All Forum Posts by: Al Boettger

I suggest you go to the Residential Assisted Living Academy home locator page.

https://ralna.org/ral-home-locator/

Scroll to the area of interest, find homes near there, then connect with them.  Are they interested in expanding, do they know someone that is...etc.

They are a lot more open to talking then you might think.  This is because the conscientious ones, connect, so that in an emergency (i.e. a flood or tornado) they have connections/agreements to move their people there, or else to let each know of vacancies, or perhaps troublesome clients that might be a better fit somewhere else,  etc.

Consider contacting the Residential Assisted Living Academy in AZ, perhaps they know of someone in the area looking to add or expand.  I also suggest you contact A Better Way Realty, in Colorado.  Yes I know you are talking Houston, I am suggesting Colorado.  Seems A Better Way Realty has a gentleman there named Vern Harris who specializes, nationally with his team in ALF's.  Perhaps he knows of some connection that can be made.  Best wishes, AB 

Try Pascal Bergeron, who specializes in Fla, and you can start with his podcast "Alf Boss".

Suggest you contact Vern Harris at A better Way RE in Colorado-Yes I know you want AZ and he is CO, but he is a go to for RAL purchase info, throughout US

Go straight to the source for a full telling of details.  In your state is RAL, the residential assisted living academy, they do 3-day trainings, and have a lot of info.  They can give you info on this "niche" as some like to call it, but I refer to it as a "calling".  Lots of folks are under the "set-it-and-forget-it-with-a-hired-manager-in-place", but this is a 24-7-356.25 situation, and these are someone's loved ones you are entrusted with.   Find out, and perhaps go work in one for a little while to see if it is really for you.  Beyond that, you can invest passively: buying a home, upfit it (with such things as sprinklers, wider doorway/hallways, lots of bedrooms), and then rent it to an operator.  Or if you want to be active, then you either rent from such a landlord as above mentioned, or own the building-in one entity, and operate under a second.

I suggest you go to RALNA.org which is the Residential Assisted Living Network Association.  On their site, there is a home locator function.  Go to the area you are looking into and find facilities there.  Then reach out to them.  You want this.  Most of the time, this is not a "competition" thing.  Facility operators network, keeping up on the latest laws and trends.  It is also in their best interest to have contingency plans in place in case of evacuation, meaning, they might have cross agreements, which were led to by connecting initially.  In their circles, they also may know who is tired and thinking of selling, and so on.  

Quote from @James Marks:

I have a 4/4 house that would be perfect to operate a residential assisted living facility out of. I just don’t have the time or knowledge to operate one. What would be the best way to market this property to another RAL operator to sublease from me?

One possible idea is go to ralna.org Which is the residential assisted living national Association based out of Arizona. They have a home locate there which you could use to see what homes are in your area and reach out to those businesses perhaps looking to expand or know someone that might be interested.

How about something along the lines of “… The price tendered is subject to revision pending receipt of actual cash  flow information”?

Quote from @Kim Hopkins:

Hello! 

We have a great prospective property we're looking at. The broker OM says they're selling it at a 7.5% cap rate and $5.7m purchase price. 

Based on our experience, We are pretty sure their expenses are understated (they're at 23% of gross income and almost always are closer to 30%). 

They also have a sloppy typo where rent roll totals $410k on the rent roll page but is shown as $420k on the page where they use it to calculate NOI and purchase price (which would make a huge difference in offer price!)

We want to tie up the deal and show them that we're willing to do it at a 7.5% cap rate on the correct numbers, but we can't get the correct numbers until we're in contract and we don't want to retrade If the numbers were misstated (that never goes well in our experience).

Has anyone ever written an LOI that says something like this:

Buyer and seller agree that the purchase price is calculated by applying a 7.5% cap rate on actual annual income and and expenses and any decrease in NOI actuals from the OM will be reflected in an adjusted offer price.

Any ideas? Best way to handle this kind of situation? 

You can take part in it live if you go to meet up, and look for Denver Area Assisted Living Residences, a Mr. Vern Harris, and get the link sent to you.  You can also find it on FB, to see it live tonight, as well as previous meetings.  Best wishes.