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Dear Fellow Investor,
I had a choice between two investment opportunities...and I think I chose the wrong one.
Let me clarify: I still think the choice I made will work out very well.
But I’ve since realized that the investment I passed on was a direct play on the kind of long-term, secular trend that has always powered huge wealth creation.
Unfortunately, that opportunity is no longer available. But the broader opportunity is one that I think we all need to explore.
I’ve been doing it for a few years, and it all started with an invitation to join a cruise....
A Boatload Of Entrepreneurs
About five years ago, I began inviting two extraordinary individuals, Robert Helms and Russell Gray (“The Real Estate Guys”), to present at my annual New Orleans Investment Conference.
I was interested in exposing our attendees to the benefits of real estate investing in general, since the sector tended to benefit from the same monetary trends that will also advance precious metals and mining stocks over the coming years.
I was also fascinated by the remarkable way that Russ and Robert educate their audiences. They are exceptionally talented presenters and educators.
Well, it wasn’t long before they started inviting me to speak about gold at their annual “Summit at Sea” investment event. And from the first day, I was awe struck.
Their event is ultra-high-energy, with long days filled with active education...lots of motivation and personal growth...and pen-to-paper, hands-on analyses of how to raise capital, then build and operate income-producing real estate projects.
I'd be joining a group of other speakers — like Peter Schiff, Chris Martenson and Adam Taggart (Peak Prosperity), G. Edward Griffin and the indomitable Robert Kiyosaki — invited along for these cruises to talk about “big picture” views of the economy.
As you can see, some of these speakers cross over with our agenda in New Orleans.
Like the New Orleans Conference, I truly enjoy the intellectual energy of the Summit at Sea. But most importantly, over the past three years of speaking at this event I’ve learned about the power of income-producing real estate...
...And one very special part of this sector that is riding an unstoppable demographic wave.
Putting The Wind Behind You
I’m talking about the aging of American society — and a way that investors like you and I can enjoy generous profits while providing an invaluable service to our friends and neighbors.
Consider just a few of the stunning facts behind this mega-trend:
• The elderly now represent a larger percentage of our population than ever before, and it's growing faster than any other segment.
• There’s no end in sight: The number of seniors in America will double by 2035...and will nearly double again over the following 15 years.
• This demographic explosion is fueling tremendous growth in the senior housing industry, with occupancy rates over 90%, soaring rents and the construction of countless “big box” assisted living facilities to meet the demand.
This is the kind of secular, big-picture trend that smart investors get ahead of.
Now, anything can go wrong in an investment, but when you have the wind at your back with an irresistible demographic trend like this, your safety margin expands tremendously.
But it’s more than a trend — it’s an actual crisis for our society...and especially for families desperate to find high-quality care for their loved ones.
The big facilities too often provide shoddy, inattentive care. I’m sure you’ve heard many of the same horror stories as I have.
But here’s the deal: A relatively new innovation — called “residential assisted living” — typically provides much better care for the elderly in smaller buildings typically hosting no more than 16 residents.
Whether it’s a brand-new construction or a renovated residence, these smaller facilities offer a more-personalized level of service, more privacy, better meals and more...and all in a home-like setting.
The difference in services is quite significant, with typically far-better care at rates that still compare well with the big, less-personalized facilities.
So the residents get much more for the money they and their loved ones are paying. And the investors win as well, with the very high occupancy rates and relatively high average rents typically producing generous, reliable income.
And Here’s Where I Might’ve Screwed Up...
After a few years of participating in the Summit at Sea, I made dozens of friends in the real estate sector...and faced some agonizing choices.
I loved the steady, healthy income that I learned I could get from top-quality residential real estate projects. But I now had so many good friends developing great projects that I couldn’t decide what to invest in first!
Then I learned that one of the groups I’d been talking to was developing a couple of projects in Lake Charles, Louisiana, a secondary market not far from my home outside of New Orleans.
Being from Louisiana, I was well aware that this region was absolutely booming. An abundance of cheap natural gas, combined with deep-water access, has spawned about $100 billion in new industrial projects.
This in turn has led to an influx of tens of thousands of workers...and insufficient housing for all of the newcomers.
My friends were developing two projects in Lake Charles: A multi-family development and a residential assisted living facility. At the time, I only had enough free capital to invest in one.
It was a tough decision. And I messed it up.
Because I hadn’t yet done my homework on the assisted living market, and because I fully understood the housing crunch in Lake Charles, I chose to invest in the apartment complex.
Knowing what I know now, I would’ve chosen the residential assisted living facility in a heartbeat.
Even Better Than “Infinite Returns”...
Now, I’m confident that the multi-family development will work out very well for me.
You see, the developers have a goal of employing the “infinite returns” strategy popularized by my friend Robert Kiyosaki.
Robert’s real estate fortune was built upon a simple but incredibly powerful strategy:
After a new project has demonstrated a profitable track record for a few years, refinance it to get all of the investors’ original capital back out of the deal.
The project then simply covers the new debt service costs out of operating income.
And the investors — you and I — get all of our money back. Thus, all the distributions going forward are divided by essentially zero costs.
Division by zero, of course, is where Robert gets the “infinite return” he talks about.
As I say, this is the goal of the multi-family deal I bought into. I hope it works out that way...and I expect it will, because the group I’m with has a great track record.
But I still wish I would’ve invested in the residential assisted living facility, because it was designed to employ the same infinite return strategy...
...Plus it is going to surf the towering demographic wave of our time, as millions upon millions of elderly seek high-quality assisted living care.
With that generational mega-trend behind it, the risk/reward dynamic would have shifted dramatically in my favor.
Gone But Not Forgotten...
Unfortunately, the residential assisted living opportunity in Lake Charles that was offered to me quickly sold out.
But there are dozens, if not hundreds, of similar opportunities sprouting up around the country. I’m going to take my time searching, and hopefully invest some of the proceeds from my next big mining stock winner in a good one.
I hear, for example, that the new Opportunity Zones can turbo-charge the returns in these investments, if you can find a project that qualifies for this special capital gains tax treatment.
Fortunately, another one of the friends I’ve made on the Summit at Sea cruises is one of the world’s top experts in residential assisted living — he’s literally written the book on the subject!
His name is Gene Guarino, and he no longer actively develops projects; he spends all of this time and effort simply educating investors on this remarkable sector. (You may have seen him present at my recent New Orleans Investment Conferences.)
Gene shared with me a comprehensive research report that his team has done on the assisted living sector, and it’s fantastic. It answered all the questions I had (albeit a bit too late!)
Gene usually offers this report as an introduction to investors enrolled in his Residential Assisted Living Academy, but he’s graciously allowed us to offer it to our Golden Opportunity readers at no cost or obligation.
This is another great benefit of your subscription to this letter, and I urge you to take advantage of it by clicking on the link below.
The numbers that this report presents are frankly mind-boggling, from the perspective of not only an investor, but also someone concerned about the state of elderly care in America.
This is one of those special situations where we can do well by doing good. It’s well worth looking into.
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
CLICK HERE
To Get Gene Guarino’s
Report On Residential Assisted Living
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