Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes
Hi,
My wife and I have been working on a plan to turn investment properties into assisted living homes in Colorado. She has been in this type of industry for a while as well as knows people that have turned properties into assisted living homes.
Right now, my main concern is if the health care rules do change (lets assume similar to the two proposed bills) how does that look to affect Medicaid and the ability to find clients? Anyone have any good insight into this?
Virtual Assistant · Hollywood, FL · Member since 2016 · 60 posts · 11 votes
9y
Hi, Iam interested in the same thing. Leasing out property to a management company. Though I have catering experience and my wife has assisted living experience. PM me and we can compare notes.
Concord, NH · Member since 2017 · 25 posts · 16 votes
9y
While it can be done, The first step is to discover if your state has a certificate of need statute. If so, it may be difficult to start a new assisted living facility. These facilities require licensed beds. License bed transactions can be a real pain. Again, doesn't mean you should not explore this. In some situations, a landowner might be able to purchase beds already with a license from a an existing assisted living facility.
***This is not legal of advice. You should consult an attorney.
Concord, NH · Member since 2017 · 25 posts · 16 votes
9y
Another great resource for you might be your attorney generals office. Someone there might be able to point you in the right direction without you having to cough up several hundred dollars.
Specialist · Denver, CO · Member since 2016 · 50 posts · 23 votes
9y
Dear Christopher,
I don't think you will have a problem...because your target population should be cash-pay clients, not Medicaid/Medicare recipients.
The need for senior housing is growing everywhere...in every location across the country.
Question: why are you looking to leave Texas for Colorado? IMHO they are both good areas for this endeavor...just curious what the rationale is.
Best wishes!
Loretta Chang, MD MPH
Investor · Redlands, CA · Member since 2013 · 177 posts · 76 votes
9y
Probably the same thing sorry, I just always thought assisted living required a higher level of credentialing/applications/paperwork. I'm only familiar with the field from a clinicians perspective. But from talking to some of these owners, I know rent is pretty significant
Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes
9y
@Andrew Wong - Basically, the assisted living home will be run by my wife and I. We will setup an LLC or another type of company that gives us the best protection. My wife will be the main live-in caretaker for the consumers (clients) till we have a stable income and then we will hire our a live-in caretaker for the property. The way that Colorado works we will not need to have a nurse on staff just a licensed caretaker. Of course this is just the simplistic version of my business plan.
@Joe L. - We have already learned of all of the requirements that Colorado has for this type of assisted living home. For example the requirement for bathrooms, sprinkler systems, etc. Getting a property setup as an assisted living home in Colorado is not difficult it just requires the ability to invest more into the property than a normal rental home would.
@Loretta C. - Our goal is cash-pay clients but I have seen other people who try to start this type of assisted living home try to just focus on getting only these types of clients since you will get a higher return from them. What I have seen is that they wait toooooo long for a these clients in order to make a better income and almost drive the business into the ground. My wife has experience and a good amount of contacts to help us find the cash-pay clients but since Medicaid/Medicare clients are a very stable source of income (even though it is lower than cash-pay) I rather know that stability of Medicaid/Medicare is still there. [If that makes sense :)]
@Trevor Lohman - Going this route does have a good amount of rewards but also in my opinion has a lot more risks and expenses. I am still probably a year or two away from getting this fully started but rather know as soon as possible the amount of ways I can get screwed with my pants on before I actually pull the trigger. lol
Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes
9y
@Loretta C. - Oh, and the reason why I am wanting to start this in Colorado and not Texas is first and foremost my wife. She has the most experience with working this state and their requirements. Also, all of her contacts for this type of industry are here and zero in Texas. It is just safer to start something like this in an environment where you have a better chance of succeeding.
Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes
9y
@Taylor Chiu - Usually your states Department of Public Health will have the requirements. In regards to good resources for how to start this type of endeavor I haven't been able to find them. I am lucky that my wife knows people that have successfully started and some that have failed doing this. I use them as my resources. :)
Investor · Macomb, MI · Member since 2016 · 36 posts · 13 votes
8y
I am a RE agent and found a 20 bed licensed Adult foster care business listed on our MLS for sale a year ago. We put together a team of investors along with a SBA loan we’re able to purchase the facility. I figured it would be easy to buy an existing facility than to get one up and running. Being in business for a year, I have come across many more units for sale. What I have realized is that we have to learn to run the business with all its risks and challenges ... it’s not as simple as renting a multi family unit. I am actually looking to expand in other states as well with the right partners. PM me if interested.
I come across a lot of board and cares out here. I used to do home health full time but am mostly in administration now.
It seems that these places (out here at least) are typically 4-5 bedroom homes with an unskilled caregiver or two. I believe licensure requirements for these caregivers are evolving, and there may be a licensure requirement now, but it is still not a high paid position by any means.
They provide no medical care, only cooking and cleaning.
