Why Healthcare Pros Are Turning to Passive Real Estate with Savannah Arroyo

Combining my healthcare experience with the real estate is really, really exciting. And the numbers are showing the growing, demanding, aging population. There's not enough inventory across the country for these type of facilities.

A lot of different ways to build wealth for us and our investors.

Welcome to Truly Passive Income. I'm Neil Henderson.

And I'm Clint Harris. And today's guest is Savannah Arroyo.

She's a former nurse leader who transitioned from managing orthopedic practices to managing multimillion dollar AP syndications.

She's the founder of Net Worth Nurse and co founder of Willow Investment Group where she's helped hundreds of healthcare professionals passively invest in real estate. So what's unique about that?

Yeah, I'm doing great, stoked to be here. Thanks for having me.

Yeah, absolutely. We appreciate you making time for it. So tell us a little bit about yourself, your background.

I come from the medical field as I have a tremendous amount of respect for your background.

And I also know that there's not everybody in that space has that blend of the scientific acumen as well as the business acumen and can really kind of bring those worlds together. So I'm excited to have that conversation with you today.

So tell us about yourself, how you got started in nursing and how you transitioned on from that.

Yeah, I knew really from a young age I wanted to go into nursing. Just had such a passion for the profession and the career.

And so really even right out of nursing school, I was naturally drawn towards process improvement and operations and went back to school. Early on I got my master's degree in nursing leadership and then my big goal was to become a cno, a chief nursing officer.

I was looking at the amount of time that I was dedicating towards work and I'm an all in go getter hard.

And I was just thinking the amount of time and effort that I was dedicating towards this career, if I would be dedicating it towards my my own side hustle or profession in a way if it could scale even more.

And so really set to Google, just desperate for another solution and started looking at passive income, multiple streams of income, financial freedom, how to invest and real estate investing kept coming up again and again and Again and knew nothing about it at the time, but started diving into podcasts and books and YouTube channels and really jumped all in.

Like you said, I didn't have any capital to start investing when I first started learning about it, but it was talking to a really savvy mortgage lender early on who told me, hey, your primary residence has a hundred thousand dollars worth of equity in it. You know, you want to tap into that and use that to buy, buy some rentals.

And I was so new, I didn't even know what equity was at the time or what I could do with it. And you know, for anyone listening, I bought my house for $400,000. Within a couple years it was now valued at $500,000.

So I was able to take out $80,000 at a 4.2% interest rate and use that as a couple of down payments on two long term rentals across the country in Atlanta, Georgia.

I was based in Los Angeles, California at the time and that was my first entry point into real estate investing and since transitioned into mostly real estate syndications and multi family. I'm under contract right now to purchase our first assisted living facility that we close on Monday.

So yeah, it's been, I'm having a lot of fun with it.

That's great. What a great trajectory. I'm curious about this.

Oh yes, for sure. Yep. Orthopedics, we shut down all elective cases.

So really during that time, working in management throughout, Covid opened my office door literally to hundreds of conversations with healthcare professionals, nurses, doctors, tech. And it was so disheartening to hear from people who could literally save your life, yet they knew nothing about investing.

They're living paycheck to paycheck. They were in really concerning financial circumstances and it was so yeah, disheartening to see.

And that's what really motivated me to launch Net Worth Nurse.

I mean all of us really, as we start a career, we're kind of put into this one size fits all, contribute 10% of your paycheck towards stock market and then it'll be growing, you'll be set by the time you're 59 and a half. And I mean even for me, early on in my career, like my first nursing job at 23, I put 15, 20% of my paycheck towards retirement.

And I remember my financial advisor congratulating me on this like you're, you're setting yourself up for success. This is the best thing you could be doing for your money.

And it just felt so discouraging to think, well, but I'm not even going to reap any of those benefits till retirement age till 59 and a half. And it just, I felt like there had to be another way.

And as I started learning about real estate investing and the ways that you could get involved passively, especially through these real estate syndications, I became super passionate about sharing it with other healthcare professionals because they're interested in me and having their money work just as hard as they do, but they're really, they just don't know what they don't know.

And so yeah, on my social media accounts through Net Worth Nurse and on my website, I became super passionate about just creating blogs and free resources downloads, really just educating the healthcare community about these alternative investments.

