40
right we would have normal popcorn at my
12:42
house and we would have caramel corn by
12:45
a thousand so do you even even today at
12:48
60 that that memory is still a minute in
12:51
my mind so every time I even taste
12:53
caramel corn I think about that boy and
12:56
you sometimes I got passports caramel
12:58
bliss yeah Usher arrival your attitude
13:01
you play your cards right it out
13:02
yeah you’re never going well but i’m
13:05
going to the park or directly ya again
13:08
getting back to the franchise’s the
13:10
other the other two that caught my
13:11
attention action is the interview with
13:13
the wife has been that Melanie and
13:14
issues married Fred tried and they
13:18
started this together because she was
13:21
from corporate America he was from some
13:23
retail environment I think nurseries or
13:24
something like that they decided they
13:27
wanted to end those careers but they
13:29
wanted to do something together and you
13:32
know just a picture of them together in
13:33
front of the store the kiosk you so is
13:36
priceless because they just look very
13:38
very happy and they look like they’re
13:39
they’re doing exactly what they want to
13:41
do
13:43
I like it when we have a really busy day
13:48
like a crazy saturday we’re popping
13:50
non-stop and and we’re up to our ankle
13:52
popcorn inside the kiosk and yet we’re Starting a business where people stand in line to pay you
13:55
keeping up with the business and were
13:57
able to get rid of the product out there
13:59
and people are happy with the product
14:00
and and i love it when I’m watching
14:04
around the ball i might be in another
14:05
part of Malden from where I’m located i
14:08
love it when i see like family sitting
14:10
down on a bench eating dry popcorn for
14:12
people coming out of the mall is I’m
14:13
coming into the ball with there’s a
14:15
popcorn bags you know in their hands or
14:17
you just think people all over the ball
14:20
like enjoying that mac and i think i
14:22
think you know we did this you know we
14:24
brought this alternative you know option
14:27
to the ball
14:31
you know fred is uh Fred kind of doer
14:36
and you make anything happen in bunnell
14:38
Melanie’s you know and he’s but more
14:40
little ray of sunshine and a fine person
14:43
with the customers and friends back top
14:45
in and make you know handling all the
14:46
logistics and so it and there’s not a
14:48
lot me within every business you know
14:50
we-we-we-we don’t wanna for Candace’s in
14:54
a business it’s business right so
14:55
there’s still logistics there’s still
14:57
things that need to be done it’s a real
14:58
business but but it’s a much more simple
15:01
businessman a lot of businesses
15:02
I’m glad you brought that up because
15:03
that sideways those right into the next
15:05
topic which is what are the risks and
15:08
one in particular that always comes to
15:10
mind is what about retail competition
15:13
like you said that is popcorn so there
15:15
is a risk of competitors coming into the
15:17
market like dunkin donuts or something
15:20
who already has a retail present and
15:22
just add this to their product offerings
15:25
yeah i think basically again we are more
15:28
in high-traffic venues and generally
15:31
speaking once you get into those venues
15:33
there are times where that menu will
15:35
bring another other snacks and other Starting a business where people stand in line to pay you
15:38
other players in the space they
15:39
generally don’t want to popular guy
15:41
sitting next to each other generally on
15:43
it doesn’t mean that you’re not going to
15:45
have someone that wants a pretzel or
15:47
something that wants to cut the coffee
15:48
or other products right but it but we
15:50
are generally the popular player we are
15:52
the we are the largest popcorn retailer
15:54
now in the world
15:56
don’t start a little bit about the
15:57
franchise model itself
15:59
what can I branch of new franchise they
16:02
expect to receive in terms of training
16:05
in terms of of site location in terms of
16:09
trying to decide whether he wants to go
16:11
several cards or you want to go retail
16:13
location shoot what do you do as the
16:17
franchise or two to provide this
16:21
infrastructure for your new franchises
16:23
and your ongoing franchises for that
16:25
like it’s a great question i’ll start we
16:27
we on there’s there’s a lot of services
16:30
but it starts with an intensive training
16:31
session on where we are there
16:34
and-and-and spend five days plus with
16:38
the new with our new proprietors they
16:39
learn all about the culture of the
16:41
history on that’s a very very
16:43
world peace because this is really smile
16:45
creation business and how you make
16:47
smiles is really important and and a lot
16:49
of folks get it very simply and clearly
16:51
but it’s important that we emphasized we
16:54
also have very sophisticated real estate
16:56
team because it’s a lot about location
16:57
on that team is based in paducah
17:00
kentucky where we were central offices
