I am in Assisted Living Real Estate Development. I'm a Baby Boomer. I am relatively new to this type of RE Development and I must say it has been an eye opener. First the Baby Boomers start at age 67 or older depending on when you think they started out. All the Baby Boomers have aging parents that they now have to think about assisting in this stage of their lives. Over the past year that I have been involved with this type of RE development my Mother passed in Sept suddenly and my other Mother (Step Mom) who I have loved since I was 10 years old is now in a Nursing Home. She has balance issues and continues to fall. She doesn't want to leave her home and my Sister wants to try and take care of her as long as possible. She recovered from her last fall and surgery on her arm and went home. Unfortunately my sister is not there 24/7 and she fell again shattering her shoulder in 10 places. Thank GOD she didn't break her hip because that would certainly reduce her life span to 3 years or less. We are so lucky that she hasn't broken her hip and Assisted Living is the only option other than the Nursing Home at this point. This type of RE investment for Baby Boomers makes so much sense because of the high rate of return that they can experience with up to 10 Residents paying 3000 to 5000 per month in a single family home. It can also offset the expenses of having to pay for your loved ones or even yourself if you find yourself in a position of needing additional assistance in your daily life. These group homes are becoming much more popular and are investment opportunities that does not require hundreds of thousands to get into as an investor. It's very straight forward and it's a proven business model.
Consider these facts.
Over 10,000 people turn age 65 EVERYDAY and this is suppose to continue for the next 17 years.
http://www.immersionactive.com/resources/50-plus-facts-and-fiction/
Assisted Living Facilities have a 91% Occupancy Rate Nationwide
The average rate for assisted living in 2012 was $3,550 and can be as much as $5000 or more. The homes that I am involved with developing have up to 10 residents in each one of the homes. The investing partners own the Real Estate and Assisted Living Business through separate LLC's.
http://www.ahcancal.org/News/publication/AHCA%20Focus2/NCALfocus0113.pdf
Baby Boomers can either develop these homes on their own or partner with an experience operator with a proven business model like ours.
One things for sure, we are all growing older and most of us will need some form of assistance for our parents or in our final stages of life. I think Baby Boomers would be in a much better position owning a home like this compared to having to pay the 3000 to $5000/mth for the assistance that their parents will soon need and the assistance that they may need as they grow older.
