Business Model

Assisted Living

As America ages, there is increased demand for options for those who can no longer live independently. Assisted living facilities offer meals and additional supervision for residents, while nursing homes include skilled nursing care 24/7. There are approximately 30,000 assisted living facilities in the U.S. with nearly 1 million beds. The average number of licensed beds in an assisted living community in America is 33. The nursing home industry has roughly 4,000 facilities in the U.S. with around 1.7 million beds. And the demand for these types of properties is growing rapidly.

The business model of assisted living and nursing homes revolves around the physical facility as well as the management of personnel and the welfare of the residents. This is one real estate sector that is extremely reliant on meeting all applicable federal, state and local laws, so it’s vital that you have a complete handle on the requirements of ownership before you get involved.

Rent Land

Marketing

Re-Investment

Business Model

Assisted Living

As America ages, there is increased demand for options for those who can no longer live independently. Assisted living facilities offer meals and additional supervision for residents, while nursing homes include skilled nursing care 24/7. There are approximately 30,000 assisted living facilities in the U.S. with nearly 1 million beds. The average number of licensed beds in an assisted living community in America is 33. The nursing home industry has roughly 4,000 facilities in the U.S. with around 1.7 million beds. And the demand for these types of properties is growing rapidly.

The business model of assisted living and nursing homes revolves around the physical facility as well as the management of personnel and the welfare of the residents. This is one real estate sector that is extremely reliant on meeting all applicable federal, state and local laws, so it’s vital that you have a complete handle on the requirements of ownership before you get involved.

Rent Land

Marketing

Re-Investment

Pros

Huge and growing demand

Perfectly in-line with the megatrend of the Baby Boomers aging

Opportunity to improve the lives of your residents

High yields in turn-around situations

Cons

Extremely management intensive

Extremely management intensive

Life-or-death seriousness of the business model

Market Research

Articles & Reports

INVESTING IN SENIOR HOUSING: A PRIMER

INVESTING IN SENIOR HOUSING: A PRIMER

A recent “Emerging Trends in Real Estate 2019” report named senior housing and care one of the top areas for investment. These sector includes independent living units, assisted living facilities, nursing homes and long-term care facilities. So what is fueling the...

WHERE INVESTING HAS A HIGHER PURPOSE: ASSISTED LIVING

WHERE INVESTING HAS A HIGHER PURPOSE: ASSISTED LIVING

Assisted Living is just that – a property that revolves around providing help to residents in making their daily life more pleasant and rewarding. It’s an interim step between living on their own and living in a nursing home. And it’s a really important step for many...

ASSISTED LIVING: THE ULTIMATE IN CREATIVE DEAL MAKING

ASSISTED LIVING: THE ULTIMATE IN CREATIVE DEAL MAKING

There are few real estate niches that require as much creativity as the assisted living sector. While nursing homes are mostly the bastion of larger institutional players, assisted living is something that even smaller investors can get involved in if they use...

updates

Forums & Deals

Learning about and committing to investing in assisted living nursing homes is only half the battle. The real challenge is finding the right deal to invest in. These resources will help you find the right deal to give a diligence focus and potentially buy. Remember that finding the right assisted living nursing home is all about volume, so the more potential deals you look at the better your odds of finding the right one. Don’t just look at a few options, look at as many as you can find. Success in assisted living nursing home investment revolves around making as many offers as possible.

Education

Books & Courses

Before you risk any capital, your first step is to learn everything you can about how to profitably invest in this niche. To accomplish that, there are both free resources as well as books and courses to aid in your quest for mastery of this real estate sector. We recommend that you take advantage of every opportunity to learn as much as possible before you invest your time and money. The most important trait of a successful investor is being able to quickly separate deals into a “might be an opportunity” stack versus a “not an opportunity”, as well as know the steps to conducting superior due diligence. In niche investing, knowledge is power – so get as much of it as you can.

Providers

Brokers & Lenders

No buyer can succeed without assistance from those who can source deals, as well as finance them.

Brokers are an important part of finding properties to buy. This is their specialty, and they typically have listings that are both “public” as well as “private” (those that they are not allowed to reveal to the public due to restrictions from the seller). Successful buyers contact all of the brokers in their niche to see what listings they may have, as well as to get set up in their email database for announcements of new listings. For a complete list of these brokers click the Learn More button below.

Lenders are the key to successful real estate investing, as it is through the sensible use of leverage that rates of return are maximized. Banks generally all follow the same basic lending principles, but there are certain facts regarding each niche that have to be explored. In many cases – on deals of $1 million or more – you should explore using a loan broker (also known as “capital consultant”) to obtain a loan for you for a fee. This is extremely important on CMBS “conduit” debt and Fannie Mae/Freddie Mac “agency” debt. On deals under $1 million, you should focus on seller financing as well as local banks that know the market and are aggressive in lending to their base. For a complete list of lenders in this niche click the Learn More button below.

OUR MISSION

CREOnline.com has been your trusted source of truthful information for over two decades. You don’t invest in “real estate”, you invest in “niches” and CREOnline is your source to help you make that correct decision and to connect you with the tools, tips, resources, education and training to make your investment a success.

Most Read Posts

  • No results available

CREOnline
Privacy Policy | All Rights Reserved

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Imperdiet sed euismod nisi porta lorem mollis aliquam ut porttitor. Mi bibendum neque egestas congue. Eros donec ac odio tempor orci. In arcu cursus euismod quis viverra nibh. Sit amet purus gravida quis blandit. Aliquam faucibus purus in massa tempor nec feugiat nisl pretium. Sed vulputate mi sit amet mauris commodo quis imperdiet. Posuere ac ut consequat semper viverra nam libero.