17:02
now if you are now partners with without
17:06
dippin dots on and that’s where they’re
17:07
based on and they they’ve been in the
17:10
business forever and they know is where
17:12
they said all the mall properties they
17:14
know the researchers they know the other
17:16
assignment they know all those folks so
17:18
depending on your location geographer
17:20
you want to go there will be helping you
17:22
find locations yeah i mean even before
17:24
you get to the training part you know
17:27
when we speak to up potential proprietor
17:31
a lot of it is about educating each
17:33
other about you know we we really try to
17:35
get to know them who are you what do you
17:38
want to do what do you see your
17:39
day-to-day being like and then they get
17:42
to ask us all the questions too and we
17:44
make sure that we’re right match because
17:45
if you know this business is not for
17:47
everybody and we want to make sure that
17:49
everybody is going to be smiling at the Starting a business where people stand in line to pay you
17:53
end of the process right well that
17:55
actually brings me to my next question
17:56
who is this not a good fit for what’s
18:00
the profile of someone that this would
18:02
not be a good for your question and i
18:07
mean i think is there is you know you
18:09
have to be comfortable on interfacing
18:11
with people and wanting to have that you
18:14
know wanting to make smiles if you’re
18:16
truly extremely introverted on it may
18:19
not be the best business for you because
18:20
there’s a lot of front-end interaction
18:23
you’re not telling but you’re servicing
18:25
with a smile and if that doesn’t feel
18:27
natural to you then in that at least
18:29
from the Sun that you may have kids or
18:31
grandkids for your allergist out that
18:34
happened last night need to want to be
18:36
interacting with customers that you can
18:40
trust and and it’s really part of the
18:43
you know the main part of your business
18:44
you can’t hire that if you have a
18:46
permanent location that that’s a pop
18:49
kiosk or pop store you know you may want
18:52
additional business outside of your
18:54
store
18:55
and that’s where corporate sales to come
18:57
in with a lot of times folks come to you
18:59
and they fall over your product and you
19:01
say hey if you want to think about for
19:03
the holidays if you want you know kids
19:05
for all of your staff let us know
19:07
one last question yeah I know it’s very
19:10
difficult because of a franchise laws
19:13
that you can’t specifically talked about
19:15
numbers but can you give us an idea
19:17
about capital requirements involved from
19:20
low to high on someone getting involved
19:23
with this I’m yeah you know we you can
19:26
get into this business for as low as 30
19:30
9500 I’m and that would be more of a
19:35
cart model and that includes you know
19:38
your training and I and and the pop-up
19:41
card the branded pop art and and
19:43
starting product may I would say on
19:45
average if you’re going more for us for
19:47
a kiosk type situation average to be
19:50
around 160,000 but you all this but I
19:54
just to do full disclosure because again
19:56
we’re franchisor is we need to be dying
19:59
i’s and crossing keys
20:01
it’s all as in a franchise disclosure
20:02
document called an STD as you know right
20:05
and that that all those details are
20:08
there we make sure that before we ever
20:11
awarded franchise and and create a
20:13
relationship that document studied for
20:15
for quite some time everyone gets very
20:17
comfortable here on and that’s really
20:19
the process in franchising and very very Starting a business where people stand in line to pay you
20:22
important because all the information is
20:24
in that document for the memories I like
20:26
that question is I like people to have
20:29
an expectation you know you might you
20:31
might talk about something that really
20:33
sounds good and you get down to the end
20:35
of it and they say well you know if you
20:37
have a million dollars you can probably
20:38
get into this business and that just
20:39
shut everything down it like yeah so I
20:41
like people to have some kind of
20:43
expectation when they do contact you
20:45
that it’s within their comfort level to
20:48
possibly move forward with it
20:51
well Robin Renee I really appreciate
20:53
this i think this was a great
20:54
conversation we’re going to put your
20:56
links and your phone numbers and so
20:58
forth in our notes section so hopefully
21:00
we’ll be driving people directly to you
21:02
and then but but I’d also like a
21:05
reserve the ability that touch bases
21:07
with you later on just kind of check in
21:09
and see how you’re doing
21:10
grand and find out if I haven’t received
21:12
that kind of popcorn in the next couple
21:14
weeks why not
21:16
it’s the check is in the mail and we Starting a business where people stand in line to pay you
21:18
saved alright guys thanks

Check out this Top 25 Business Opportunity in an exploding home improvement market!

