How This Couple Raised $1.2M For Their First Deal

How Josie and Kyle Wentworth Are Winning with Senior Living Value Add Investing

Senior living value add investing is quickly becoming one of the most compelling niches in commercial real estate, and Josie and Kyle Wentworth are proof of what is possible with the right strategy, team, and execution. In just over a year and a half, they have participated in 292 multifamily units, 233 senior living units, and 27,000 square feet of industrial flex space. Their growth highlights how powerful focused action and relationship driven investing can be in today’s market.

Coming from a 36 year background in technology and business ownership, the Wentworths entered real estate with a clear understanding of systems, operations, and long term wealth building. After joining the Warrior program, they committed to massive action, completing over 500 Zoom calls to build relationships, raise capital, and align with experienced operators. That consistency became the foundation of their success in senior living value add investing.

The Florida Four Pack: Turning Distress into Opportunity

One of their largest accomplishments is a 170 bed, four property senior living portfolio in Central Florida. The deal took 18 months to close and involved legal proceedings and significant operational challenges. However, those challenges created opportunity. The properties were under managed, rents were below market, staff morale was low, and capital improvements were needed.

For an experienced team, these issues represented upside. The group raised over $9 million in soft commitments in just 40 days and ultimately closed the deal for $10 million, roughly $3 million below initial expectations. That pricing advantage alone created immediate equity and positioned the asset for strong long term returns.

Key value add components included
• Transitioning select units from assisted living to higher revenue memory care
• Replacing underperforming management with an experienced operator
• Completing necessary capital improvements such as roofs and HVAC systems

This approach demonstrates how senior living value add investing goes beyond simple rent increases. It involves repositioning care levels, improving culture, and elevating operational standards.

Why Memory Care Is a Powerful Demand Play

A major driver of this strategy is demographic demand. With approximately 10,000 Americans turning 65 every day, the so called silver tsunami continues to create sustained demand for senior housing. Within that broader category, memory care often commands significantly higher rents due to the increased level of service and acuity required.

Josie and Kyle emphasized that the decision to shift units into memory care was based on deep market analysis and operator insight. Their team relied on industry data, local relationships, and experienced operators who understood Florida’s specific demand dynamics. This reinforces a critical lesson in senior living value add investing: the operator is everything.

The Power of Relationships and Capital Raising

Another defining theme of their journey is relationship building. The Wentworths attribute much of their success to consistent networking and collaboration. Over 500 conversations with other investors and operators created deal flow, capital partnerships, and long term alliances.

They also experienced firsthand the realities of raising capital. Soft commitments do not always convert at 100 percent, and delays can test even experienced teams. Yet through persistent follow up and disciplined communication, they successfully completed the raise just before closing. For investors looking to scale, their example shows that capital raising is a skill built through repetition and trust.

About Josie and Kyle Wentworth

Josie and Kyle Wentworth are real estate investors and business owners with decades of experience in the technology sector. After selling an IT company and launching a consulting business, they turned their focus to commercial real estate. Since joining the Warrior program in 2024, they have rapidly scaled into multifamily, senior living, and industrial flex assets while contributing governance, risk, and compliance expertise to their partnerships.

Their story illustrates how senior living value add investing can create both financial opportunity and meaningful impact when paired with strong operators and disciplined execution. If you want to hear the full conversation and detailed insights, watch the podcast video or read the complete transcript below.

Senior Living Value Add Investing FAQ

What is senior living value add investing?

Senior living value add investing is a real estate strategy focused on acquiring underperforming assisted living, memory care, or independent living facilities and improving operations to increase revenue and property value. Investors target assets with below market rents, poor management, or deferred maintenance. By upgrading operations, improving care quality, and optimizing pricing, they can significantly increase net operating income and overall valuation.

Why is senior living value add investing attractive in 2025?

Senior living value add investing is gaining momentum in 2025 due to strong demographic demand. Approximately 10,000 Americans turn 65 every day, creating sustained need for senior housing options. At the same time, many facilities are outdated or mismanaged, creating opportunities for experienced investors to reposition assets and meet growing demand.

How does senior living value add investing increase property value?

Property value in senior housing is largely based on income performance. When investors improve occupancy, adjust rents to market levels, transition units to higher revenue care types like memory care, and reduce operational inefficiencies, net operating income increases. A higher net operating income directly leads to a higher appraised value, especially when refinancing or exiting the investment.

What types of properties work best for senior living value add investing?

Underperforming assisted living facilities, properties with outdated management, and assets with deferred maintenance often provide strong value add opportunities. Facilities that can transition some units from assisted living to memory care are especially attractive because memory care typically commands higher rents. Boutique residential assisted living homes can also offer strong margins in the right markets.

What role does the operator play in senior living value add investing?

The operator is one of the most critical components of success. Senior living assets depend heavily on staff culture, care quality, and regulatory compliance. An experienced operator can improve occupancy, train staff, increase resident satisfaction, and ensure compliance with state regulations. Strong operations directly translate into higher revenue and better long term performance.

