Get Rich off Alcoholics

By TheWild1 at 7 September, 2007, 12:54 pm, Categories : All About Business

Say what!?!? It may sound harsh, but at the end of the day it could be money in your pockets. If you would like to see the final profit just go to bottom of story.

The other day I was reading the New York Post… okay so it was really the Daily 10 on E!. Anyways, they were talking about another absurdly rich celebrity entering one of those secretive rehabs located on the beach in a very well-to-do neighborhood. So I thought to myself:

TheWild1 (what I call myself), there just has to be a way to profit off their “misfortunes.” If they are going to blow all that money anyways, then why can’t I have some of it?

So I decided to do some investigative research.

I began my research by locating where some of these “great” rehab centers were, and, to know ones surprise, there were a “few” in the Hollywood/Los Angeles area. So I found a zip code to one of the more popular ones (I’m sure you can figure out which one it was), and then did a real estate listing in that area. The rehab center I used had 3 estates and stated that they had about 12 beds. (12/3 = 4). So I looked for the approximate cost of 3 houses with at least 4 bedrooms and with 2 of the estates housing a pool.

The average 5 bedrooms 5 baths cost with pool and view cost about $3.5 million. 3.5(3) = roughly 10.5 million for 3 great estates in this particular area (by looking at some pictures it could possibly even be a little bit cheaper).

Then I began the search of cost to stay at this center rehabilitation center. I found many different quotes (I guess it depends on what you actually do once you get there), but the average stay came out to about $38,000 per MONTH. Now remember I only searched through this high profile, great location centers, and there were costs that were much higher then $38,000.

I am going to be a little lenient so we can see the benefits/negatives in worst case scenarios. Time to see what we can gain.
Estimated cost to buy homes (10.5 mil) + furnish them and extra maintenance costs (2 million) = 12.5 mil

During my research I found that these places were almost always booked, but for this scenario we will say 10 out of 12 beds are being used year round. 10(38,000) = $380,000 per MONTH. 380,000(12) = $4,560,000 per YEAR.

That is a lot of your investment to recoup. Granted you will still have to pay fees and wages to run the center but that could not be more then 1.5 million. 4,560 – 1.4 = $3,060,000 a YEAR after estimated expenses.

After 5 years… 3,060,000(5) = $15,300,000.
Return after 5 years… 15,300,000 – 12,500,000 = $2,800,000.
-Minus all the taxes you may have to pay

Now that is a great 5 year return. It is almost enough to add another estate if you wanted to, add enhancements, or just sit back and enjoy the coming year profits.

Trackbacks & Pingbacks

Pingback by Time to Celebrate and Rejoice on July 4, 2008 @ 12:19 am

Comments

HeMan December 29, 2007

I like this article. It’s matter of fact and practical. People have problems… you see profitable solutions. That has always been the key to strong entrepreneurship and innovation… Not to mention wealth.

Keep it up!

[Reply]