In today’s interview we interview the CEO & Co founder of the Sir Grout Franchise, Tom Lindberg.

SIR GROUT  offers its owners multiple revenue streams – it’s like having five franchises for the price of one! We are the first home services franchise to offer grout and tile restoration, stone restoration, sandless wood floor restoration, bathroom remodeling and slip resistance applications to the consumer and commercial markets

He will show you how you can own a grout, tile and restoration business that will schedule jobs for you. This truly is a business in a box

Learn More at : http://bit.ly/boomersgrout

Transcript

0:00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth if you’re like
0:07
me believe that with the millennial
0:09
generation finally moving out of their
0:10
current homes and forming their own
0:12
households that the home-improvement
0:14
segment is about to explode and you’d
0:18
like to take advantage of that you’re
0:19
going to want to stay tuned to show that
0:21
we’re going to talk with Tom rundberg
0:24
CEO of your grout franchise llt and
0:28
you’ve got a niche market that we’re
0:29
going to check out
0:35
[Music]
0:52
[Music]
1:05
hey top thanks for joining me today
1:15
great game great to be with you one when
1:19
i came across the sure grout and before
1:23
I really looked into your your company
1:26
I i was thinking to myself out of
1:28
someone make a business out of grout and
1:30
then I found out that you were much more
1:32
than that so we’re going to talk a lot
1:34
about that but before we do that can we
1:36
talk a little bit about your journey and
1:38
how you got to be the CEO of surgery of
1:42
franchise LLC
1:44
sure sure BNI i started out with a
1:49
consumer products background we sold
1:54
Prestone II antifreeze glad bags the
1:59
consumer products so I start off in
2:01
sales and made my way from sales into
2:05
headquarters into the marketing
2:07
department that became director of
2:09
marketing globally for our brands so I
2:14
my background is consumer products the
2:18
last large company work with was
2:21
honeywell I was vice-president all of
2:23
our international operations around the
2:24
world and then I got headhunted way to
2:28
become CEO of the company called inner
2:30
dynamics I so people were confused when
2:35
i started talking about the hard surface
2:38
industry but I was compelled to leave my
2:42
corporate career because my moral
2:45
compass began to flicker and basically
2:48
did not want to participate in that
2:50
world anymore i donít I i was
2:53
successful i did well but I was not
2:57
emotionally fulfilled and 54 I can have
3:04
a corporate career if i wanted one but I
3:05
i don’t really enjoy ya when I think
3:08
that the i think is very important to
3:10
point out because that’s exactly what my
3:12
shows all about it’s it’s the baby
3:15
boomers me you
3:16
other people just like us who had
3:18
careers and in corporate one time and
3:21
for whatever reason were no longer in
3:23
that world whether we chose to not be in
3:26
that world or it was chosen for us right
3:29
right
3:30
finding that second career finding that
3:32
new meaning in life is really what’s
3:34
important right now yeah and it sounds
3:36
to me like you really found that and
3:38
figure out we sure did
3:42
lo and behold there’s tile and grout to
3:45
everywhere both residential II and
3:48
commercially it always goes bad dirty
3:52
mop water soaks into what we described a
3:54
dry sponge people don’t attract the
3:58
dirty wastewater when they clean the
4:00
floors of course all of our showers are
4:02
glassed-in they turn the terrariums they
4:04
start to look bad so once with so i sort
4:07
of stumbled into this this industry and
4:10
recognize that the the size of it and
4:13
recognize that people were really
4:14
frustrated that they could not clean it
4:17
themselves and that’s because the ground
4:19
is stained like I tell people it’s like
4:23
a mustard stain on your shirt right you
4:24
can’t you can fade it out a little bit
4:26
but you can never remove it right all
4:28
right
4:28
and again when I when I first looked
4:30
into this I was kind of skeptical but
4:32
then when I realized that you really are
4:34
in a specific niche in the home
4:37
improvement space that she wasn’t going
4:40
to blast off
4:41
I mean I was right as the millennial
4:43
generation are starting to acquire their
4:45
homes and their always requiring older
4:48
homes that they’re going to fix up and
4:50
and people like you and me are acquiring
4:53
income properties and things along those
4:55
lines to fix up and run out
4:57
I mean that’s right i believe that this
4:58
industry is just a you know on the
5:01
launch pad to explode so let’s talk a
5:03
little bit about specifics about what
5:05
sir grout actually does what use is a
5:08
hard surface refinishing company that’s
5:12
right that’s right we we come into
