Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
14y
Aside from the financing aspect of this deal there are also ongoing licensing issues to consider. You state you currently work in a 100 bed facility, which is a good thing, but do you have the experience to own your own facility and keep it compliant/licensed?
It's an important question since if you partner with someone who has the money to help you they will definitely want to know you can properly manage this type of property.
Investor · Statewide, MO · Member since 2011 · 814 posts · 425 votes
14y
You can buy anything with no money down if the seller needs and wants to sell.
My concern would be short term cash flow issues if you have a very limited cash reserve. Are the insurance and government reimbursements months or years behind like in Illinois?
Have you ever worked in or for a nursing home?If not, I'd encourage you to get some experience in one so you'll have a solid idea of what you'll be getting into. A lot of business owners get there start this way and also change their minds after seeing things aren't as they thought they might be.
With your experience writing grants, perhaps you could find some money that way too.
If you pull the trigger, I would pay an accountant to look at the books and verify some details. A lot of people lie and sell when they're on the verge of going under.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Will the owner carry 100%? Do you have cash for ongoing operating expenses?
No bank is going to go 100%.
You might be able to find partners to put up cash, but you'll give up almost 100% of the deal if you have none of your own cash involved. You might be able to collect management feets, though.
Real Estate Investor · Salem, OR · Member since 2011 · 422 posts · 149 votes
14y
Have you considered converting a SFR into an Assisted Living? I know a couple here that built a Multi-million dollar business doing just that. I think you will find financing them would be a lot easier, since your looking at conventional financing & you can grow your business at your own pace.
I personally think there is a lot of potential for growth in this market as we live longer.
Ed: The state pays every 2 wks ( pa) Yes I currently work in a 100 bed facility thank you for thefast advice and ideas to research.
Jon: owner will do 80% seller financing balance either cash partner hard money etc inclusive of operating expenses to carry over for weekly expenses ie utilities wages prorated taxes etc
Management fees is an interesting idea
Rusty: Im looking at pa havent seen too much of that but I have seen what your talking about in california alot more than east coast. Would it be some sort of form of a 203k renovation financing for bring a SF to code?
Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
14y
Aside from the financing aspect of this deal there are also ongoing licensing issues to consider. You state you currently work in a 100 bed facility, which is a good thing, but do you have the experience to own your own facility and keep it compliant/licensed?
It's an important question since if you partner with someone who has the money to help you they will definitely want to know you can properly manage this type of property.