How to Make Money With Group Homes & Build Generational Wealth

Law of Attraction SECRETS

Host Natasha Graziano interviews entrepreneur Lynette Jones about her specialized group home business model. The episode explores how to gen

Key takeaways

Group homes can generate profits between $4,000 and $6,000 per month after expenses.
Lynette Jones scaled her business to seven properties using a rental arbitrage strategy without initial ownership.
The model targets individuals with guaranteed income, including those receiving SSI or returning from prison.
A critical success factor is proactive marketing and building relationships within the community to ensure visibility.
Starting the business can be achieved with approximately $15,000 for deposits, furniture, and initial branding.

Main topics

Group Home Business Model
Real Estate Rental Arbitrage
Community Impact & Housing

Notable quotes

I teach the unlicensed strategy where we house multiple unrelated individuals in the home.

Conclusion

This episode provides a practical blueprint for using niche real estat

Transcript preview

Speaker 2 (0:00) Hey guys, welcome back to the Law of Attraction Secrets Podcast. I'm your host, Anasazi Graziano, and today in the studio, I'm all the way in Atlanta, and we're sitting with a badass, a queen. She's an entrepreneur. She's a group home educator. She is somebody I know y'all are going to learn from today. She's into real estate and so much more. Welcome to the show, Lynette Jones. Speaker 1 (0:20) Thank you for having me. So, yeah, my name is Lynette. I am the number one group home expert across the country. I teach people how to get started with real estate by way of using my group home cash flow strategy. Speaker 2 (0:33) That's so cool. So what is a group home and who does it serve? Speaker 1 (0:36) Yeah, so it is a business model. I teach the unlicensed strategy where we house multiple unrelated individuals in the home. They have guaranteed income. So typically the people that I target are individuals who are coming home from prison. as well as the underserved population in the community. Speaker 2 (0:54) Can an ordinary person make money owning a group home? Speaker 1 (1:00) Yes. So I started with no real estate background, nobody to show me entrepreneurship. I did not have a degree or anything like that. So I was considered a regular person that got started with this business. So it's most definitely obtainable. Speaker 2 (1:15) Wow, that's wild. What got you into it? Like what made you wake up one day and go, I want to do group homes? Like what was that thing that made you feel like I Speaker 1 (1:24) want Speaker 2 (1:24) to be Speaker 1 (1:24) there? So I was working as a correctional officer. And while working as a correctional officer, I was able to see that there were many people who didn't have a place to go once they discharged their sentence or they was holding their parole certification and didn't have an address to parole to. And while looking at that, I was like, I wanted to be able to provide that. resource for them. And so I got started by way of providing second chance housing opportunities for their demographic. Speaker 2 (1:52) So girl, how much can one home realistically generate each month? Speaker 1 (1:57) Yeah, so you can profit anywhere between $4,000 to $6,000 after expenses are paid. With this business model, we house people and charge them by the bed. So it's not a whole house and it's not a private room. We do semi-private rooms. So it's $800 per bed conservatively. This is amazing. Speaker 2 (2:17) So is this something that you teach people? Like, do you get them to go and start this themselves? Speaker 1 (2:22) Yeah, I've been teaching people since 2023, sharing my journey online, inspire other people to want to give back to their community. And I developed a coaching program where I've been helping people across the U.S. for a couple of years now. Speaker 2 (2:37) Wow. So can people get started in this without owning real estate? Speaker 1 (2:42) Yeah, so I actually got started in my personal home because at the time I did not have a whole lot of experience, obviously. And so what I did was I reached out to a landlord and they allowed me to get started by way of rental arbitrage. So yes, I did scale my business to seven homes, renting properties. Speaker 2 (3:01) That's so cool. Tell me a story about it. Speaker 1 (3:03) Yeah, so like what? You want to know about hardships? Yeah, give me like something that you went through, like Speaker 2 (3:10) grit. Like what did you go through? Because you're so successful now. You're the number one. But like what did you go through to get there? Speaker 1 (3:15) Well, yeah, I'm starting off in my early childhood, raised by