Dominic, Gene of Assisted Living Academy gives seminars regarding your plan. I'm gping to out my property to a licence holder.
You are correct.
You would want to find the tenant before you do anything else. You can potentially wrap up the property and then find the tenant but I would not build or renovate and then go looking.
Finding a good, qualified tenant is critical to your success when doing that.
Even though you don't want to run a business like this, it is very profitable. I have a colleague who gets 5000.00 a resident times 6 residents. You can hire a RN to run it and still come out well off. I'm working on mine and looking for 8 resident certification. That's 480,000.00 a year.
I'm talking about 80 to 100 units. A little more than hiring a nurse
Did you ever make any progress , i am also looking to take one of my existing properties and converting. Any help would be greatly appreciated .
I am curious to know how you decided to move on this? My interest stems from my wife being in the Assisted Living Business for 22 years, holding all positions and now looking to start her own business. She knows the business through and through and has opened two facilities for building owners. I'm sure she would answer questions about the business.
@Dominic Mendolia I have a property in Columbus Ohio that could be converted to an assisted living facility. I can also sign up a doctor to lease the facility with a buy back agreement. The investment is about 3 million. Lets us talk if you are interested.
Originally posted by @Dominic Mendolia :
I have identified a property that would be perfect for assisted living or nursing home. The problem is I don't want to run that type of business. If I developed the property for this use are there companies that come in and rent entire properties for this. obviously I would want a deal worked out before developing. Is this something these assisted living places do or do the develop and own themselves.
Good morning Dominic, congrats on identifying the property! As I'm sure you're aware, assisted living is a very desirable investment that a lot of folks are going after right now. Were is the property located? How many acres? How many beds currently? Room/need to expand? Improvements needed? Please PM with more info.
The number one issue in finding a good Assisted Living site is making sure there is demand for the units. Did you run your own demographics study or hire a third part company to run the study for you? If not, you are probably just guessing it is a great location.
Hi Dominic, I see that the original thread is 9 months old. If you are still interested in this project, please PM me and I will put you in touch with a woman who lives near your who has started a residential assisted living. Best regards, Loretta
I'm in the process of renovating a residence into a ten bed RAL facility. Does anyone have a checklist of items that should be considered in the renovation? My team and I have attended Gene's course ( @Gene Guarino ) but did not see find any advice for renovations. Gene can you offer some insight as well?
Some things we are considering include:
- built in benches in shower areas
- handheld shower heads
- intercoms for each bed/bath
- motion sensor hallway lights...etc
I too am looking to get into the ALF space. My grandfather and I (retired doctor and lawyer) will be running the business together but won't be operators. We are working with a consultant on staffing and regulations. We've been looking into acquiring suitable properties with our agent but the issue we're running into is the licensure specs (Maryland) contemplate owning/leasing the property before applying for a license (background - grandfather started the process 8yrs ago but deal fell through - given his professional status he was able to waive many of the licensing hurdles so not concerned about hiccups in the process). License process can be lengthy so swallowing carrying costs could be heavy. Any creative ways to kick off the licensure w/o yet holding property?
Hi Loretta C.
I would like to learn more about ALF if you know anyone in the Philadelphia and surrounding counties area. For me, it is not just an investment, its a passion. I have a son who is Autistic but very functional. I have always desired to start a ALF in my area.
If you can get a long term commitment, cool, otherwise be cautious. Just read an article on ian appito(mangled that im sure) website about senior housing occupancy is dropping dramatically, and not to trust demographic tailwinds just because they sound like good ideas! I know in florida that sector is exploding and we will no doubt overbuild it just like we do apartments in every cycle
Yes, I have come across operators that do this. I handle a lot of assisted living facility deals here in Michigan, and have come across a few lease deals.
I've seen it done two ways:
Flat rate lease - The operator signs a lease for a flat rate and runs the business collecting their rent and care fees from the residents.
Per bed rate - Each resident has a separate lease agreement with the property owner, and a care agreement with the operator. Depending on the property and the level of care provided there, the residents pay $600 - $700/ month in rent that goes directly to you, the property owner, and has the care agreement with the operator for whatever their cost is. You take a bit of risk with that method, because if the place doesn't stay full you take a hit. There's also the upside to that. A fully occupied property with each resident paying rent ends up being significantly more than the flat rate rent.
If you decide to move forward with this, let me know. I know of some operators that do this nation wide.
Does anyone know how to finance a single family house that already has an assisted living company running a business in it? I am looking at a property such as this, but I can't seem to find a lender that will take this one. Residential lenders tell me no since there is already a business running inside the property, SBA says no unless I own the business also, which is an option but not what I want to do at this time. And I'm still waiting to hear back on commercial lending but it hasn't been favorable yet.
Does anyone have any idea on how to finance this property in this situation?
Can anybody recommend a firm that conducts feasibility studies for Assisted Living projects? Thanks.
@Greg Junge my question exactly. If you get insight on this, can you let me know. I'm looking at a very nice property near me but financing is the trouble.
socialexplorer.com is good source for demographic research.
@Tina Thompson You start with the website and brochures, at least that is how I started. First one is always tough as not many people are aware of your place. Go to nursing homes and hospitals and hand out your brochures. This might be a tough one because unfortunately lot of these social workers already have connections with other assisted living facilities and they rarely ever refer a good client. I have had a good luck with A Place for Mom referral agency, as they are the biggest and their leads are very solid. But they are also expensive, I believe 3k just to sign up with them.
@Dominic Mendolia did you find what you were looking for? I specialize in seniors housing & healthcare financing and would be happy to answer any questions. Please feel free to message me.