#491: 12 years in Prison to Building a Thriving Sober Living Homes Business

Denver Investment Real Estate

It can be hard enough for the average person to start a business, let alone an individual who has faced as many struggles as today’s guest. In this inspiring episode, Kelly Mahana takes us on an incredible journey of overcoming adversity through recovery and entrepreneurship. Growing up amidst generational poverty, Kelly faced unimaginable challenges, witnessing his father’s murder at the tender age of 5 and subsequently navigating the juvenile system from the age of 10.

At 32, after serving 12 years of a 60-year sentence, Kelly was released from prison with no support system. While working minimum wage jobs, he found solace in BiggerPockets podcasts. Motivated by what he had learned and determined to make a difference, Kelly began his mission to open a sober living home.

Kelly spent what little free time had researching requirements, drafting policies and procedures, and eventually launching his very first sober living home. But it wasn’t an easy journey. Starting with just two residents for the first three months Kelly faced his next challenge. But refusing to give in and through networking, he met mentors like Jeff White who became a crucial partner in his journey.

In this episode, Kelly highlights the difference between state-run halfway houses and private sober living homes, sharing their crucial role in maintaining structure and accountability for sustained sobriety.

Delving into the operations, Kelly explains his program’s structure, with on-site house managers and a fee structure that includes a deposit and monthly payments. Partnerships, such as the master lease, have been beneficial to both Kelly and Jeff, yielding 25% higher rents and stability through handling utility and landscaping costs. This has not only increased profits for Jeff but also ensuring a secure and well-maintained environment for residents. This is a great opportunity to be inspired and discover new possibilities in an ever-changing real estate world.

https://youtu.be/FYYdqWb_g2U?si=nXlj–ZQAcvr9eJe

(01:38) Kelly’s Background of Generational Poverty

(11:11) Transitioning from Prison to Real Estate Investing

(25:45) How Kelly got his First Sober Living House

(33:50) Converting a House to a Sober Living Home

(40:00) Sober Living Home Rules, Expectations, and Structure

Links from the Podcast

Bigger Pockets

Email Kelly Mahana: [e-mail]

• LinkedIn: Kelly Mahana
• Website: Authentic Recovery Homes
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