Residential Assisted Living(RAL) in Texas-rehab or buy facility?

[Xavier Toefield]

Hello all,

I am in a situation where I have a duplex(both units 3/2 w/1-car garage at 400 sqft. each) in Round Rock,TX. I have been interested in RAL and its benefits as an investor but also as someone that has family members affected by terrible care. I've done the research on this via RAL academy info(free/basic info; i am attending a conference eventually prior to setting up facility), podcasts, webinars, data from genworth and other neighboring facility. My questions are:

-Anyone recently attended the RAL academy courses at all? experiences?

-Advice/thoughts on converting property vs. buying an existing larger home and work on the compliance?

-Any operators can speak to their experiences in Texas? nationally?

[Richard McLemore]

Folks,  

Great posts, especially Xavier's.  The list is good and needed for edification of others.  I've attended the RAL training 3x over 2 yrs.  I knew Gene personally and he reached out to me a couple of years ago before his passing.  Terrific man!!

Here's my model I've developed, simply...

3800-8000 sqft
5+ bd/4 full bath
3+ garages (to be coverted, check w/ local zoning 1st)
prefer single story, but if 2 story add elevator
No pools required (eye candy for the adult kids, not generally used nor appreciated by residents
Enclosed yard with room for benches/tables to meet
HOA's don't scare us as long as we've done due diligence on the property through public records

Acqusition:  Lease/lease purchase/owner finance/sub2
Depending on the negotiation, I'll always offer more per month on a lease.  Example:  HO has home offering for $4K.  Upon agreement, I'll do the improvements either with their assistance of without.  If they particpate, the lease could go to $9K - if I have all the improvement expense myself, then the rent offered would be $6-7K/mo.

Mechanics:   I'll view and walk the property with my contractor. Draft a workinig document for changes to be considered and price out the improvements. 

Improvements:   (budget $125-150K)
Renovation of rooms into private rooms - add walls/baths
2 story, I consider personal elevators rather than Stairlifts
Fire Suppressions system tied to 
Alarm System (including door security)
Deploy personal scanning technology to detect falls, activities of every resident, inside and in the enclosed yard.  When a fall is detected, every caregiver is alerted along with the resident name and their exact location so they can receive immediate care and assistance.
Deply other technology that detects wetness/soiling and provide conveniences with communications (internet/tv) to the highest levels available
We allow personal animals in our communities, to the point that if a resident would like a pet, we'll provide a robotic pet.  Especially beneficial with our Memory Care residents.

Staff (Budget once filled - $55K)
Have a House Director who will hire the other caregivers and CNAs.  They will personally conduct the house tours which we generate through social media and placement agencies.  We provide 24x7 coverage with a targeted 3:1 coverage of CG to Residents.  The HD will hire a fulltime Activites Director to prepare events, activities and celebrations for each Resident
Hire a fulltime chef who will prepare 2 hot meals and one dinner meals.  We will feed our residents well, 2x the costs of other licensed AL/MC facilities.  Family may visit and eat at no cost anytime.

All in all - here's my model I'm proposing to use.  This will be a remote management entity with my wife/partner.  Being in Texas, it's always 'go big or go home', so I have a vision of providing 60+ of these residential communities in every town on the IH35 corridor.  Having been a technologist for over 40 years and having gone through what today's communities provide 'past Covid', I personally am committed to doing better by my peers and fellow Baby Boomers.

I have a current business plan - https://lifeandabundance.net/m...

Take a look and let's talk if you're interested.  I darn sure am!

Richard