Tom Schlotec shares about how he started his entrepreneurship journey as a house flipper and saw the opportunity to become a service based business that assisted the elderly population with navigating the emotionally difficult journey of transitional care needs. This is an excellent listen for anyone who has a passion to care for others and is interested in hearing how he built a business to support families through this journey. His business, Standard Homes Buyers & Estates, is a great case study to check out.
Understanding the Service
Tom Schlodek started Standard Homes LLC with a passion for real estate, initially buying, fixing, and flipping houses. Over time, he transformed this business into a service-oriented company, primarily focusing on senior citizens who have lived in their homes for decades and face the daunting task of downsizing.
Addressing Deferred Maintenance
Tom explains that many seniors live in homes with significant deferred maintenance. These houses might need new roofs, windows, siding, and extensive landscaping. Standard Homes LLC buys these homes as-is, addressing all maintenance issues themselves.
Handling Personal Property
One of the significant challenges seniors face when downsizing is dealing with a lifetime of accumulated personal property. Tom’s company offers a comprehensive solution by purchasing not only the home but also all personal property within it. This includes everything from garage items to boats, four-wheelers, tractors, and more. The goal is to eliminate the stress of sorting, selling, or disposing of these items.
The Relocation Package
Standard Homes LLC goes beyond just buying the home and its contents. They offer a relocation package and new home setup. This involves helping seniors move to their new residence, whether it’s an assisted living facility or a one-level home. They meticulously pack all belongings, transport them, and set them up in the new location according to the senior’s preferences.
The Process
Initial Consultation and Timeline
The process typically starts with a phone call, followed by a site visit to understand the client’s needs. Tom notes that the timeline from the initial consultation to the final move can take anywhere from six to nine months. This extended period allows seniors to make thoughtful decisions during this significant life transition.
Personalized Service
Tom shares an example from Duluth, Minnesota, where a 96-year-old client needed assistance. Her children, aged 67 to 75, lacked the energy to help with the move. Standard Homes LLC provided a hands-on service, sorting through each drawer, packing items professionally, and ensuring everything was labeled. They also purchased any remaining items, relieving the senior of the need for a garage sale.
Comprehensive Moving Support
Once the move is underway, Standard Homes LLC takes care of everything. They transport all belongings, set up the new home, and ensure the senior feels comfortable in their new environment. This comprehensive approach sets them apart from other services.
Financial and Emotional Considerations
Financial Commitment
Bekkah highlights the significant financial commitment involved, noting that Tom’s company offers a cash deal on everything. Tom explains that while this is a substantial investment, it brings peace of mind to their clients.
Emotional Impact
Tom emphasizes the emotional weight of moving for seniors. Many have lived in their homes for decades and find the idea of moving overwhelming. By handling all aspects of the move, Standard Homes LLC alleviates this emotional burden, allowing seniors to transition smoothly.
Origin and Motivation
Inception of the Business
Tom’s journey began with a family friend who needed help downsizing after her husband passed away. She had no children or living relatives and was overwhelmed by the thought of sorting through a lifetime of possessions. Tom offered to buy everything, helping her relocate and manage her affairs. Her gratitude and suggestion to focus on helping seniors in similar situations inspired Tom to expand his business model.
Building a Service-Based Model
Standard Homes LLC now receives daily inquiries from seniors and their families, many of whom live out of state and need assistance managing their parents’ transitions. Tom and his team spend a lot of time at the kitchen table with clients, listening to their concerns and tailoring their services to meet individual needs. This personal touch has made the service deeply gratifying for both the team and their clients.
Running a Profitable Business
Balancing Passion and Profit
Bekkah asks how Tom ensures the business remains profitable while providing such comprehensive services. Tom explains that profitability comes from carefully assessing the whole package of each property, including the real estate and personal belongings. While others might see this model purely as a profit center, Tom emphasizes the importance of genuinely helping people during one of the most challenging transitions of their lives.