How is senior living value add investing financed?

Financing may include agency loans, bridge financing, private capital, or joint venture equity depending on the asset size and condition. Many investors use short term financing during repositioning and then refinance into permanent debt once occupancy and income improve. Capital raises often involve soft commitments before closing to ensure adequate investor participation.

What are the biggest risks in senior living value add investing?

Key risks include regulatory changes, staffing challenges, inaccurate occupancy projections, and unexpected capital expenditures. Senior housing also requires strict compliance with healthcare and safety standards. Thorough due diligence, strong operator partnerships, and conservative underwriting are essential to mitigating these risks.

How does senior living value add investing compare to multifamily investing?

While both strategies rely on improving income to increase value, senior living involves a higher operational component. Multifamily investing primarily focuses on rent growth and expense control, whereas senior living includes care services, staffing management, and regulatory oversight. However, senior housing can offer higher revenue per unit and stronger demand drivers due to demographic trends.

Is senior living value add investing suitable for passive investors?

Yes, senior living value add investing can be suitable for passive investors when partnered with experienced sponsors and operators. Passive investors typically participate through syndications or joint ventures while the general partner team manages operations and compliance. This structure allows investors to benefit from potential upside without handling day to day responsibilities.

How long does a senior living value add investing project typically take?

Timelines vary depending on the scope of improvements and operational turnaround. Stabilization can take 12 to 24 months as occupancy increases and management changes take effect. Full value realization may occur over a three to five year hold period, depending on market conditions and exit strategy.

Disclaimer: This summary was written with the help of AI and reviewed by Rod’s Team.

00:00:28:24 – 00:00:50:11
Rod Khleif
Welcome back to Multi Family Rockstars. So as you guys know this is where we dig deep in our guest deals. And we’ve got a wonderful couple on today that do business together. They’re Kyle and Josie Wentworth and they have well they’ve got some unique, habits that they’ve adopted, since they joined the warrior program.

00:00:50:11 – 00:00:58:01
Rod Khleif
And I actually thought they had a podcast. I’m going to let them tell you what it is they do and why. But, welcome to the show, guys.

00:00:58:03 – 00:00:58:24
Kyle Wentworth
Thanks, rod.

00:00:59:01 – 00:00:59:16
Josie Wentworth
Thanks for having.

00:00:59:16 – 00:01:15:13
Rod Khleif
Us. Absolutely. So why don’t you give us a little background as to who you guys are and why real estate and maybe even why the warrior program, actually. And, and then maybe elaborate on what I hinted at just a moment ago.

00:01:15:15 – 00:01:53:17
Kyle Wentworth
Josie and I bring, extensive background in the technology space, spent, the last 36 years in the business of technology and sold an IT company in 2019. And, and started a new one in the consulting business, and during that whole time realized that we didn’t really have any external passive things generating revenue, generating income. And so I had a buddy that was, rehabbing houses and called me one day and he was like, hey, I could use some extra hands lifting some stuff out of a truck.

00:01:53:19 – 00:02:13:09
Kyle Wentworth
And so I drove down to the asset he was working on and like, what are you doing here? And he was like, oh, yeah, this guy bought this house for, $100,000, and it’s kind of distressed. And so, he asked me if I could rehab the house, and that’s what I do. And and I was like, he bought this house for 100,000 bucks.

00:02:13:09 – 00:02:19:18
Kyle Wentworth
He says, yeah, actually $90,000. And we’re going to rehab it for about 70,000. We’re gonna sell it for 360.

00:02:19:20 – 00:02:20:10
Mark Nagy
Right?

00:02:20:12 – 00:02:21:04
Kyle Wentworth
That seems like.

00:02:21:08 – 00:02:21:13
Rod Khleif
Those.

00:02:21:13 – 00:02:58:08
Kyle Wentworth
Numbers were income. I was like, that’s pretty good passive income. He said, yeah. And and so he does this all the time, So started researching rehabbing houses and, and came up on, commercial real estate. And I have some background with, with sales and marketing with another guy who’s involved in commercial real estate. And so we attended an event and sat through this event, quickly realized that that wasn’t the kind of business we wanted to be in or that with him wasn’t the business.

00:02:58:08 – 00:03:23:10
Kyle Wentworth
But definitely the business was the business. We wanted to get into commercial real estate investing. One of the people at that event recommended that we check out your group and and the warrior program. And, she said, you probably your personality and and your, your moral background and, and whatnot, probably more sits in line with the way that rod does, runs a warrior program.

00:03:23:12 – 00:03:38:11
Kyle Wentworth
And so in April, we in April of 24, we, jumped online and, and started looking down, tracking down solutions and, and found a three day podcast or a three day,

00:03:38:13 – 00:03:39:16
Josie Wentworth
Camp.