You've been very vocal and open about how healthcare workers are often lack financial literacy beside the fact that they earn a good income. Why do you think syndications are such a good fit for them?

Yeah, I mean, not only to healthcare professionals, right. None of us are taught anything about finances so it really, it affects the entire population, I feel.

But yeah, healthcare professionals, they're, they're in a unique position because they are high earners.

I help a lot of investors invest in syndications through retirement accounts which a lot of people don't know of, but there's accounts called self directed IRA where you can move your money from a retirement account in a sense into something that is self directed and you can use it to invest in things like gold or real estate. And it's a great way to take control over your investments.

And a lot of, I mean they've been around since the 70s, but a lot of people maybe don't know about them because a lot of people don't want to take that proactive approach over their investments. They don't want to decide where, where that money is going to go.

But for those who are interested and growing their money at a potentially higher rate or even to just diversify from the stock market, the real estate syndications are really a perfect opportunity.

And really what a real estate syndication is, is it's people pooling together their resources to go out and buy an asset class that they normally couldn't buy on their own. So think of apartment complexes or other large commercial assisted living facility, right?

So in these deals we're partnering with healthcare professionals who want to be completely passive in the investments, yet they are still reaping all of the benefits that real estate has to offer, like cash flow appreciation, loan pay down, tax benefits, even for passive investors in these deals. And it's a way for them to get involved in real estate investing without having to deal with the tenants toilets and trash.

You know, they don't have to go out and find the deal or get the financing or get property management companies or deal with all that stuff. And they can still jump in and receive the amazing benefits of real estate and the growth.

And so, so for us and our specific deals, we're looking for value add opportunities and we've had a lot of interest from the healthcare community just wanting to get involved in these type of investments.

I think one of two of the things that I've really noticed about healthcare professionals is one, they're highly educated, but it's a very intense, long education process. And so even if they did get some financial education, they just don't have time to learn about investing in syndications.

They barely have time to learn about investing in the stock market. And that's often, you know, sort of what, why I think these are, it's good to educate them on this stuff.

And the other thing is that, you know, they are often because they are high income earners, a lot of times they are accredited investors, which opens up that opportunity that they have that a lot of, you know, average investors might not have.

Yeah, yep, absolutely. I've had even physicians come to me, cardiac surgeons who are like, I don't, who found out what I'm doing with real estate investing.

And they're like, I don't even know the first thing about investing. I don't know really what I'm doing with my accounts.

And it's, it's, it is really crazy to hear there is such a, almost stigma and taboo and embarrassment around it. Like the shame level that comes with people admitting that they don't know a lot about money and how to invest and how to make it work.

And so no fault to their own. Right?

I mean, like I said, none of us are taught this, but it does create a little bit of a barrier when people think, I don't know anything about this, I can't get involved. And so that's why when I come to the conversation, my biggest goal is to lower those barriers.

Really come at a point of like, especially with healthcare professionals, like we learn an entirely different language through medical abbreviations and care plans and diagnoses and, and that's in a sense what learning about investing and finances is. It's, it's a different language and it takes a little while to learn some of the terms.

But really why I push so much with podcasts and the education early on is the more you start listening to it, it just kind of starts seeping in through osmosis and you, and you start learning a lot of the language and you can start going out there and making more educated decisions about your investments.

I love that you're approaching things from a position of education because that's, that's the most important thing. Especially what they're lacking is the just the ability to absorb and mental that information and a data in a meaningful way.

And you're bringing that to the masses. I think that's more valuable than anything because we don't want to be selling opportunities to people. We want to be educating. We can't.

Something may be a good offering, but that doesn't make it a good offering for this person.

What makes it a good offering for them is what their goals are and what they've decided on with their spouse or partner or whatever it may be to accomplish what they want for their family. And the biggest thing that we can do there is just provide the education for them to make that decision on their own. Let me ask you this.

I, I went through the same thing. I had a 16 year career working in cardiology. Covid threw me and the whole hospital system for a loop.

We shut down all elective procedures and they started shutting down diagnostic caths as well until patients literally started dying.

And that's what it took for them to realize, look, if we're not cathing these people because we're afraid they're going to get Covid because they might die, but now we've got patients that are dying because they're not getting this done. And that was finally when the, the physician staged a revolt. And we're like, we are doing these procedures today. Try and stop us.