a single father with three kids. So me, my sister, my brother. By the age of 14, I... became my mom. So I had my daughter in a teenage pregnancy. Yeah. And then the only man that raised me passed away when I was 19. So I started life without support from family, so to speak, and started working in corrections. And that's when I found out about. you know, that need. So some of the challenges I faced when I started was not understanding how to properly vet people before bringing them to the home. People had guaranteed income, but I learned quickly that I had to do a proper assessment to make sure that I had a home that was comfortable and peaceful for everyone being there is, you know, multiple personalities in the home. That's wild. Do you ever find like there's clashes of personalities in the home? What do you do when there is? Yeah, so I kind of make sure that everybody has like beta personalities when coming in. So I don't want to bring anyone in that's aggressive. But most times, especially dealing with the men, they pretty much say their words and they digress pretty quickly. It doesn't really escalate. Speaker 2 (4:31) So interesting. Speaker 1 (4:33) So Speaker 2 (4:33) I want to go into another topic and come back to this because this is the Law of Attraction Secrets. We always love to know about your mindset. Like, did you wake up as somebody who knew they were going to be successful? Or are you like the first person in your family to become that? Like, how did you get to that? Speaker 1 (4:47) So, yeah, I am the first person in my family. They became an entrepreneur. And it was just by me working as a correction officer and determining that need. So it was just a good idea at the time. And so after taking on the challenge, it actually grew faster than I expected it to. And so it produced a half a million dollars a year at full capacity. Speaker 2 (5:12) Wow. That's beautiful. I feel like in life. It's up to us to create our dreams. It's up to us to chase those dreams. Nobody is going to do it for us. Nobody is going to take us from A to Z. Nobody is going to pay our bills for us. We have to wake up and decide, I want to be there. I want to make a difference in the world. I want to do something different. I want to be the first millionaire in my family. I want to be an entrepreneur. I don't want to be working on somebody else's timeline. I want to do my own thing and create my own empire. So it's amazing that you are there and that you're living that dream and that you're living that goal. I think that's beautiful. And also, I know this as a single mom, like you have the flexibility to be able to be a mom when you run your own business. For sure. You know? I mean, Speaker 1 (5:57) not to say we didn't go through the struggles. get there but Speaker 2 (6:00) you know you go through a lot of that stuff does there is there anything where you kind of had to take a moment and go I'm gonna keep going because I know in life we get lots of setbacks so what setback have you made into a comeback yeah Speaker 1 (6:14) so um it was early on in my journey um like I said bringing in people that wasn't really suitable for the business model that I had um I was just used to somebody working a job, so I felt like during my hard times as being a new business owner, I did not have a lot of people that was around me that was entrepreneurs, especially not people who are doing what I was doing. So I didn't have people to be able to bounce ideas off of, to be able to encourage me. So there was one point in time that I did go and apply for a job because I was like, because that's what everybody else was doing. And I did not get that job, so it kind of forced me to stay. And double down where you were. And I did it. I feel that. That makes sense. Like, Speaker 2 (6:57) go into what you were doing more. Yeah, I like that. Is there potentially money that landlords are leaving on the table with things like this? Do you feel like? Speaker 1 (7:09) Oh, absolutely. Most times they target single families. They chase Section 8, which is some of a form of a guaranteed income. cash flow for that and the net profits are very slim right so i do believe that this business model is the best cash flow strategy for real estate because you're able to get money off of multiple people versus just one single family and so the spread is much greater Speaker 2 (7:37) it's so fascinating like this is the first time i'm really like hearing about this and i'm like this is such an overlooked way to create generational wealth am i right for sure I like that. You feel like with this you can create more wealth for more of your family and ongoing? Speaker 1 (7:55) Yeah, because the individuals that I target are long-term people and