00:03:39:18 – 00:04:04:08
Kyle Wentworth
Boot camp that you were running. And we sat through that and during that boot camp, it was on Sunday morning. We had been through the Friday night and Saturday morning and and on Sunday morning I jumped on LinkedIn and I was like, reached out to the to your team, found somebody on your team and and reached out to the team.

00:04:04:08 – 00:04:19:20
Kyle Wentworth
And I said, so how do I know this program is any different than the ones that we’ve already seen? You know, put a little bit of money in and then and then you get a little bit of information and just enough to be told you need to spend more money and, and, and then you put some more money in just to be told and enough information.

00:04:19:20 – 00:04:38:16
Kyle Wentworth
You spend more money. And I was like, how do I know it’s not any different? 27 minutes later, my phone call, my phone rang and it was you. And I was like, oh, hey, check this out. This says Rod Cleef on it. I was like, let’s see who’s calling. So I answered the phone and you said, hey, Kyle, this is rod.

00:04:38:16 – 00:04:46:06
Kyle Wentworth
This is my cell number. This is how we’re different. The team couldn’t answer this call and that was during the live event. It was just in a break.

00:04:46:08 – 00:04:56:23
Rod Khleif
I forgot all about that. I totally forgot all about that. That’s hilarious. So that was you? That was you. They gave a shit on line and I had to. I had to go and I had to jump in and say something, okay.

00:04:57:00 – 00:05:18:01
Kyle Wentworth
So that’s that’s how we got started. That’s how we got started. And, and that, that kind of showed the commitment, not only of the program, but of you yourself in the, in the program. And that really made a huge impact. So Jose and I jumped on May 1st, signed paperwork and, and, and we kind of been going gangbusters ever since.

00:05:18:01 – 00:05:26:08
Kyle Wentworth
Haven’t looked back. So that’s awesome. We did 109 zoom calls with Warriors between then and Sarasota on September 9th.

00:05:26:10 – 00:05:46:17
Rod Khleif
Wow. So so you mean you mean the warrior event in Sarasota? So you know, we do warrior events for our Sarah Warriors where they can network. You did 109 zoom calls. But guys you know if you want to know the secret to success, it’s a magic pill. The magic pill is called effort. And and you guys are an exemplary example of fricking effort.

00:05:46:17 – 00:05:47:09
Rod Khleif
I love it.

00:05:47:09 – 00:05:59:10
Mark Nagy
So okay, so now you guys have had so many zoom calls network. What does that got? You tell us about your experience and the deals that you guys have done. And you know, tell us a little bit about what you’ve done in multifamily now.

00:05:59:16 – 00:06:29:19
Josie Wentworth
So, we’ve closed a couple of assisted living asset deals. One was located here in New Braunfels, just south of us in the Austin area. That one is 60 beds. Oak tree assisted living, great little asset. And then, perhaps our our largest accomplishment, I like to say. And what we, included on our information to you all was, the mayor of EDA Central Florida for pack portfolio.

00:06:29:19 – 00:06:56:23
Josie Wentworth
So, we engaged with the team there, raised capital, and are doing some compliance work, governance, risk and compliance work with them as, sort of our, our job on the GPC team. But we successfully raised roughly 1.2 million for that deal. One of our first capital raisers. So, oh, we were actually surprised or we surprised ourselves, even once.

00:06:57:00 – 00:07:23:23
Josie Wentworth
And, so, you know, I’m always the one that says, wait, time out. How are we going to do that? And Kyle’s like, we’re just going to do it. And so I think we’re a good team because we, we balance each other out and, and he’s go gangbusters and, I follow his lead. So, that was that was our kind of our first little feather in our cap, if you will, earned us our sword.

00:07:24:00 – 00:07:26:00
Josie Wentworth
We were really happy about that. So.

00:07:26:02 – 00:07:36:22
Rod Khleif
Oh. That’s awesome. So you got a sword? Let me, let me hold on. Let me show you the sword, guys.

00:07:36:24 – 00:07:55:24
Rod Khleif
So when you get your first. Oh, look at that. Look at that. See, when you get your first deal as a warrior, you get this kick ass sword and it’s a real frickin sword. And it says warrior on the hilt, and it’s, Yeah, it’s the real deal. So anyway, we. Then you become a warrior of the sword.

00:07:55:24 – 00:08:01:15
Rod Khleif
So, I had to show it. You showed yours? That’s awesome. You had it right there. So please continue.

00:08:01:17 – 00:08:20:14
Kyle Wentworth
That gets us that. That gets us the sword. Because we were actually guys on the deal. But, if it wasn’t for a fiasco, I would call shout out to her. We were six months into seven months into the warrior program. We had a our first zoom call with her and and she was like, so tell me what you’ve done so far.

00:08:20:14 – 00:08:40:23
Kyle Wentworth
And and, we hadn’t done anyway. Well, we, we’ve done about 170 zoom calls with warriors and building our team and learning who people are. And she says, she says you haven’t invested in anything yet. I was like, no, not yet. We were we were, you know, underwriting and learning how to underwrite our deals and trying to find a deal.

