Julie Holly, founder of Three Keys Investment. With over 450 units under her belt, she’s a leading voice in multifamily real estate. Through her podcast, ‘The Conscious Investor,’ and coaching, Julie empowers investors with mindset strategies for success. A former teacher, she’s passionate about financial education. Outside of work, Julie enjoys mountain biking, baking, and mentoring entrepreneurs. Get ready to be inspired!
Episode Highlights Here:
Brett
absolutely amazing. And I know because I, it’s hard to meet people with such enthusiasm like me. And sometimes I feel like I’m the guy who’s like, the most excited in the room or bringing all the energy, but then I’m gonna get to meet Julian. Like, wait, wait, there’s another really amazing inspirational person. And not only that, but I love the way you said it’s, you know, rally for the underdog, willing to have the tough conversations, right. Willing to advocate for people, you know, I do believe you have a heart for serving and helping people. And that comes through. And I think it will come through right now as we dive into building wealth and assisted living. So Julie, what would you say is the number one secret to building wealth and assisted living properties and investments?
Julie
Well, it’s really not too much of a secret. It’s always about buying, right? And so when we’re looking at asset classes to invest in, the number one secret of good investments in general is to know where you are investing. Is it the right time to be investing in that asset class? You could argue at any given point that something might be saturated, it might be overbuilt. Okay, let’s be real. It’s hard to argue that there’s overbuilding, most anything, maybe self storage, I don’t know, I see them popping up everywhere under the sun. But I won’t go down that rabbit hole, however, I understand Whoa, we have this huge situation on our hands, when it comes to our seniors and retiring. And if we think that all the baby boomers are, you know, that we’ve already cycled through the baby boomers, we have a rude awakening. So those of us who are in our middle years, you might feel like oh, well, you know, like, No, they’ve already they’ve already gone through, no, they haven’t, we still have 10,000 Baby Boomers, you know, retiring every single day in the next 10 to 15 years, we are going to see such an influx going into the assisted living, you know, community, and that need is so prevalent and so strong. And then we’re looking at supply and demand, and I can go, I am gonna go down that rabbit hole, because it’s really important for people to understand that just as we’ve seen single family housing starts have been impacted over the last 25 years. And we can look at that impact, as well as multifamily. And so when we look at what was taking place in the early 2000s, one of the benefits of being a person that’s third generation in real estate and was, you know, paying attention, but you look at what happened with the 2008 crash, it’s like, okay, well, we had a lot of development taking place leading into the great, you know, all of the collapse in 2008. And when that collapse happened, so much of our housing starts faded away, and went away. And we were already behind, going into 2008, we were already behind on our housing supply, then 2008 hit. And now we’re set back further, because all the developers couldn’t find the money, you know, and they got waylaid, we’re just going to simplify that because there’s a lot of obviously, there are a lot of details involved in that. And now we are still seeing, we haven’t caught up in that we haven’t caught up also in the assisted living space, especially with this massive supply and demand issue that we are facing, then compound that by many of these assisted living facilities, which I personally prefer calling communities but in you know, like, the asset class is actually known as assisted living facilities. It’s one of the semantic things for me. So I just have to throw that in there. But when we look at that we are looking at so many of these facilities are owned by mom, ha, their owner operated, guess what, they want to retire too. And they’re like, hey, it’s our turn. Now we want to retire and enjoy these years of our life. So what are they going to do? They have to have people to buy those facilities from them. Many of these people are willing to look into creative financing measures there assumable loans to be had. And so again, going back to impact, going back to service and contribution, you look at this as Like, really, honestly, kind of synonymous with who I am and how I’m wired. I’m like, wow, we get to support our investors. The returns are phenomenal. Yes, we get to support the owner operators by giving them that peace. Yes, we get to support the residents in their families and the loved ones in their lives by providing dignified care. Yes, we’re supporting the community by keeping a facility open, because most of these facilities are very much impacted right now. With waiting lists, just wait, wait, wait, wait, wait. And so supply, demand, opportunity to invest in a way that is not just getting the financial returns, but getting the returns for mankind?
