All Forum Posts by: Lovenia Chead

Hey Everest,

I will love to connect with you. I will message you now with my contact.  

I'm Lovenia, from Fort Worth, Texas. Before diving into my current role as a Realtor and a Group Home consultant, I spent over a decade as a real estate investor. My journey through the world of real estate has been diverse, from fix-and-flips and employing the BRRRR method to managing Airbnb. Now, I'm exploring the multifaceted realm of developing multi-family homes.

Through these experiences, I’ve learned the importance of community, adaptability, and the profound impact real estate can have on people’s lives. My work with group homes, in particular, has shown me the powerful combination of investment success and meaningful social contribution.

My decision to join BiggerPockets was driven by a deep desire to connect with individuals who share my passion for real estate. I'm eager to share the insights I've gained from my diverse experiences, but more importantly, I'm here to learn from the wealth of knowledge within this community. Whether you're a seasoned investor, a curious learner, or a multi-family development expert, I'm excited to engage in thoughtful discussions and expand my understanding of this dynamic field.

I look forward to contributing to and growing with this community.

Best Wishes,

Lovenia Chead

Realtor & Group Home Consultant | Real Estate Investor

Fort Worth, TX

Pros:

1. Stable Income: These facilities often sign longer leases, providing landlords with a more stable and predictable income compared to traditional residential rentals.
2. Higher Rent Potential: Because these facilities generate income through the services they provide, landlords might negotiate a higher rent than standard residential properties, reflecting the commercial nature of the tenant's business.
3. Lower Tenant Turnover: Residential assisted living facilities tend to have lower turnover rates, reducing the frequency of vacancies and the costs associated with finding new tenants.
4. Social Contribution: By renting such facilities, landlords contribute to addressing the growing demand for assisted living and support services, positively impacting their community.
5. Property Maintenance: Tenants in this sector often maintain the property well to comply with regulations and ensure a comfortable living environment for their clients, potentially reducing wear and tear.

Cons:

1. Regulatory and Compliance Issues: Facilities must adhere to strict regulatory and compliance standards, which can involve the landlord in complex legal and zoning issues.
2. Higher Insurance Costs: The nature of the business might require additional insurance coverage, potentially increasing costs for landlords if they are responsible for carrying this insurance.
3. Modifications and Upgrades: Meeting the specific needs of an assisted living facility may require significant property modifications and upgrades, which can be costly.
4. Market Limitations: Should the lease end or the facility close, the specialized modifications made to the property might limit the market for future tenants, potentially requiring substantial investment to revert the property for standard residential use.
5. Operational Oversight: Landlords might need to monitor the facility's operations more closely to ensure compliance with lease terms and local regulations, requiring more hands-on involvement than traditional rentals.

Hey Keisha,

Given your proximity to the auto plant manufacturing area, leveraging that for tenant sourcing is a smart idea. However, if you're looking for payment reliability, I'd recommend a slightly different strategy that aligns well with consistent income.

Partnering with non-profit organizations that support vulnerable populations, like the Veterans Affairs or groups assisting people with developmental disabilities, could be highly beneficial. These groups are often looking for independent living options for their clients, making your property an ideal solution. This approach not only ensures a steady income stream but also provides a significant community service.

As the property owner, you'd likely take on a role similar to a house manager, overseeing day-to-day operations such as grocery deliveries and maintenance, or you could appoint someone to handle these tasks. This keeps you closely involved with the property while ensuring it meets the needs of your tenants.

Many investors have adopted this strategy and found it to be rewarding. Government and non-profit organizations are reliable payers because they're accountable for allocated funds, often with strict deadlines to utilize budgets. This guarantees that rent payments are timely and consistent.

To start, I'd suggest reaching out to social workers and case managers at these organizations. They're constantly in need of suitable housing options for their clients and would likely welcome the partnership.

This could be a golden opportunity for you, Keisha, offering both financial stability and the chance to make a positive impact. If you're interested, I'm more than willing to share more about how to navigate this path based on the successful experiences of other investors.

Pros:

1. Stable Income: These facilities often sign longer leases, providing landlords with a more stable and predictable income compared to traditional residential rentals.
2. Higher Rent Potential: Because these facilities generate income through the services they provide, landlords might negotiate higher rent than standard residential properties, reflecting the commercial nature of the tenant's business.
3. Lower Tenant Turnover: Residential assisted living facilities tend to have lower turnover rates, reducing the frequency of vacancies and the costs associated with finding new tenants.
4. Social Contribution: By renting to such facilities, landlords contribute to addressing the growing demand for assisted living and support services, positively impacting their community.
5. Property Maintenance: Tenants in this sector often maintain the property well to comply with regulations and ensure a comfortable living environment for their clients, potentially reducing wear and tear.

Cons:

1. Regulatory and Compliance Issues: Facilities must adhere to strict regulatory and compliance standards, which can involve the landlord in complex legal and zoning issues.
2. Higher Insurance Costs: The nature of the business might require additional insurance coverage, potentially increasing costs for landlords if they are responsible for carrying this insurance.
3. Modifications and Upgrades: Meeting the specific needs of an assisted living facility may require significant property modifications and upgrades, which can be costly.
4. Market Limitations: Should the lease end or the facility close, the specialized modifications made to the property might limit the market for future tenants, potentially requiring substantial investment to revert the property to standard residential use.
5. Operational Oversight: Landlords might need to monitor the facility's operations more closely to ensure compliance with lease terms and local regulations, requiring more hands-on involvement than traditional rentals.

I know tons of investors who are renting out their properties using this strategy here in Fort Worth. 

it's great to hear about your property renovation! I suggest starting with an unlicensed group home. It's a simpler entry point and aligns well with serving protected classes like veterans, seniors, and single mothers—key to ensuring stability against HOA or city issues.

Begin connecting with non-profits and agencies that help these groups find housing. They're often on the lookout for properties like yours and have the funds but lack real estate connections. This relationship guarantees income, as payments come directly from these organizations, not the individuals.