00:08:40:23 – 00:09:03:16
Kyle Wentworth
And she was like, your money’s not working. She was like, get in the game, invest in something, get your money working. And so about ten days later, we joined a deal with, with another warrior, that was meeting some assistants and a deal and, and buying out a GP. And so we did that. And that was our first GP.

00:09:03:17 – 00:09:20:13
Rod Khleif
Well, let me just mention Effie for a second. Let me mention Effie. So that’s a single mom with, I think, three children who is a emergency room pharmacist who is killing it in the business. She’s one of my one of my favorite people. She’s just a beautiful human being. Anyway, so I’m glad you gave her a shout out.

00:09:20:13 – 00:09:24:14
Rod Khleif
She deserves it. Yeah. So then you invest in a deal? Yeah. Oh, yeah.

00:09:24:14 – 00:09:47:20
Kyle Wentworth
So, yeah. So we we jumped in as an LP GP on that deal and it’s, industrial flex asset in North Carolina. And then shortly after that, a couple months after that, Roberto paramedic reached out to, son on, telephone call and said, hey, I’ve got this crazy asset I’ve been working on for the last few months.

00:09:47:22 – 00:09:57:13
Kyle Wentworth
Wondering if you might be interested in raising capital for us. And, and so we started talking about that, and that’s that mare beat a four pack that took 18 months to close.

00:09:57:15 – 00:09:59:11
Rod Khleif
And that’s senior housing, right?

00:09:59:13 – 00:10:07:22
Kyle Wentworth
Yeah. It’s 170 bed for four unit, portfolio that was put together for asset portfolio. I just hold.

00:10:07:22 – 00:10:14:17
Mark Nagy
On. You just said 18 months to close. So tell us a little bit about that. Why why is how long what happens. Give us the story.

00:10:14:17 – 00:10:49:18
Kyle Wentworth
So so this is this is what you call like rod says, it’s, it’s a seminar for the seller and a seminar for the buyer in the process. So when you get greedy, and people make great offers and you don’t do anything in those offers other than get more greedy, you essentially sit on your thumbs along the way and you don’t accept deals, and eventually it can come back to bite you in the butt.

00:10:49:18 – 00:11:22:23
Kyle Wentworth
And I don’t want to take Roberto’s thunder when he presents this. But essentially, they sat on their thumbs and it went through legal processes, and eventually they lost the deal and they lost the assets. And and, we had raised over $9 million in soft commits in about 40 days, which was just unbelievable. And, and eventually, it sat three more months before we could continue the cap raise and, and complete the asset.

00:11:22:23 – 00:11:24:11
Kyle Wentworth
But, and of.

00:11:24:11 – 00:11:42:04
Rod Khleif
Course, hold on, hold on. Let me let me interject a mayor something for a second. So, guys, if you don’t know what a soft raise is, what you do when you get into this business and we teach this at the boot camps is you get soft commitments for the money. So, you know, hey, this is what we do, whereby we’re investing in senior housing or investing in multifamily.

00:11:42:06 – 00:11:59:07
Rod Khleif
And, you know, this is if you know anybody that might be interested in partnering with us, let let me know. Well, I might be interested. Okay. Well, how much have you got to invest? Oh, say 50,000. Okay. Well, if, if we present, you know, here’s the deal. We’re looking at right now. This is what the returns look like, blah, blah, blah.

00:11:59:13 – 00:12:16:08
Rod Khleif
How much, you know, could you think you could put in. Well, I’ll do the 50,000. That’s a soft commit. It’s a soft commit until you actually get the money in your bank account. Okay. And I will tell you, you want to overcommit those soft commits because typically 30% of them go away, maybe more sometimes. And so what happened in your case?

00:12:16:08 – 00:12:20:10
Rod Khleif
What was what was the follow through percentage. Do you guys have any idea.

00:12:20:12 – 00:12:55:21
Kyle Wentworth
Yeah. So so we ended up with, with about a 125% over raise, over need, which was great. We needed seven and a half. And we raised 9.2. And then, once we actually got to the point where we could, start the raise again and start accepting money, we were down under six. And, and so, we had, pull triggers again and get, you know, get our, our ducks back in a row and start raising money again.

00:12:55:21 – 00:13:07:12
Kyle Wentworth
And we eventually, raised the final amount, just the week before close. Yeah. And ended up closing in, in the second week of December, I think.

00:13:07:14 – 00:13:25:12
Rod Khleif
Well, yeah. That’s scary. That’s scary. But you pull it out. I’ve had so many calls with warriors like, oh, we’re 800,000 short or 500,000 short. And I’m like, okay, how many phone calls we’ve made today? Okay, get your ass on the phone. Get going. You got this. Go do it. And it always works out. Yeah. No, it’s just the way.