And it got messy and I ended up, I was doing syndication during that time period. We were buying old Kmart buildings and converting them into self storage.

It multiplied because of the stress that came along with that horrible time period that we were dealing with. Let me ask you this, a little bit of transition. You started out with net worth nurse, right?

And that's the education that you're bringing to the nurse community that you work with, because that's who you are, those are your people. That's the language that you speak.

A lot of times to Neil's point, a lot of the people in the white coat community are accredited investors, but a lot of nurses are not. So it depends on what you're bringing in right now.

If you're a nurse practitioner or a PA and you, depending on who your spouse is, what they're doing, or obviously physicians. Most of our investors early on were cardiologists, pulmonologists, ER doctors, surgeons, CT guys.

Yeah, they're there, but a lot of the nurses are not.

So did you find yourself focusing on 506B opportunities for those, for those investors or are you just interview, like just educating across the board? Were you providing opportunities, helping people find their own opportunities and were you leaning into that non accredited space?

How did that work for you?

Yeah, so, so today all of our investments have been 506B offerings.

So they are open to unaccredited investors specifically because the majority of nurses, like you said, are unaccredited and they, and they still want to get involved.

I mean they still should have the ability to get involved in these type of investments being unaccredited with the proper education and, and the relationship which for me has always been really important at building that relationship with my investors. I like to know who they are and, and what their goals are and whether or not it's an appropriate fit.

So it's always worked out to have the 506B offerings which are open to the unaccredited investors.

But yeah, I mean to, to really navigate those conversations early on, I mean we, my husband and I went into, we, we built the business together so really kind of went first through those first few deals together, side by side on all the phone calls together with brokers and lenders and property managers, legal team.

And then after the first couple deals have split up the business so that now my husband is primarily in charge of the acquisitions and asset management. So he's overseeing the investments throughout the lifetime of him, he does all the accounting. He's, he's a Excel junkie, so he likes that.

And then I have transitioned more into doing a lot of the investor relations and the marketing, although with the assisted living facility that we're purchasing right now, I've been very involved from even the acquisition phase of that specific deal. But yeah, with Willow Investment Group, we launched our business having these syndications open.

And I realized really early on, very quickly that a lot of healthcare professionals, I mean, know anything about this stuff and that there was this huge level of education that I needed to do as being in charge of investor relations and bringing people into these investments. And so that was really what pushed me to launch Net Worth Nurse solely as that educational platform to start sharing a lot of this information.

I recently launched a book called Passive Profits, How Healthcare Professionals Can Passively Invest in Real Estate and Retire Early.

And it really stemmed from having hundreds of conversations with healthcare professionals about these type of investments and hearing every single question under the sun. And really a lot of the hesitance or lack of understanding early on from these people wanting to get involved in these investments.

And so that book, I've done a really great job of highlighting at a high level what these are, how to get involved, things to consider. It's a short and sweet book because like you said, healthcare professionals are busy and then don't have a lot of time.

And so it's a really quick book, Greed, and something I really offer up early on to a lot of my newer healthcare professionals that are wanting to get involved in these type of investments but don't necessarily know where to start. So, yeah, it's, it's created.

Being in this space, working with healthcare professionals who are unfamiliar with the investments has led to creating a lot of education on the matter. For sure.

I love that.

You know, it's funny, a lot of health care professionals don't realize some of the conversations I find myself having over and over is that most of these people on their way to the hospital every day or on the way to a satellite clinic are driving by multiple deals that were syndicated.

Like every time, if you drive by a hotel, an RV park, a mobile home, a car wash, vineyards, an atm, you name it, like, there's a very good chance that that is not owned by an individual, that it's a group of people that pulled capital together to create take on a project larger than what any one individual could handle on their own. That is the definition of a syndication. So we're surrounded by it every day.

And since then, everybody at the hospital has been so busy doing what they do in serving and healing and taking care of their community that it's just, it literally is just ignorance because it's, it's such a fairly new concept to people that don't live in that space.

Even though we drive by it every day, people don't have realized that the access has changed and we now have ability to network and self educate in a way that we never had before. And that creates opportunity.

