Eric Spofford is the founder and CEO of Spofford Enterprises and the former CEO of Granite Recovery Center. He is an entrepreneur, real estate investor, author, and life coach. Eric has highly positive reviews relating to the positive impact of his work at Granite Recovery, the largest substance abuse treatment center in New Hampshire, and for his effective investment strategies and explosive net worth growth. Despite his previous bouts with substance abuse, he now manages an 8-figure real estate portfolio and is currently teaching others how to succeed in Section 8 real estate investing.
Eric Spofford's strategy involves finding, investing, and remotely managing single-family homes in landlord-friendly states to rent for Section 8 tenants. However, this comes at a risk as, according to the Department of Housing and Urban Development (HUD), about 75% of households eligible for Section 8 do not receive their vouchers, and there's up to a two-year wait for housing assistance in many places due to the underfunded program. The landlord must also comply with HUD's strict regulations.
In this article, we'll explain Section 8 investing and if it's profitable, the pros and cons of Section 8 investing, who Eric Spofford is, his reputation and involvement in lawsuits, Eric Spofford's other coaching programs, "'The Inner Circle' and 'Cash Flow is King,'" and other low-cost low-risk investments like Section 8.
Is Eric Spofford's Section 8 Investing Profitable?
Yes, investing in Section 8 properties is profitable due to the high demand for affordable housing, longer tenancies, and fewer vacancies. Section 8 landlords benefit from a steady income stream, as the government reliably pays a portion of the rent, and a larger pool of potential Section 8 tenants helps keep properties occupied, which, according to HUD, in 2023, amounts to 9.03 million Americans.
According to Pew Research Center, in Q4 of 2019, the median sale price of a single-family home rose from $327,100 to $408,100 in Q4 of 2021, with active sale listings of 1,000,000 in 2020 Q1, dropping 60% to 408,922 in 2022 Q1. With fewer homes available and house prices increasing, most people cannot afford to buy homes and will opt for renting.
This shift in the housing market dynamics ensures a consistent demand for Section 8 properties. It also provides landlords with a reliable and steady income stream, making it an attractive investment strategy in today's economy.
Who is Eric Spofford?
Eric Spofford is the founder and CEO of Spofford Enterprises, an entrepreneurial investment firm, and was formerly the CEO of Granite Recovery Center, the largest and most successful rehabilitation center in New Hampshire. He is the author of the critically acclaimed book, “Real People, Real Recovery: Overcoming Addiction in Modern America”.
Eric Spofford, aged 38, was born in New Hampshire on December 7, 1984. At 15, Eric Spofford dropped out of high school and was a drug addict. He was entangled in criminal activities to support his drug habits. At 21, he joined a 12-month rehab program and is sober. At 23, he secured a loan with the help of his father and created The Granite House, an 11-bed sober living facility in 2008, which eventually grew into the Granite Recovery Centers.
What is Eric Spofford’s Net Worth?
Eric Spofford has an estimated net worth of $115 million as of 2024. His first successful venture was The Granite House, growing into Granite Recovery Center, the largest rehabilitation program in New Hampshire valued at $50 million, which he sold in 2021 to BayMark Health Services for an undisclosed amount but estimated to be $115 million. He then founded Spofford Enterprises, an entrepreneurial company focused on real estate. Spofford Enterprises manages a diverse real estate portfolio valued at eight figures. His other sources of income include book royalties from “Real People, Real Recovery,” social media and video monetization, brand promotions, speaking gigs, real estate coaching, and chartering his $5 million yacht, the Bonus Round.
What is Eric Spofford's Inner Circle Elite Coaching?
The Inner Circle Elite Coaching is a program and community created by Eric Spofford for people who want personal coaching, tactical business advice, and community support. This program is centered on lessons that Eric wished he had known when he first started in business and fostering a community of like-minded people for personal and business growth.
Price
The price of Inner Circle Elite is $1,999 a month. Discounts are priced at $4,999 quarterly and $19,999 yearly coaching.
Refund Policy
The Inner Circle Elite has a strict no-refund policy
Origin
The Inner Circle Elite Coaching program was founded by Eric Spofford in 2023
Reputation
The Inner Circle Elite’s reputation is mostly positive on-site reviews from community members.
What Do Students Get With the Inner Circle Elite Coaching?
For a monthly fee, students of the Inner Circle Elite coaching get weekly group coaching calls with Eric and his team, access to the Inner Circle Elite community, in-person monthly networking events, introductions and access to his business network, tickets to quarterly mastermind events, and access to Eric for personal and business development coaching. Students who get a yearly subscription can go to a mastermind event on a private jet.
Who is the Inner Circle Coaching Program For?