Brett
Absolutely amazing. I love it. I love it. Because yeah, you’re taking an impact and all around, it’s what it really feels like to impact on every single thing. It’s like a 360 degrees of impact. There’s a concept of 360 degree like leadership, like feedback, where you have people in front, you know, on the side, all around like people that you’re either reporting to, and you’re reporting to them, and getting the entire feedback to get a full picture. And I feel like this is one of those 360 degree investments, where you’re getting impact, you’re getting used to the community, it’s tenant, it’s, it’s it’s the world, it’s its investor. And that’s, that’s unique to find, and not easy, right? Not easy to find. And so you know, the demographics, the largest will change, and he should have planets also happening right as a part of this baby boomer shift. And that transfer is also just their time and their energy and retirement. So I think that the number one secret you’re saying is the demographics, understanding the need, and understanding the opportunity for impact. What would you say next, you know, either secret or insight that you’ve learned as a part of building wealth and assisted living facilities.
Julie
It’s operating by yourself. And so this is actually going to say, a lot of people look at this investment class, I did myself, I stuck with multifamily. And it’s just, I’m going to put a little bookmark here to say my company is to prompt us to invest in multifamily apartment complexes, and we invest in assisted living facilities, we do that because of a deeper conviction of our investment is to help humans, everybody has that. And we don’t want to be spread thin looking at every single asset class under the sun, we’re going to be very purposeful, purpose driven, and intentional. And that also drives stronger investments. In doing so starting with multifamily investing, when you buy a 100 unit apartment complex, right? You will be picking up a staff of, you know, two to 10 people maybe right. You buy an assisted living facility, you’re paying him 100 units, or licensed beds is actually how it goes. Now you’re picking up a staff of at least 75 more close to 100, right? And so you have to look at how we are going to manage this, because we’re not just buying the real estate, we’re buying the real estate, and we’re buying a business. And so there’s a new type of savvy that has to be in place. And so it’s not, this is not an asset class for everyone. And so this is one of the secrets, it’s okay, are you cut out for this asset class, if you’re looking at this, as I want to invest in it personally, and I want to run it, you need to be doing a lot of checks and balances, because there are a lot more moving parts. And so you need to be ready and prepared to take action on that into run and manage and have the right people in place to execute well, because again, going back all the reasons that we love investing in assisted living facilities, can you imagine if you could not provide dignified care for somebody, now you’re actually going against everything that you believe in. So you want to make sure that everything and all those elements are in place. We have brought that level of management in house. So it is integrated into our investment thesis. We want line of sight, we want full transparency, and we want to be able to take action immediately and effectively as needed and where needed. And the best way to do that is to be fully integrated. So I think that when we’re looking at the next secrets, we want to be seeing who is actually behind who is operating. And do I have line of sight into everything that’s taking place, and how fast can I act? What’s the nimbleness of this?
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About Julie Holly
Julie is speaker and founder of Three Keys Investment, helps people like YOU find their freedom through multifamily real estate investing so that they can live the life of their dreams!
She has invested in single family homes, house-hacked before it had a name, managed properties from 1k miles away and passively invested in multifamily assets. Currently, Julie is passively invested in nearly 300 doors, strategically partnered in 68 Atlanta based and a general partner in 387 units.
Her podcast ‘The Conscious Investor’ is designed to support investors at every step of their journey. Enjoy over 300 episodes on mindset and how highly successful investors overcome limitations and become an unstoppable force of success.
Julie’s care for the financial well-being of investors as well as her experience as a public school teacher, and ability to relate with people allow her to raise capital for the team’s offering.
She regularly speaks at national events, serves clients as a high performance coach and runs the Five Week Book & Networking Club to consciously support people.
Her free time is filled with backcountry mountain biking with family and friends, baking delicious treats to share with others, writing grants for non-profit organizations and mentoring young entrepreneurs.
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