And personally, I believe that in this day and age, if we are not creating wealth for our families that create opportunity in terms of independence of purpose in this lifetime, then it's probably an us problem because we have more access to networking and data and education now that we ever have. You and I are talking right now, otherwise we never would have had a chance to meet.

And we've got that opportunity right now in a way that we didn't have 10 years ago.

And you know, 20 years ago there was no smartphones and 30 years ago there was no Facebook and a hundred years ago, nobody that wasn't royalty had ever had a hot shower. It's changing that fast. It's changing so rapidly.

Like South Florida was developed in the early to mid-90s because that's when they invented the air conditioning. Before that no one could live there because it was too hot. Right.

I still don't understand why people live there.

The world is changing so rapidly that we all have this opportunity that we don't see because we, we're right here. Like, we're, we're just.

Our nose is too close to, you know, to the forest, to see the trees in that we get used to something and it's been normal in our lives for three to five years. And we just think it's always been like that and it just hasn't.

We have opportunity now to create options and wealth for our families that we've never had before.

If we're just willing to listen to people like you that are bringing that together, that are, you know, especially with healthcare professionals, sometimes you have to bring the mountain to Muhammad. You're not going to get all those people to take time off from work or travel to go to a conference.

You have to bring that education to these people because they are working so hard to heal our communities that they're not investing in themselves the way that they should be unless they're just doing something as simple as listening to a podcast on the way to the hospital. Right. That's the. You have to educate that way.

So I feel like it's this, this this missed opportunity for a lot of people just because they are working and caring so hard for our communities that they're not investing into themselves and they don't even know what they're driving past every so. So kudos to you for doing that. I want to hear more about Willow Investment Group. Can you tell I know you started with Net Worth Nurse.

I'd love to know. Love that. That was more of an educational focus.

I have a feeling that that's probably a role that you really excel at as a, as a leadership nursing role. That's probably something that you've gotten really good at in your career and probably were naturally good at.

And as that turned into being a co founder of Willow Investment Group, what does that look like?

Yeah. So Willow Investment Group is the company that my husband and I started.

And it really, like I stemmed from having our second daughter and looking at our schedules and lack of freedom in it and the fact that we really only had one stream of income coming in. I mean, we were fully dependent on our W2 jobs.

And for me, having to go back to work when both my babies were three months old, it just, it was a very, very low moment in my life that like really motivated me and pushed me to seek out the alternative investments and ways to build wealth. And so my husband and I read some books. We went all in.

We invested in a coaching program really early on of $30,000, you know, more than my master's degree at the time. But when we discovered real estate syndications and looked at our opportunity here, we, we knew that that was going to be our ticket out of the rat.

Invested in that coaching program really, because we were coming into this so novice and we're really looking for that extra support from people who have been doing this for decades who could look over our shoulders at our underwriting and the deals that we were wanting to buy and could tell us if we were headed in the right direction. And so that is something that we invested in really early on that I think has been very beneficial for the trajectory of our business.

But we invest in value add deals. So we're looking at mismanaged apartment complexes. They've been owned by the same owner for decades.

They don't really have interest in raising the rents or running it like a business or sometimes they have a roof that needs to be replaced and they don't have the hundred thousand dollars to replace it themselves.

And for these owners, sometimes it's easier to get rid of the property than it is to deal with those headaches and so us coming in as investors with our investor eyes on looking at these deals, we see, see the huge opportunity here. And so our goal is really to flip these apartment complexes over a three to five year period. We got started up in the Oregon market.

We've purchased on the smaller size 12, 24, 36, 27 size units. We are coming in with financing, whether from a bank, seller financing. We've done agency debt, private lending all over the board.

Now have great experience with different financing options. But then we also bring in investors to help with the down payment and repairs and renovations.

We also heavily invest in every single one of our deals.

So would never expect an investor to invest in something that we're not investing in ourselves and something that we really pride ourselves on at Willow Investment Group. But we're looking at 100% ROI over three to five years.

We want to have a usual investment, $50,000 to give her that $50,000 back plus another $50,000 on top of it is, is usually our goal for invest.

Usually looking at around 20% average annualized returns, which compared to the stock market, you know, hovering around that 6% is a great, great way for investors to diversify and help kind of build their wealth at a different rate.

