There are three ways to simplify getting started in assisted living right now.
Buy an existing Assisted Living home
The one most people really would love to do this if you can, is buying an existing home that’s already up and running and operational. Some of them are for sale right now, but they’re not good businesses. The reason why they’re selling them is that it’s in the wrong location. It’s too small. You can’t profit. But if I can buy the right business and the right location, paying for that business up and running right now is definitely the best way to simplify the process of getting started.
Partner with someone who is doing it
Now realize there are not that many people that are out there operating residential assisted living homes, but if they are, you could approach them and say, I’m interested in getting involved. Let’s partner together, maybe you’re the one that puts up the money or the real estate or the property and they’re the ones who are going to operate that business itself, that partnership. You bring something to the table, they bring something to the table, could be perfect, but again, I’m gonna encourage you. Don’t partner with somebody unless you need to or it’s important to.
Focus on the Real Estate
You’re the one that buys the home or finds the home. You’re the one who does the renovation and now you’re going to lease it to the operator. So what’s you’re going to get out of it is that long-term lease at a higher than market value. That long-term lease, which means you’re not going to have vacancies and repairs and maintenance. We’re making money there and if it’s at a higher rate, that’s even better, and if it’s a long-term lease that makes it simple for you, but also do it with a profit share so you’re getting a share of the profit. Let them do the work that you get your rent, plus a share of the profit. If the profit is 10, $15,000 a month, maybe you just charge them the regular rent, enough to pay your bills on, but you also get 25 percent of the profit. This way you’re getting best of both worlds. You’re getting a percentage of the cash flow that profit from it. You own the real estate, so you get the appreciation, the depreciation, all the benefits of owning the real estate. What if you want to be the one in control? At the end of the five-year lease, you now have a choice. You could re-up the lease at a different rate, or now that the home has already been established and the businesses already there, you could open it up yourself in your name, and now you’re the one who’s in control. It’s your property. You could now restart that business. Many of those residents won’t be able to move out soon enough anyway so you could walk right into that business and make it your own.
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