From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1514 topics, 14412 posts — Last Post 04/24/14, 05:53PM

BiggerPockets Exclusive PRO Area

117 topics, 841 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

11000 topics, 86706 posts — Last Post 04/24/14, 09:43PM

Real Estate Success Stories

400 topics, 6221 posts — Last Post 04/24/14, 05:13PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

6007 topics, 47313 posts — Last Post 04/24/14, 09:45PM


651 topics, 5873 posts — Last Post 04/24/14, 03:20PM

Get Foreclosure Help - Help Stop Foreclosure Forum

317 topics, 2561 posts — Last Post 04/23/14, 08:28PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

660 topics, 6334 posts — Last Post 04/24/14, 08:31PM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3718 topics, 29817 posts — Last Post 04/24/14, 09:08PM

Real Estate Guru, Book & Course Reviews and Discussions

1140 topics, 11616 posts — Last Post 04/24/14, 08:58PM

Ask About A Real Estate Company

743 topics, 7348 posts — Last Post 04/24/14, 03:12PM

Real Estate Investing

Real Estate Strategies


5646 topics, 44018 posts — Last Post 04/24/14, 09:33PM

Rehabbing and House Flipping

3354 topics, 31121 posts — Last Post 04/24/14, 08:41PM

Real Estate Development & New Home Construction

554 topics, 4696 posts — Last Post 04/24/14, 09:03PM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

869 topics, 6706 posts — Last Post 04/24/14, 08:29PM

Rent to Own a.k.a. Lease Purchase, Lease Options

700 topics, 4961 posts — Last Post 04/24/14, 11:26AM

1031 Exchanges

143 topics, 1063 posts — Last Post 04/24/14, 11:10AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1693 topics, 11320 posts — Last Post 04/24/14, 06:10PM

HUD, VA, and Tax Sales

416 topics, 3103 posts — Last Post 04/23/14, 02:29PM


1217 topics, 10604 posts — Last Post 04/24/14, 07:13AM

Short Sales

1539 topics, 13154 posts — Last Post 04/23/14, 08:25PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7260 topics, 71291 posts — Last Post 04/24/14, 09:37PM

Mobile Homes & Mobile Home Park Investing

639 topics, 5146 posts — Last Post 04/24/14, 05:13AM

Investor Basics

Starting Out

7739 topics, 60737 posts — Last Post 04/24/14, 09:18PM

Investor Psychology

434 topics, 6132 posts — Last Post 04/24/14, 09:03PM

General Real Estate Investing

4733 topics, 37339 posts — Last Post 04/24/14, 09:09PM

Real Estate Investor Marketing

1740 topics, 14165 posts — Last Post 04/24/14, 05:08PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1414 topics, 9022 posts — Last Post 04/24/14, 04:12PM

Multi-Family and Apartment Investing

1124 topics, 9418 posts — Last Post 04/24/14, 09:28PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

645 topics, 4913 posts — Last Post 04/24/14, 12:21PM

Business Basics

Goals, Business Plans & Entities

836 topics, 7599 posts — Last Post 04/24/14, 08:45PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2806 topics, 20152 posts — Last Post 04/24/14, 08:36PM

Property Insurance

312 topics, 2059 posts — Last Post 04/24/14, 10:22AM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2854 topics, 19852 posts — Last Post 04/24/14, 09:30PM

Creative Real Estate Financing

1221 topics, 8872 posts — Last Post 04/24/14, 07:36PM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1219 topics, 8054 posts — Last Post 04/24/14, 09:40PM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1931 posts — Last Post 04/23/14, 09:04PM


268 topics, 1689 posts — Last Post 04/24/14, 05:05PM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2023 topics, 11776 posts — Last Post 04/24/14, 06:51PM

Americans & International Real Estate

162 topics, 572 posts — Last Post 04/24/14, 03:31AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

66 topics, 441 posts — Last Post 04/24/14, 08:06PM


Real Estate Marketplace

Real Estate Marketplace

15102 topics, 54174 posts — Last Post 04/24/14, 09:44PM

Real Estate Events and Happenings

169 topics, 2627 posts — Last Post 04/24/14, 09:13PM


Off Topic


2909 topics, 32451 posts — Last Post 04/24/14, 07:22PM

Housing News & Real Estate Market

923 topics, 8398 posts — Last Post 04/24/14, 09:05PM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Commercial Real Estate Investing Forum » Hotel Conversion to Assisted Living

Hotel Conversion to Assisted Living

6 posts by 4 users


· Solana Beach, California

Converting a hotel or motel to Assisted Living or better yet to Alzheimer's Care Facility seems to be a much higher and better use for hotels these days. The NOI is far greater if you economically make the conversion. In my area it requires a Conditional Use Permit which is subject to a public hearing and also the local Building Dept gets into the act as well and can require the hotel be mofified for its' new use which can kill the deal if the modifications are too expensive. Has anyone ever done a successful conversion or have you found it possible to convert buildings other than hotels to Assisted Living without having to go through all this? :roll: :mrgreen: :D

Real Estate Investor · Baltimore, Maryland

You are absolutely correct that an assisted living facility best use thing.

In my experience which includes one 15 bed facility and failing to get several others through the permitting process is this...

1. Only own the building and let someone else run the facility. We did this with a modified NNN lease and had a cashflow screamer.

2. Many neighbors are hesitant about have a facility in their area. Work to overcome their objections

3. Some states/cities have very high barriers to entry. It comes down to how confident you are about getting the property through the process... and most lenders won't lend on project until the "process" is complete and most permits are in place.

Best of luck...

Real Estate Investor · Carlsbad, California

Not that hard, been there done that. Just get ahold of the state and start the licensing process, administrator etc., there is a demand, can't imagine neighbors objecting seniors over motel, hotel patrons., but then again, nothing surprises me these days. Good Luck. -- Dawn

· Solana Beach, California

:D :mrgreen: :lol: Thanks for your input. What it seems to come down to from the investor's (our) point of view is the best way to do one of these deals would be to write a letter of intent with the condition that the seller works with the investor to obtain a Conditional Use Permit before going to a hard contract. All of the other conditions, and terms of the deal can be covered so that it could close relatively quick and simply after and more importantly if the CUP can be obtained which also puts the eager seller in our corner to assist in all ways possible to obtain this. As an investor trying to obtain a CUP it is expensive (typical fees to planning dept are $5000-$7,000 out here in Southern California, but if you can obtain this the fire dept requirements are easy and straightforward to accomplish and the State will then have no issues in allowing the building to be licensed. Actually, I have no interest in being the operator as there are plenty of licensed operators who would like to expand. I just want to provide them the property on a long term triple net lease and let them run their business.. Thanks again for the input.

SFR Investor · Wheat Ridge, Colorado

How about using an option to control the property while you work on getting the conditional use permit?

Jon Holdman, Flying Phoenix LLC

· Solana Beach, California

:D :D :D You could use an option to control the property although if the seller gives you an option they will usually expect some more serious nonrefundable consideration. I was thinking it may be more beneficial to make it part of the Letter of Intent as it would be essentially the buyer and seller working together to obtain the Conditional Use Permit and if you fail your deposit with the LOI is refundable although you as the buyer would be out of whatever fees you had to pay to try to obtain the CUP. The fees to the Planning Dept are not cheap but at least your consideration with the LOI would come back to you.

Sign up