5:14
primarily homes were primarily
5:17
residential I’ll we look at the kitchens
5:20
hallways bathrooms showers anywhere
5:24
where there’s tiling drought or natural
5:27
stone for that matter
5:28
and typically all those surfaces are
5:32
maintained in incorrectly but most
5:34
people use vinegar bleach and ammonia
5:36
they don’t attract the dirty wastewater
5:38
and all that soaks into all those
5:40
materials and eventually it just starts
5:43
looking sour and people are very
5:46
frustrated because no matter what they
5:47
do to it they can’t you know we claim
5:50
that they can make it look nice again so
5:53
our value proposition is quite simple we
5:55
can make it look brand new or better the
5:58
new and that’s without any construction
6:01
and that’s without any remodeling so we
6:03
have a set of techniques and processes
6:06
that can we knew your tile and grout and
6:09
stone to brand new so that’s that’s what
6:14
we do when it just it just blossomed
6:16
know all of this is being done through
6:21
your franchising network is that correct
6:23
that’s correct we have 37 locations here
6:27
in the US
6:28
excuse me 36 locations here in the US
6:30
and one in singapore armed were in 17
6:34
states we just opened up
6:36
nashville tennessee this week so tell me
6:40
a little bit about the the profile of a
6:42
typical franchisee is he is he you know
6:45
one guy pickup truck and a dog or does
6:48
he have a team of people is he mostly
6:50
going out and building on jobs and then
6:53
bringing technicians in or he actually
6:56
in there doing the work himself who he
7:00
has a team all of our owners most of our
7:03
owners are out in the field just going
7:07
on sales calls and then they had a team
7:10
of technicians and i have one band two
7:12
bands 3-band sidebands but know the
7:15
owner of the company is primarily
7:17
responsible for making the sales calls
7:19
and he has technicians in the field and
7:23
we have quite a quite a mix we have some
7:26
folks that came out of retirement that
7:30
our server franchise owners we have a
7:34
couple bit of come on college at the
7:36
first career and everything in between
7:40
on myself and a handful were were once
7:43
that came out of the corporate world and
7:44
decided to have this is the second
7:47
business because it is a home-based
7:48
business as well so it attracts you know
7:53
quite a few people that you have a
7:55
fairly new franchisee I guess his name
7:58
is chris McDermott that hasn’t been with
8:00
you that long but he the thing that I
8:02
kind of picked up on it looks like us I
8:05
mean he looks like kind of a baby boomer
8:06
that’s you know yeah that’s getting into
8:09
this as there’s a new chapter of his
8:11
life and I’m like century is new
8:14
tell us a little about what he needed to
8:16
have in place to become a franchisee
8:19
what he can expect you know where he’s
8:22
at right now and has passed how long has
8:24
he been with you
8:25
he’s been with us for a few years now
8:28
Tom he’s in south south jersey arm he’s
8:32
had a couple different careers and he
8:35
reached out to us he saw that we were
8:37
unique and novel i love the fact that it
8:40
was also home based and he loved the
8:43
fact that we would be driving leads to
8:46
him so things that were compelling to
8:50
him he heard about our training we have
8:55
very intensive training myself and my
8:58
partner remain your coach and mentor to
9:01
make sure you’re successful so he really
9:03
enjoyed the you know the support that he
9:05
was going to get it continues to get to
9:07
this day and he was just compelled he
9:13
saw in his own marketplace of the
9:16
frustration that people had over he
9:17
looked at his own home and pencil
9:19
similar to you
9:21
relatively new franchise has actually
9:31
been with us for a year and a half since
9:34
we’ll ask you a few questions like this
9:38
period of time
9:39
Shan know how we’re doing and we really
9:43
want to know your feet that training God
9:47
for that you got going to make sure
9:51
you’re getting with a well-defined off
9:54
for sure
9:56
yeah all i actually was doing due
9:59
diligence on but the former competitors
10:03
my area
10:04
Michelle learning more about the
10:07
industry and well look through all the
10:09
other folks business throughout just
10:15
above beyond from a training perspective
10:18
professionalism hire models was later
10:22
with Chris what kind of capitalization
10:27
that he really realistically need in
10:30
place to hit him from zero to a point
10:33
where he was actually making an echo
10:35
yeah arm while are all of our franchise
10:38
cost come in at less than a hundred
10:40
thousand probably 75,000 on average all
10:44
in for the franchise and include your
10:46
vehicle your equipment in all your
10:49
supplies most of our franchises are our
10:53
past breakeven you know within the first
10:56
