I plan to purchase an assisted living facility (CBRF) in the state of Wisconsin. I'm overwhelmed with the process - just the license application is a monster. Any help/ advice would be appreciated! I am really looking for some sort of mentor/tutor to help me through the process :)
@Jamie Beltran I have had buisness dealings with a person years ago, who was working in that field - she leveraged extensive knowledge she had from her W2 job into real estate investing. The business model is fantastic, if you can believe the numbers (which I am not sure about, because she also told me she had a very good credit score and it turned out to be a desaster).
I hope you can find a mentor, but here are two other things you can try: oartner with someone who has the health care background knowledge. Or hire someone with that background. - My uncle has a very succesful corportae consulting business in Europe, but while he is very qualified he does not have the degree necessary to apply for a license. He did not want to go back to school, so he started an LLC and asked a firend of his (who has the license and doesn't do anything with it) to be the manager, while he is employed at his own firm. Obviousley you want to check with a competent lawyer, but this is a very common practice to just recreut skills into a business that you dont have. Good luck!
We provide a training for exactly that.
I highly recommend that you learn all you can before you move into the field.
@Gene Guarino I just finished reading the book you wrote with your brother! I also listened to your podcasts and watched your YouTube videos - including the introductory course! There's a TON of great general information there. I am so impressed with everything that you and your family has done. I even bragged that you wrote on my thread :)
I am partnering with 2 family members (one was an LPN, the other is in Property Management) for our first Assisted Living Deal. So far, we found a property that is currently operating as a CBRF (Wisconsin Assisted Living with 5+ residents), executed an LOI, and the purchase contract should be completed by early/mid next week. We're also working with Anderson Advisors to set up our Corporate Structure.
As you know, there is a HUGE learning curve to this business - even when taking over a currently successful operation. Our goal is to purchase and operate the existing 15 bed facility then renovate and occupy 16 beds in the adjacent (vacant) building (included in purchase). We plan to do this with either an SBA loan or seller-financing. We also have an option contract for another 16 bed building that we plan to purchase within the first year of operation.
We basically have the buildings and an outline of our plan - but we need a lot of help filling in the details. We are willing to put in the time and effort to make this business a success.
How do we move forward from here?
That you for the very kind words.
You are moving forward fast, and that is exciting.
There is so much that I can share but my biggest encouragement is to get trained so you KNOW what to do and what to avoid. The learning curve is steep when you are doing it on your own,
We hold a class 8 times a year and we literally walk you through the process in 3 days. I am just about to get on the bus to take our class through my homes today. After teaching them all day yesterday with a team of 10 people from our company, now they get to see it all in context. I KNOW we will be saving them tens of thousands of dollars in easily avoidable mistakes and months of time trying to figure it all out on their own.
That is what we do, and you can join us too. We have just one class left in 2018.
The information is on our website which is below. Call us for any details.
You are on the right path and your plan looks sound.
Now its up to you to get as much help as possible to ensure that you are successful.
I dont know Wisconsin's regs but I'd guess most states are somewhat similar with their own sets of quirks in the rules/regs.
Are you not keeping the executive director or not planning on hiring one? If one of you is planning on taking on that role you just bought yourself a full time job.
Thanks for the reply. We are keeping the Administrator on, but one of us (not me) is training to be an administrator as well for future properties.
My interest is to work 10 or fewer hours per week - and mostly remotely :)
@Jamie Beltran Good luck with your venture. There will be a steep learning curve. I still have lots of room for improvement - staff appreciation is key and your staff knowing that you as the owner place primary emphasis on resident care as #1 will also be key (and frankly resident care should be the top priority as thats the only reason the business is in existence) and second most important thing is making the staff feel a part of the family and appreciated.
Watch your cash flows - it will eat you alive. I'd be curious why the census is so low (sounded like you only had 5 residents if I read your post right) but can hold 15.
Just need to find your niche. I've learned a lot in the year I've been at our business and wouldn't trade it for anything. But it certainly is not easy and not a responsibility to take lightly. If you get down to spending 10 hrs a week I'd love to catch up with you and learn what you are doing. I've done it a time or two but it's rare - we still have lots of work to do for me to get there.
@Shane H. Thanks! I will let you know how it goes...