Our proven system for investing in residential assisted living shows you how to set up the right systems and team to create success.
It encourages the concept of being hands-off with the day-to-day work of the assisted living home. Many of our students choose to run their businesses with a hands-off approach because it gives them the chance to spend more quality time elsewhere. As a result, owners that use our model are able to invest more time with family and doing the things that truly make them happy.
Taking care of seniors in need of assistance with activities of daily living is a job that we hold in high esteem. Not everyone is cut out for quality senior care.
On the other hand, there are plenty of people who find meaning and passion in this kind of work. It’s those people that you will want to identify and hire to work in your residential assisted living home.
So, the long answer is, yes, you can take advantage of the amazing investment opportunity in residential assisted living without having to directly care for seniors. You simply hire the right people to do the work
If you owned a McDonald’s restaurant and one of your employees calls in sick, you don’t then need to come in and work in their place. Likewise, in residential assisted living the shift manager’s responsibility is to find a staff replacement. In the same way, the Residential Assisted Living Academy gives students the tools needed to hire the right people for your team.
There is, however, a chance that once you see how meaningful it is to care for aging seniors, that you might find yourself interacting with them more than you initially thought.
WHAT ARE THE DIFFERENT WAYS TO INVEST IN RESIDENTIAL ASSISTED LIVING?
There three unique ways entrepreneurs can invest in residential assisted living homes. Owning, operating and/or investing in assisted living is different from a basic real estate investment.
Your goals will determine which approach you should take when investing.
- Operator (hands-on)
One option for investing in a senior living facility is to become an operator and manage the business yourself. Being an operator has many expectations and requirements, but it can be the most profitable. Each state dictates the regulatory requirements for owning an assisted living facility.
The Residential Assisted Living Academy teaches students everything from needed for operating a senior living home nationwide.
- Landlord (hands-off)
Another economically beneficial option is to find an operator seeking to lease property for an assisted living home. This makes your assisted living investment similar to a rental property, with much greater monthly revenue.
There are two common ways to lease a facility to an operator. Many leases are set up like any other commercial real estate lease with the assisted living operator making fixed monthly rent payments to the investor. Another method of leasing to assisted living owners and operators is have each resident pay rent directly to the property owner. This method is seldom practiced and less appealing to the landlord. In this setup, they also pay the operator for their care. Such rent payments provide a good income when the place is full.
Unfortunately, with this method, the income suffers when there aren’t many residents. This method has a lot of upside potential, but less consistency.
The landlord’s income depends on how well the operator runs the business.
- Owner (hands-off)
With this option, the owner sets up the business and hires the right staff and manager to run the day-to-day business. The owner doesn’t need to interact with the residents unless they want to, as their capable staff takes care of everything. Any issues that come up are dealt with by the manager and anything the manager needs approval for is taken to the owner. As long as the systems and procedures are in place and the staff is informed, the owner can be very hands-off with this type of operation.
Additionally, the business owner can elect to hire a management company that would allow you to own the property while somebody else handles all the requirements and runs the business. They are responsible for handling staffing, schedules, finding residents, and all other business operations. All expenses, including staff salaries, are overhead expenses. The management company and the investor split the profits after overhead is paid.
A good assisted living manager will increase profits enough to make the split worthwhile.
STARTING AN ASSISTED LIVING HOME
There are three primary options to start a residential assisted living home.
- Open A New Residential Assisted Living Home
- Buy an Existing Assisted Living Facility
- Invest in an Assisted Living Fund
- Open A New Residential Assisted Living Home
You can start your own assisted living business. You can build or purchase a building and start from scratch with finding staff and residents.
- Buy an Existing Assisted Living Facility
Purchasing an operating facility will give you an assisted living business that already has staff and residents. This allows you to start receiving income right away.
- Invest in an Assisted Living Fund
You can partner with an experienced investor if you don’t want to be an operator or a landlord. This will give you equity in the property and a percentage of the profits from the business. Funds own different asset classes like long term care and senior housing investments.
A-Z TRAINING FOR INVESTING, OWNING, AND OPERATING AN ASSISTED LIVING HOME
During the 3-day course at the Residential Assisted Living Academy, Gene Guarino and his team of experienced experts will help you start your own assisted living business.
You can be involved in the industry hands-on or hands-off – the choice is yours.
The academy will teach you everything from A-Z about investing, owning and operating a senior housing business.
Register today to learn how to run your assisted living business the way that works best for you by clicking here: RALA.
Residential assisted living is reshaping long-term care. Investors and entrepreneurs can take full advantage of this opportunity however they choose to.
Get started with the proper training today, knowing that you can cater the business to your personal desire.