year and that’s generally that’s not a
10:58
problem my which they are our median
11:01
revenue franchise about 350,000 these
11:06
days i’m working on item 19 or and RFD
11:08
right now our biggest location in
11:12
Chicago did a million to last year
11:14
ok so there’s quite a quite a range it’s
11:17
all up to the individual hard they want
11:19
to work or are they you know they don’t
11:22
want to work on Christmas sermon he’s a
11:24
hard driver is doing well
11:26
we’re really proud of him and he’s got a
11:29
good team got a good team underneath the
11:32
one thing that really caught my
11:33
attention as you’ve got a business
11:35
scheduling call center i right where
11:39
most companies tell their franchisees
11:41
while you’re going to buy a business and
11:44
we’re going to show you how to run it
11:45
and then you’re gonna go bring their
11:46
lead yourself you actually do
11:48
advertising drive leads to a call center
11:51
of these it’s call centers schedule the
11:54
franchise appointments for them tell me
11:56
a little bit about that
11:58
so uh one of our primary goals is what i
12:01
described his first time resolution when
12:04
a customer calls we want he or she to
12:08
get a live person and we want them to be
12:11
spoken to be built the phone picked up
12:14
before the third ring so to your point
12:16
we we actually don’t allow any of our
12:19
franchises to take their own phone calls
12:21
we have our own call center we want to
12:23
answer them live
12:25
last year we had over 30,000 phone calls
12:27
and we answered ninety-six percent of
12:29
them before the third ring so we don’t
12:31
want to miss any opportunities are
12:33
franchises are out in the field so we
12:38
collect all the warm leads for them
12:40
where we document them and we put them
12:43
on our on our software so they just log
12:46
in each morning and there’s your
12:48
schedule
12:49
yeah i think that’s that’s outstanding
12:53
there are very very few companies that
12:55
take it to that level now when these
12:58
franchises go out and make these calls
13:00
and their bidding on these jobs you can
13:03
uh what kind of close ratio can they
13:05
expect average close rate is fifty
13:08
percent uh are our highest is
13:11
seventy-three percent so so again the
13:16
issue that people have it’s everywhere
13:19
its ubiquitous and usually when we go on
13:22
a sales call Dan the customer has
13:25
already tried everything they’ve tried
13:28
all the household cleaning chemicals
13:29
they’ve already going to home depot or
13:31
lowes and tried you know other a ways to
13:34
try to clean and spruce up the ground
13:36
ball unsuccessful so our leads are true
13:40
he very motivated we just need to answer
13:43
the call life when you show up on time
13:45
we have a very prescriptive a
13:48
presentation that we give which includes
13:51
samples
13:52
uh-ho see before-and-after photos so
13:55
these are these are warm mom clients
13:59
that are are really anxious to get this
14:01
done tonight i might add we grew our
14:04
fastest through the recession we started
14:07
this business in 2007 no I at my point
14:11
is people have not pushed off wanting to
14:15
look and feel clean
14:16
yeah well I got some properties down
14:19
here in Florida that the I need you to
14:22
have a franchisee down here because he
14:24
and everything down here the tile floor
14:26
and that’s right you have an income
14:28
property and you’re showing it because
14:30
you the old tenants moved out and you’re
14:32
trying to clean it up and get ready for
14:34
for showing you want to look as new and
14:37
fresh as possible and we write when you
14:40
have that dirty grouts seems they’re
14:44
walking into the living room it just put
14:46
up bail over the entire experience where
14:49
that when you walk in and and it’s it’s
14:51
gleaming it looks like its brand-new
14:53
tile you have a huge impact yellow I can
14:58
I i mean i can see all kinds of uses
15:01
that I would use of years the other one
15:03
that really caught my attention was this
15:05
a restyle your tile thing that you can
15:08
just came out he’s got a little bit
15:10
about that
15:11
yeah um we can take a shower for example
15:16
that maybe it’s an old shower maybe 60
15:19
seventies 4 inch tile for example and we
15:23
can actually tile right over your
15:25
existing tile
15:26
yeah it’s a very thin tile it’s about
15:28
the with the two dimes and we can’t i’ll
15:31
read over your tile without any
15:33
remodeling we don’t have to knock your
15:34
existing shower down we can actually
15:36
just I’ll right over the topical I think
15:38
it’s amazing I mean any of us that have
15:40
gone through that experience whether
15:43
we’ve done it with our own houses or
15:45
we’ve done it with
15:46
the our income properties or whatever
15:48
when the idea that you can you can go in
15:51
and and put basically a a clean veneer
15:54