Like I mentioned earlier, the self directed IRA accounts are a great, great opportunity for people to get involved with these investments without having to save up a lot of liquid cash. So really focused in on that as well. And to date we've gone full cycle on three investments.

All three of those have surpassed our original projections for investors. We underwrite very, very conservatively. And so we were able to achieve 24% average annualized returns on all three of those deals.

So have a lot of help happy investors who have reinvested with us. All three of those exited early as well, which was great. And yeah, like you said, touched on early on.

And coming in as a, as a newer investor just getting started in real estate investing, I mean we were hearing it from all different angles of now's the time to jump in. Oh no, absolutely not. There's too much risk involved at this point.

And for us we've just always come back to our underwriting, always come back to our market analysis. We look at trends, so much data available to really eliminate a lot of that risk that could be involved in these type of investments.

It's just the power of real estate investing. So very powerful, especially as you start going full cycle on the deals. And for me, I just left my full time nursing job in February of this year.

So within the last six months, which is crazy because in those six months how quickly, it's kind of funny how quickly I moved into this assisted living facility asset class. And really now combining my healthcare experience with the real estate is really, really exciting and something that just the numbers are showing.

The growing, demanding aging population, there's not enough inventory across the country for these type of facilities. A lot of different ways to build wealth for us and our investors.

So one of those deals that you went full cycle on was a 24 unit in Oregon that you mentioned returned a 25% annual to investors.

Can you walk us through some of the details about that business plan and what made it, what worked, what didn't work and what you've learned along the way that you're applying to your new projects?

Yeah, that one was in a small tertiary town in Oregon, Myrtle Creek, I think population was less than 20,000. And we, we would hear it from people of why Oregon? You know, it's so tenant friendly, it's not landlord friendly, there's too much risk there.

Also in tertiary markets where the population wasn't high, you know, how are you going to demand occupancy? But on all our buildings throughout Oregon, I mean, we see occupancy over 90%. Well over, I'd say closer to 95% on all of our buildings.

And I mean even throughout Covid, it was that way.

But the 24 unit, that was the first one we went full cycle on, it was in a town, Myrtle Creek in Oregon, and 24 units, the rents I believe are 27% below market. And the building itself needed so much work, I believe it was close to 200, $300,000 worth of work.

All of the windows and sliding glass doors needed to be replaced on the entire building. And I would say probably about 50 or 60% of the units needed turnovers or renovations.

And so I remember showing up at that property with our general contractor team and standing in the parking lot with them and them looking at the building and being like, absolutely not. This building is, do not do it. It look at all the work. This is in horrible shape.

And I just remember feeling so panicky of like, oh, are they seeing something I'm not seeing, you know, they've been in construction for 20, 30 years.

You know, like we're looking back at our numbers and we pushed forward with it and ended up turning a lot of the units way quicker than we had anticipated.

That one was going to be a six year hold and I think we actually exited at two and a half years and yeah, achieved amazing results for our investors on that one. It was a lot of work for sure. My husband was overseeing that asset throughout the lifetime of the investment.

But yeah, it just goes to show when you do really good underwriting, you have the numbers, you're looking at it conservatively. Worst case scenario, you have operating reserves and buffers on your numbers. You can still have huge success even with a large project like that.

And then what happened is when the interest rate shot up higher and faster than they ever have in history, those people are seven, eight years into a career and a lot of them really got in trouble with variable rate debt, bridge debt and mezzanine debt, creating this maturing ball of, of debt that is, is still coming to fruition. We saw a lot of multifamily groups go dark. We saw a lot of capital calls, a lot of positive distributions. We saw some total losses.

We've even started to see some rebound of some groups picking up distressed sales from the bank and continuing to turn them around at pennies on the dollar compared to the initial purchase price. So there's a lot of challenges that I think you probably avoided because you started when you started, which is great.

And also like 24 unit in Oregon, that makes perfect sense to me because you've got non accredited investors that are a large base that you're working with, which means it's going to make it hard to raise the 50, 60 million dollars to go after, you know, a 200 plus unit apartment building. But something on the smaller size like that is number one. It's under the radar for a lot of big acquisition groups.

And so you're kind of in that sweet spot.

