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.
Investor · Mesa, AZ · Member since 2013 · 30 posts · 21 votes
4y
I am a operator of few and a realtor and just sold a empty assisted living home , if its operating currently , only options to refinance and purchase will be commercial loans tried myself and no luck hard hide is a assisted living with people in it heard of some doing some crazy stuff but hate going illegal on things like this, ended up refi with commercial forget about cash out and such, and you are bound by appraisal as a commercial property which was in our case 25% lower then if we sold it empty as a residential home. I also sold full ones with residents for some friends of mine and it was very difficult for most buyers to purchase as operators tend be regular folks nurses etc difficult to operate as a business owning a few. In Arizona we have over 2300 of them most operators have 1 or 2 homes. Despite the fact some attend that course that sells dreams of owning houses as ALFs with profit from the guy in AZ and making him money. Its a bit more difficult then that this is not a passive investment do yourself a favor look up some group alf homes wherever you are call ask speak owner tell them you are looking open a group home in the opposite part of town and would like take him and his wife to best steakhouse for dinner and ask for recommendations on how to do what they did. Then decide if its for you , I teach folks how open ALFs for free friends of my wife nurse and others 80% run away when they hear what it takes 10% said they'll think about it and 5% do it then out of the 5% half close them or sell them in first year.
You couldn't be more correct, Adrian. Many individuals underestimate the amount of involvement this type of investment requires. Do you operate only out of Arizona? I'm not familiar with residential assisted living facility requirements compared to Georgia. I'd love to chat.
Hi me and my wife are currently saving up to attend one of your seminars. Is there any advice you can give on how would I go about approaching an established property thats for sale.
Id like to get into doing this in phx and want to start by finding established businesses on the market.
Investor · Poland · Member since 2019 · 50 posts · 16 votes
3y
@Joshua M. smith did you attend the seminar? I am looking into this and I like what I see so far...
@Marc B. So I like the business model but I would like to do it in the leasing way. Buy and lease to existing operators. Which resources would you recommend for me to read up on to get fully up to speed? You mentioned that you also teached (this post is from over a year ago ofc) are you still teaching this business? // Adrian
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?
Many thanks in advance.
Looking for the same exact info for a property in south Florida
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.
Hello, I see this post is six years old but I'm hoping you still know of operators that will lease assisted living facilities from owners. There is a site I'd like to purchase if I can find a company that would lease. Thank you
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?
Many thanks in advance.
Looking for the same exact info for a property in south Florida
Hi Carlos,
I am also in the Los Angeles area. I am looking to do the same thing. I want to lease the property but I am not interested in running an Assisted care facility. Were you able to get information on companies/individuals who lease for Assisted care facilities?
Real Estate Agent · Los Angeles, CA · Member since 2015 · 218 posts · 111 votes
2y
Hi,
I hope this helps someone. Every time I have a big house for lease anything 4/3 and over foster care living owners, sober living owners and assisted living owners have reached out to me. I guess I am saying if it's big, just list it and put in the listing that you would like to lease to Assisted Care Facilities. Which I don't do and I still get them coming sometimes.
Investor · Atlanta, GA · Member since 2016 · 37 posts · 21 votes
2y
You couldn't be more correct! We have a facility in Georgia that was converted for this use. Lots of options for rezoning, if needed, to better accommodate expansion plans for the tenant. If the tenant is happy, then so am I. @Renee Harris
I hope this helps someone. Every time I have a big house for lease anything 4/3 and over foster care living owners, sober living owners and assisted living owners have reached out to me. I guess I am saying if it's big, just list it and put in the listing that you would like to lease to Assisted Care Facilities. Which I don't do and I still get them coming sometimes.
Just be aware once operator stars
options to refinance will only be private or commercial loans tried myself and no luck hard hide is a assisted living with people in it heard of some doing some crazy stuff but hate going illegal on things like this, ended up refi with commercial forget about cash out and such, and you are bound by appraisal as a commercial property which was in our case 25% lower then if we sold it empty as a residential home.