Part 4 of 4 - I recently had the opportunity to interview one of my good friends and borrowers, Mr. Saeed Coates to discuss why he invests in sober living homes, how the model works and the benefits vs the risks. In episode 2 we tour the main house and explore the set up.
You Can check out the previous episodes using the following links:
Episode 1 - • Real Estate Investing ...
Episode 2 - • Real Estate Investing ...
Episode 3 - • Real Estate Investing ...
When it comes to investing in real estate, there are many different models that enable investors to make significant profits. One way that many Boston area investors have begun to increase their profit on a square foot basis is with sober living also known as sober homes.
A sober living home is a community living model (sometimes called a halfway house or sober house) the operates as a bridge between an inpatient or rehab facility and independent living.
Once an individual leaves an inpatient facility to return home, there can sometimes be a struggle with adjusting back to daily life. Sober living homes offer an in-between recovery option that allows them to reinforce the lessons learned in rehab. Most patients qualify for government subsidies which ensures that the owner of the sober home is paid in full on a monthly basis.
Residents of sober homes pay by the bed. In the Boston area its about $200 per bed per week. This means one bed will generate $800 dollars per month. In most cases, sober homes include single bedrooms, double bedrooms and triple bedrooms, with shared common space. This means that one room with three beds can generate $2400 per month. Keep in mind that some residents may pay a small percentage of this amount out of pocket ($25 -$50/week), but the far majority of the income is guaranteed by the government.
As our country faces a growing opioid crisis, there is an obvious need for more support and resources for those battling drug and substance abuse. Sober living homes truly have a big impact in the community at large by helping to rehabilitate and transition our fellow citizens back into our neighborhoods, while at the same time create an opportunity for real estate investors to play their part. It is truly a "win win".
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Hit us up if you need funding for your next deal. I always pay a referral fee as well.
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