29 Sep The concept of OPM (Other People’s Money).
One of the most common questions when you decide to invest in a Residential Assisted Living Facility is: “How do I come up with the money to be able to buy this?”
How do you fund your RAL facility? – Tweet this!
To start, understand that it is “residential, it’s a single family home. You know as well as I, you could go to a bank and borrow money on a residential property. The question is, is it owner-occupied or non-owner occupied? So, let’s be real, its non-owner occupied unless you’re 85 and moving in. You’re going to live someplace else, and do business in this location.
Get a residential loan, non-owner occupied. – Tweet this!
With today’s standards, that could be a 20% down payment, still long-term financing, 30 years, and it’s probably going to be just a slightly bit higher than owner-occupied. Instead of 3% to 5%, it might be 4% to 6% depending on your credit status.
FAQ: Could you go to a bank and borrow the first 80% on your residential property, how do you come up with the other 20%, the renovation cost, the caring cost for the business portion?
During our 3-day fast-track live training, we spend a lot of time on Funding. How do you put together a business plan, how do you talk the talk and walk the walk to get somebody to lend you that money you are going to have to come up with if they don’t lend it to you?
The concept of OPM, Other People’s Money.
You borrow money from the bank, that’s OPM. You borrow money from an investor for that down payment and renovation and caring cost, that’s OPM. You can do it with none of your own money, if you know how to present yourself. That’s what we teach our students during the live training or on the online course. They have all the tools and the knowledge and the contacts to be able to do that.
If you’d like to learn more about Residential Assisted Living and how you can get started with your own home, go to RAL Academy.
Do good and do well.
Founder of the Residential Assisted Living Academy.
PS: Schedule your Free 20-Minute Discover Session.