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.
Full-Time Investor & Agent · Amherst, OH · Member since 2014 · 149 posts · 50 votes
6y
@Adam Fischer My partner and I have a commercial building (20,000 sq ft event center) on 8 acres currently under contract here in Ohio. We are considering converting the 3 ballrooms about 10,000 sq ft into Assisted Living units. Building also has a commercial kitchen and laundry area. Would you suggest hiring a company like Healthtrust to do the feasibility research for us or is there a less expensive option? Is this something you would be interested in?
Real Estate Broker · LA & ORANGE COUNTY CA -Multi Family · Member since 2016 · 374 posts · 132 votes
6y
@Deon Hamilton
Even with 6 residents you’re going to need more than 1 nurse. You will need at least 5 employees. Payroll can while out your profits. You’re payroll on 5 employees can be north of 10k a month.
Specialist · DC Metro Area - MD · Member since 2017 · 16 posts · 5 votes
6y
@Steve Morris
Hey Steve,
A friend of mine recently asked me to start an assisted living facility (ALF) with her in the Portland metro area.
She has a mentor that is well experienced with ALF’s in OR. I tried calling around the respective govt bodies, but wasn’t able to get clarity on whether out-of-state investors can setup such a facility. We were specifically looking at the Adult Foster Homes and possibly a DD home.
Any advice you can give would be greatly appreciated! Feeling kinda stuck here!
@Steve Morris ++ I can’t stress this enough. A quality operator is worth its weight in gold.
How does someone go about finding a good operator? I have the wherewithal to put together an assisted living facilities, but I have no desire to run it therefore I have not pursued that sector.
@Steve Morris ++ I can’t stress this enough. A quality operator is worth its weight in gold.
How does someone go about finding a good operator? I have the wherewithal to put together an assisted living facilities, but I have no desire to run it therefore I have not pursued that sector.
Use NIC as a resource for senior housing development:
Investor · Houston, TX · Member since 2018 · 10 posts · 12 votes
5y
Has anyone had challenges in purchasing or lending on Assisted Living? Most lenders from HML, private money to traditional banks seem to be very unsure of the asset class and only able to loan on the real estate. The SBA 7a is about a 60-90day process (both business and real estate) but I've heard of one going up to 8 months. Thoughts on the topic?
Investor · Mesa, AZ · Member since 2013 · 30 posts · 22 votes
5y
Here in AZ , most of my peers that sold ( I own 2 ) buyer only can do private, commercial loans from your small bank , sba no other options I am aware reason it drives some buyer to buy business but lease the house from prior owner
Investor · Houston, TX · Member since 2018 · 10 posts · 12 votes
5y
@Adrian Butas do you know of anyone who would actually do a loan for the business part? Most investors I've talked to want the asset as collateral not necessarily the business. I think of this as a commercial transaction, similar to a hotel where you have the real estate and operator/management. I may fall out of contact cause I've been getting alot of "no's and not interested". 🤷🏽♂️
Investor · Houston, TX · Member since 2018 · 10 posts · 12 votes
5y
@Gene Guarino it's been a tough few weeks to the point of discouragement and would hate for the contract to fall through. Hopefully I can tell you and the community all about the success... But first things first is someone has to be able to say yes on the capital lending.
Lender · Los Angeles, CA · Member since 2014 · 13 posts · 6 votes
5y
@Eric D. I agree with what others have said, but would also add that the SBA lenders I’m aware of would not have an issue with the business only (provided the business is performing well), although as you mentioned it is always more desirable to have the real estate involved. However, no real estate is not a total deal breaker right now. And you are right that the process is usually 45-90 days. Those long deals (6 months or more) usually have some big issue with the property or business that can’t be resolved quickly and since you’re dealing with SBA you have only one choice—wait until the issue is resolved. PM me if you want to discuss.
Rental Property Investor · Orlando · Member since 2016 · 114 posts · 45 votes
5y
@Eric D. Use an SBA loan, they are offering great terms right now. We're purchasing a 71 bed in south Florida using SBA.
Literally just completed the application and waiting on contract execution later this week so I do not have much insight to offer but the seller is aware that SBA is what we're using and understands it will be a long closing
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?
Try asset based lending, portfolio loans, where all they care about is the property. LTV is low though, around 60%, but as long as the property is insured they are ok. Many smaller banks and commercial banks offer asset-based loans, including Chinese banks. Good luck.
I own a large single family residential property in LA . I posted an ad for rent and the first 2 calls are from businesses who provide care home or assisted living servicing. I have never done any lease like this so far. Came here to learn.
Unlike most people here, I am not interesting in running or being involved in the business. I'm just a property owner looking to deal with an operator, just collecting my rent.
Can anyone tell me what are the things which are different compared to the traditional residential lease in California?
- Do I need a commercial lease ?
- Is there a potential zoning issue?
- Do I need a different insurance than the residential income property insurance?
- What is the rule of thumb for the rent (+15% above market?)
- What are the downsides for the landlord, compared to a traditional residential lease to a family for instance?
Investor · Member since 2017 · 69 posts · 65 votes
5y
Has anyone house hacked a small residential assisted living facility?
Seems like it could have potential, but the biggest risk would be getting a loan. In a hypothetical where the house is empty, but completely up to code and ready for residents, I think it may work - especially if you are able to find a great manager/operator to run it for you. It would likely depend on state regulations that may dictate whether an owner/operator could live under the same roof as residents ( a casita or guest house may solve that issue). This way may let the owner get a residential loan on the property as their primary residence. Anyone have thoughts on this option?
Does anyone know any reputable assisted living management companies that serve NJ or Philadephia? I took the RAL Academy home study course in the past. I am involved in new construction and rehabbing. My hope is to scale this by having multiple RAL homes on the same campus and getting a good operator to run them all. Any advice or contacts are greatly appreciated. Thanks!
Has anyone house hacked a small residential assisted living facility?
Seems like it could have potential, but the biggest risk would be getting a loan. In a hypothetical where the house is empty, but completely up to code and ready for residents, I think it may work - especially if you are able to find a great manager/operator to run it for you. It would likely depend on state regulations that may dictate whether an owner/operator could live under the same roof as residents ( a casita or guest house may solve that issue). This way may let the owner get a residential loan on the property as their primary residence. Anyone have thoughts on this option?
Yes, this is possible. Believe it or not, some residential assisted living facilities are still zoned residential. I am not sure which state you are in, but I can share what has worked for us in Georgia.
Investor · Member since 2017 · 69 posts · 65 votes
4y
@Justice Jacobs
This opportunity was teed up for us, but our business partners with the operator’s license and know how backed out due to the an extreme increase in insurance premiums that really tore into our return. Just wasn’t worth the effort for them anymore, so we’ve turned it into a house hack Airbnb. It’s working!