00:13:25:14 – 00:13:46:05
Kyle Wentworth
Jose had been nurturing a relationship with another warrior. Actually, for about 18 months. We’ve been talking back and forth and back and forth and back and forth. And eventually we ran into him at, at, Country Dance Club in an off shoot off the wall place in the middle of Texas that neither of us lived in then that planned on it.

00:13:46:05 – 00:14:09:03
Kyle Wentworth
And, and scheduled to have lunch the next week. And we met up after church on Sunday and had lunch and, and and, you know, got into the deals about, you know, where do you guys invest and how you guys have money and doing all the GRC stuff that we’re supposed to do in order to cap rates correctly. And, and they were like, oh, yeah, we’re, we’re accredited in our process.

00:14:09:03 – 00:14:20:16
Kyle Wentworth
And I’m like, well, we got this extra little tidbit that needs to be met on a deal. And they were like, we’re in. And so, I mean, it’s all about relationship. And we talk about it like crazy.

00:14:20:18 – 00:14:27:04
Rod Khleif
Well, I know you mentioned you did 109 zoom calls before the warrior event. How many have you done since then? What’s the total count?

00:14:27:06 – 00:14:31:00
Kyle Wentworth
We’re over 500.

00:14:31:02 – 00:14:35:23
Josie Wentworth
And a hundred plus. You know, when we first got on and and it’s it’s real. Yeah.

00:14:36:00 – 00:14:56:06
Rod Khleif
It’s a no kidding. That’s essence. That’s crazy. And guys I mean again you know when you’re willing to roll up your sleeves and take action are you guys are like an extreme example of that. But you know when you’re doing that you’re building these relationships. You’re learning, you’re growing. You’re you’re you’re you’re building relationships. You can raise money from find deals from and so on and so forth.

00:14:56:06 – 00:15:12:08
Rod Khleif
And I mean, I think you guys are probably the most extreme example in the program I’ve ever seen. And I thought you had a podcast because you post them in the Facebook group, which is, which helps everybody. So you’re not just doing it for yourselves, you’re adding value. So I really love that. Yeah.

00:15:12:10 – 00:15:15:06
Mark Nagy
Just because you have some bad.

00:15:15:08 – 00:15:42:12
Josie Wentworth
Well, I was just going to say, you know, through relationships and through some of that sharing on Facebook, we kind of bless the entire group. And, you know, these people aren’t aren’t just for us. They’re they’re, they’ve all got something to contribute. And, you know, as a, as a community, that’s how you win, you know, is is playing playing people’s strengths and finding your people and finding your group to do this together with.

00:15:42:12 – 00:15:45:18
Josie Wentworth
So rod says it over and over again. It’s a team sport so.

00:15:45:20 – 00:16:04:18
Rod Khleif
Well and and and candidly, we’ve got the most extraordinary team in the world for it. I mean, you know, I, I don’t know if you guys know this. Our results eclipse everybody else combined literally everybody else and big names you know. So you know I’m something I’m very, very proud of it just kind of life. It’s literally got a life of its own.

00:16:04:20 – 00:16:33:16
Kyle Wentworth
We’ve talked about this a lot in the past. So I, I come from this technology background, specifically in the managed it space, and I’ve probably attended, you know, well into the hundreds of technology conferences over the last 35 years and it and, and the business of it and in all those conferences, everybody in our, in our industry, they all hold their cards really, really close.

00:16:33:18 – 00:16:57:13
Kyle Wentworth
And it’s like, do you have any tools? When realistically everybody has it too, because everybody’s got the exact same thing in the technology space. The stacks are all the same. You think it’s different, but but everybody’s holding their cards close. Nobody shares anything about what they do with anybody else. And in this industry, everybody shares everything with everybody else.

00:16:57:15 – 00:17:22:18
Kyle Wentworth
It’s a completely different in this group. It’s a completely different environment to be in. Like shocking and and the amount of collaboration that that creates amongst the warrior team to be able to successfully take down, manage, asset solve problems, share, respond to issues, shared resources. It’s just unbelievable. I’ve just never experienced anything like this group.

00:17:22:20 – 00:17:42:00
Rod Khleif
Well, that’s really kind of you to say. I really appreciate it. By the way, if you’re listening and you know, you’d like to explore, working with us in the in the warrior community, text the word crush to seven, two, three, 4 or 5, and we’ll help you crush it. Like we’ve helped the Wentworth sear and. Yeah, again, that’s text the word crush to seven, two, three, 4 or 5.

00:17:42:00 – 00:17:56:04
Rod Khleif
That’s how you apply. We look you over, you look us over. We don’t take everybody. But, Yeah. If if you if we don’t take you, you still leave that call. Better than you got on it. If we do take you, you’re on. You’re off to the races. And I don’t know if I said this or not, because I’ve been interviewed three times today, but.

