The Senior Living Boom

I have been involved for many years now heavily in the senior living industry. I have hired and trained employees, opened new homes, managed homes, worked in actual  homes, consulted for others on how to get into this business, and have pretty much been involved in everything from start to finish regarding opening a senior living facility. My particular focus has been on assisted living, as I see the biggest opportunities in that particular niche. The entire industry as a whole though is growing, and in the next 10 years, the people who align themselves in this industry properly stand to make a tremendous amount of money. As real estate investors, money is obviously always a huge focus of any deal. Every day you're looking at houses, running numbers, making many, many offers, closing on houses, talking to realtors, flipping houses, collecting rent, etc, etc. Real estate investment businesses are very money focused, as they should be. However, one of the advantages of the senior living industry is that on top of making very good money, we actually have the opportunity to really make a difference in someones life.

Many investors who I have met, as well as many families out there looking for accommodations for their loved ones are not aware that there is a type of senior living facility called a "Residential Care Home". These types of homes have different names in different states, but all are operated similarly. They are usually regulated by the State, and each State has different requirements. These are actual regular homes, located in regular neighborhoods, where usually up to 6 seniors live together. These seniors need help with their activities of daily life, such as cooking meals, medication reminders, bathing, etc. Much of the time they are still somewhat independent, but they just need some help and can't safely live alone any longer. To help them, staff is placed in the home 24 hours per day, and is always available if needed. 

A lot of people are familiar with "Sunrise Senior Living". These residential care homes are basically that same type of facility, except run in a regular residential home in a regular residential neighborhood. Each resident pays a monthly amount for their bed/room, and these homes run just like any normal business. The demand for these types of homes is skyrocketing. Families love the idea that their loved ones are not one of 100 people in a large facility, but instead are one of 6 in a beautiful luxurious home. The care is better. The food is better. More importantly, the residents always tend to be much, much happier! 

As with every business, there are people who do business the right way, and people who don't. This industry, and in particular the residential care industry seem to attract bad business people. What I have found in my experience is that many owners of these types of homes are very well versed in the business of "care", but when it comes to running a business, they have absolutely no idea what they are doing. This has caused issues with these homes, and of course, as entrepreneurs we all know that with issues in an industry, comes opportunity. 

Right now there is a huge opportunity for people who understand business to get into this business. To purchase a 2,500 or larger ranch home in a beautiful neighborhood, make modifications to make it handicap accessible, and open and run a business in that home that creates very good cash flow. Real estate investors already know the business, and real estate parts. The care aspects of this business can easily be outsourced. There is no better time to learn about this business, and this industry, and I am going to consistently blog about those opportunities, and how as real estate investors we can take advantage of those opportunities to create streams of residual income that far exceed any normal rental property. 

Thanks for reading...

Nathan J. Mazur

Senior Living/Assisted Living Expert & Consultant