over the existing circles without having
15:56
to demo that is just right standing what
15:59
kind of savings can you expect with that
16:02
all armed it can be as much as half as a
16:08
remodel on but more importantly to our
16:10
customers they tell us they love the
16:12
fact that we can get it done in a day
16:14
yeah most of most of the remodels take
16:16
you know 45 days and you have all the
16:19
master and dust and inconvenience
16:21
associated with it so the reality of it
16:23
with our customers most of the time it’s
16:25
not price related its convenience
16:28
yeah I’m for style as well general guy
16:31
and chicago i think his name is dan I
16:33
can’t recalls last night
16:35
yes then lunch that ok anything to be
16:37
doing pretty well I think he has four
16:38
territories around here
16:40
he has four territories he had to and
16:43
then the beginning of last year he
16:45
decided to buy two more
16:47
no we’re quite proud and most of our
16:50
owners go on to buy a second territory
16:52
they validate the model initially and
16:56
then may sneak around geography outside
16:59
their initial territory and they go on
17:01
to buy second and this attitude to
17:03
basically take the entire city of
17:04
Chicago so what is a territory is that
17:07
is a geographically bound as it up by
17:10
population-based yes our minimum
17:12
territory is equals a hundred and
17:15
seventy-five thousand from single-family
17:18
homes so it didn’t include you know
17:21
apartment buildings but single-family
17:22
homes i would say anywhere from minimums
17:26
175 but some of our territories go up
17:28
too much as 250,000 single-family homes
17:32
ok and of course that thinking in that
17:35
continuous piece of geography is
17:37
commercial as well I wash your your
17:40
franchising videos where you have a
17:42
number of your franchisees who are doing
17:44
testimonials with you and all of them
17:47
obviously speak very highly of you and
17:49
the in the program and all that they
17:51
really like that there that their
17:54
franchise they like being in this in
17:55
this business so there
17:57
well situated
17:59
who was not a good candidate for this
18:01
kind of French rest are we always tell
18:04
people if you’re not willing to follow a
18:08
recipe if you’re not willing to follow a
18:10
set of prophecies you’re so fiercely
18:13
independent but you don’t want to follow
18:15
anything like that that’s not a good fit
18:18
one of the things I i say to people
18:20
often when you buy a franchise you’re in
18:23
business for yourself but not by
18:26
yourself right so you have to be willing
18:28
to be coached you know some people come
18:31
in and say I I’ll figure this out let’s
18:32
do this myself you know I I get it but
18:36
your word that’s what we’re here for
18:38
we’re here to make you successful
18:40
so you don’t make the same mistakes you
18:42
know that of course we did in our early
18:44
dates right so you have to be willing to
18:46
participate you know in our in our
18:48
recipe and if you follow a recipe could
18:51
take the end
18:52
well what about personality styles for
18:54
dealing with the with the customer and
18:57
you know some people are well-suited to
18:59
be that the guy who basically taking
19:03
orders over the internet that is really
19:05
interacting with people at all right and
19:07
write this seems to be very very people
19:10
based you need to be able to go into
19:12
someone told me you need to be able to
19:13
talk to them comfortably about whatever
19:16
is going on with their particular
19:17
situation you need to be able to make a
19:20
presentation to them that is comfortable
19:23
and make sense to them
19:25
yeah I you know there are a lot of
19:27
people you know they don’t like to get
19:29
up and speak in front of large audiences
19:31
there’s that fear most of the people
19:35
that we have are not intimidated having
19:37
a one-on-one conversation but yes you do
19:40
have to feel comfortable walking up and
19:42
ring the doorbell and and meeting a
19:44
complete stranger
19:46
it’s not that typical because man today
19:49
happy to see you
19:50
yeah hey where were you know sir grout
19:53
to the rescue so people are this is not
19:56
a this is not an insurance sales call
19:58
this is not a hard sell
20:01
well I think that as someone who comes
20:03
from the sales background for years
20:06
where I had to go out and generate my
20:09
own leads your call center
20:11
lead generation system is outstanding i
20:13
think it’s one of the biggest assets of
20:16
this business specifically and then so I
20:20
think you’ve got just a winning formula
20:22
I i think as i mentioned at the
20:24
beginning with that home improvement
20:27
space just exploding you’re going to be
20:28
run on top of that so she can have that
20:30
can tell you one more piece of new
20:32
standard that didn’t mention in the
20:34