Massive Profit Potential - Assisted Living

[Jeff Rappaport]

Massive Profit Potential - Cash Flow or Flip - Assisted Living In Ogden Utah

We are in Possession of an Assignable Contract that allows us to buy this property. We are Assigning the Contract to you so you will be eligible to buy this property! We are not marketing the property just the contract.

Please do not send this out to anyone else without our permission. Thanks!

Huge cash flow opportunity or stabilize property and flip for massive profit!

Potential for $1.5MM-$2MM profit!

Purchase Price - $1,625,000 Cash! No owner financing available!

The building and land is probably worth more than the asking price!

Ogden Assisted Living Facility

2325 S. Madison Ave Ogden, UT

32 bedrooms with a 40 person occupancy

19,779 sq ft – 21,952 (the smaller number is off an appraisal done in 2014. The higher number is according to tax records.) Built 1963 1 acre Licensed as a Level 1, Level 2 and Memory Care facility Property is in good condition. Needs very little work – Boiler (utilities would be much less with a more efficient boiler), Courtyard (needs to be nicer), Memory Care doors put back in place and some here and there items. The issue on this property is management not renovations! Was purchased for $2,450,000 back in early 2013 Major renovations done in 2013 Average bedroom rate was $2,800 at the end of 2014 Currently 16 beds occupied with a $43,572.50 a month gross income Three new occupants planning on moving in over the next 2-4 weeks

Pro-forma potential:

20 beds for Level 1 and Level 2:

Average rate for Level 1 bedroom - $2,000-$3,000

Average rate for Level 2 bedroom - $2,500-$3,500

12 beds for Memory Care:

Average rate for Memory Care bed - $4,000-$4,500

Some rooms are double occupancy so you will not get full amount as if each was its own bedroom but still more than one bedroom. Potential of $120,000+ in gross revenues! This could translate into a $10K-$20K a month positive cash flow!

How can you profit?

The problem with this particular project is management. The owner is a very large corporation and does not specialize in Assisted Living. They have overspent on payroll and have had an issue with losing occupants. The property used to be a Nursing Home and needs to be re-branded to a more comfortable feel as an Assisted Living facility. Once the property is 90-95% occupied the property will be worth $3.5MM-$4MM. You most likely will hire an Administrator to run the business. You want someone that is very competent that can change the feel of the facility and market for new occupants. I have an old Assisted Living Facility owner that would be happy to help in the transition and put you in touch with competent people. She is a wealth of knowledge in the Assisted Living industry. There has also been interest from 2 different companies to either buy or lease the building and make it a drug rehab. Only reason one of the groups did not buy this property is the timing was not ideal for them. Certainly another possibility! The real value play is get the building occupied and refinance using a SBA loan (they will lend up to 90% of the value of both the property and the business) and keep the project or put it back up for sale and flip it! Either way, huge upside! Have included some pics and some financials. Do not get caught up on the financials. The problem is management!

We can get people through the property fairly easily. Please do not disturb the residents!!!!!

This is a quick turnaround so only serious buyers that have the capability to perform should inquire. Please and thank you!

For more information contact Rebecca Jensen at 801-865-4167. A non-refundable earnest money deposit of $40,000 will be required to reserve this property. Closing will need to be fairly quick as well.

We are not the owners of this property and will be selling our contract.