The Inner Circle Coaching program is for people who are highly motivated and want to expand their knowledge and skills, such as:
What is the Cash Flow is King Training?
Cash Flow Is King Training is a program that teaches how to become a Section 8 landlord. This training teaches students with Eric’s own strategies and findings for investing in single-family homes in landlord-friendly states. This program teaches how to make money as a Section 8 landlord. It involves investing and finding single-family homes typically valued between $50,000 and $70,000. This yields significantly higher rents in the recommended areas, ranging from $1,300 to $1,500, compared to the standard market rate of $900.
This investment strategy aims to leverage the following advantages that Section 8 tenants have compared to market-rate tenants:
Average Tenancy
Property Damage
Students learn how to acquire Section 8 properties remotely, using Eric’s network and methods to ensure they are rent-ready and with less effort. The program also covers effective marketing strategies, lead generation for Section 8 tenants, and guidance on successfully navigating Section 8 inspections.
What Do People Say About Eric Spofford and His Programs?
People say positive things regarding Eric Spofford and his program, noting his knowledge and the connections they gained on his program.
Nate said Eric has helped him create better systems for his business, and his guidance helped him find the right people to work with, making his job easier.
Hans notes that Eric’s teachings have given him a different perspective to reach his goals in a better way.
Drew says Eric taught him to have a code of conduct to commit to it.
Danielle says that the coaching calls are not welcoming, the course is not beginner-friendly, and its contents can be found online for free.
Pros and Cons of Section 8 Investing
Pros
Assured rental payments through government Section 8 subsidies.
High demand for Section 8 properties to rent due to long wait lists.
Lower vacancy rates compared to traditional rental properties.
Viable Section 8 properties listed in the HUD get advertising through HUD and the Public Housing Authority.
Yearly rent increases issued by the Public Housing Authority to help account for inflation.
Long-term stability for both Section 8 renters and landlords.
Section 8 renters are incentivized to help maintain your property as eviction terminates their Section 8 eligibility.
Cons
As a government program, Section 8 requires a lot of paperwork, time, and effort for landlords and renters to settle.
Requires Section 8 landlords to adhere to HUD’s strict guidelines to maintain eligibility for the program. Properties must undergo yearly inspections and repairs as necessary.
Section 8 rental prices must follow the fair market value in any given area as determined by the Public Housing Authority.
The Public Housing Authority does not guarantee security deposits for tenants.
Section 8 properties are less viable options for high-value real estate investors.
Is Section 8 Investing Worth It in 2024?
Section 8 investing is less worth it in 2024 than it was five years ago. This is due to economic factors like inflation, rising interest rates, lesser housing inventory, and the pandemic.
According to the Federal Reserve, in 2019, the US had a 2.1% interest rate, which was reduced to 0-0.9% in 2020 due to the Federal Reserve’s intervention to mitigate the economic effects of COVID-19. As the economy started recovering, the interest rates slowly increased from 0.75-1% in 2021 to 1.75-2% in 2022 and 5.25-5.50% from 2023-2024.
In the same 5-year time frame, according to the Pew Research Center, the supply of houses for sale dropped by 60%. Single-family home sale prices increased by 25% increase in 2019-2021, incentivizing investors to take advantage of the lower interest rates in 2020 and invest in real estate to protect their money from inflation. These factors combined show that finding high-value Section 8 investments is harder than it was before and not as worth it in 2024.
Create Low-Cost and Low-Risk Passive Income With Local Lead Generation
Comparing local lead generation to Section 8 real estate investing, the advantages of local lead generation stand out favorably for investors, especially in terms of financial and time commitment, not having to deal with government bureaucracy, and easier management:
Starting Costs
Ongoing Costs
ROI and Earnings
Autonomy and Efficiency Comparison
Local lead generation stands out as a more accessible and easier investment option compared to Section 8 real estate investing. Its digital nature eliminates the challenges of physical property management, offering a scalable and potentially more lucrative choice for those seeking to invest with lower financial risks and operational demands. This makes it an attractive option for investors looking for an efficient and modern approach to generating passive income.
Local lead generation works by creating websites that rank on Google, generate high-quality leads and traffic in specific niches for local businesses who are willing to pay $5-$1,000 per lead. You then rent out these websites to local businesses for $500-$2,000 a month. You can then scale this by creating more websites that target different locations and niches. It's just like owning digital real estate, with lesser upfront investment requirements.
Today, you can make money online through business models like local lead generation without the hassles of on-site maintenance or dealing with paperwork and tenants. When done right, local lead generation can achieve similar or greater results to real estate investing. For example, I've created several local lead generation websites in different niches and locations, which generates $52,000 a month, letting me achieve a level of passive income.
