What I want to flag is a pattern, because I see it enough that it's worth naming on its own.

A lot of pitches into residential assisted living lead with income potential built off gross revenue per resident. The national median cost of care is around $6,200 a month per resident, from the CareScout/Genworth Cost of Care Survey. Multiply that by a handful of beds and the number on the slide looks great.

What usually gets left out is what it costs to actually run the thing. Labor alone is commonly cited as running up to around half of revenue in senior care operations, and once you add food, medication management, and compliance costs on top, net margins in the operator data I've seen cluster somewhere in the 10 to 35% range, not the gross number people lead with. Size and how tight the operation is run move that a lot.

None of that makes RAL a bad business. It just means the honest version of the pitch is net margin after staffing and care costs, not monthly revenue per bed. If someone's showing you income potential and the conversation never gets to staffing hours per resident per day or food and supply cost per resident, that's the question to push on before you push on anything else.

Curious if others here have seen the same gap in how this gets pitched.