You're on the high side for what mom and pops can afford, but you're well below what the institutional capital is looking for or the larger acquisition group. So there's less competition in that space and in that area you're more likely to find properties that have problems with operational turnaround.

Right if you can just operationally turn them around, the mom and pops that you can bring them up to where they need to be. You don't find that on the 300 unit buildings as much. Right.

In terms of the mom and pop operational stuff or else they get snatched up pretty quickly.

So I think you're kind of like right in the sweet spot of where you were in your career with the capital you had to raise the size of the deals that you had. But I am curious, were you using variable, is that why you sold it early?

Were you using variable rate debt on that and was that part of the problem or is that you weren't using it and that was one of the reasons why that did so well in a timeframe when many projects did not.

Yeah, we did not touch any of the variable debt. We were so, I mean, just, just being so conservative with our numbers. I mean we didn't, we didn't know.

It just felt way too unpredictable to be chasing variable debt.

And no, we did not jump at those. We've always done fixed debt and it has paid off.

I, I didn't even know how much it would pay off until I started going to real estate conferences in the last couple years. And I would be touching base with different operators or LPs and deals. And I heard open, because you don't see the stuff on social media, right?

People aren't posting it. But when you're in person at conferences talking to people, I was shocked at the amount of LPs that were not receiving any distributions anymore.

They were going to lose all their capital. How many operators were losing deals? I mean, Texas got really hit really hard. Big operators down there.

People who I was in a sense almost looking up to, you know, following in their footsteps, losing money for their investors.

It was, it was very eye opening and I think a huge benefit of going out and being active in the real estate community and joining networking events and being involved in conferences where you can get face to face with people. Because yeah, they're not posting that stuff on social media. You, you, you're not seeing it.

So you almost have to ask risk as, as a limited partner and I always encourage my passive investors who are vocalizing that type of stuff to me, I mean Ask people their track record, see what kind of struggles they're dealing with, what kind of obstacles. But yeah, we, we didn't get hit with that variable debt.

Let me ask you this, you're the third person and I hope you don't take this as an indictment. I hope you take this as a compliment because this is how I mean it.

You're the third multifamily operator in the last six months that has told us that they're making a pivot to retirement homes. Like, like extent elder care is, is typically what we talk about. Right.

So something in the elder care community, I think that asset class really took it on the chin during COVID There's some really bad press that came out, especially out of New York area. And I think that it's now having a resurgence, it's bouncing back. But a lot of people have a bad taste in their mouth.

And so you're the third different multi family person that's transitioned out of multifamily into elder care. And there's a wide gambit of navigational challenges that you have in that space for you have co n states that require a certificate of need.

I find it really interesting that you're blending your healthcare background with real estate.

And so it's cool to see that marriage of like, you've got, these facilities have very high requirements in terms of the level of care that needs to go out to those patients. You have families that have their whole lives tied up in this. And so it's really interesting to see you going in that direction.

What kind of hold are you looking at? What kind of return profile are you looking at? And what is your, your value add and the markets that you're looking at?

Yeah, it's funny you say that too, because assisted living kind of got brought up, I mean, over the last five years that I've been in the real estate investing space and people have asked, I mean anytime anyone hears that, like the nursing background, oh, have you checked out assisted living facilities?

And for us, like we were so narrowed in multifamily, like, so focused on that, like really wanted to start seeing the, the exits under our belt and, and narrow in on that asset class before we started looking around. But, and even my husband, right, coming into it with, with no medical background, he was a little apprehensive of caring for people's lives.

I mean, you're dealing with hospice patients in these facilities who are going to be dying in your facility and you're going to be administering medications and there's different ways that you can get dinged with licensing and there is, I mean and you're, you're employing caregivers. So now you're dealing with time cards and employees and workers comp. It's a whole different level of insurance as well.

And there was like some even hesitance with my husband coming into it. But for me I think having the, the background of it is, is very beneficial. I've overseen departments throughout the hospital.

I mean cath lab, special procedures, GI orthopedic floors. I'm used to managing staff of over 100 doctor schedules like medication management, care plans.

Like all that background I think has made it a lot easier for me to jump in on it. It is, I mean still we're learning new things for sure.

But I love that, you know, I love being curious and that's something that really motivates me in real estate, state investing even to begin with. But so for this specific building, we're actually going to be buying a 11 bedroom, 7 bath home here in Santa Rosa.

