Assisted Living Facility

[Faiz Khan]

Hello Guys, I had few questions that I was wondering if I could get answers to.  I currently am running a RCFE (Boarding Care/ Assisted Living) facility in Moreno Valley for 6 beds.  I am looking to buy a second one.  This will actually be my first time home buying.  I am working with an agent that has shown me the house that I like.  We are going to put an offer tomorrow.  House is 2007 Built, and is going for 309K.  We are going to start our offer from 300K. I ran the comps, and the house is appraised at 309K. Should I start my offer much lower? I was told that I should also ask my agent for commission as I am helping her with this property. Is this ethical, and if so, how much should I ask for? 

Secondly, does anyone know if we can get funding or grants from the govt for opening such facility, as it would help the elderly population (yes it is a business too)?   House looks in great condition, other than inspection, what other aspects I should be concerned about since this would be my first time buying the house.  Thank You

[Loretta C.]

Hello Faiz and congratulations on your expanding venture! That is awesome! To my knowledge, there are some specific HUD grants, and there may be local small grants available through your county health dept in your area. However, be warned that this type of grant may also stipulate that a certain percentage of your residents meet low income specifications. On the other hand, this may give you a chance to serve a very needy segment of society. You may also be able to collaborate with the Veterans Administration, as they typically partner with assisted livings facilities or RCFEs in rural areas that are further from their main hubs, as I know from personal experience working in the VA system. Best wishes to you! Loretta