00:17:56:04 – 00:18:23:05
Rod Khleif
But my warrior zone, upwards of 300,000 multifamily units that we know of right now, tons of senior housing and literally a few dozen senior housing facilities, self-storage, industrial flex space like you guys are in, in the city. And the senior housing, mobile home parks, mixed use retail, I mean, you name it, student housing. So if you have any interest in this, and you’d like to apply text the word crush to seven, 2345.

00:18:23:07 – 00:18:41:03
Mark Nagy
So one thing I wanted to hammer on with this specific deal is the fact that this is in Florida. I think it’s no secret that Florida has struggled really badly for the last couple of years because of insurance. Hurricanes, inventory has exploded. I think over the next 3 to 6 months, Florida will start to go back the other way because it’s corrected for so long.

00:18:41:07 – 00:18:56:22
Mark Nagy
But this being a senior living deal, you guys have done some unique things here that I see in the notes of transition in this deal. So the people that are in Florida might want to invest there. You know, maybe they could get into this. Tell us about what you guys have done to this deal. What’s the value add.

00:18:56:22 – 00:19:00:00
Mark Nagy
What makes it such a good deal.

00:19:00:02 – 00:19:33:18
Kyle Wentworth
Well, in in some of that capacity, the, the biggest things that make the deal great, really is the team ability to analyze that asset and identify the shortcomings and identify the things that can be improved. The rents were low, the facilities weren’t great. They were improperly managed. The the staff wasn’t happy with working there. And the residents weren’t happy with living there.

00:19:33:20 – 00:20:11:05
Kyle Wentworth
And so all of those negatives are positives for a great team. And and so the GPD team coming into this, Roberto C.J all of the other, GP’s that are coming into this, Marvin Victoria are in it. All of the GP’s coming in, we understand that that taking care of the people and taking care of the asset and applying the right, right team of, of operators to this asset with a knowledge base, those things are what’s going to make that deal really, really explode.

00:20:11:07 – 00:20:19:14
Rod Khleif
Yeah. The operator is critical. So you guys found an outsourced operator to take these. These facilities are a couple of them are, well, yeah.

00:20:19:14 – 00:20:28:21
Kyle Wentworth
The core team has used this asset, this this operator in other locations that they’re currently running, facilities, Wisconsin primarily.

00:20:28:23 – 00:20:47:10
Rod Khleif
Okay, fantastic. Because it’s all about the operator. I mean, you know, and same, same with the the senior living that we do. It’s, you know, we’ll deal with the real estate piece, but we’re not going to take care of grandmother. And but I do believe you need to love the elderly to get in this business. I think you should other I don’t think you should otherwise I, I don’t say that lightly.

00:20:47:10 – 00:21:14:05
Rod Khleif
I mean it sincerely and, and so, you know and and and and it all based on the operator because, you know, and let me expand on that for just a moment. So, you know, in this business, the the people that take care of the residents aren’t the highest paid in the world. It’s critical that you have a good culture, you know, and that the operator has a good culture, that they educate the staff continually, that they validate and praise the staff, that they take care of them then.

00:21:14:07 – 00:21:28:19
Rod Khleif
And and all those things are super important. And those are the things that I looked at when I interviewed the operator we’re using for our Pittsburgh asset. And so, you know, that’s that’s awesome. I just want to expand on that for a little bit here. So,

00:21:28:21 – 00:21:55:23
Josie Wentworth
And I’ll just comment, one of the one of the biggest value ads here is, the projected rent. So, they’re looking to transition, many of those units from assisted living to memory care, which demands a higher level of acuity, a higher level of care. And so also demands, obviously higher rent, upwards of $6,000 from, from mid degrees currently.

00:21:55:23 – 00:21:56:17
Josie Wentworth
So. Right.

00:21:56:19 – 00:21:57:10
Rod Khleif
Right.

00:21:57:12 – 00:22:00:02
Josie Wentworth
Huge value add opportunity on on these assets.

00:22:00:06 – 00:22:17:14
Rod Khleif
So they hang on one second I’ll tell you, you know I love the asset class period. Because there’s a silver tsunami coming. I mean literally that’s what they call it, a tidal wave of elderly people. I’m one of them. They’re like, you know, it’s 10,000 people a day turning 65. I just turned 66. So maybe I can use one of your Florida facilities.

00:22:17:16 – 00:22:39:12
Rod Khleif
But. But I’ll tell you. Are you rad? Yeah. Okay. Yeah. Especially in the memory care piece. That’s where I’d need to be. But, you know, this thing’s got legs. I mean, 10,000 people a day for, like, a decade. Okay, so there’s just incredible opportunity this space, it’s not going away. And then there’s the, candidly, there’s going to be a huge shortage.

00:22:39:14 – 00:22:53:00
Rod Khleif
In fact, I’m not sure they can manage it because they have to exceed construction that they’ve had on their best year consistently every year for almost a decade to, to stay ahead of it. I just don’t know that it’s going to be possible. We’ll see. What are we going to say, Mark.