Unique Business Model
Tom notes that Standard Homes LLC is currently the only company in the United States offering this type of comprehensive service. As others try to replicate their model, Tom remains focused on maintaining the quality and integrity of their services.
Navigating the Challenges of a Service-Oriented Real Estate Business
Running a real estate business that focuses on providing services rather than just transactions requires a comprehensive understanding of various factors. It’s not merely about buying and selling properties; it’s about addressing the needs of the people involved.
Understanding the Market and Client Needs
When evaluating a property, it’s crucial to consider the overall situation, including the condition of the house, the services needed, and the financial aspects. Many homeowners may not have the resources to relocate or manage the transition, necessitating a significant upfront investment from the service provider. This investment covers relocation costs, maintenance, and other expenses to ensure a smooth process.
A deep knowledge of the local market, construction costs, and rehabilitation expenses is essential. Partnering with reliable realtors and appraisers can provide accurate property valuations and help in making informed decisions. For instance, a house might have a current market value of $100,000, but with additional costs for moving the owners and addressing deferred maintenance, the actual investment required could be significantly higher.
Prioritizing Service Over Profit
One key piece of advice for anyone looking to enter this field is to focus on the service aspect rather than the profit. Each family has unique needs, and understanding these needs is paramount. Spend time with the families, even if it takes a full day, to grasp their requirements fully. Once you know what they need, you can then calculate the costs and determine if you can afford to provide the necessary services.
Challenges in Service Provision
Unfortunately, not every situation is a good fit. Various factors can complicate the process, such as family disputes, reverse mortgages with compounded interest, and properties in unsafe or high-crime areas. In some cases, the involvement of multiple family members or pre-existing financial complications can make it unfeasible to proceed with the service.
Reverse mortgages, for instance, can accumulate significant interest, often tripling the amount owed in a few years, making it impossible to pay off. Additionally, properties in areas with high crime rates or significant vandalism can pose safety risks for the service providers and their teams.
Overcoming Challenges and Expanding Services in Real Estate
Running a real estate business focused on service requires addressing numerous challenges and continually expanding to meet the growing needs of clients. As the American population ages, the demand for compassionate and comprehensive real estate services continues to rise.
The Importance of Skilled Labor and Reliable Contractors
Finding reliable contractors has posed a significant challenge, especially in recent years. To produce the best quality product, it is essential to control costs, source materials efficiently, and ensure the availability of skilled labor. To address this, the company actively seeks mergers and acquisitions with construction companies to maintain high standards and meet increasing demand. This strategic move allows for efficient home remodeling and ensures impeccable workmanship.
The Emotional Impact of Our Services
The emotional stories behind the services highlight the profound impact on people’s lives. For example, helping Lester move to assisted living and reunite with his wife in their final days exemplifies the heart of the mission. These personal connections and the gratitude from families drive the continuous improvement and expansion of services.
Addressing the Needs of Aging Homeowners
Many aging homeowners face challenges in maintaining and selling their properties. They may lack the energy, financial resources, or desire to undertake necessary repairs and renovations. Often, they struggle to find reliable contractors who will return their calls and complete the work. This frustration leads many to feel overwhelmed and exhausted, ultimately deciding to sell their homes as-is, despite their initial reluctance.
Looking Ahead
As the company continues to grow and evolve, it remains dedicated to its core mission: providing exceptional service and support to those in need. Encouraging more people to enter this field is crucial, as the demand for compassionate, service-oriented real estate professionals will only continue to rise.
For those interested in learning more or seeking services, the company can be reached at:
- Toll-Free Number: 833-403-2020
- Call or Text: 218-208-3883
- Website: standardhomesllc.com
Join us in Part 2 of “How to Meet Transitional Care Needs Through Real Estate”. In the next episode, we delve deeper into how to meet the clients’ needs and continue to expand the services to make a meaningful difference in the lives of aging homeowners.
