It is nice when you can wake up with a smile on your face and you just can’t wait to get to work.
Okay, maybe not everyone will relate with that statement, and I can’t say that is the way it has always been for me. Lately though, it is just too much fun with all we have going on in our different businesses and funds we are managing.
The potential for each and every one of them is really sky high.
Let’s talk about Advanced Commission for example. We are already on track to pay out more than $2,000,000 in advances for our first six months. We know the potential for the business is in hundreds of millions per year, and could actually become our first billion-dollar company. I have never been able to use the “b word” and a company I own in the same sentence. Fun, fun and more fun.
Now I know $2 Million and $1 Billion are long ways apart, but we have already seen the 800-pound gorilla in the industry accomplish that number over a 16-year period. It is real and it is attainable.
Moving on to our new Senior Assisted Living business. The more we learn, the more we realize the potential there as well. It is like going to Baskins-Robbins to get your favorite ice cream but you become distracted by the other 30 flavors that look just as good. Which do you choose? So many options for the future of this company.
There are some terrific models and ideas out there, and a lot of not-so-terrific implementers. That is good for us. We are still continuing along our path of finding high-end single family homes to convert into our senior living homes. Reno doesn’t seem to have a single one that is high end.
It’s so exciting because we know that the market is there. And with the silver tsunami coming through for the next 25 years, this industry is only going to get bigger and bigger. We are also really excited to know that we can immensely improve on the care given to our residents and give them a better quality of life. We will accept nothing less than stellar care within our model.
Lastly, the notes industry is amazing, and I only wish I had found it 25 years ago. I am excited that my children can be a part of it. Not only is the deal flow beyond what any of us could buy in a lifetime, but the ways to make money are mind-boggling. On a note we bought for $2,300 seven months ago, we just received a pay-off of $28,000 when they sold their home. Nice profit. They are not all that profitable but very fun when it happens. There are more than 31 one flavors to choose from in the world of notes.
The notes business is hard to understand for most people and might seem too confusing to invest in. That is okay with us because that means greater profits for those who do get it. If everyone can do it, like buying a house and renting it out, then it becomes an efficient market which means lower margins, etc.
Notes are a perfect example of low risk and high reward. What appears to be too risky, because of a lack of understanding, actually produces much greater returns without the additional risk.
I was playing in a golf tournament at ArrowCreek last weekend and the guy I was playing with asked me what I did. I told him we manage some alternative investment funds. He said, “Oh the risky stuff.” Boy, do I beg to differ. He thinks it’s “risky” because he doesn’t understand and it is not familiar to him. I would argue that what everyone thinks is safe, like traditional investments (stock market), is actually far riskier, but that is just my opinion.
Yet, his opinion will never change because he won’t spend the time to truly understand what type of alternative investments are out there. He has just decided that those are risky, and moved on.
I have to go now. I have get back to my vacation so I can make some money for our investors, some Realtors need advances, our seniors need the best care available, and our borrowers from our notes need to know where to send their payments. Fun!