Local to me, which is also very, very appealing because I'm going to be very hands on to it.

It's less than five miles from my house and we're going to be doing around $200,000 worth of renovations to it to have it uphold around 15 residents is what they're called.

There's also different like fire safety things that need to be implemented, fire sprinklers, that type of stuff, getting it all up to code and for license licensing. But I took an 80 hour course to become a administrator of these. They're called RCFEs, Residential Care for the Elderly is how they're classified.

So I did have to take a course to become an administrator. I'm becoming licensed on it. I have to apply for the California Department of Social Security or Social Services.

They're the ones that do do all the licensing for this. So a lot of, a lot of hoops you got to jump through.

And something I've learned even through my formal career and my master's degree is it's really more about kind of paper pushing and showing that you're doing everything that they're looking at on paper. I would say that's like the hardest part. You know the biggest barrier jumping into this type of deal.

But our goal is to over the next 12 months get it filled. We already have a website, I have social media accounts for it, Brush Creek Assisted Living.

I also have great connections at the hospital here, local to me that I'm going to go in there and talk to them about Bringing residents into these facilities because it's really, I mean I saw it at the hospital all the time.

I mean it's your elderly patient who falls and breaks their hip and they live alone and they can't go back to home, they can't make three meals a day for themselves, they can't do their laundry, they can't manage their medication. And so it's really basic ADL's activities of daily living that you're providing for these residents.

And then also I've heard that a lot of them are coming into these homes really for that community. A lot of them live alone.

Early on when we were touring some facilities and we were asking some of the administrators, you know, are family members stopping by a lot and it's like no, you know, they're not, they're not around. And that's why they're getting put into these almost group type homes. But for us. So our goal is to get it filled within 12 to 24 months.

We have it underwritten really conservatively at the two year mark. But I imagine that we'll get it full within 12 months. And then our goal is to cash out refi. So we bought it for 1.5.

The income for these buildings is insane. You have a mostly private pay, 90 private pay. And I mean here in Northern California, $7,000 for a shared room for one of these residents.

So the income that you're generating is just insane. And so the value within the 1 to 2 years will be at over the 3 million mark.

So then our goal is to do a cash out refi, return all our investors capital back to them at point. And then we do plan to hold it long term like seven to 10 years. Just because at that point our investors will be strictly cash flowing.

They won't really have any money invested left in the deal.

And then for me, my goal is to run it, get it up and running for the next 12 months and then I'll bring in a full time administrator to take over and then start running it and continue to buy more. That's the plan.

Well, Savannah, we could go on quite a while longer. We never even got to really talk about invest health, which I wanted to to dig into. But in the interest of time we're going to start wrapping it up.

One of the questions we ask all of our guests is, is there a book that you find yourself recommending to friends and colleagues more than any other book?

Yes, I would say I'm gonna do two.

Because for a long time it was always think and grow rich because I think changing the mindset around money was really, really important for me early on and that had a huge impact for me investing. But as of more recently, I'm gonna say the book called Flow by Mihaly Czignemai. I probably slaughtered his last name, but it's an amazing book.

Especially as an entrepreneur and being a hustler and grinding over the last five years.

I mean I did hit a huge point of burnout and that book really enlightens and shows a perspective of transitioning from like a forced based life into a flow based life and how beneficial that could be. Really, really love that book and has become a big part of my my day to day.

Nice. You're the 140something episodes in. You're the first one to bring that up so good for you. We'll put that in the show notes.

All right, we'll wrap it up there.

Savannah Arroyo, really appreciate your time and effort and everything that you're willing to share with us today about Net Worth Nurse and and Willow Investment Group.

If any of our listeners want to find out more about you or any of the offerings you have going on or what you have coming down the pipeline, what would be the best way for them to connect? Connect with you and do that?

Yeah, social medias are my website, so Net Worth Nurse on all social media accounts, my website's Net Worth Nurse co and then willowinvestmentgroup.com both those websites link to each other so you'll be able to access all information from either or.

That sounds great. All right, well thank you Savannah so much. We really appreciate it. Thanks for coming on.

Thank you for having me.

Thank you so much for listening and watching the Truly Passive Income podcast.

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Sat.