Investor · New York, NY · Member since 2017 · 2 posts · 9 votes
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.
Lake Worth, FL · Member since 2016 · 1 post · 14 votes
9y
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.
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.
Came across this post from two years ago. How'd it go? Did you get your 8 resident certification and RAL up? New and just doing research on the topic myself.
@Kevin Vandenboss I own and operate seven residential assisted living homes in the Denver area with 10 to 16 residents each. I've heard of operators who will lease from property owners and I've had several investors ask me if I would lease from them if they converted a large home. I haven't heard of national companies that will operate the business while leasing the property. Is that just for larger facilities or also for residential home situations?
Mitch, I just came across your reply here and don't believe I ever saw it. Anyway, some markets do have smaller properties being leased to operators. I've seen quite a few 6 and 8 beds being leased. From what I've seen, most of the operators that are leasing properties that size are non-profits.
There is one non-profit group I know of that primarily operates six-bed homes that currently own the real estate, but are starting to sell the properties to investors and leasing them back.
I realize this is an old post, but I would like to learn more about ALF and residential healthcare facilities if there is anyone in the Kansas City area. I currently work in a nursing home and am very passionate about the healthcare industry and have a strong desire to open an ALF.
Specialist · Cleveland, OH · Member since 2019 · 11 posts · 5 votes
6y
@Dominic Mendolia
There are hundreds of companies that do this. My dad works for a healthcare management company who also own real estate. His is pretty big, but there are many healthcare management companies out there to choose from.
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.
@Kevin Vandenboss
Do you know of any national operators / providers that lease properties in Florida? I'm in the process of purchasing a property with 3 separate homes on it with great proximity to hospitals and bus lines in South Florida. I'm having difficulty finding contacts that need to place patients / tenants in homes. I would like to lease my property this way rather than the traditional tenant lease.
Goldvein, VA · Member since 2016 · 66 posts · 17 votes
6y
@Patrick Edelin good afternoon. I know this post was a while ago but I’d love to connect and speak to you about Assisted living. I have a property identified and my partner is working on contacting and negotiating with them now. Thanks!
Goldvein, VA · Member since 2016 · 66 posts · 17 votes
6y
Hi @Kevin Vandenboss. I’d love to speak to you about partners in my area for an assisted living facility. I have a property identified and my partner is working on contacting and negotiating with the seller. I’m in Virginia. Thanks!
New to Real Estate · Singapore · Member since 2020 · 13 posts · 9 votes
6y
I have worked in senior housing for several years and pulled together ALF deals before. One of my mentors is one of the largest privately held owner/operators in the US and am familiar with his criteria. Feel free to PM me if interested.
Investor · Mesa, AZ · Member since 2013 · 32 posts · 22 votes
6y
@Richard Heck just sell them yourself i put mine 10 bed and 6 bed on bizquest and also contacted local realtors and local schools that train administrators and managers for ALFs, , i get 5 inquiries a day
New to Real Estate · Singapore · Member since 2020 · 13 posts · 9 votes
6y
@Richard Heck it depends on what you mean by “take you serious”. BIG companies typically don’t want to be south of 90 bed. 2nd tier, north of 50. There are a few that specialize in smaller buildings that are in very close proximity to each other to where they can bundle and the economies of scale will work. Like anything, it depends on the deal and upside.
New to Real Estate · Singapore · Member since 2020 · 13 posts · 9 votes
6y
@Sara S Jung. HealthTrust is a solid choice (are they still quite expensive?). They have a more modern view the marketplace than some of the other, more traditional outfits like MDS.
When I was active in senior housing, I was the in-house feasibility study point person doing both the forensic analysis of the market and competition ultimately making the recommendation for go/no-go on a project.
Investor · Poplarville, MS · Member since 2016 · 23 posts · 7 votes
6y
@Adam Fischer that's the answer I was looking for, thank you! I purchased a 15 bed facility back in 2017. Before I bought it I was buying real estate giving myself and my daughter something to do, my lily girl (Alice kate) was disabled and a single father it gave us something to look forward to every day rehabbing apartments, I started doing some research on turning a small complex into something for her and design it for her wheelchair in case something would ever happen to me, she would have her own place ,in my research I seen assisted living facilities and thought thats what she needs something with nurses. well I found this 4000sqft building and it was an ALF I made the owner an offer and bought it! After 100k rehab I. borrowed from bank it was perfect and she loved it!!!! She was set for success and a place everyone loved her. I turned the complex into independent living for 6 residents and we also started a in Home Care Agency, soon after that March of 2019 we got the approval to add another 4000sqft and 15 more beds a brand new wing onto the building in the plans the architect designed her very own beautiful room setup up just for her!!! At this time my daughter was given 6 months to live she passed away Sept 6 and I broke ground Dec 26 on her BDAY , this is the reason I want to sell I can't do it anymore, I was approved for a 3rd wing and 15 more beds but I'll let the new owner add them. The home care agency will sell with the ALF and construction will be finished in about 3 more weeks
Real Estate Agent · Atlanta, GA · Member since 2016 · 28 posts · 13 votes
6y
@Richard Heck I am very sorry to hear about your daughter. Please feel free to get in touch with me, I may be able to help you as you think about selling.