00:22:53:02 – 00:23:16:20
Mark Nagy
No, I’ve got a couple questions so the listeners can know how you guys came about this. So you mentioned that, you know, you’ve had you had the connection with Roberto to the operator. What about this specific deal transitioning into that memory care? Was that was that kind of your guys’s strategic way, you know, coming into the deal that you knew that was a value add, that you had, that operator that could move into memory care?

00:23:17:00 – 00:23:25:01
Mark Nagy
Well, tell me a little bit about kind of that and what kind of separated you guys from the other buyers on this deal, potentially.

00:23:25:03 – 00:23:26:24
Kyle Wentworth
So. So go ahead, honey.

00:23:27:02 – 00:23:53:23
Josie Wentworth
It’s really a demand play. You know, Roberto CK, the the GPU team really dug deep into the demand in the Florida area. Like Ron said, the silver tsunami is huge. They saw a demand for memory care. The operator has, already established relationships with the association for, for assisted living and things in the state of Florida.

00:23:54:00 – 00:24:17:12
Josie Wentworth
And the, their executive director there, Ed, as I call it, already had worked in all four of these assets. So she’s phenomenal. She already knows a lot of the staff. So they really had sort of an inside, the inside scoop on what was going on in these assets already. And, you know, you mentioned it took 18 months or so.

00:24:17:12 – 00:24:40:16
Josie Wentworth
These assets went into, a bucket for the assignment. Assignment for the benefit of creditors. So it went into a credit protection, situation that had had to go through a court proceeding and, and whatever to get it out. So that’s why it took so long. You know, like Kyle mentioned, there were there was quite a bit of CapEx that needed to be done.

00:24:40:16 – 00:25:06:04
Josie Wentworth
New roofs, some Hvac systems, things like that. And so, the GPD team did a great job of getting those quoted out and, getting some really great quotes on getting all of that work done to maintain the, the profit margins and the cash flow within the asset, cash flowing from day one, because we bought it for 3 million less than what we had anticipated at first.

00:25:06:04 – 00:25:07:11
Mark Nagy
So wow.

00:25:07:13 – 00:25:16:05
Josie Wentworth
We didn’t just take 13 million. Ended up closing this for for 10 million. So for our assets, for $10 million it’s huge.

00:25:16:07 – 00:25:35:15
Rod Khleif
So so I have to I just saw something on on the information that we request from you before we do this interview. And you became a warrior Warriors like you said in May of 24. So it hasn’t even been two years. It’s it’s, it’s almost a little it’s just a little over a year and a half. And since then you’re in 292 multifamily units.

00:25:35:15 – 00:25:45:24
Rod Khleif
You’re in 233 total senior living units. You’re in 27,000ft² of industrial flex space. Boom, baby. Holy cow. Guys, you guys are killing me.

00:25:45:24 – 00:25:59:13
Kyle Wentworth
And I’ve written and I’ve written 300, 300 plus pages of GRC compliance documentation to train warriors about the right way they’re supposed to do SEC compliant. Love the investment.

00:25:59:13 – 00:26:01:04
Rod Khleif
So love it, love it.

00:26:01:04 – 00:26:24:02
Mark Nagy
Love asset value. Add. What was it like ask about that you guys said was the demands on the memory care. And if you guys can speak to this, if you can’t, we’ll just cut this part out. But how do you find that? Because obviously the demand for normal multifamily is easy, right? You look at immigration, job growth, population growth, all those sorts of things.

00:26:24:04 – 00:26:27:10
Mark Nagy
How do you find the demand for memory care in senior living?

00:26:27:12 – 00:26:36:03
Kyle Wentworth
So the the relationship with the with the property manager, with the operand operator is the key. So the operators.

00:26:36:03 – 00:26:36:24
Mark Nagy
Give us some more detail.

00:26:36:24 – 00:27:01:09
Kyle Wentworth
Actually the operator is the one who actually brought this asset to, Roberto. Because they had worked in other assets together. So they found another asset that they wanted to take on. And this is the one in Florida. And so they brought that to the team and said, hey, let’s take this down. That’s the same way that we acquired the Oaktree asset in in Texas.

00:27:01:11 – 00:27:21:11
Kyle Wentworth
The operator brought the asset to the team and said, hey, we want to take this down. So building relationships with existing operators who have experience in the field, who know what they’re looking for, who know the assets that they want to acquire and take on, who know that they can achieve greatness in that asset. That’s the relationship you want to build on because.

00:27:21:11 – 00:27:39:19
Rod Khleif
So how did they and how did they know him? Let me tell you how they know. Okay. There’s there’s an organization called in I see not don’t ask me what it stands for. I went to one of their events in Austin. I think it was in Austin, actually. And I’m going to the one in Nashville. Yeah, I’m going to the one in Nashville here in a month or two.

