Does anybody have any experience in development or acquisition of assisted living facilities? My doctor buddy was talking about it the other day but I’ve never heard of anyone doing this so I was curious to see if it’s even a thing?
Thanks in advance!
Yes, I would say it is a thing. There is the (1) real estate then there is the (2) assisted living business, so you can have investors who (1) own and then rent out the house-perhaps at twice the going market rent, and their renters (2) are the owners of the assisted living facility or residence (these terms are state specific, i.e. Texas they are facilities, in New Jersey residences, and other names in various other states). BTW my response is that we are speaking of a "residential" (an actual residential home convert to assist seniors with their activities of daily living) assisted living facility/residence correct?
@Al Boettger thanks for the response, Al. I guess I am talking in terms of actual facilities with staff, cafeteria, rec room, etc and 50+ or so rooms. Not just a single family house. I wouldn’t want to own the actual business, I would rather just own the facility and lease it to an operator. Is this how people typically do it?
I am not sure statistically how many just own and rent out. There is even a 3rd way: one in which you have one of your entities own then rent to your 2nd entity as the operator. I am of the opinion that this is a type of calling, not the latest "hot real estate niche". These are someones loved ones and certainly even if they are now along in years, still someones child. Accordingly, just owning the RE, and knowing your have a long-term tenant, where you get all of the equity, depreciation benny's, while providing a great benefit for some in need might be a great RE investment opportunity.
@Al Boettger I am in the same camp as you, Al. Especially as someone who has had a loved one in one of those places. Definitely not interested in it because it could be “the next hot thing”. If it’s a great investment and helps people at the same time, I’m all for it. I think I’m going to look into the single family residence you talked about also.
I am speaking of something known as "residential assisted living", a step between a retirement community and a nursing home, where senior get help with their ADL's (activities of daily living, i.e. food, laudry, etc.), all done in a house equipped for them. They have to be licensed, by someone that has gotten the proper state required documents. There is a lot to it, and i have below my telephone if you want to discuss, which would be easier then typing. Just let me know, and best wishes, AB
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