All medical care is provided by outside skilled personnel.
One time I came across the owner of one of these places. He shared with me that per bedroom rent was 3200 dollars for a single occupant room, and over 4000 for a double occupant room.
These are in expensive markets mind you, but it still seems quite rewarding. On top of that you are helping people. Seems like a great model if done right and with some compassion. Best of luck and I look forward to hearing more about your progress!
Salt Lake City, UT · Member since 2016 · 24 posts · 4 votes
8y
@Taylor Chiu I currently work in the healthcare field and did home health for a while and saw patients in numerous ALF's in SFR here in california. I was always interested in this but was never able to have conversations with anyone who had any information. I'm moving to Utah in a few months and will be looking to potentially start this business. I started looking into the requirements just a few days ago but haven't found much info, If you don't mind, shoot me a PM with any info you find on requirements and such and I will do the same.
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This is second hand info I got from another investor when inquiring: apparently in some states you must hold a Healthcare Administrator License to operate/own a ALF. I did a little digging and the course usually runs about 2 weeks , then take a proctored State Exam. I still in the process of researching so I don't know if this is a definite step for Utah; but when I find out I'll let you know.
Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes
8y
@Trevor Lohman - Yeah, the type of home assisted living I am wanting to start does not provide trained medical care such as nurses but individuals that have been certified by Colorado (QMAP) to take care of individuals in need. So basically my live-in providers would do the cooking, cleaning, providing medications (which includes injections).
Was just hoping that someone might be able to answer my question that if there were changes to Medicaid or Medicare similar to these last two healthcare bills proposed would that make starting this type of business more risky? :)
How would any proposed medicare/medicaid final rulings affect your business? You aren't submitting any claims to CMS are you? Aren't you just simply billing residents rent?
I know CMS becomes less of a payor and more of a National Health Service every year, but you aren't having to actually get your facility accredited or medicare certified are you? I sure hope not, but I'm afraid you're about to tell me you do. Even so, if you aren't submitting any claims to CMS I wouldn't be concerned about legislation. The need for senior housing will continue to rise, and as long as CMS isn't paying for it, I can't imagine how or why they would impede your ability to operate.
Property Manager · Baton Rouge, LA · Member since 2014 · 2k+ posts · 195 votes
8y
Been trying to get these Assisted Living Homes done for a while here in Louisiana. Here in Louisiana the Department of Health and Human Services Division of Health and Hospitals most License Adult Residential Facilities of any kind plus, a Certificate of Need is required. Ours is the conversion of multi-Family properties. I noticed that, someone responded with a recommendation that one should purchase existing facilities. Existing facilities for the most part are so close to institutionalization for lower and moderate income people that not using them would be a selling tool to get more clients. Our plan was the assimilation of this special need group in normalized communities, or market level individuals and multi-family with available Home Health service providers.
Rental Property Investor · Ypsilanti, MI · Member since 2016 · 230 posts · 86 votes
8y
This thread popped up when I searched for info on Adult Foster Care. I love that real estate investors are talking about kindness and providing high quality housing (as opposed to just the bottom line). Also, it's good to discuss the level of skill and pay required to care for a vulnerable segment of the population (hinted at in a previous comment).
I am in southeast Michigan and just starting to learn about this type of home, and eager to learn more, and possibly partner. Please PM me, if you'd like to discuss further.
This thread popped up when I searched for info on Adult Foster Care. I love that real estate investors are talking about kindness and providing high quality housing (as opposed to just the bottom line). Also, it's good to discuss the level of skill and pay required to care for a vulnerable segment of the population (hinted at in a previous comment).
I am in southeast Michigan and just starting to learn about this type of home, and eager to learn more, and possibly partner. Please PM me, if you'd like to discuss further.
There's a building in Farmington Hills for sale that's already set up to be assisted living. I think it could be turned around quickly for someone who has experience in that field.
Also, happy to see that the assisted living buildings at Geddes and Prospect are finally being put back to use. Looks like some renovations are under way.
Real Estate Broker · Franklin, TN · Member since 2015 · 18 posts · 13 votes
8y
Hi @Heather Rudy - I will defiantly try to keep you and everyone informed about my progress in this. As of right now I am in just saving $$ mode since I will probably need to pay around 10k for a fire suppression system in the property as well as the initial 6k for inspection and state approval.
Towards the middle of 2018 we will also start looking for a good ranch style house that has at least 4 bedrooms, basement (hopefully finished), and a garage that I might convert into a bedroom since more rooms mean more clients.
Butler, NJ · Member since 2017 · 15 posts · 10 votes
8y
I'm very interested in getting into this sub-genre of real estate investing!
Since this post was created a while ago, would those of you that have been investing in this area share some of what you've learned? Stuff that works, stuff to avoid?
Also, outside of finding out state certification of need requirements, what other things should a newbie look for?