All Forum Posts by: Jared Galde

Quote from @Joseph M Lema:

looking to start a sober living facility in my community.

what programs/organizations should I reach out to?

looking to rent to an operator, not self manage.

located in duchess county NY.

any information is appreciated.

thanks!

 The NE is foreign to me! Networking is so essential in Sober Living like anything else. Oxford House is a nationwide, peer run housing organization that is in NY. I'd be using google just like you unfortunately up there. Best results would be to find treatment centers and ask them where they refer their people for housing on the other side of treatment. We always need more good people doing this so best of luck to you!

Quote from @Renee Bacon:

@Jared Galde

That's awesome Jared. I've been in a co-living mastermind for a year, but I'm curious how you set your business up. Do you have a 501c3 that you operate under (and rent the house from yourself), or do you purchase homes with an LLC or personal name, and run as a regular business?

Also, do you have 2 people per room, or just one person? 

What do you see as the advantages of sober living homes vs regular rent by the room type homes?

Thanks!

Not sure how I missed this!! We are the owner and landlord of the properties, not the operators. We sign leases with nonprofit and for profit companies who provide structure and services to people in recovery. If you have steady, high income in a coliving house I think that’s potentially more profitable. Advantages are we don’t have to furnish anything in the house and we collect the same amount of rent each month no matter how many members are in a house. Rent we collect is typically 30-50% higher than market average. We sign 3 year leases and it’s very steady. 

Quote from @Shonda Rountree:

Reading your post, I thought you were offering some type of class or mentorship. But thanks, I'll find Brandon Turner.

We certainly offer a course, group coaching and mentorship for Sober Living Homes. We are a sponsor with a booth at the REI Summit in Denver that Brandon Turner is putting on. Sorry for any confusion, best to you and hope to see you in Denver!

Quote from @Shonda Rountree:

Hey Jared. I'm looking to get started in the sober living space. Would love any assistance. Thank you so much. 

Beautiful home. When is the REI Summit in Denver?

 Hey Shonda! 

We've been head down for 5 years getting started with this portfolio, just starting to become an evangelist for sober living now that there's some proof in our business that it's impactful and profitable. The REI Summit in Denver is May3-5, we will have a booth there for Sober Living! Find Brandon Turner anywhere on the internet for information on it.

Hey y'all! 

I have been in real estate full time since 2012, started investing in Sober Living homes in 2019 and we now have 62 of them across 14 different states. Forums and meetups like BP have changed the game for my family for generations to come AND for generations for people in our homes. 

I'm looking to connect with people actively doing sober living to collaborate and grow as well as people looking to get in the game. This photo is of our first house we purchased for Sober Living in 2019 up in Marysville, WA, the town I grew up in. 

Pumped for the BT REI Summit in Denver, who else is going to that?

Quote from @Amy Konopka:

Quote from @Jared Galde:

We own 50 sober living homes, obsiously this was 7 years ago, but I've closed all of those homes in the past 4 years. Couldn't disagree more with what Wayne said here. The growing need for sober living homes is incredible. Profits aren't somehow ridiculously high, but our average cash on cash return is >23% across the portfolio. 

 Hi Jared, why did you close them? I'm opening my second home and find them extremely rewarding but think I may stop at these two because I am extremely involved in them and am spreading myself too thin I think.  It's not a "passive investment" that's for sure--at least for me! But I can see how burnout may be an issue. Just curious on your experience. 

 We haven't closed them. Won't either. We have 62 now, closed (meaning purchased) on 12 more since I made that comment. 

@Steve Garcia first, LOVE that you're doing this! Curious what made you decided to operate the house yourself instead of Oxford House or another tenant organization who specializes in this?

Hey Gloria! 

I think it's important to note and I am the investor. We LOVE the impact happening in our homes but we are not the operators of the homes. We lease our homes to organizations who pay us one amount every month on the lease and they are in charge of the operations of the house and how the lease is getting paid. 

https://narronline.org is a great resource to learn about operating effective sober living homes and the different levels of homes and care required to meet those levels. You can set up a call with a representative of their organization in your state. Oxford House (https://oxfordhouse.org) is the biggest "peer run" sober living home nonprofit organization in the world, they lease about 3,600 homes nationwide and is a good model to study as well. Hope that helps! Bless you!

We own 50 sober living homes, obsiously this was 7 years ago, but I've closed all of those homes in the past 4 years. Couldn't disagree more with what Wayne said here. The growing need for sober living homes is incredible. Profits aren't somehow ridiculously high, but our average cash on cash return is >23% across the portfolio. 

Hey everyone, my partner and I focus solely on Sober Living investments. We now manage 50 (own 43) and over the past 4 years of doing this strategy we've become very good at it. We have done a lot of DSCR loans at this point but we're looking for a lender that has the ability to be completely bought into our strategy with us. Our rents are typically well above market rent and in areas where market rent doesn't work for our loans, it's a pain. We're looking for a lender who will use our lease numbers. We typically sign a 3 year lease with each house and an example of rents I'll just use the last deal we closed on....

Purchase price - $415,000

Market rent - $2400/mo

Our lease - 3 years @ $4750/mo

We don't have vacancies, lease is in hand before closing. 

TIA for any leads or connections