00:27:39:21 – 00:28:03:21
Rod Khleif
And, and they have software that that speaks to demand, that speaks to demand in each, each, each. So, so in the senior housing space, there’s independent living, which is the entry level. Then there’s assisted living, then there’s memory care. And then there’s they call it sniffs. It’s skilled nursing and, and so they’re able to measure that the, this, this, this organization, the software is very expensive.

00:28:04:01 – 00:28:14:13
Rod Khleif
We deal with it with our operator. And, and they can do an analysis of demand, using all sorts of metrics inside of their software. This and I c program, just to give you a little more detail.

00:28:14:15 – 00:28:37:02
Kyle Wentworth
The other piece that’s really kind of interesting in this space is the boutique assisted living. Finding a a larger asset, a larger house, you know, 6000 7000 square foot house and turning it into a 16 bed facility less. And if you can get 2 or 3 of those in, in an area that are close to each other, you can get an operator to manage all three of the assets.

00:28:37:04 – 00:28:46:05
Kyle Wentworth
And and it’s a smaller property with lessen with less cost. But a much higher gross margin on maintaining that asset. The call.

00:28:46:06 – 00:29:03:15
Rod Khleif
Yeah. Yeah. And you chart and you can charge more. Yeah you can charge more I know a lot about that. It’s called a residential assisted living. There was a guy that used to sell that program called Jean Guarino. Unfortunately Covid took him. Very nice guy. But, I’ve got a friend in, Sacramento that has six of them, and and the rents are higher because it’s like a home.

00:29:03:15 – 00:29:22:23
Rod Khleif
They’re in a home. So it’s it’s a lot less institutional than a typical assisted living facility. So it’s very desirable, for, for for an elderly person to go to something that’s actually a home. So, yeah. No, that’s, that’s a, that’s a great model. And, in fact, I literally just interviewed somebody for the show that has a bunch of those.

00:29:22:23 – 00:29:31:03
Rod Khleif
I literally just interviewed. Oh, no, no, no, he interviewed me. Never mind. I lose track is for interviews today. Yeah, but, yeah, they have a bunch of those.

00:29:31:05 – 00:29:35:22
Josie Wentworth
I think his daughter, Isabella Guarino, has now kind of taken the reins of that.

00:29:35:22 – 00:29:37:02
Rod Khleif
That’s right, that’s right.

00:29:37:02 – 00:29:58:02
Josie Wentworth
She has the the Atlanta, Akron group, recently, not recently, maybe 4 or 5 months ago. Did, a podcast with her. It was a webinar, actually, and, she shared some of the, the insider information on that and, and some of the profits that you can, can glean out of those assets.

00:29:58:02 – 00:30:15:11
Rod Khleif
So, you know, I actually I actually attended their event, in. Oh, God. Where was it? I have a phoenix, I think. And, that’s when I was looking into this a lifetime ago. He he was a friend. Yeah. That’s awesome.

00:30:15:17 – 00:30:25:10
Mark Nagy
It’s actually a great tip I invest in Florida. I’m going to look into that. Do you guys know, just from my own curiosity, do you have to re is there any rezoning or anything that you have to do with doing that. Would you take it that.

00:30:25:10 – 00:30:44:12
Rod Khleif
No, no. What they do is it’s kind of complicated. I can talk to you offline about it. They don’t get you at the zoning. They cannot they cannot refuse it. What they get you with is the parking requirement. So there’s some real nuances to this and I can share that with you. I actually almost bought a home here in Sarasota and I was going to do it.

00:30:44:14 – 00:31:02:05
Rod Khleif
And like I say, there are, there are, senior there are regulations where you cannot discriminate for a senior housing facility, but they can get you, on the parking. So anyway, do you guys have a problem with if investors are interested, if they want to reach out to you guys?

00:31:02:07 – 00:31:03:22
Kyle Wentworth
Definitely not.

00:31:03:24 – 00:31:05:01
Rod Khleif
All right. How do they do that?

00:31:05:05 – 00:31:25:09
Kyle Wentworth
Wentworth holding com is, is the way to get to it. There’s no asset. The Wentworth holding at the end of that. So it’s just Wentworth holding.com. They can, get on our, on our, investor portal from right there. They can get in our newsletter from right there. And book a call with us at the same time.

00:31:25:11 – 00:31:36:23
Rod Khleif
Beautiful. Well, well, listen, I it’s great to see you guys. And I know I’ll see you at the warrior event in May. And, because that’s just what you do, and, and there’ll be hundreds of warriors there and,

00:31:37:00 – 00:31:38:14
Kyle Wentworth
Network if you’re not out.

00:31:38:16 – 00:31:43:18
Rod Khleif
That’s it, that’s it. Well, it’s great to see you guys. I appreciate you coming on. And adding some value today.

00:31:43:20 – 00:31:44:11
Josie Wentworth
Thank you.

00:31:44:13 – 00:31:45:15
Mark Nagy
As I ask you to.